TATA STEEL
CORPORATE SUSTAINABILITY REPORT
2001-2002
The developing world has two options. The first is to sit back and react only when the
problems arise. The second is to act as conscious citizens and rise above our vested interests
for the sake of future generations, so that history does not record that we deprived them of
their livelihood…
Ratan N Tata
Chairman, Tata Steel
On Sustainability
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
INDEPENDENT ASSURANCE
M/s. PricewaterhouseCoopers (P) Ltd., Mumbai, were asked by the Management of The Tata Iron &
Steel Company Limited (TATA STEEL) to provide an “Independent Assurance” to the Corporate
Sustainability Report for the period 1st April 2001 to 31st March 2002.
The scope included:
•
Review of certain statements and data relating to the Tata Steel’s operations and to provision of
limited assurance in respect of these statements and data;
•
Checking of the internal control system including monitoring and reporting procedures and
whether it is planned expediently to support reliable disclosure in the Sustainability Report;
•
Assessment whether the Report provides an appropriate representation of existing policies in
the areas of human resources, health, safety, security, environment and community involvement;
•
Checking of the data stated at indicators EC3, EN11, EN12, LA7 and SO1 (where SO1 is limited
to the Income Generation activities of TSRDS) in the Sustainability Report 2001-2002 and
whether they are consistent with the activities in the plant areas for the financial period and are
documented and stated in accordance with the guidelines stated under their environmental and
social policies.
The GRI 2002 guidelines
PricewaterhouseCoopers.
provided
the
basis
for
the
independent
assurance
by
On the basis of the work undertaken, PricewaterhouseCoopers provided independent assurance to this
report that stated:
“Nothing came to our attention to suggest that the information cited at indicators EC3, EN11, EN12,
LA7 and SO1 (where SO1 is limited to the Income Generation activities of TSRDS) are materially misstated”.
“The internal control and management systems are modelled on international best practices and on
ISO based quality and environment management system”.
In addition, PricewaterhouseCoopers independent assurance report brought to our notice some
deficiencies. These would provide the basis for improving the following aspects in our governance and
management systems; and reporting for the next reporting periods:
•
Review of adherence to social, environmental and other sustainability policies by the audit
committee of the Board of Directors.
•
Improving data management systems in some areas of operations and establishment and reporting
of Measurement and Reporting Policies for economic, environmental and social information.
•
Stricter adherence to scope and boundary of the reporting entity through out the report.
***
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
CONTENT INDEX
Vision & Strategy
1.1
VS-2
1.2
VS-7
Profile
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
2.10
2.11
2.12
2.13
2.14
2.15
2.16
2.17
2.18
2.19
2.20
2.21
2.22
P-2
P-2
P-2
P-2
P-2
P-2
P-4
P-4
P-6
P-7
P-7
P-7
P-7
P-8
P-8
P-8
P-8
P-8
P-9
P-9
P-9
P-9
Management
System
3.1
MS-2
3.2
MS-7
3.3
MS-7
3.4
MS-7
3.5
MS-7
3.6
MS-7
3.7
MS-7
3.8
MS-9
3.9
MS-9
3.10
MS-9
3.11
MS-10
3.12
MS-11
3.13
MS-11
3.14
MS-12
3.15
MS-12
3.16
MS-12
3.17
MS-14
3.18
MS-14
3.19
MS-14
3.20
MS-20
ANNEXURES
I
A-2
II
A-2
III
A-4
IV
A-5
V
A-8
VI
A-9
Economic
Core
Additional
Monitory Flow Indicator
EC1
EC-2
EC2
EC-2
Suppliers
EC3
EC-2
EC11
EC-2
EC4
EC-2
Employees
EC5
EC-2
Providers of Capital
EC6
EC-2
EC7
EC-2
Public Sector
EC8
EC-3
EC12
EC-3
EC9
EC-3
EC10
EC-3
Indirect Economic Impacts
EC13
EC-3
Environmental
Core
Additional
Materials
EN1
EN-2
EN2
EN-2
Energy
EN3
EN-3
EN17
EN-4
EN4
EN-3
EN18
EN-5
EN19
EN-5
Water
EN5
EN-6
EN20
EN-6
EN21
EN-7
EN22
EN-7
Bio-Diversity
EN6
EN-8
EN23
EN-8
EN7
EN-9
EN24
EN-9
EN25
EN-9
EN26
EN-9
EN27
EN-9
EN28
EN-9
EN29
EN-9
Emissions, Effluents & Wastes
EN8
EN-10
EN30
EN-10
EN9
EN-10
EN31
EN-10
EN10
EN-11
EN32
EN-10
EN11
EN-14
EN12
EN-15
EN13
EN-16
Suppliers
EN33
EN-16
Products & Services
EN14
EN-16
EN15
EN-16
Compliance
EN16
EN-16
Transport
EN34
EN-17
Others
EN35
EN-17
Social
Core
Additional
Employment
LA1
SO-2
LA12
SO-2
LA2
SO-2
Labour/Management Relation
LA3
S0-3
LA13
SO-3
LA4
SO-3
Health & Safety
LA5
SO-4
LA14
SO-7
LA6
SO-4
LA15
SO-7
LA7
SO-5
LA8
SO-6
Training & Education
LA9
SO-7
LA16
SO-8
LA17
SO-9
Diversity & Opportunity
LA10
SO-10
LA11
SO-10
Strategy & Management
HR1
SO-10
HR8
SO-11
HR2
SO-11
HR3
SO-11
Non-Discrimination
HR4
SO-12
Freedom of Asocn. & Colect. Bargaining
HR5
SO-12
Child Labour
HR6
SO-12
Forced & Compulsory Labour
HR7
SO-12
Disciplinary Practices
HR9
SO-12
HR10
SO-12
Security Practices
HR11
SO-13
Indigenous Rights
HR12
SO-13
HR13
SO-13
HR14
SO-13
Community
SO1
SO-14
SO4
SO-25
Bribery & Corruption
SO2
SO-25
Political Contribution
SO3
SO-26
SO5
SO-26
Competition & Pricing
SO6
SO-26
SO7
SO-26
Customer Health & Safety
PR1
SO-26
PR4
SO-26
PR5
SO-26
PR6
SO-26
Products & Services
PR2
SO-26
PR7
SO-26
PR8
SO-26
Advertising
PR9
SO-27
PR10
SO-27
Respect for Privacy
PR3
SO-27
PR11
SO-27
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
Founder Father’s Philosophy……
Founder Fathers’ Direction……..
We do not claim to be more
unselfish, more generous or more
philanthropic than others, but we
think, we started on sound and
straightforward business principles
considering the interests of the
shareholders, our own and health
and
welfare
of
our
Employees……………. the sure
foundation of our prosperity.
“Be sure to lay wide streets planted
with shady trees, every other of a quick
growing variety. Be sure that there is
plenty of space for lawns and gardens.
Reserve large areas for football,
hockey and parks. Earmark areas for
Hindu
Temples,
Mohammedan
Mosques and Christian Churches…”
J N TATA, 1895
Jamshedji N Tata, 1902
Letter written to his son Sir Dorab Tata, of
what his dream city of steel, should look
like.
Group Purpose
Our purpose in Tata is to improve life of the communities we serve. We do this through
leadership in sectors of economic significance to which we bring a unique set of capabilities.
This requires us to grow aggressively in focussed areas of business.
Our heritage of returning to society what we earn evokes trust among consumers,
employees, shareholders and the community. Formalizing the high standards of behaviour
expected from employees and companies will continuously enrich this heritage.
The Tata name is a unique asset representing leadership with trust. Leveraging this asset
to enhance Group Synergy and become globally competitive is the route to sustained
growth and long-term success.
This report has been prepared in line with the
Global Reporting Initiative’s Sustainability
Reporting Guidelines 2002, on Economic,
Environmental and Social Performance. GRI
has not verified the contents of this report. M/s.
PricewaterhouseCoopers have provided an
Independent Assurance to this report. This is the
second Corporate Sustainability Report by Tata
Steel.
Visit us on Tata
Steel’s Website
www.tatasteel.com
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
SECTION-1
VISION &
STRATEGY
CONTENT INDEX
1.1 Organization’s Vision
& Strategy
-
VS2
1.2 Statement from CEO
describing Key Elements
of the Report.
-
VS7
VS
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
1.1
STATEMENT OF ORGANIZATION’S VISION & STRATEGY
What are the main issues of organization related to the major themes of Sustainable Development?
Tata Steel’s Vision (Figure-1.1) guides the
organization towards sustainable development by
setting integrated economic, environmental and
social goals. The Vision steers the organization to
become a knowledge based, learning and happy
organization in 21st century, by establishing itself as a
supplier of choice of the products & services. To
improve the economic performance, Tata Steel shall
optimise the cost by modernization, right sizing,
outsourcing, resource conservation and waste
recycling/reuse. Tata Steel shall maintain the
leadership by excelling in economic, environmental
and social performance through stakeholder
engagement at planning, implementation and post
implementation stages. Tata Steel has introduced
these practices in Tata Business Excellence Model
(TBEM). Stakeholder concerns identified through
engagement processes, elaborated later in this report
are systematically prioritised and integrated into
business decision-making process.
Figure-1.1 – VISION
Tata Steel enters the new millennium
with the confidence of learning,
knowledge based and a happy
organization.
We will establish ourselves as the
supplier of choice by delighting our
customers with our service and our
products.
In the coming decade, we will become
the most cost competitive steel plant
and so serve the community and the
nation.
Where Tata Steel ventures….others
will follow.
How are stakeholders included in identifying sustainability issues?
stakeholders are most affected by the organization?
For each issue, which
Inputs from stakeholders are taken through several structured/formal/informal engagement processes and
considered in setting strategic objectives of the company. Further, details on stakeholder engagement are
furnished in Section-3.10. Figure#1.2 indicates how the sustainability issues have been derived from
stakeholder concerns.
Stakeholder
Shareholder
Concerns of the
stakeholder
Stock Price, Shareholder
Wealth
Long term value
Grievances
Information needs
Strategy/Sustainability issues
which address the stakeholder
concern
EVA positive, EBIT, Dividends,
P/E ratio, Market Share
Top line growth, Reserves/Net
Worth, Brand Value, Customer
Satisfaction,
Employee
Satisfaction, Intellectual Capital,
Social reputation, cost leadership
Complaint/grievance management
Timely availability of above
information
Enhance culture of excellence,
knowledge based and happy
organization, development and
retention of talent, employee
satisfaction
Quality of life in and around the
enterprises
Employees
Professional
growth,
personal growth, health,
safety & environment,
welfare measures, future
business plans
Quality of life
Suppliers
Value creating partnership
and timely payment
Value
creating
partnership,
timely
deliveries
Long-term partnership
Quality of life, health, job
opportunities, education,
Corporate social responsibility,
quality of life of community
Customers
Community
Long-term business relationship,
cost
of
products,
delivery,
complaint resolution
Indicators and actions proposed to address
the stakeholder concern
Weighted Average Cost of Capital (WACC),
Net realization, Working Capital Efficiency
Operating cost, Customer Satisfaction Index,
Corporate
Citizenship
Index,
Employee
Satisfaction Index, Patents and R&D
Transfer of shares, non-receipt of balance
sheet and non-receipt of declared dividend
Quarterly/half
yearly/annual reports and
shareholder meets
Competency coverage ratio, training and
development, knowledge management index,
involvement in Annual Quality Improvement
Plans (AQUIP), number of accidents, work area
environment quality
Corporate citizenship index, compliance with
environmental standards, eco restoration etc.,
employee satisfaction index.
Supplier satisfaction, cost of procurement
Customer Satisfaction Index, customer dissatisfaction, complaint resolution, product
development cycle time, PQI, despatch
compliance
Corporate citizenship index, spend on society,
pollution control
Figure#1.2 – Stakeholder concerns and Sustainability Indicators
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
Through the engagement processes, feedback is obtained from the stakeholders on the issues related to
corporate sustainability as shown in Figure#1.3 below.
Sustainability Issues
Economic
•
EVA positive core business
•
Sustainable growth
•
Invest in attractive new business
•
Divest, merge, acquire
•
Move from commodities to brand
•
Value creating partnerships with suppliers and customers
•
Lowest cost producer of steel
•
Outsource strategically
•
Encourage innovation and freedom to fail
•
Ensure safety and environment sustainability
•
Excel at TBEM
Environmental
•
Resource consumption
•
Emissions, effluents and waste
•
Legal compliances
•
Greening of supply chain
•
Life cycle impact of products
Social
•
Manage knowledge
•
Enthused & happy employees, create leaders who will build the future
•
Unleash people’s potential
•
Improve the quality of life of the communities we serve
Stakeholders Affected
Shareholders, Financial Institutions
Customers
Supplier
Society
Employees
Eco-system
Regulatory Authorities
Suppliers
Customers, Society
Employees
Trade Union, Community
Figure#1.3 – Sustainability Issues & Stakeholders affected
How are these issues reflected in the organization’s values and integrated into its business
strategies?
The organization’s strategy (Figure-1.4) ensures creation of value for all its stakeholders and contributes
towards achieving sustainability goals. The strategy addresses stakeholder concerns (including that of
shareholders) through creation of wealth, customer & suppliers focus on achieving world-class service &
products and achieving cost leadership. It addresses the employee and community concerns through its
desire to create a learning organization and leadership in corporate citizenship.
Deployment of strategy is through focus on lead and lag indicators:
•
Creation of wealth includes improvement in shareholder value, growth in top line that is driven by EVA;
Turn Over, EBIT and profitable growth. These in turn are dependent on WACC, net realization, and
working capital efficiency.
•
Achieving world-class status in service & product through enhancement of customer relationship,
operational excellence and customer satisfaction, which are driven by despatch/delivery compliance,
product development and cycle time, complaint resolution time, enhancement of the buying experience
and development of long-term partnership.
•
Cost leadership by becoming the lowest cost producer and through reduction in family size. This will
be achieved through increase in productivity, decrease in post manufacturing expenses, which inturn
are driven, by rightsizing, energy and resource conservation and reduction in cost of procurement.
•
Creation of a culture of continuous learning and change through emphasis on development of a
knowledge based and happy organization, culture of excellence and attracting and retaining talent.
This is dependent on recruitment, training and development and implementation to HR plans.
•
Industry leadership in corporate citizenship through environmental management, knowledge
management, community care and creation of mechanism for learning and sharing across the
organization.
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
Figure-1.4 : Tata Steel’s Strategy Map
Create Wealth
►Improve
Shareholder
Value
STRATEGIC OUTCOME MEASURES
(Lag Indicators)
PERFORMANCE DRIVERS (lead indicators)
WACC
COST OF BORROWING
EVA
►Grow top line
EBIT / T.O.
NET REALISATION
SALES FROM SEGMENT PPM ANALYSIS
PROFITABLE
GROWTH
Achieve World
Class Status in
Service &
Products
►Enhance
customer
relationship
►Enhance
operational
excellence
►Improve
customer
satisfaction
Reach the
Position of Most
Cost
Competitive
Steel Plant
►Reach lowest
cost producer
►Reduce
family size
Create a
Culture of
Continuous
Learning and
Change
►Knowledge
based org.
►Enhance
culture of
excellence
►Happy org.
►Attract,
recruit, develop,
& retain people
Establish
Industry
Leadership-in
PR&CC
►Improve
quality of life of
Community
CUSTOMER
LOYALTY &
RETENTION
SALES/PROFITABILITY
FROM CHOSEN
SEGMENTS OF PPM
MATRIX
WORKING CAPITAL EFFICIENCY
PRODUCT DEVELOPMENT CYCLE TIME
ENHANCE CUSTOMER RELATIONSHIP
(LT PARTNERSHIP)
CSI
ENHANCE THE BUYING EXPERIENCE
DESPATCH
COMPLIANCY &
ON TIME
DELIVERY
PRODUCT
QUAILTY-PQI
SERVICE LEVELS
TO THE
CUSTOMER
i.e. Customer Cell
COMPLAINT RESOLUTION TIME
PQI OF FLAT/LONG PRODUCTS
RIGHTSIZING
MANPOWER
PRODUCTIVITY
SAL STEEL PRODUCTION
POST MFG.
EXPENSES
SPECIFIC ENERGY CONSUMPTION
COST OF
HRC/CRC
COST OF PROCUREMENT/PRICE
VARIATION
COMPETENCY
COVERAGE RATIO
RECRUITMENT
TRAINING AND
DEVELOPMENT
(Training mandays)
IMPLEMENTATION OF HR
PLAN
PAYMENT TO
SUPPLIERS &
CONTRACTORS
(% Payment within
agreed time frame)
Waste Management
INPUT TO KNOWLEDGE
MANAGEMENT SYSTEM
EMPLOYEE
SATISFACTION
INDEX
IMPROVE QUALITY
OF LIFE OF
COMMUNITY
LEARNING & SHARING
ACROSS ORGANIZATION
CORPORATE CITIZENSHIP
INDEX
TBEM SCORE
POLLUTION CONTROL
INCREASE GREEN
FOLIAGE
IMPROVE ECO SYSTEM
IMPLEMENT & SUSTAIN
ISO-14001 & OHSAS18001
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
The organization subscribes to values like, credibility, excellence, integrity and respect for individuals. The
process of integration of these values into its business strategy is furnished in Figure-1.5.
A
1.EVA positive core
business
2.Sustainable Growth
3.Invest in attractive
new business
4.Divest, merge,
acquire
5.Move from
commodities to
brand
B
1.Value creating
partnerships with
suppliers and
customers
2.Lowest cost
producer of Steel
3.Outsource
strategically
4.Encourage
innovation and
freedom to fail
5.Ensure safety and
environment
sustainability
6.Excel at TBEM
Improving
operational
excellence
Integrity,
Credibility,
Excellence
3 years
3 years
3 years
1 year
1 year
CSI Steel >85%
Top Box Score
45% Supplier
Satisfaction
Index 3.7
Employee Cost
Rs.3100/tcs,
HRC cost
JRDQV Score
>700.
Implement
OHSAS-18001
Sustain ISO14001
1.Manage knowledge
2.Enthused and
happy employees,
create leaders who
will build the future
3.Unleash people’s
potential
Improve HR
effectiveness
Respect for
individuals,
3 years
1 year
ESI Score 3.8
KM Index 100
X
Improve the quality of
life of the
communities we serve
Winning the
admiration
of others
and
providing
safe and
clean
environment to
employees
and society
Credibility
1 year
CCI Score 10
X
C
D
Enhance
shareholder
value
Credibility,
Excellence
3 years
3 years
1 year
3 years
3 years
EVA Steel-0.9%,
Market Capitalization Rs.91.99
Billion, Credit
rating AA+,
Profit from new
business-Rs.800
Million, Share
Holder
Satisfaction
Index-3.7
X
X
X
X
X
X
X
X
X
X
Figure#1.5 – Integration of Tata values into business strategy
VS
Government
Goals/ Targets
Communities
Accomplishment
Timeframe
Shareholders
Values
Partners
Strategic
Challenges
Suppliers
Objectives
Customers
C
O
D
E
Stakeholder Alignment
Employees
Strategic Objectives
5/9
X
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
What are the organization’s objectives and actions on these issues?
To achieve the sustainability goals, the
organization has identified twelve (12) key
enterprise processes (Figure-1.6) critical to the
A
growth and success of the organization.
member of the Senior Management Team
manages each enterprise process. The process
owner and the owners of various sub-processes
under a particular key enterprise process, have
started mapping the stakeholders and identifying
stakeholders concerns through a structured
engagement and feedback process.
These
stakeholder concerns are analysed, prioritised and
integrated with the strategic goals under that
particular process as a part of Corporate
Sustainability Management System. Senior
Management at present tracks the performance of
the targets, taken against each strategic goal,
through a review process under TBEM.
Figure-1.6 : Key Enterprise Process
Sl.
No
1
2
3
4
5
6
7
8
9
10
11
12
Enterprise Process
Leadership
Strategic Planning & Risk
Management
Market Development
Investment Management
Human Resources
Improvement & Change
Management
Order Generation
Operation and Fulfilment
Inbound Supply Management
Research & Development
Information Management
Social Responsibility &
Corporate Services
Process
Owner
MD
MD
DMD (S)
VP (F)
VP (HRM)
MD
DMD (S)
DMD (S)
Chief (SC)
Chief (R&D)
CIO
DMD (CS)
The objectives and targets of the organization related to sustainability issues reflect in the top management
commitment. MD’s Balanced Score Card is presented in Section-3.19. The MD’s Balanced Score Card
serves as a framework within which the top management commitments are cascaded down to the level of
Dy. Managing Director, Vice Presidents, Divisional Heads and Departmental Heads. The Balanced Score
Card prepared at each level is implemented by concerned agencies and reviewed under Tata Business
Excellence Model by Senior Management. MD’s balance score card in line with the strategic goals and
objectives of the organization, delineates the targets with regard to EVA spread, economic profit, ROIC,
spent in new business, customer relationship index, customer satisfaction index, right sizing, knowledge
management, TBEM score, employee satisfaction index, accident reduction, corporate citizenship index and
value of improvement by employees.
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
1.2
From MD’s Desk………
This has been a year of crisis for the world steel industry. Recessionary
conditions in several countries induced stagnancy or reduced demand in
many steel-consuming sectors. The consumption of steel world-wide was
only 80% of global capacity, resulting in curtailed output from steel plants
worldwide, along with a significant reduction in steel prices. The situation
has been so critical that even the U.S., one of the world’s largest consumer
of steel, imposed unprecedented trade barriers to protect its domestic steel
producers against imports.
The continued economic slow-down in India, exacerbated by the global
steel glut, also impacted the Indian Steel Industry in terms of demand and
price erosion. In this difficult environment, Tata Steel performed well.
Although domestic steel consumption in India grew marginally, the
Company was able to increase its domestic sales volumes by 7%.
Tata Steel’s major focus during the year has been on building its market position in high end Cold Rolled
Steel products, and establishing its branded products in the market place, in order to distinguish itself from
other commodity steel producers. Unfortunately, while the Company was able to increase its sales volumes
and market share, its margins came under enormous pressure due to the substantial erosion of steel prices,
which were at a five year low. Ongoing initiatives in the areas of cost reduction, productivity increases and
market development enabled the Company to retain its competitive position. As a result, the company has
turned in reasonable financial performance with net sales lower by 2%, and decrease in profit before tax by
58.3% and lower dividend payout at 40% compared to 50% during 2000-2001. Our status of “Best Steel
Company in the World” slides down to 3rd position as per the survey conducted by World Steel Dynamics,
USA. Details of financial performance are furnished in the Section on Economic Performance.
The first year of the new top management team in Tata Steel has, without doubt, been a challenging one.
However, the greatest strength of Tata Steel has been the spirit of its people and their ability to face
unbelievable challenges – and overcome them. It is this spirit and this commitment of the entire work force
that has enabled the Company to even maintain a profitable position while other steel producers have not
been able to do so. Throughout the year, the support, understanding and leadership shown by the Tata
Workers’ Union and other Trade Unions in remote locations, has been a major factor in enabling the
Company to achieve its goals.
Tata Steel is fully aware of the impacts of its activities, products and services on the environment at global
scale. The company’s endeavour is not limited to compliance with applicable legislation but also
minimization of process waste and optimisation of recovery and recycling of waste materials, phasing out of
pollution prone old units, installation of state-of-the-art technology for preservation of environment. We are
committed to continual improvement in environment performance, which we address through setting at every
stage of production and services, sound environmental objectives and targets and by integrating a process
of review, as essential element of Corporate Management. Tata Steel Main Works has already secured an
ISO-14001 certification. Other facilities like, Ferro Alloys Plant, Tubes Division, Sukinda Chromite Mines,
Noamundi Iron Mines, West Bokaro Collieries and Joda East Iron Mines are also certified for compliance to
the requirement of International Standard ISO-14001. Jamshedpur Township, Bearing Division and Jharia
Collieries are in advance stage of ISO-14001 certification.
Tata Steel was able to improve the environment by achieving a reduction in Greenhouse Gas (GHG)
emissions by 9.0% (against a target of 5%) and specific energy consumption by 1.8% (against a target of
4%). In line with our commitment to set new standards for emissions and discharges in steel making, we
continue to exceed regulatory compliance standards. We reduced the raw material consumption by 10.8%
(against a target of 5%), water consumption by 10.2% (against a target of 5%) and increased waste reuse
and recycling from 70.2% to 72.6% (against a target of 72%) during the year. The details of environmental
performance are furnished under Section on Environmental Performance.
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TATA STEEL – CORPORATE SUSAINABILITY REPORT (2001-2002)
Tata Steel in the face of numerous adversities has been able to consistently create value for its
stakeholders. Tata Steel has always recognized the interaction and interdependence of economy,
environment and society, and accordingly has instituted mechanism to continually engage its key
stakeholders including customers, suppliers, employees, community and shareholders. The thrust on cost
leadership as well as pressure on bottom-line shall result in renewed pressure for right sizing of the
corporation. This must be accompanied with improved productivity across the organization. Our initiatives
and investments in employees Safety, Health and Quality of Life results in improved employee morale and
motivation. The resultant outcome is an employee retention rate of 98% and Employee Satisfaction Index
(ESI) of 3.64/5 for Supervisors and 3.75/5 for Officers.
We are alive to the growing consciousness in the society and the consequent increased environmental and
social activism. This places an increased responsibility on Tata Steel to not just perform but also to
demonstrate and communicate its responsible environmental & social performance to the stakeholders.
This is of even greater relevance in light of the high premium on the Tata Steel Brand. In the year under
review, the Company, continuing its thrust as a good corporate citizen, has concentrated ona) Relief in parts of India which are affected by
c) Empowerment; family initiatives and
natural calamities;
d) Sports and Adventures
b) Community and rural development;
The Company’s social commitments involve a network of development programmes. As a good corporate
citizen, the Company has identified itself with the growth and development of the nation, aiding it in times of
natural calamities and providing benefits to the needy. Tata Steel shared nearly Rs.392 Million of the wealth
it generated for the welfare of the people.
We need to improve our performance further to just maintain our standing in light of emerging difficult
economic environment. We must therefore strive to increase during 02-03 EVA from (-) 8.12% to EVA+;
operating profit by 100% and CCI to 10. To achieve these objectives we must target a reduction in specific
energy consumption by 5% and raw material consumption by 5% during next year. Further, in keeping with
our commitment to consistently better our environmental performance as also to improve cost reduction, we
must strive to reduce water consumption by 5%, SPM emissions by 3%, GHG emission by 5%, Waste
utilization to 80% from existing 72%, during 2002-2003.
Today there are multiple challenges to business. We see major challenges ahead of us in integrating
responsibilities for financial performance with those for economic, environmental and social performance.
We have addressed the issue partially, through integration of our environmental and social performances in
business decision making process through stakeholder engagement process.
In order to address these challenges the company had revisited the Vision in the month of May 2002. The
vision is called VISION-2007, which sets forth the direction for next five years. Vision-2007, stresses upon
the company to become EVA(+) in order to meet the expectations of its shareholders and other stakeholders
including the employees, the Government and the Society. To continue to improve the quality of life of its
employees and the community served by the organization is another part of Tata Steel’s Vision for
sustainable development. The Vision-2007 Statement is furnished in Figure-1.7. The initiatives to fulfil this
Vision will, I believe, enable our Company to face the global challenges ahead, both within India and in
overseas markets.
It has been our endeavour to blend corporate goals with corporate sustainability, a hard-core professional
approach with a warm personal touch and to synergise the energies of talent and technology. Our efforts
have reaped rich dividends. They have driven us further in our pursuit of enhancing shareholder value, .the
value that shows in our bottom line and your trust in us. The value that will translate into progress, prosperity
and promise. And we will spare no opportunity to make Tata Steel an EVA Positive, environmentally and
socially responsive organization.
B Muthuramam
Managing Director
VS
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
Figure#1.7 (VISION-2007)
VS
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
SECTION-2
PROFILE OF
ORGANIZATION
CONTENT INDEX
•
Organization Profile
P2
•
Report Scope
P7
•
Report Profile
P8
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
ORGANIZATIONAL PROFILE
2.1
Name of Reporting Organization:
The Tata Iron & Steel Company Limited
2.2 Major Products & Services, including Brands
The major products and services in the scope of this report include, Billets, Blooms & Slabs, Wire Rods
and Re-Bars, Forging Quality Steel, Hot and Cold Rolled Sheets, Hot and Cold Rolled Coils, Galvanised
Coils and Sheets, Hot Rolled Plates, Standard Pipes, ERW Precision Tubes, Closed Structural, Rolled
Rings, Forged Rings, Machined Rings, Bearings, Agricultural Implements, Coal & Coke, Iron Ore,
Dolomite, Ferro Alloys, Chrome Ore & Chrome Concentrate. Tata Steel is also engaged in providing
services like, Project Studies, Design & Engineering, Personnel and Technical Training, Automation and
Information Technology Services with its vast experience to other organizations.
To enhance the net realisation, the company, apart from improving the product mix, is increasingly
differentiating its products through “Branding” beginning with TATA TISCON reinforced bars and TATA
SHAKTI galvanised corrugated sheet. Products manufactured at different locations reach the consumer
end through direct despatch or through a network of retailed stockyards located in all major cities in
India. Customised products are also delivered to end users through various conversion agents.
2.3 Operational Structure of Organization
Board of Directors
Mr. R N Tata (Chairman)
Mr. Keshub Mahindra
Mr. S A Sabavala
Mr. Mantosh Sondhi
Mr. Nusli N Wadia
Mr. S M Palia
Mr. P K Kaul (Financial Institutions’ Nominee)
Mr. Suresh Krishna
Mr. Kumar Mangalam Birla
Mr. Ishaat Hussain
Dr. Jamshed J. Irani
Mr. B Jitender (Financial Institutions’ Nominee)
Mr. B Muthuraman (Managing Director)
Dr. T Mukherjee (Whole-time Director)
Mr. A N Singh (Whole-time Director)
The organization structure is furnished in
Figure#2.1.
2.4 Description of major Divisions / Operating
Companies / Subsidiaries & Joint Ventures.
Head Office – Mumbai, Maharastra, India.
Plant Locations:
Company’s Steel Works
Tubes Division
Ferro Manganese Plant
Charge Chrome Plant
Cold Rolling Complex
(West)
Noamundi Mines
Joda & Sukinda Mines
West Bokaro &
Jamadoba Collieries
Dodkanya
Marketing offices and
Stock Yards
Jamshedpur (Jharkhand)
Jamshedpur (Jharkhand)
Joda (Orissa)
Bamnipal (Orissa)
Tarapur (Maharashtra)
States of Jharkhand,
State of Orissa
State of Jharkhand
State of Karnataka
New
Delhi,
Ghaziabad,
Kanpur, Patna, Kolkata,
Mumbai,
Nagpur,
Bangalore,
Kochin,
Gowahati & Chennai.
2.5 Country in which
operations are located
the
organizations
The operations of the organization are located in
India only.
2.6 Nature of Ownership, Legal form.
Tata Steel’s (a Public Limited Company) headquarter is based in Mumbai, Maharastra, India. Its stock is
listed and traded on Stock Exchanges located at Mumbai, Kolkata, Pune, Kochin, New Delhi, Kanpur,
Patna, Ahmedabad. Global Depository Receipts (GDR) issued by the company in the International
market have been listed on the Luxembourg Stock Exchange. As on 31.03.02, there were 367,771,901
ordinary shareholders (Rs.10.00 per share) and 14,000,000 preference shareholders (Rs.100/- each).
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
Figure#2.1 Operational Structure of
Managing Director
Mr. B Muthuraman
Organization
Upper Management
VP (Finance)
Mr. R C Nandrajog
CFC-Corporate
HeadsCorp. Taxation
Treasury, SAP
Corporate
Accounting
Quality
Management
Structure
PEO
DMD (Steel)
Dr. T Mukherjee
EIC (Engg. Services &
Products)
EIC (R&A), EIC (Brg.),
EIC (Sec. Prod.),
EIC (TGS), Chief
(Engg.), Chief (Proj)
EIC (TKM)
Chief-R&D and Sct. Svc.
Chief-Improvement Group
Chief-Energy Management
Chief-Safety & Environment
Senior Management
EIC (Tubes)
Chief (ITD)
EIC – RM/IM
GM-West Bokaro
GM-OM&Q
GM-Jharia
Chief-Coke, Sinter Iron
Chief-IMTG
Chief-Geological Svcs.
Resident
Representative
Chief (SPACM)
Chief (Strategic
Finance)
EIC-Long Product
Chief-M&S(LP)
Chief-LD#1, BM
Chief-WRM, LPTG
Chief-MM, Refrac.
Chief-LP (Plg.)
DMD (Corp.
Svcs)
Mr. A N Singh
VP (HRM)
Mr. N Mohanty
EIC (FAM), CIO,
Chief (TC-TF), GM
(Town), GM
(Medical), Chief
(CC), Head-SS&FI,
Chief-Security
Chiefs of-HR/IRSteel, HR
Implement
Organization
Learning &
Development
EIC-Flat Product
Chief-M&S (FP)
Chief-LD2&SC
Chief-HSM, CRM
Chief-FP (Plg)
Chief-FPTG
Chief-CRC(W)
EIC-Shared Services
Chief-Mech. Maint.
Chief-Elect. Maint.
Chief-Automation
Chief-Spares & Svcs
Chief Technology
Officer
Chief Corp. Audit
Ethics Counsellor
Chief (TitaniumTask Force)
Chief (Rural Mktg)
Chief (Business
Excellence)
Chief-Supply Chain
Chief-CSD
Chief-MRO
Chief-Strategic Sourcing
Chief-Raw Matl.
Procurement
Chief-EPA & Logistics
Comm.
Departmental Heads (Chiefs / Heads)
Middle Management
Sectional Heads (Unit Leader / Manager / Officers)
Apex BE
Council,
MD, DMD/
VPs, EICs,
Chiefs (Bi
Monthly)
BE Corporate
Councils
DMDs// VPs,
Chiefs, GMs
(Bi monthly)
Union
Management
Joint Bodies
JCCM /
JWC
JWQC
BE Councils
GMs/ Chiefs
(Bi Monthly)
BE
Divisional/
Deptt.
CouncilsMR Meetings
Chiefs/
Heads/
Sectional
Heads
(Monthly)
JDC
Shop Floor
Employees
Abbreviation:
BM – Bar Mill; CIO – Chief Information Officer; CSD – Customer Services Division; HR/IR – Human Resources & Industrial Relations; IMTG – Iron Making Technology Group;
ITD – International Trade Division; TIL – Tata International Limited; M&S – Marketing & Sales; OM&Q – Ore Mines & Quarry; SS&FI – Social Services & Family Initiatives;
TC-TF - Thermal Coal Task Force
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
2.7
Nature of Markets Served
The products manufactured by Tata Steel cater to the consumer sectors such as Auto / Auto ancillaries,
consumer durables, construction/infrastructure, capital goods, general engineering and railways. Typically
85% of the production is sold in the domestic market and balance is exported. The customer services
include application engineering support and visits by customer application managers to provide solutions to
the industry.
2.8 Scale of reporting organization
Net Sales & Other Financial Indicators
No. of Employees (as on 01.04.02)
Direct – 46,234
Temporary – 1800
Contractors/Partners – 12,500
Products Offered
Class of Products
Total Saleable Steel
Cold Rolled Coils
Ferro Manganese & Silico
Manganese
Welded Steel Tubes
Cold Rolled Strips
Carbon & Alloy Steel
Bearing Rings, Annular
Forgings & Flanges
Metallurgical Machinery
Installed
(1)
Capacity
(Tonnes)
3,320,000
3,280,000
100,000
100,000
30,500
30,500
185,000
185,000
15,800
15,800
5,250
5,250
-
(5)
Rupees
Million
01-02
Production
(2)
(Tonnes)
(3)
3,635,592
3,429,697
103,669
118,871
31,792
35,594
(4)
173,643
171,806
3,032
2,584
8,271
5,671
(6)
Alloy Steel Ball Bearing
14,628,778
Rings
13,999,787
Bearings
17,623,049
16,354,827
Charge Chrome
44,059
35,016
Metallurgical Machinery
8,271
5,672
(1)
As certified by the Managing Director and accepted
by the Auditors.
(2)
Including production for works use and for
conversion by the third parties into finished goods
for sale but excluding 5,467.41 tonnes (2000-2001:
44,251.95 tonnes) of CRM products produced
during the trial run period.
(3)
Including semi-finished steel produced 565,588
tonnes (2000-2001: 646,957 tonnes) and steel
transferred for manufacture into Tubes C.R.Strips
at Company’s Tubes Division 211,050 tonnes
(2000-2001: 209,647 tonnes) and steel transferred
for manufacture of Cold Rolled Coils at the
Company’s Cold Rolling Mill Division 106,165
tonnes (2000-2001: 90,556 tonnes).
(4)
Including Tubes used in the manufacture of Tubular
Steel Structures and Scaffoldings.
(5)
There is no separate installed capacity.
(6)
Including rings transferred for manufacture of
Bearings.
nd
2 row of Figures in blue colour are for FY 2K-01.
20,500,000
20,500,000
25,000,000
15,000,000
50,000
50,000
(a) Net Sales/Income
(b) Total Expenditure
(c) Operating Profit
(d) Add : Dividend & Other
Income
(e) Profit before Interest,
Extraordinary items & Taxes
(f) Less : Interests
(g) Profit before Depreciation,
Extraordinary items & Taxes
(h) Less : Depreciation
(i) Less : Extraordinary items
(j) Less : Extraordinary items
(k) Profit before Taxes
(l) Less : Provision for Taxes
(m) Less : Provision for Deferred
Taxation
(n) Profit after Taxes
(o) Add : Transfer from
Debenture Redemption
Reserve
(p) Add : Transfer from Investment Allowance (utilized)
Reserve
(q) Less : Transfer to debenture
Redemption Reserve
(r) Less : Transfer to Capital
Redemption Reserve
(s) Add : Balance brought
forward from the previous
year
(t) Balance
Which the Directors have
appropriated as under, to:
(i) Interim Dividend on
Preference Shares
(ii) Interim Dividend on
Ordinary Shares
(iii) Proposed Dividend
(iv) Tax on Dividend
(v) Contingency Reserve
(vi) General Reserve
TOTAL
Leaving a balance of to be
carried forward
76074.8
63363.0
12711.8
856.3
Previous
Year
Rupees
Million
2K-01
77594.4
60524.4
17065.3
506.1
13568.1
17571.4
3697.5
9870.6
3766.1
13805.3
5247.5
4623.1
2113.1
2510.0
155.0
306.0
4922.5
8882.8
2858.4
6024.4
495.0
-
2049.0
3100.0
5534.4
-
755.5
-
1000.0
1400.0
100.0
4504.5
4434.4
2147.6
1889.3
6652.1
6323.7
20.7
122.0
1471.1
-
02.1
3000.0
4493.9
2158.2
1838.9
215.2
1000.0
1000.0
4176.1
2147.6
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
BALANCE SHEET AS AT 31ST MARCH, 2002
FUNDS EMPLOYED
01
02
03
04
05
06
07
08
09
10
Rupees Million
SHARE CAPITAL
RESERVES AND SURPLUS
TOTAL SHAREHOLDERS’ FUNDS
LOANS
a) Secured
b) Unsecured
c) Total Loans
DEFERRED TAX LIABILITY (NET)
PROVISION
FOR
EMPLOYEE
SEPARATION COMPENSATION
TOTAL FUNDS EMPLOYED
APPLICATION OF FUNDS
FIXED ASSETS
a) Gross Block
b) Less – Depreciation
c) Net Block
INVESTMENTS
A) CURRENT ASSETS
a) Stores and spares parts
b) Stock-in-trade
c) Sundry debtors
d) Interest accrued on investments
e) Cash and Bank balance
B) LOANS AND ADVANCES
11
12
13
14
Less : CURRENT
PROVISIONS
a) Current Liabilities
b) Provisions
LIABILITIES
Rupees Million
3679.7
30779.9
34459.6
As at 31.03.2001
Rupees Million
5079.7
43804.6
48884.3
47078.2
13903.5
9895.0
41299.6
5422.6
46722.2
8831.3
105336.3
104437.8
75437.0
9127.4
112581.7
37200.8
75380.9
8469.2
40569.3
6508.9
117424.4
41987.4
3440.0
6775.9
10736.6
01.0
2191.0
23145.5
7808.4
30953.9
2394.9
6822.8
12793.1
0.9
2392.3
24404.0
7852.1
32256.1
16675.5
3396.4
20071.9
10882.0
9889.9
17123.8
3747.5
20871.3
11384.8
9202.9
105336.3
104437.8
AND
NET CURRENT ASSETS
MISCELLANEOUS EXPENDITURE (to the
extent not written off or adjusted)
Employee Separation Compensation
TOTAL ASSETS (Net)
Contingent Liabilities
NOTES ON BALANCE SHEET AND
PROFIT AND LOSS ACCOUNT
Dividend
Preference Shares – The Board had declared a proportionate interim dividend of Rs.1.48 per share on
14,000,000 8.42% Cumulative Redeemable Preference Shares for the period 1st April 2001 to 3rd June,
2001. These Preference Shares were redeemed on 4thJune, 2001.
Ordinary Shares – The Board had declared an interim dividend on Ordinary Shares @ 40% (Rs.4.00 per
share) for the year ended 31st march, 2002. Keeping in view the interim dividend, the Directors decided not
to recommend any final dividend. The interim dividend will be paid as follows;
On 367,777,901 Ordinary Shares at Rs.4.00 per share, subject to tax (2000-2001: Final dividend on
367,771,901 Ordinary Shares at Rs.5.00 per share).
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
2.9 List of Stakeholders, key attributes of each and relationship
Procurement of goods and services from external agencies amount to Rs.24.75 Billion per annum. Of the
2,200 suppliers who service Tata Steel’s needs, about a seventh are the vendors who account for 85% of
the Company’s total spend.
A list of few customers in the targeted sector and their requirements are furnished in Figure#2.2.
Key
Segment
Auto (Trucks)
Cold
rolled
for
chains,
hacksaws
Cylinder
manufacturers
Auto components
Auto direct
Appliance
Distribution
Residential &
project
construction
Key
Customers
Tata
Engg.,
Ashok
Leyland
ASIL,
Hero,
TPL, ITW
Maurya
Udyog, Verny,
Haldia
Pecision
Wheels India,
Kalyani
Lemmerz,
Toyota,
Hyundai
TELCO,
FORD, Maruti,
Daewoo,
Escorts
Whirlpool,
Voltas,
OG,
Samsung
Individual
customer
through
distributors
Gammon,
DLF, Chevron
Main Product
Key product requirement
HR for LM/CM
Chemical and physical properties
conforming to specifications
Tailor made supplies
HR for
MC/HC
Good
surface,
consistent
dimensional tolerances, physical and
chemical properties
No. of surface defects, guaranteed
yield of cylinders per ton of sheet,
Formability.
Committed delivery of small lot
orders
Chemical and physical properties
Material through EPAs, Tech.
Support, committed delivery
Superior surface quality and cleaner
strip surface
Customised delivery support, App.
Engg. Support (AES)
DD,
Galvanised
CR
GP/GC
Better
flatness,
galvanised sheet
Order management, complaint
handling, App. Engg. Support
Better thickness and width tolerance,
mechanical property
Distribution Management
Tata TISCON
(Re-bar)
Mechanical properties, specification
as per BIS appearance
Customised length, availability of
all sizes
CR
HR for LPG
HR for CF
EDD &
grade CR
IF
zero
spangle
Key service requirements
Cut to length, delivery at short
notice, credit
Figure-2.2 :Few key customers in targeted segments and their requirements
Figure-2.3 – Key products, suppliers and partners
Key Products
Oxygen
Rolls
Refractories
Packaging
Key Supplier / Partner
BOC
TAYO
TRL
ITW
Coal
BHP
Key Services
EPAs
Steel
distribution –
CAS
DS
Compound
Key Supplier / Partner
Saizer & Frontline
Tata Ryerson, BMW, POS Hyundai, Usha Martin
R. Pal, Naresh Kumar & Co., G Bihani, Sukesh Enterprises
JAMIPOL
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
Tata Steel has a committed workforce of 46,234
personnel
(as
on
1.4.2002-Figure-2.4)
Employees are classified as Officers (OPR),
Supervisors and Workers. Supervisors and
Workers are organized into an independent
Trade Union (refer Section LA3 also) (Non-OPR)
with democratically elected representatives at all
locations. Figure-2.1 shows the organizational
structure. Tata Steel has 1974 engineers, 554
MBAs, 46 PhDs, and persons with degrees in
technical areas of relevance to the operations.
Contract labour is used in the areas of project
execution and other activities.
Figure-2.4 – Location-wise
employees (as on 01.04.2002)
The Community & Society within 10-30 km area
around Tata Steel enterprises is taken care by
the organization for the requirements like health
care, women empowerment, family initiatives,
vocational training, development of sports &
culture and income generation.
The villages communities are selected based on
the current level of developmental needs,
interventions and emerging issues e.g. wasteland
development, irrigation facilities & income
generation. Year wise comparison of various
activities in community shall be furnished from
next year.
REPORT SCOPE
2.10
Contact Person(s)
Location
MD’s Office & Admn.
Steel
Works
&
Marketing
Mines & Collieries
Tubes Division
Rings & Bearing
Corporate Services
Ferro Alloys
Growth Shop
Human
Resource
Management
TOTAL
break-up
of
Total
960
19810
Officers
346
1766
Non-OPR
614
18044
14341
1789
1286
4997
1596
779
676
675
132
144
666
206
129
214
13666
1657
1142
4331
1390
650
462
46234
4278
41956
2.11 Report Period (e.g. fiscal/calendar year)
1st April 2001 – 31st March 2002
Mr. Sanjay Choudhry
Head Corporate Communication
TATA STEEL
Jamshedpur, INDIA
2.12 Date of most recent previous report
Telephone# 91657 2431142
Fax#
91657 2425182
The report is limited to Tata Steel’s operation in India including
Head Quarter, Steel Works at Jamshedpur, Marketing Offices,
Service Centres and retail outlets in India. The performance of
subsidiary companies and business partners including
conversion agents and external processing agents are not
included in this report. For next 2-3 years Tata Steel will
continue to report for its own operation in India and
subsequently it plans to report for subsidiary companies also.
The subsidiary companies of Tata Steel are Tata Refractories
Ltd., Tata Pigments Ltd., Kalimati Investment Company Ltd.,
Tata Korf Engineering Services Ltd., Tata Incorporated, New
York, Stewards & Lloyds of India Ltd., Tata SSL Ltd., Tinplate
Co. of India, TRF Ltd., Tata Yodogawa Ltd., Neelachal
Refractories, Tata Ryerson & Tata Metallic Ltd.
Email# sanjays@lot.tatasteel.com
Email# sanjayssingh@asia.com
Mr. R P Sharma
Head, Environment Management
TATA STEEL
Jamshedpur, INDIA
Telephone# 91657 2424125
Fax#
91657 2424098
Email# rps@lot.tatasteel.com
Email# rps@tatasteel.com
1st April 2000 – 31st March 2001
2.13 Boundary of report
The information encompassing entire reporting entity could not
be presented for certain indicators. The scope limitations have
been indicated at the relevant locations. In the future reports
these gaps will be progressively bridged.
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
2.14 Significant changes since the previous report.
Organization has undergone a major restructuring of its management hierarchy from 16 levels to 5
levels, Level-1 being the top management and Level-5 the line managers. With regard to technological
changes “F” Blast Furnace was upgraded from 0.6 million ton/annum of hot metal production to 1.0
million ton per annum in the same location. The reporting scope has also undergone the change. All the
production units, marketing offices, stockyards, have been included in the scope of the report, while the
previous report was limited to Steel Works at Jamshedpur.
Capital Projects
The Continuous Galvanising Line#2 of the Cold Rolling Mill went into commercial production from 1st
July 2001. During the year, the Company incurred capital expenditure of Rs.5350 Million. Capital
expenditure was restricted to only essential items of replacements / renewals. Work on rebuilding and
up-gradation of Blast Furnace “F”, which commenced in Feb. 2002, was completed in May 2002. The
capacity of the Blast Furnace, as a consequence, has increased from 0.6 to 1.0 million tonne.
Acquisitions
After Tata SSL Limited became a Subsidiary of the Company last year, the Company made two more
Open Offers through which its shareholding in Tata SSL Limited as on 31st March 2002, increased to
79.33%. Kalimati Investment Co. Ltd., which is a 100% subsidiary of the Company, holds a further
14.79% bringing the total shareholding to 94.72%.
2.15 Basis for reporting on joint
ventures,
partially
owned
subsidiaries…
This report does not include these
entities in its scope. The information
regarding joint ventures and partially
own subsidiaries shall be progressively
included in the future reports.
2.16 Explanation of the nature and effect of any restatements of information…
Reporting scope has undergone change as mentioned in
2.14. More over certain indicators like, water consumption
are reported on per tonne of crude steel (tcs) basis
excluding power generation as per IISI guidelines. In the
earlier report it was on per tonne on saleable steel basis
including water consumption in power generation.
REPORT PROFILE
2.17 Decisions not to apply GRI principles…
Generally reported as per GRI guidelines 2002.
2.18 Criteria/definitions used…
GHG protocol guidelines are used for GHG emission reporting. Financial Reports are prepared as per
the guidelines provided in Company Law in India.
Monitoring, measurement and calibration is carried out as per relevant Indian standards. Documentation
& communication are done as per the requirement of ISO-9001 & ISO-14001.
The norms and procedures prescribed for workplace safety & environment by Ministry of Environment,
Ministry of Labour & Welfare (Factories Act) are followed in conducting the business at Tata Steel.
These Acts include Water Act, Air Act, Environment Protection Act, Factories Act, Explosive Act,
Petroleum Act, Electricity Rules, Workmen Compensation Act, Public Liability Insurance Act, Hazardous
Waste Management & Handling Rules, Hazardous Chemicals Manufacturing & Handling Rules.
Details of these Standards, Acts & Rules where relevant are furnished in the glossary (Annexure-VI).
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
2.19 Significant changes from previous years
in the measurement methods…
•
Assessment whether the Report provides an
appropriate representation of existing policies
in the areas of human resources, health, safety,
security,
environment
and
community
involvement;
Checking of the data stated at indicators EC3,
EN11, EN12, LA7 and SO1 (where SO1 is
limited to the Income Generation activities of
TSRDS) in the Sustainability Report 2001-2002
and whether they are consistent with the
activities in the plant areas for the financial
period and are documented and stated in
accordance with the guidelines stated under
their environmental and social policies.
None.
2.20 Policies and internal practices
enhance and provide assurance…
to
•
Economic - quarterly financial audit is conducted
by approved auditors.
Environment - the company is ISO-9001 and
ISO-14001 certified. Quality and environment
audits are conducted by Internal Auditors halfyearly and yearly by External Auditors.
Society - social audits are conducted once in
every 10 years by a Bench of External Auditors
by eminent personalities from judiciary, social
organizations and financial institutions appointed
by the Company Board.
The GRI 2002 guidelines provided the basis for the
independent
assurance
by
PricewaterhouseCoopers.
The organization is currently implementing
OSHAS-18001 Standard for Occupational Health
& Safety Management in all its Units.
On the basis of the work
PricewaterhouseCoopers provided
assurance to this report that stated:
2.22 Means by which report users can obtain
additional information …
“Nothing came to our attention to suggest that the
information cited at indicators EC3, EN11, EN12,
LA7 and SO1 (where SO1 is limited to the Income
Generation activities of TSRDS) are materially misstated”.
Additional
information
on
Economic,
Environmental & Social performance of the
organization can be made available on request
from the contact persons indicated under 2.10.
This report is also available on Tata Steel
Internet Website (www.tatasteel.com) & Tata
Steel Intranet.
2.21 Policy and current practice with regard to
providing independent assurance…
M/s. PricewaterhouseCoopers (P) Ltd., Mumbai,
were asked by the Management of The Tata Iron
& Steel Company Limited (TATA STEEL) to
provide an “Independent Assurance” to the
Corporate Sustainability Report for the period 1st
April 2001 to 31st March 2002.
The scope included:
• Review of certain statements and data
relating to the Tata Steel’s operations and to
provision of limited assurance in respect of
these statements and data;
• Checking of the internal control system
including
monitoring
and
reporting
procedures and whether it is planned
expediently to support reliable disclosure in
the Sustainability Report;
undertaken,
independent
“The internal control and management systems are
modelled on international best practices and on
ISO based quality and environment management
system”.
In addition, PricewaterhouseCoopers independent
assurance report brought to our notice some
deficiencies. These would provide the basis for
improving the following aspects in our governance
and management systems; and reporting for the
next reporting periods:
•
•
•
Review of adherence to social, environmental
and other sustainability policies by the audit
committee of the Board of Directors.
Improving data management systems in some
areas of operations and establishment and
reporting of Measurement and Reporting
Policies for economic, environmental and
social information.
Stricter adherence to scope and boundary of
the reporting entity through out the report.
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
SECTION-3
GOVERNANCE
STRUCTURE &
MANAGEMENT
SYSTEMS
CONTENT INDEX
•
Structure & Governance
MS02
•
Stakeholder Engagement
MS09
•
Over Arching Policies &
Management System
MS11
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
STRUCTURE AND GOVERNANCE
3.1
Governance structure of the organization, including major committees under the Board of
Directors that are responsible for setting strategy and for over-sight of the organization.
3.1.1
A brief statement on Company’s philosophy on Code of Governance
The Company, while conducting its business has been upholding the core values of Tata’s i.e.
transparency, integrity, honesty, accountability and compliance to regulatory requirements. The
Company remains committed to laying strong emphasis on Corporate Governance (in accordance
with the Clause#49 of the listing agreements entered into with the stock exchanges) in all its dealing
which is an important instrument for the shareholders’ protection. There is no separate committee
on the Board to discharge the responsibility exclusively for environmental and social performance,
though the same is monitored through MD’s Balance Score Card (Figure-3.5) and monthly
compliance reports submitted to the Board.
3.1.2
Board of Directors
The Company has a non-executive Chairman and the number of Independent Directors is more than
one-third of the total number of Directors. The number of Non-Executive Directors (NEDs) is more
than 50% of the total number of Directors. None of the Directors on the Board is a Member on more
than 10 Committees and Chairman of more than 5 Committees, across all the companies in which
he is a Director except Mr. Mantosh Sondhi who is Chairman of six Committees and has since
resigned from one of the Committees. The Directors have made the necessary disclosures
regarding Committee positions. The names and categories of the Directors on the Board, their
attendance at Board Meetings during the year and at the last Annual General Meeting, as also the
number of Directorships and Committee Memberships held by them in other companies are given
below:
Name
Category
Mr. R N Tata
(Chairman)
Promoter
Not Independent
Non Executive
Independent
Non Executive
Promoter
Not Independent
Non Executive
Mr. Keshub
Mahindra
Mr. N A
Palkhivala
(Ceased to
be a Director
w.e.f.
19.07.01)
Mr.
S
A
Sabavala
Mr. Mantosh
Sondhi
Mr. Nusli N
Wadia
Mr. P K Kaul
Financial
Institutions’
Nominee*
-doIndependent
Non Executive
-do-do-
No. of
Board
Meetings
attended
during
01-02
8
Whether
attended
AGM held
on
19.7.02
No. of Directorships in
other public
companies
No. of Committee
positions held in
other public
companies
Chairman
Member
Chairman
Member
Yes
10
3
-
3
7
Yes
3
6
3
3
-
No
NA
NA
NA
NA
9
Yes
-
1
-
-
6
Yes
-
7
5
3
8
Yes
7
4
1
2
6
Yes
2
8
2
-
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
Directors on the Board Continued...
Name
Mr.
Krishna
Suresh
Mr.
Kumar
Mangalam Birla
Mr.
Ishaat
Hussain
Mr. S K Kapur
Financial
Institutions’
Nominee*#
Dr. J J Irani
(Ceased to be
MD
w.e.f.
21.07.02)
Mr.
B
Muthuraman
Managing
Director
(w.e.f. 22.07.02)
Dr. T Mukherjee
Dy.
Managing
Director (Steel)
Mr.
F
A
Vandrevala
Dy.
Managing
(New & Allied
Businesses)
(relinquished
charge
w.e.f.
1.11.2001)
Mr. A N Singh
Dy.
Managing
Director
(Corporate
Services)
Category
No. of
Board
Meetings
attended
during
01-02
6
Whether
attended
AGM held
on
19.7.02
No. of Directorships in
other public
companies
No. of Committee
positions held in
other public
companies
Chairman Member
Chairman
Member
Yes
6
2
2
2
-
Yes
7
3
-
-
Promoter
Non
Independent
Non
Executive
Independent
Non
Executive
8
Yes
3
10
2
4
4
No
-
-
-
-
Promoter
Not
Independent
Non
Executive
Not
Independent
Executive
9
Yes
3
9
1
8
9
Yes
2
2
-
1
-do-
9
Yes
1
8
2
3
-do-
4
Yes
1
5
1
2
-do-
8
Yes
2
1
1
1
Independent
Non
Executive
-do-
*
Appointed by IDBI as the lead institution
#
IDBI has appointed Mr. B Jitender as their Nominee Director in place of Mr. S K Kapur, w.e.f 10th May 2002.
Nine Board Meetings were held during the year 2001-02 and the gap between two meetings did not exceed
four months. The dates on which the Board Meetings were held were as follows;
1st June 2001, 18thJuly 2001, 30th August 2001, 30th October 2001, 29th November 2001, 24th January 2002,
th
th
th
30 January 2002, 4 March 2002 and 28 March 2002.
The information as required under Annexure-I to Clause-49 is being made available to the Board.
The Company did not have any pecuniary relationship or transactions with NEDs during 2001-2002.
MS
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
3.1.3
Audit Committee
The Company had constituted an Audit Sub-Committee in the year 1986. The broad terms of
reference of the Audit Sub- Committee were to review reports of the Internal Audit Department and
discuss the same with the internal auditors periodically; to meet Statutory Auditors to discuss their
findings, suggestions and other related matters; to review weaknesses in internal controls reported
by internal and Statutory Auditors. The scope of the activities of the Audit Sub- Committee includes
the areas prescribed by statute. The Audit Sub-Committee has been granted powers as prescribed
under statutory requirement. The Company has complied with the requirements of statute as
regards composition of the Audit Committee. The Chairman of the Audit Sub -Committee,
Mr. Mantosh Sondhi was present at the Annual General Meeting held on 19th July 2001. The
composition of the Audit Sub-Committee and the details of meetings attended by the Directors are
given below;
Name of Members
Category
No. of Meetings attended
during the year 2001-2002
7
7
7
Mr. Mantosh Sondhi, Chairman
Independent, Non Executive
Mr. P K Kaul, Member
-doMr. Ishaat Hussain, Member
Promoter, Not Independent
(Chartered Accountant)
Non Executive
Mr. S M Palia*, Member
Independent, Non Executive
3
* Appointed as a Member of the audit Sub-Committee effective from 29.10.2001
Audit Sub-Committee meetings are attended by the Vice-President (Finance), Chief (Corporate
Audit), Chief Financial Controller (Corporate) and Representatives of Statutory Auditors. The
Company Secretary acts as the Secretary of the Audit Sub-Committee. Eight Audit Sub-Committee
Meetings were held during 2001-02. The audit committee of the Board and the Internal Audit
Department do not review the compliance with environmental and social policies articulated by the
company.
3.1.4.
Remuneration Committee
The Company had constituted a Remuneration Committee in the year 1993. The broad terms of
reference of the Remuneration Committee are to recommend to the Board salary (including annual
increments), perquisites and commission to be paid to the Company’s managing/whole-time
directors (MD/WTDs), to finalise the perquisites package within the overall ceiling fixed by the
Board, to recommend to the Board retirement benefits to be paid to the MD and WTDs under the
Retirement Benefit Guidelines adopted by the Board. The Remuneration Committee also functions
as the Compensation Committee as per the SEBI Guidelines on Employees’ Stock Option Scheme.
The Company, however, has not yet introduced Employees’ Stock Option Scheme. The composition
of the Remuneration Committee and the details of meetings attended by the Directors are given
below:
Name of Members
Category
Mr. Keshub Mahindra, Chairman
Mr. R N Tata, Member
Independent, Non Executive
Promoter, Not Independent
Non Executive
Mr. Mantosh Sondhi, Member
Mr. S M Palia, Membera
Independent, Non Executive
-do-
No. of Meetings attended
during the year 2001-2002
2
2
2
1
Remuneration Policy
The Company while deciding the remuneration package of the senior management members takes
into consideration, Employment scenario, Remuneration package of the industry and Remuneration
package of the managerial talent of other industries. For the last few years, effort has also been
made to link the annual variable pay of senior managers with the performance of the Company in
general and their individual performance for the relevant year measured against specific Key Result
Areas, which are aligned, to the Company’s objectives.
MS
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
The NEDs are paid remuneration by way of Commission and Sitting Fees. In terms of the
shareholders’ approval obtained at the AGM held on 19th July 2001, the Commission is payable at a
rate not exceeding 1% per annum of the profits of the Company (computed in accordance with
Section 309(5) of the Companies Act, 1956). The distribution of Commission amongst the NEDs is
placed before the Board. The Commission is distributed broadly on the basis of Board Meetings and
various Committee Meetings attended by the NEDs. Other members of the Board, keeping in mind
the greater contribution made by the Chairman at every Board and Committee Meetings of which he
is the Chairman, decide the Commission payable to the Chairman. The Company pays sitting fees
of Rs. 5,000 per meeting to NEDs.
The Company pays remuneration by way of salary, perquisites and allowances (fixed component)
and commission (variable component) to MD and WTDs. Salary is paid within the range approved
by the Shareholders. The Board, on 1st April each year, as recommended by the Remuneration
Committee, approves annual increments effective. The Board fixes the ceiling on perquisites and
allowances as a percentage of salary. Within the prescribed ceiling, the perquisites package is
approved by the Remuneration Committee. Commission is calculated with reference to net profits of
the Company in a particular financial year and is determined by the Board of Directors at the end of
the financial year based on the recommendations of the Remuneration Committee, subject to overall
ceilings stipulated in Sections 198 and 309 of the Companies Act. Specific amount payable to such
directors is based on the performance criteria laid down by the Board, which broadly takes into
account the profits earned, by the Company for the year.
3.1.5
Shareholders Committee
An Investors’ Grievance Committee was constituted on 23.3.2000 to specifically look into the
redressal of Investors’ complaints like transfer of shares, non-receipt of balance sheet and nonreceipt of declared dividend, etc. The composition of the Investors’ Grievance Committee and
details of the meetings attended by the Directors are given below:
Names of Members
Mr. Ishaat Hussain, Chairman
Mr. Suresh Krishna, Member
Category
Promoter, Not Independent, Non Executive
Independent, Non Executive
No. of Meetings attended
during the year 2001-2002
2
2
Numbers of complaints received from the Investors from 1.4.2001 to
31.3.2002 comprising Non-receipt of dividend/interest warrants,
non-receipt of securities sent for transfer, demat queries etc.
30,258
Numbers not solved to the satisfaction of the investors as on 31.3.2002
19
Numbers of pending share transfers as on 31.3.2002
470*
(*Transfers lodged in the last 2 weeks of March 2002 and hence pending as on 31.3.2002.
3.1.6 Committee of the Board
The terms of reference of the Committee of the
Board (COB) are to approve capital expenditure
schemes and donations within the stipulated
limits and to recommend to the Board, capital
budgets and other major capital schemes, to
consider
new
businesses,
acquisitions,
divestments, changes in organizational structure
and also to periodically review the Company’s
business plans and future strategies.
The composition of the COB and details of the
Meeting attended by the Directors are given below;
Names of Members
Mr. R N Tata, Chairman
Mr. S A Sabavala, Member
Mr. Nusli N Wadia, Member
Mr. S M Palia, Member
Dr. J J Irani, Member
Mr. B Muthuraman, Member
No. of meetings attended
during the year 2001-02
7
6
6
6
6
5
MS
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
3.1.7
Disclosures
The Board has received disclosures from key managerial personnel relating to material, financial and
commercial transactions where they and/or their relatives have personal interest. There are no materially
significant related party transactions, which have potential conflict with the interest of the Company at
large. There was no; non-compliance by the Company; penalties; strictures imposed on the Company
by Stock Exchange or SEBI or any statutory authority; on any matter related to capital markets; during
the last three years.
3.1.8
Means of Communication
Half yearly reports are sent to each household of shareholders, quarterly results of the company are
published in Economic Times & Maharastra Times regularly and were displayed on Tata Steel Website
(www.tatasteel.com). The results were also displayed as official news releases and presentation were made
to the institutional investors.
3.1.9
Stock Information
Stock information has been furnished in Section-2.8 and the performance Tata Steel’s share in comparison
to Bombay Stock Exchange Sensex is furnished below the figure.
MS
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
3.2 Percentage of the Board of Directors that are
independent, non-executive directors….44% (7/16)
Independent Directors are those who are neither part of Tata Steel
nor belong to Tata House. They may or may not have share holding
in the organization.
3.3 Process for determining the expertise board members
need to guide the strategic direction of the organization.
The Board of Directors is guided by organization’s Vision, Mission
& Values. The composition of Board of Directors is a mix of the full
time executives and non-executives representing business houses
and financial institutions, with requisite experience in handling
economic, environmental & social issues. The board members
regularly review the performance of the organization on these
issues. There is no defined criteria or policy to determine the
qualification for becoming a Board Member or for reviewing
environmental and social risks and opportunities.
3.4 Board-level processes for
over seeing the organization’s
identification & management of
economic, environmental, and
social risks and opportunities.
The agenda papers along with status
report on economic, environment
and social performance including
legal compliance are sent in
advance to all the Board Members
before
meeting
for
review,
comments and suggestions during
the meeting. The feedback from
board members is analysed by the
top management and considered for
business decision-making.
3.5
Linkage
between
executive
compensation and achievement of the
organization’s financial and non-financial
goals
3.6 Organizational structure and key individuals
responsible for oversight, implementation, and audit
of economic, environmental, social, and related
policies.
The executive compensation is based on the
achievement of individuals in the financial and
non-financial area. In the beginning of the year
a performance contract is signed by each
executive including MD that forms a basis for
assessing the performance of individuals to
arrive at the compensation packages. The
balance scorecard of MD, which is cascaded
down to individual, is furnished in Figure#3.5.
Organization Structure is furnished at Section 2.3. As
mentioned above at 3.5, the oversight and
implementation of the economic, environment & social
policies is provided by management as per the
performance contract signed by individuals with their
superiors. This is carried out at different levels e.g. Apex
BE Council, BE Councils & Departmental Councils as per
TBEM. There are programmes for internal and external
audits of the financial, environmental and social policies
and performance.
3.7
Mission & Value Statements, internally developed code of conduct
The following policies on various sustainability issues are adopted uniformly through out the
reporting entity.
QUALITY POLICY
HIV (+) & AIDS CONTROL
POLICY
Tata Steel would take measures
to prevent the incidence and
spread of HIV and AIDS in the
society. In case of need, the
company would arrange to
provide counselling and medical
guidance to these patients and
their families.
October 1, 2001
Consistent with the group purpose, Tata Steel shall constantly
strive to improve the quality of life of the communities it
serves through excellence in all facets of its activities.
We are committed to create value for all our stakeholders by
continually improving our systems and processes through
innovation, involving all our employees.
This policy shall form the basis of establishing and reviewing
the Quality Objectives and shall be communicated across the
organization. The policy will be reviewed to align with
business direction and to comply with all the requirements of
the Quality Management Standard.
April 17, 2002
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
HUMAN RESOURCE POLICY
ENVIRONMENTAL POLICY
This policy has been communicated to all employees of Tata Steel and shall
be made available to the public and interested parties on demand.
Tata Steel recognises that its
people are the primary source
of its competitiveness.
It is committed to equal
employment opportunities for
attracting the best available
talent
and
ensuring
a
cosmopolitan workforce.
It will pursue management
practices designed to enrich
the quality of life of its
employees,
develop
their
potential and maximise their
productivity.
It will aim at ensuring
transparency, fairness and
equity in all its dealings with its
employees.
Tata
Steel
will
strive
continuously to foster a climate
of openness, mutual trust and
teamwork.
October 1, 2001
October 1, 2001
Tata Steel reaffirms its commitment to minimise the adverse impact of its
operations on the environment. Towards this end, it shall endeavour to;
•
•
•
•
•
•
•
Set sound environmental objectives and targets, and integrate a process
of review, as essential elements of corporate management.
Install, maintain and operate facilities to comply with applicable
Environmental Laws, statutes and other regulations.
Conserve natural resources and energy by constantly seeking to reduce
consumption and wastage.
Minimise process waste, and promote the recovery and recycling of
materials.
Phase out pollution-prone processes and install state-of-the-art
technology for pollution prevention, and the continual improvement, in
environmental performance.
Develop and rehabilitate waste dumps through afforestation and
landscaping.
Develop an environmentally aware workforce.
ALCOHOL AND DRUGS POLICY
Tata Steel believes that the loyalty and commitment
of its employees depend upon the quality of life they
are offered at work and at home.
We recognize that indiscriminate use of alcohol and
drugs is injurious to the wellbeing of individuals, their
families and the community as a whole.
We
acknowledge that the misuse of these psychoactive
substances is a major health and safety hazard.
Tata Steel is therefore committed to creating an
alcohol and drug-free environment at the work place.
This would be achieved through the involvement of all
employees and the Joint Departmental Councils in
spearheading appropriate initiatives. The initiatives
would include;
•
•
Raising
awareness,
through
the
dissemination of information, education and
training and by promoting healthy life styles
among our employees and their families.
Motivating those employees who have an
alcohol/drug problem, to seek assistance,
while maintaining confidentiality about such
cases.
October 1, 2001
SAFETY POLICY
Tata Steel believes that a healthy worker is
the surest basis for its continued success.
Tata Steel, therefore, is committed to the task
of ensuring the safety and safeguarding the
health of all its employees.
Importance will be given to continuous training
for promoting safety consciousness among all
employees’ representatives will supervise the
Company’s safety measures.
Within his area of responsibility, everyone will
be accountable for;
•
•
•
•
Establishing a safe and healthy
work environment.
Ensuring
compliance
with
mandatory safety and health
requirements.
Proper maintenance and orderly
housekeeping, to control the risk of
damage to plant and equipment.
Insisting on safe work procedures
being followed by employees,
contractors and visitors.
•
October 1, 2001
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
Implementation – The strategic goals of the organization are derived from Vision, Mission, Value, Policies
and Code of Conduct (Refer Annexure-II) of the Organization. These goals as indicated in MD’s Balance
Score Card (Figure#3.5) deployed across the organization.
3.8 Mechanisms for shareholders to provide recommendations or direction to the board of directors.
The minutes are prepared for proceedings of Annual General Meeting. These minutes include the
suggestions, comments and feedback from the shareholders. The concern of shareholders are discussed in
the Board Meeting and after prioritisation of these concerns, management integrates the same in business
decision.
STAKEHOLDER ENGAGEMENT
3.9 Basis for identification and selection for major 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 identification of stakeholders is
derived from the vision of the company, which states that all the efforts are directed towards delivering
certain values to the customer, the community and the nation. Thus the total stakeholder base of the
company encompasses Shareholders, Financial Community, Customers, Media, Community and the
Employees as presented in Figure#3.1 in Section 3.10. 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
strategy map (Figure-1.4) that forms a basis of 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#3.5.
The Tata Group Code of Conduct states- “The Tata Group honours the information requirements of the
public and its stakeholders. In all its public appearance with respect to disclosing company and business
information to public constituencies such as the media, the financial community, employees and
shareholders, only specifically authorised directors and employees shall represent a Tata Company or the
Tata Group. It will be the sole responsibility of these authorised representative to disclose information on
the Company”. The feedback received on disclosure of information by the authorized representatives is
used as input to the strategic planning process.
3.10 Approach to stakeholder consultation reported in terms of frequency of consultations by type
and by stakeholder group.
Approach to stakeholder consultation and the frequency of the consultation is furnished in Figures-3.1 &
3.2.
Stakeholder
Shareholders
Customer
Suppliers
External Public/ Govt.
Community & Social
Forum for Assessing Requirements, Communicating Directions &
Receiving Feedback
Annual General Meetings;
Quarterly and half-yearly reports to shareholders;
Updating major shareholders (LIC, UTI);
Shareholder Relations; Meets, Investors Survey
Customer Week; MD’s conferences with customer groups worldwide
Visits to Customer & Customer Visit Report
Learning from Field Failures, Customer Satisfaction Survey
Vendor Dialogues
Meeting with Key Suppliers
Vendor Meet & recognition, Suppers Satisfaction Survey
Meetings with Govt./Steel Ministry/ Trade Bodies, Industry Association,
NGOs, Ministry of Environment & Forests etc.
Senior Citizens Forum
Dialogue with Officers’ Wives
Uday Project in villages, Joint Community meeting
Frequency
Annual
As per plan
Annual
As per plan
Quarterly
Twice/Year
As per plan
Once a year
Regularly through meeting /
publications
Quarterly
Twice/Year
As per plan
Fig. 3.1-Fora and formal two-way management stakeholder communications
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
Communication/ Forum
Dialogue with Union Committee
Members (JCCM, JWC, and
JDC)
Departmental
Communication
Meeting
BE Facilitators meet
3,6,2
6
Chaired
By
MD/
DMDs/
VPs
MD/
DMDs/
VPs
Chiefs/
Heads
MD
Joint Works Quality Committee
6
EIC’s
Senior, General & Ladies
Dialogues, MCM, BE Councils
Freq.
No./Yr
4 to 6
12
Attended By
Departmental
Officers
Issues Discussed
Heads
and
Vision, values, empowerment, innovation,
continuous improvement, performance.
VP(HRM), Elected Union
Representatives (over 300+
together)
All Officers & Supervisors of
the department
BE Facilitators of each
department
Union Committee Members &
Management
Performance expectations, values, ST/LT
directions, customer services, market
conditions, production
BE, improvement, learning, training,
customers’ needs
Developments in BE, innovative ideas,
launch of new initiatives
5S & QC activities, safety, ergonomics,
health, EMS
Figure-3.2 - 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.
3.11 Type/Nature of information generated by stakeholder consultations.
As explained in figure 1.2 in Section-1 the following information is generated by stakeholder consultation/
engagement;
•
•
•
•
•
•
Shareholders essentially provide a feedback on the overall performance of the firm and its
implications as regards market capitalization and creation of shareholder value. During the year, the
Company launched its Investor Care Programme under which it conducted an investor survey with the
objective of finding out the profile of the Company’s Investors mainly shareholders, to serve as a
platform for the shareholders to express their opinion, views, suggestions, etc., to understand the
influencing factors in their investment decision making process, to gauge the communication gap, if
any, and to build and strengthen the relationship between the Company and its shareholders.
Customer engagement provides information essentially on the user needs; need satisfaction and
product quality and functionality. Customer meets were organized for key products at Jamshedpur
during the year.
Supplier engagement aims to create win-win collaboration between Tata Steel and the suppliers who
are increasingly being seen as business partners rather than suppliers. The information generated
during supplier engagement essentially focuses on identifying areas with conflicting goals and more
specifically pertaining to payment, information on material rejects related issues.
External Public: The meetings with Government, Steel Ministry, Environment Ministry, Trade Bodies
are aimed at understanding the requirement under statutes related to steel and allied business. The
new legislations/ordinances are analysed and incorporated with business decision during strategic
planning. This also includes the meetings with Factory Inspector, Labour Commissioner, Police, District
Administration, State Electricity Boards, Electrical Inspector, and Boiler Inspector etc.
Employees: The communication channel with employees at different levels and the issues discussed
are given in Figure#3.2 above. The information likes civic amenities in the town, hospital services,
water supply and electric supply, education, etc. received from the employees during the dialogues and
discussions is used in business decision-making process.
Society: The Managing Director carries out the quarterly dialogues with senior citizens of the Town
and half yearly dialogues with the Officers’ spouses. In addition, volunteers from Tata Steel Rural
Development Society survey various villages to assess the needs of the villages as regards their
development. Software is used to map the demographic profile of various villages around Jamshedpur.
The discussions with village population about strengths and weaknesses in their system are
superimposed on the profile in the software and in consultation with the villagers the developmental
plans are drawn.
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3.12 Use of information from stakeholder engagements
The feedback received from shareholders is often manifested in the market capitalization and share price
performance of the firm. This feedback forms one of the significant inputs to the strategic plan development
and the consequent strategic objective setting, as is evident in Tata Steel’s strategic objectives and plan
outlined in MD’s Balance Score Card (Figure#3.5). The findings of the Investor Care Survey indicate that
the Company’s shareholders are satisfied with the investor service provided by the Company. The Annual
Report and the newspapers are still a popular source of information on the Company. The small shareholder
is a responsive and loyal audience and also information-sensitive. The Web is a growing medium of
information for the small shareholder.
The inputs received from customers form the basis for product improvement and products & services
development initiatives, necessary for customer retention, market penetration and development. Secondly
but perhaps more importantly customer engagement provides an indication of the emerging demand
scenario and the likely price sentiment. This is a necessary input to development of the short and medium
term business plan.
The information generated during supplier engagement essentially focuses on identifying areas with
conflicting goals such as payments, material rejection information etc. This has a bearing on working Capital
Management and inventory management primarily. The feedback is also used to finetune the vendor rating
and evaluation procedure.
Majority of the shareholders believe that the Company information will help tremendously in investment
decision-making and would like periodic information from the Company. The Company proposes to use the
findings of this survey and take such steps as may be necessary to fulfil the expectations of its shareholders.
The feed back from these stakeholders is inherent in the performance indicators like, Customer Satisfaction
Index, Employee Satisfaction Index, and Corporate Citizenship Index as explained in Figure-1.2 under
Section-1.1. Some performance indicators developed and included in this report directly as a result of
feedback on this engagement are furnished in MD’s Balance Score Card as explained above.
The feedback received from the villagers is used to plan for their development in the areas of forestry,
irrigation, women empowerment and health & hygiene.
OVERARCHING POLICIES AND MANAGEMENT SYSTEMS
3.13 Explanation of whether and how the precautionary approach or principle is addressed by the
organization.
Precautionary approach is the underlying spirit of every policy or guideline formulated at Tata Steel. This is
indicated in the Tata Code of Conduct, which states under National Interest (Clause#1) that ‘it shall not
undertake any project or activity to the detriment of the Nation’s or those that will have any adverse
impact on the social and cultural life patterns of its citizens’
Further, Tata Steel commits itself to providing a safe and healthy working environment and preservation of
the environment of the territory it operates in. It shall be committed to prevent the wasteful use of natural
resources and minimise any hazardous impact of the development, production, use and disposal of any of
its products and services on the ecological environment.
The essence of these policies is that the merit of every activity, project or process proposed is evaluated
besides its financial performance, on environmental and social performance also before adoption. Hence,
only those proposals are selected which ensure compliance with these policies, thereby perpetuating the
precautionary principle.
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3.14 Externally developed, voluntary economic, environmental, and social charters, sets of
principles, or other initiatives to which the organization subscribes or which it endorses.
Tata Steel is a signatory to the United Nations Global Compact (in 1998) and abides by its 9 principles. The
principles of UN Global Compact address Human Rights, Labour Rights and Environment and have been
included at Annexure- I.
Tata Steel is also a signatory to the Tata Group’s Code of Conduct (in 1997). The salient clauses of the
code of conduct pertaining to National Interest, Competition, Equal Opportunity Employment, Health, Safety
and Environment, Quality of products and services, Corporate Citizenship, Public Representation, Ethical
Conduct, Regulatory Compliance and political non-alignment have been included at Annexure – II. The
mandate for COC has been furnished in Annexure-V.
Tata Steel is a signatory of CoRE (Corporate Round Table on Environment and Sustainable Development)
Charter initiated by Tata Energy Research Institute (TERI) (in 1999), New Delhi based on the guidelines
provided in International Chamber of Commerce Charter on Sustainable Development. Details of CoRE
Charter are given in Annexure-III.
The requirements of these are integrated in business through various tools adopted by Tata Steel such as
ISO-14001, ISO-9001, OSHAS-18001, Corporate Sustainability Management System and Tata Business
Excellence Model and are reflected in MD’s Balance Score Card given in Section 3.19.
3.15 Principal memberships in industry and business associations, and / or National /
International advocacy organizations.
The table below illustrates some of our ongoing partnership projects in collaboration with other NGO’s,
Industry Association/Organizations.
Organizations / NGOs
The Global Business Council
HIV/AIDS London
The Global Compact of the United
Nations
IISI
Brussels,
Ministry
of
Environment Forests New Delhi
UNIDO, Confederation of Indian
Industry
EPIA, USA
CARE International, USA
UNICEF
Sir Ratan Tata Trust
The Calcutta Samaritans
CII/CIDA
CII, FICCI, ASHOCHAM, ICC
Area of Partnership
(i) Preventive & Promotive activities (ii) Curative & rehabilitative activities (iii)
Adopt East/West Singhbhum for conducting AIDS awareness.
To promote good corporate practices in the areas of
(i) Human Rights (ii) Labour (iii) Environment
Life Cycle Assessment for Steel Sector and issues related to steel business
like Quality, Technology, Markets, etc.
Water pricing for resource conservation
Adolescent Reproductive Health Project called SAHAS.
To promote safe motherhood and infancy to reduce IMR and child mortality
rate to less than 5 years of age (CMR <5) in 162 villages.
WATSAN (Water and Sanitation Project) that will cover 100 villages.
Rehabilitation and reconstruction work for the Orissa Cyclone victims.
Running of a De-Addiction Centre at Baridih.
Implementation of Corporate Sustainability Management System
Market and business related issues.
3.16 Policies and/or systems for managing upstream and downstream impacts.
Performance of supplier and procedure for monitoring:
The Supply Chain Division of Tata Steel does not monitor the economic performance of vendors, but
confidential information is taken from the vendor’s various customers and bankers. Only after receipt of the
confidential report and if found to be 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.
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
Further, Tata Steel is in the process of incorporating evaluation of vendor’s quality, Environmental and
Social performance into the vendor evaluation, registration and procurement under Tata Business
Excellence Model framework mechanism.
In case of Social Organizations 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. Supply Chain Division also
makes the efforts towards expeditious clearance of their bills.
Moreover, the vendor evaluation in its current form focuses on compliance with labour laws as regards
vendor’s social performance.
Environmental & Social programs for contractors:
Stringent procedures have been detailed under ISO14001 and works safety policy guideline for contractors,
including strong punitive actions for defaulters. Such norms and guidelines are communicated to all the
contractors in many forums. Top Management like Chairman, General Safety Committee, General
Managers, Chief of Supply Chain Division and other Senior Executives of Tata Steel also discuss these with
them. Not only this, all new “entrants” from the contractors are taken through a Safety and Environment
Induction training without which gate passes are not issued to them for working inside the Works premises.
The procedures for monitoring of contractor/supplier compliance with Labour Laws during the reporting
period are given below;
Procedure for monitoring contractor/supplier compliance with labour laws:
Stage of monitoring
Adherence to the laws of the land
Frequency
of compliance
During Vendor
Sales Tax Registration Number (State &
At Registration stage for vendors (both
Registration
Central),
for suppliers and contractors)
Provident Fund Code (for all service providers),
Excise Registration Number, PAN Number,
Employees State Insurance
During dealing with
•
Vehicle Registration papers, Road tax •
Random checks by Security/
Tata Steel
papers, Driving license for drivers &
Departments for vehicles plying to
Pollution Under Check Certificate.
and fro works
•
Non submission of Excise Duty gate Passes •
Deduction by Accounts for specific
cases
•
Specific cases of violation as pointed out by
Provident Fund Commissioner, Income Tax •
Details furnished on case to case
Authorities, Sales Tax Authorities and
basis on demand
Excise Authorities, Police etc
•
Handled only as exceptions
•
Checking all the cases, all the time and for
all vendors
Nature & location of outsourced operations:
The Supply Chain Division of Tata Steel deals with all inbound and outbound supplies of goods and
services. The service providers include both indigenous and foreign sources including government/semi
government agencies. The details on nature and location of inflow and outflow of goods and services are as
under:
Nature of outsourced operations
Inbound supplies of goods like Mechanical and Electrical spares,
Process, Operating and General Consumable
Inbound supplies of services
Outbound supplies of goods and services
Procurement of Raw Materials
External Processing Agents
Location (not exhaustive list)
Jamshedpur & Kolkata (majority) , Mumbai,
Bangalore, New Delhi, Chennai etc.
Jamshedpur (majority)
Jamshedpur & Kolkata (majority)
Various parts of the country
Jamshedpur and various parts of the country
The percentage break up for the out sourced operations is not available and shall be provided in the next
report.
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
Product & Services Stewardship Initiatives
All Units of Tata Steel are certified to ISO-9000 and ISO-14001. Life Cycle Assessment is carried out from
cradle to gate for all steel products to systematically analysis the inputs and outputs which can have adverse
impact on environment and society. Targets are set as a part of annual business plan to continually improve
the environmental and social impacts of our products, services and activities through next operating
practices and technological intervention. In the down stream operations (supply of steel to stock yard and
customers) Tata Steel recycles the wooden and structural supports used during shipment. On experimental
basis the use of supports made of coir-board, in place of wood has also been started during the year.
3.17 Reporting organization’s approach to managing indirect economic, environmental, and social
impacts resulting from its activities.
In view of increasing environmental and social consciousness and activism, positioning of the Brand, as a
responsible corporate citizen is a minimum requirement to create a loyal and delighted customer base. Tata
Steel envisions serving the nation through sustained and profitable operation.
A large base of small-scale ancillary industries as well as the surrounding rural community in many ways
depends on the activities of Tata Steel. Economic health including financials of these small-scale industries
and contract firms are improved through partnership and collaborative arrangement with the company for
providing goods and services. Tata Steel’s actions indirectly influence the economic value creation;
enhance self-reliance and overall quality of life of the surrounding rural community through several initiatives
in the areas of income generation, empowerment and health and hygiene. Some of these highlights have
been given in section under Social Performance Indicators.
3.18 Major decisions during the reporting period regarding the location of, or changes in, operations.
During the year up-gradation of “F” Blast Furnace from production capacity of 0.6 million tonne per annum to
1.0 million tonne per annum completed. Decision taken for installation of Electrolytic Cleaning line of
capacity 500,000 tpa in Cold Rolling Mill Complex to improve cold rolled sheet quality. During the reporting
year no unit has been closed, divested or relocated. The construction of new slime dam at Noamundi Mines
was also started during reporting period.
3.19 Programmes and procedures pertaining to economic, environmental, and social performance,
include discussion of:
Sustainable development is about adding value to our products and services with focus on customers,
shareholders, employees and local community in which we operate and more widely to regional and national
development. Our Policies, Statement of Purpose, Vision and Mission statements are deployed through a
well-structured and defined business model called Tata Business Excellence Model (TBEM). These
statements act as guiding principles for development of organizational structure and action plan with clearcut delineation of responsibilities and authorities. Sustainability concerns are built into the model through
‘Leadership’ that is founded on Tata Values, Code of Conduct, Policies and Guidelines.
Business Purpose / Mission
Tata Values
Code of Conduct
TBEM Core Concepts
Envisioning
Developing Shared Strategic plans
Continuously
Improving the process
Leading By example
Evaluating Results & Leadership system
Leadership System at Tata Steel
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
Planning & Management System
The top management shares the vision with all employees of the organization through channels such as dialogues,
Union Management meetings and Joint Departmental Councils (JDC) and other forums. The leadership system at Tata
Steel is organized in Apex Teams (Quality Councils, Committees on HRD, IT, R&D and others). It is led by the Apex
Quality Council and the strategic directions set by it are translated into actionable drivers and cascaded down to the
operational levels through the Quality Councils / Quality Sub Councils / Departments. The leadership system is
deployed through review of organizational performance (Score Cards) and initiating corrective action and/or setting
stretch targets with a focus on achieving business objectives. Management goals and objectives are summarised in
MD’s Balance Score Card (Fig.3.5) which is arrived at based on issues given Section 3.7, 3.11, 3.12, business results
and various charters signed by the organization.
The leadership system is itself amenable to improvement. This is based on the feedback received from employees
(Employee Satisfaction Index), Customer (Customer Satisfaction Index), TBEM assessment, CII-EXIM assessment etc.
The feedback from the 360-degree appraisal process is also used to improve the leadership style.
Deployment of Company’s Strategy
Corporate Philosophy : Mission, Vision, Values
Corporate Strategy (Strategic Goals)
MD’s Balanced Score Card
Council’s Strategy, Objectives, Key Performance Measures (Score Card)
Sub Councils’ Strategy, Objectives, Key Performance Measures (Score Card)
Departmental Goals & Key Performance Measures (Score Card)
Develop AQUIP, Prioritise improvement activities /
projects linked to Goals / KPMs
Personal KRA’s linked to Goals /
KPMs
Organization Management Structure for Economic, Environment & Social Commitment
MEETING SCHEDULE
BIMONTHLY
BIMONTHLY
BIMONTHLY
MONTHLY
APEX QUALITY COUNCIL
(Members-MD, Dy.MDs, EICs.
POLICY
VISION
MISSION
STRATEGIC
OBJECTIVES
QUALITY COUNCIL
(Members-DyMDs, EICs, Divisional
Chiefs
COUNCIL
OBJECTIVES
QUALITY SUB COUNCIL
(Members- EICs, Divisional Chiefs,
Departmental Heads
SUBCOUNCIL
OBJECTIVES
MANAGEMENT REVIEW AT
DEPARTMETNS
(Members-Departmental Heads
DEPTT. GOALS
AQUIP
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
Management System
Processes to assure business performance:
•
•
•
•
Design of products/services – The design of products/services is driven by customers’ needs, social
and environmental considerations.
Design of production and delivery processes – The design of production and delivery processes are
based on the Technical Delivery Condition, which are translated and documented in specific process
charts.
Co-ordination – These processes are coordinated by Customer Service Department (CSD) that is an
interface between Marketing & Sales and the Works.
Supplier Processes - Since purchase of goods and services accounts for approximately 50% of
Tata Steel’s expenditure, a concerted attempt to add value to customers has been undertaken by
reengineering supply chain management with M/s Booz Allen and Hamilton.
Process performance:
•
•
•
•
•
Daily collection and analysis of data is done to ensure product quality and consistency.
The PQI captures the improvements made with regard to consistency and improvements in the
chemistry and mechanical properties of the steel products.
Process consistency is also ensured through ISO-9000 and TS-13004 Quality Systems.
Total Operational Performance (TOP) programme aims at detailed analysis of the baseline
performance of the processes and identification of the gaps with benchmarks. Taking up
improvement projects bridges the gaps. ABC analysis of the cost influencing factors of key
processes has been undertaken.
Learning acquired in one area is shared with and deployed in other areas as well.
Human Resource Focus:
The HR processes have improved performance orientation and have further aligned and integrated with
strategic objectives. Tata Steel continuously injects fresh talent from all over the country, from the business
schools and technical institutions into the organization through its cadre based recruitment schemes to
retain its cosmopolitan nature. Human Resource Management puts strong focus on;
•
•
•
•
The company has institutionalised the concept of Total Customer Satisfaction, Internal Customers–
Supplier Chains across the organization by MOU’s between suppliers and key customers.
Continuous improvement is targeted through, employee involvement in cross-functional teams,
Quality Circles; divisionalization with profit centres with full autonomy is an embodiment of
organization wide empowerment.
Flexibility and rapid response is achieved through multi-skilling, cluster manning, Business Process
Re-engineering on supply chain, flatter organizational structure and innovative reward and
compensation schemes.
Trade Unions are engaged in decision making at all levels from Top Management to shopfloor as
shown in Figure#2.1.
Employee development
•
•
Safety is a high priority area. Several movements to inculcate a culture of safety have been
practiced, but the Company needs to do more to prevent accidents and improve its safety record.
The Technical Education Advisory Committee guides employee development and training in line
with strategic goals of the company and long-term objectives. The in-house training centres impart
majority of the training programmes. (Technical Institute & Management Development Centre).
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
•
•
Employees are also deputed to other organizations and training centres in the country and abroad
for specialised training.
Officers are trained into business managers through special general management programmes such
as at CEDEP, France.
For further details on employees please refer LA9, LA16 & LA17 under Section on Social
Performance.
Creating an atmosphere to help achieve a world class workforce:
•
•
•
•
•
A variety of compensation and recognition systems such as special increments, persons of the
Month, Quality awards have been instituted.
Numerous state-of-the-art communication channels enable interaction and information / skill sharing
across the organization.
Employees are continuously educated on preventive health care and hygiene, alcohol and drug
abuse, HIV & AIDS.
Occupational Health Services besides creating awareness on occupational hazards also conduct
general health check-ups.
To enhance employee motivation and satisfaction, a number of facilities are provided by the
Company like, subsidised accommodation, subsidised electricity, free water, free medical treatment,
free schools for wards, recreational clubs, fair price shops etc.
Supplier Relationship
Suppliers are classified as partners, preferred and normal. It is with the partners and preferred suppliers that
Tata Steel has entered into long-term partnerships that are aimed at continuous enhancement of value
along the supply chain.
•
•
•
E-procurement has been introduced. Tata Steel has re-engineered the supply chain (inbound and
outbound) with the help of BAH. This has improved procurement cost, cycle times and
responsiveness.
New best-in-class practices, such as commodity studies, have enabled the Company to
revamp
and modernise its supply chain.
Tata Steel requisitioned IMRB to do a supplier satisfaction survey during 2000-2001, the first
company in India to do so.
Responsibility towards the Public / Community:
Tata Steel in keeping with the Group Purpose, its commitment to various codes and articulated policy
position incorporates the following as central to its social responsibility.
•
•
•
•
•
Meeting regulatory and legal norms as a minimum.
Ethical behaviour is promoted through regular communication, and commitment to Code of Conduct.
Social audits are conducted periodically to ascertain the effect of our products/processes and
services on society followed by corrective actions.
Working towards ISO 9001, ISO 14001, OSHAS 18001 and CSMS so as to develop management
systems for aspects that affect business.
Strengthening and supporting the community in a number of ways like maintaining the city of
Jamshedpur, providing medical treatment at low cost to employees and at nominal cost to nonemployees at Tata Main Hospital, organizing eye camps, family planning, immunization and other
camps, encourage sports and youth development and participating in social programmes in the
villages.
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
•
In order to monitor Tata Steel’s role towards the community, MD’s Balanced Score Card includes a
“Corporate Social Responsibility Index” comprising measures related to Health, Hygiene and
Environment, which are deployed by the concerned departments.
Environment Related Processes:
Figures-3.3 & 3.4 give details of the activities related to societal responsibility and community support.
Figure-3.3 Societal Responsibility Activities
Societal Responsibility Type
Practices
Environmental, Health & Safety
Environmental, Health & Safety
Management
Legal
Emergency Preparedness
Compliance to
norms
100%
Improve the quality of life
Integrated with EHS
Compliance to
norms/
documented
system
100%
Quality of life environmental
sustainability
LCA, CSMS, Social
Audits, Partnering
with NGOs
Product/Service/Risk
Interaction with community and
society for capturing their concerns
Operations Risk
Environmental, Health & Safety,
Education Sessions
Strategic Action Plans Supported
Targets
Integrated with EHS
(ISO-14001) &
OHSAS-18001
Ethical and Good Corporate Governance
Supplier Interface
MOU, COC
Public Conduct
Key
Measures
Spread of
COC
CCI
Partnership
10 out of
10
Improve the quality of life
Communication
forums e.g. Senior
Citizens forum, joint
community meeting
No. of
meetings
Once in
a quarter
Improve the quality of life,
partnership with society
Awareness
programmes, Auditors
programme
No. of
programmes
As per
plan
Quality of life and EHS sustainability
Figure – 3.4 Community Support Activities
Types of Support
Activities
Educational
support
Community
Services,
Participation
Recreational
Activity,
Sponsorship
Community Health
Care
Cultural Events,
Subsidies
Drug Prevention,
AIDS Awareness/
Training
Professional
Society
Membership
Support Activities Description
Schools for the employee children, libraries,
participation in seminars
Creation of infrastructure, Medical services, Rural
& Tribal services, Domestic management
programmes, women empowerment, income
generation
Infrastructure for sports, games, club activities,
libraries, gymnasiums, Adventure foundations,
parks and gardens, zoo,
Civic amenities, health care, education, family
initiatives, public health, vector control, AIDS
awareness,
Tribal cultural shows, Gramshri Mela
Running a de-addiction centre, AIDS prevention
programmes
SPPE, St. John’s Ambulance Brigade, BIS, JMA,
AIWC, IIM, CII, FICCI, ASSOCHAM, ICC,
Extent of Support
Organization
Senior Leaders
Benefiting
Society around
DMD (CS)
Tata Steel
Society in an
DMD (CS) / GM
around Tata
(Town / Head
Steel
(Social Services &
Family Initiatives)
Society in an
DMD (CS) / GM
around Tata
(Town)/ Chief
Steel
(Sports)
Society in an
DMD (CS) / GM
around Tata
(Town) / Chief
Steel
(Sports)
-do-doHead (SS&FI)
Society in and
DMD(CS)/GM
around Tata
(Medical Services)
Steel
Society in and
Senior leadership
around Tata
Steel
Strategic
Action Plans
Service to
society
Service to
society
Service to
society
Service to
society
-doService to
society
Service to
society
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
Environmental related processes
Tata Steel has adopted Environmental Management System (ISO-14001) to manage its environmental
impacts and performance. The EMS includes all aspects associated with products, services and operation
as shown below;
Key Practices
Environ-mental
monitoring
-do-
Legislation
Air Act 1981
-doWaste
Utilization
Disposal
EP Act 1986
EP Act 1986
Resource
conservation
Legal comp.
EP Act 1986
Water Purification
& Supply
Legal compliance
Water Cess Act
1977
EP Act 1986
Water Act 1974
EP Act 1986
Activities
Stack emission monitoring Work area environment
Ambient air quality
Measurement and analysis of effluent water
Risk Associated
Air pollution
Noise level measurement
Recycling / reuse of waste
Solid waste disposal
Bio-medical waste
Reduction of specific raw material consumption.
Water consumption. Energy consumption
Submission of environment compliance report
Noise pollution
Land/water pollution,
hazard
Water pollution
health
Payment to statutory authorities.
Depletion of natural resources,
cost over-run Env. Pollution
Penalty/ closure of defaulting
units
Legal action
Filing of returns & assessments.
Legal action
Tata Steel has improved its compliance towards safety and environmental requirements of the importing
countries by availing the services of the world-renowned company SGS India Limited to oversee export
shipments. Risks associated with current and the R&D and actions taken to minimise or eliminate the same
at the product design stage itself evaluate future products vis-à-vis public concerns. Public concerns
associated with new projects are addressed in the risk analysis done for each project. To assess the risks to
society and environment and to incorporate sustainability concerns in corporate strategy, Tata Steel has
undertaken LCA (Life Cycle Assessment) under the aegis of Ministry of Environment and Forests.
Furthermore, “Carrying Capacity” of Jamshedpur has been carried out by NEERI, which serves as a blue
print for environment friendly development of this region.
The communication systems with regard to management system explained above are taken care through
quality management system and environmental management system of the organization. The review
process is four tier i.e. Apex Business Council level review – once in six months; Business Excellence
Corporate Council – once in three months; Business Excellence Council – once in two months; and
Departmental/Divisional Councils – every month. The objectives & targets against economic, environmental
and social performance form part of departmental key performance measures that are reviewed at all the
three levels as per the frequency given above. The key performance measures of the department are
further cascaded down to individuals in the form of Key Result Areas that becomes the responsibility of the
individuals.
Approach to Social Development
•
•
•
•
Leadership & Policy Support: The management has adopted the Article of Association on social
responsibility. A draft social policy has been prepared during the reporting period for discussions
and finalization
Strategy on Corporate Social Responsibility: The Company has annual programmes as per the Tata
Council for Community Initiatives (TCCI) Guidelines. The company has a matrix of its competencies
stating the exact possibilities for action.
Allocating resources & system of accounting: The company recognizes that social expenditure is a
developmental cost and records it under a separate account head. Social expenses are distinct
from employee welfare.
Assigning key responsibilities: The management has key persons deployed for this work and its
management representative has annual goals by means of KRAs.
MS
19/22
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
•
•
•
Communication strategy: To keep employees and public at large informed about company’s work on
social responsibility, the company publishes its reports through newsletters, in-house magazines
and the Directors’ Annual Report.
Volunteering: The company has instituted a scheme for encouraging volunteers.
Documentation: The Company documents its work methodically
Tata Steel’s subscribes for Tata Council for Community Initiatives guidelines. The declaration of the council
on social responsibility made on 14.12.99 is presented below.
The community is central to the core values we adhere to in the Tata Group.
Tata Community programmes aim at building trust and improving the quality of life.
Tata programmes facilitate sustainable change.
We believe that community gives us valuable opportunities to learn.
Commitment to social responsibility is explicit in every Tata Company.
We net work through our core competence to empower communities.
Tata volunteers are committed to the spirit of service.
Risk Management
•
Steel is a commodity whose fortunes are closely intertwined with the business cycles of the economy.
During the year, apart from stringent cost-cutting measures, the Company adopted a flexible product-mix
to suit market conditions, by increasing the production of Longs, which had better demand and price
stability. The Company’s efforts to differentiate some of its products by “branding” have met with some
success. Sales of “branded” products, which fetch a premium in the market, have increased to 9% from
5% in the previous year. In view of the trade barriers in some of the existing markets, the Company has
developed new markets for its exports.
•
The global steel market has never been as integrated as now. The domestic market will be more
competitive, as import during on steel are brought down further to 15% during the next three years from
the present levels, to conform to WTO requirements. The Government took one more step in this
direction in the last Union Budget, by reducing basic customs duties of cold rolled sheets from 35% to
30%. Expansion of the range of taper roller bearings is also planned after non-compete agreement with
M/s. Timken India expires in March 2003. Entry into the export market is also envisaged through M/s.
Tata International Limited network and affiliates of other international majors.
•
As on 31st March 2002, the long-term debt-equity ratio was 0.86:1 (before adjusting for provision for
deferred tax), as compared to 0.87:1 in the previous year. Foreign currency borrowings are restricted to
about 20% of total long-term loans to finance capital goods/services. Despite being largely
unremunerative, one of the main reasons for promotion of exports by the Company, apart from the
Country’s need for foreign exchange, has been the fact that the hard currency earnings provides a
hedge to its foreign currency liabilities. Derivatives are used to hedge risks and not for any speculative
purposes. The Company has a Credit Control Committee, which formulates policy guidelines, and
monitors credit levels. A special Task Force has also been set up to recover overdue credits.
3.20 Status of certification pertaining to economic, environmental, and social management systems.
All units of Tata Steel are ISO-14001 (except Town Division and Jharia, which is advanced stage of
certification) certified. Units, which cater the requirement of external customers, are certified to ISO-90012000 and other departments/sections, which have internal customer focus, are certified to TS-13004
equivalent to ISO-9001. During the reporting period, Cold Rolling Mill was certified to ISO-14001 and precertification of Town Division completed.
MS
20/22
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
Figure#3.5 - MD’s Balanced Scorecard for (2001-2002)
Strategic
Goals
Create
Wealth
Strategic
Objectives
Improve
shareholder value
Strategic Measures
Existing Business
1a. EVA spread*
Achieve
world class
status in
service &
products
Enhance
Customer
Relationship
Enhance
operational
excellence
Improve customer
satisfaction
Actual
01-02
01-02
Targets
02-03
03-04
-8.12
-0.85
-2.78
-2.09
-701
-81
-276
-218
%
5.48
12.85
11.18
12.28
Rs. Million
%
Nil
Nil
357
26%
400
30%
578
38%
Rs. Million
-114
68
78
266
Index
Nil
+10%
10%
6.Operating profit OP=Gross
margin-Selling exp.
Rs.Million
12711.8
21540
To be firmed up
every year
7.Operating profit from CRM(E)
against (ABP) (without transfer
price)
8.Customer Satisfaction Index
♣Steel
♣Bearings
♣Tubes
♣FAMD
♣R&A
♣Growth Shop
♣Secondary Products (external)
Rs. Million
160
953
72
89
73
80.5
88
81
>75
82
85
82
74
80
New Business
3a.Cash spent on new business
3b.Proportion of cash flow spent
on new/ growth business (Cash
flow= PAT+ Depreciation)
4.Free Cash Flow (PAT+DEPCAPEX-DIV.-Incre. WC)
5.Customer relationship index
Benchmark/
Unique
Unique
Index
>80
>80
Strategic Initiatives
comparatives
Posco
ROICWACC
Rs. Million
1b.Economic profit*
(EVA Spread Invested Capital)
2.ROIC*
Grow top line
Unit of
Measures
89 Timkens
♣Replace costly debt with cheaper
borrowings
♣Currency swaps
♣Treasury management
effectiveness
♣Invest in high return
yielding projects
♣Set up overseas manufacturing
facility Fe Chrome.
♣Acquire/Merge/Divest
♣Set up Ti/Pigment business
♣Establish e-Business
♣Improve product mix-PPM%
♣Reduce cost
♣Increase the sales to EAs and
KCCs
♣Increase the share of spend of
EAs/KCCs
♣Improve product mix
♣Reduce Cost
♣Increase Margin through product
mix improvement
♣New products
♣Implement OBL
♣Logistics partners
♣Product customisation
♣Partnerships with EPA’s
♣Customer relationship mgmt.
♣Ensure compliance on quality and
delivery
MS
21/22
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
Strategic
Goals
Reach the
position of
most cost
competitiv
e steel
plant
Create a
culture of
continuous
learning &
change
Establish
Industry
Leadership
in Public
responsibility
Strategic
Objectives
Rightsize
organization
Strategic Measures
9.Rightsizing
Unit of
Measures
MOR
(1st April)
Actual
01-02
46,235
01-02
45000
Targets
02-03
03-04
Benchmark/
Unique
Create culture of
knowledge based
organization
10.Knowledge Management
KI (Knowledge
Index)
100
102
Enhance culture
of Excellence
11.JRD QC Score (Steel)
Band
666
>650
>700
>750
800 + IBM
Become a happy
organization
12.ESI
13.Accident reduction
14.Effectiveness of PEP
implementation
15.Value of improvements by
employee
16.Corporate Citizenship Index
Index
%
Through
Survey
Rs. Million
(Audited)
Index
3.64/5
18.36%
New
3.65
10%
3.75
50%
3.8 No.
accidents
3.65/5 HP
10
10
Benchmark
Tata Steel
Source (CII)
Improve Q of life
in Jamshedpur
Strategic Initiatives
comparatives
Unique
♣Office Automation
♣Outsource of non core activity
♣Re-engineering
♣Cluster manning
♣Resource Conservation & Waste
Utilization
♣Set up knowledge/learning
centres
♣Create infrastructure for KM at out
locations
♣Obtain Benchmarks
♣Align practices with Baldridge
winners
♣Implement new ESI system
♣On line ESI surveys
measure
7400
7500
9.01
10
♣Social audit
♣New roads, bridges and park
♣Improve environmental
MS
22/22
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
SECTION-4
ECONOMIC
PERFORMANCE
CONTENT INDEX
•
Customers
EC02
•
Suppliers
EC02
•
Employees
EC02
•
Providers
of Capital
EC02
•
Public
Sector
EC03
•
Indirect
Economic
Impacts
EC03
EC
1/5
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
CUSTOMER (MONETARY INDICATOR)
SUPPLIERS (MONETARY INDICATORS)
EC1 Net Sales & Other Financial Indicators
EC3 Cost of all goods, materials, and
services purchased.
Rupees
Million
01-02
Previous
Year
Rupees
Million
2K-01
77594.4
60524.4
17065.3
506.1
(a) Net Sales/Income
76074.8
(b) Total Expenditure
63363.0
(c) Operating Profit
12711.8
(d) Add : Dividend & Other
856.3
Income
(e) Profit before Interest,
13568.1
17571.4
Extraordinary items & Taxes
(f) Less : Interests
3697.5
3766.1
(g) Profit before Depreciation,
9870.6
13805.3
Extraordinary items & Taxes
(h) Less : Depreciation
5247.5
4922.5
(i) Less : Extraordinary items
4623.1
8882.8
(j) Less : Extraordinary items
2113.1
2858.4
(k) Profit before Taxes
2510.0
6024.4
(l) Less : Provision for Taxes
155.0
495.0
(m) Less : Provision for Deferred
306.0
Taxation
(n) Profit after Taxes
2049.0
5534.4
(o) Add : Transfer from
3100.0
Debenture Redemption
Reserve
(p) Add : Transfer from Invest755.5
ment Allowance (utilized)
Reserve
(q) Less : Transfer to debenture
1000.0
Redemption
Reserve
Geographic
Break
Down
&
Market
(r) Less : Transfer to Capital
1400.0
100.0
Redemption Reserve
4504.5
4434.4
(s) Add : Balance brought
forward from the previous
year
(t) Balance
Which the Directors have
appropriated as under, to:
(i) Interim Dividend on
Preference Shares
(ii) Interim Dividend on
Ordinary Shares
(iii) Proposed Dividend
(iv) Tax on Dividend
(v) Contingency Reserve
(vi) General Reserve
TOTAL
Leaving a balance of to be
carried forward
Rs. 24.75 Billion.
EC4 Percentage of contracts that were paid
in accordance with agreed terms, excluding
agreed penalty arrangements.
98% of the contracts were paid in accordance
with the contract terms during the reporting
year. The balance 2% represent the contract
with a credit of 30 days which were paid in
subsequent year.
EC11 Supplier breakdown by organization
and country.
A total sum of Rs.24.75 Billion was paid to the
suppliers during reporting period. A few of
these suppliers are; BOC India for Oxygen
supply, ITW Signode for packaging, JAMIPOL
for carbide injection powder, TAYO for Rolls,
Tata Ryerson for conversion of flat products,
Adhunik Steel for reclaiming waste material,
Man Singh & Co. for construction and material
handling, Tata Refractories for purchase of
refractories. The break up shall be provided
from next year.
EMPLOYEES
EC5 Total Payroll and benefits
2147.6
1889.3
6652.1
6323.7
Wages & Benefits – Rs.10.976 Billion
Early Separation Scheme – Rs.2.2702 Billion
Provision for Employee Separation-Rs.1063.7
Million
20.7
122.0
PROVIDERS OF CAPITAL
1471.1
-
02.1
3000.0
4493.9
2158.2
1838.9
215.2
1000.0
1000.0
4176.1
2147.6
EC2 Geographic break down of markets
Geographic break down of markets has not been
compiled separately this year. In the coming years
this information will be provided.
EC6 Distributions to providers of capital
broken down by interest on debts and
borrowings, and dividends on all classes of
shares with any arrears of preferred
dividends to be disclosed.
•
•
Interest on debts and borrowings
Rs.4191.6 Million
Dividends Rs.1493.9 Millions
EC7 Increase/decrease in retained earnings
at end of period.
Increase in retained earnings – Rs.10.6 Million
EC
2/5
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
PUBLIC SECTOR
INDIRECT ECONOMIC IMPACTS
EC8 Total sum of taxes of all types paid broken
down by country
EC9 Subsidies received broken down by country
or region.
The total sum of taxes like sales tax, excise duty,
wealth tax, etc. paid by the organization during
reporting period is Rs.766.8 Million. Break down by
region is not available.
The organization has not received any government
subsidy during the reporting period.
EC10 Donations to community, civil society and
other groups…
The total donations to the community and civil
society during the reporting period were – Rs.31.8
Million. The break up shall be provided next year.
EC12 Total spent on non-core
infrastructure development.
business
The organization has spent approximately Rs.150
Million in construction of roads from railway station
to Jamshedpur City, modification and strengthening
of Adityapur Bridge on River Kharkai and
construction of peripheral road around City of
Jamshedpur.
EC13 The organization’s indirect economic
impacts, identify major externalities associated
with the reporting organization’s products and
services
Although there is no established methodology to
capture indirect impacts, there are several
institutions and organizations in and around Tata
Steel enterprises that are supported by the Steel
Company both in terms of providing skilled
manpower (employees as members, executives and
directors), sourcing goods & services and also
financial support.
These organizations employ
thousands of people who are indirectly benefited by
the organization’s products and services. Such
organizations include Small Scale Industries, Rotary
Clubs of Jamshedpur (6 Nos.), Lions Clubs of
Jamshedpur (5 Nos.), Artificial Limfiting Centre,
Aurogya Bhawan, 2 Hospitals, 10 English Media
Public Schools, Transport Nagar, Jamshedpur
Sports Association, Zoo, TSRDS, TCS, Credit
Societies, Pay Roll Savings, etc.
EC
3/5
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
OTHER DETAILS
Research & Development
Research is undertaken at Tata Steel out in the areas of raw materials including coal, coke, energy
conservation, waste utilisation, sintering, blast furnace productivity and phosphorous reduction, product
development and improvement in life of plant and machinery.
Many initiatives have been taken on R&D and some work done during the reporting period is presented
below.
Dry circuit and phos reduction measures in classifier fines to –0.04% are identified and
recommended for Joda Iron Ore processing.
Phos. Reduction in Noamundi fines to –0.06% is identified and recommended.
Plant trials undertaken to improve chrome ore pellet strength to >100 kgs/pellet at FAP, Bamnipal.
Sinter chemistry for high sinter usage during “F” furnace shutdown has been designed and
properties found suitable.
Burden distribution studies with 1:10 scaled down BF model for “F” furnace with CBLT have been
carried out through in-house development.
An optimum TBM tuyeres location for the new vessel bottom at LD1 has been suggested to the plant
based on the water model study. This will be implemented in the middle of 2002.
A comprehensive model of electromagnetic stirrer and submerged entry nozzle for billet casting is in an
advanced state of development; the results would soon be used in the plant.
Prediction System) to obtain mechanical properties during rolling. HR Dual phase steel for wheel
rim and disc application have been developed and sent for trial.
Annealing parameters have been optimised for production of ULC/LC Si-free electrical steel, which
would reduce processing cost at the customers’ end.
Low carbon Si free steel with P has been developed.
Chromatizing process recommended by R&D has been implemented in CRM.
Optimised annealing parameters developed and implemented in CGL#1 and CGL#2 resulting in
increased line speed and reduced rejection rate.
Superior life cycle of painted TATA GA sheet was established through in-house corrosion
characterisation.
o
An improved ULCC tundish striker pad, having adequate hot module of rupture at 1500 C has been
developed and tried at LD#1.
As an import substitution, direct bonded magnesia-chrome refractory for RH snorkel down-leg has
been developed.
Steel ladle slag zone break-out due to slag attack on the safety lining has been eliminated by
replacing 42% alumina intermediate lining with magnesite split bricks.
Development of galvanised IF-HS product for auto body application.
a)
b)
c)
d)
Expenditure on R&D
Capital
Recurring
Total
Total R&D expenditure as a percentage of total turnover (%)
(Rs. Million)
5.2
70.0
75.2
0.10
Technology Absorption, Adaptation and Innovation
•
•
Process: Design of a new submerged entry nozzle clogging. New location of tuyeres suggested for
steel making at LD#1. Charging matrix developed for burden distribution in the “new” “F” Blast
Furnace. Sinter chemistry designed for high sinter percent operation.
Product: On-line property prediction system (OPPRESS) has been developed to predict mechanical
properties over the length and also through the thickness of coil, as and when it is being rolled.
EC
4/5
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
Particulars of technology imported during the last five years:
Innovation/Technology
STEEL DIVISION
Lime dosing at Sinter Plant (Lurgi, Germany)
Upper Stack Gunniting of “G” Bl. Fce. (Vesuvius, Italy)
Stamp Charge Battery#8 (Saaberg Interplan, Germany)
Augmentation of Sinter Production (Lurgi, Germany)
Third Converter and gas cleaning equipment at LD 2 (MDH, Germany)
Second gas recovery system (MDH, Germany)
Installation of third Slab Caster at LD 2 (Davy Distington, UK)
Electrics and automation for HSM (SMS, Germany)
Thyssen bottom metallurgy technology in LD Converters (Thyssen,
Germany)
Split Blower for Blast Furnace (GHH, Germany)
Development of information system for CRM (Posdata Company
Limited, Korea)
Slab yard management system (Posdata Company Limited, Korea)
Coil Yard management system (Posdata Company Ltd., Korea)
Coil tracking and transportation system (Posdata Company Limited,
Korea)
Manufacture of self-aligning clutch release bearing and rear wheel ball
bearing (Nachi Fujikoshi, Japan)
Stamp Charge Battery#9 (Saarberg Interplan, Germany)
Year of
Import /
Absorption
Status of
Implementation
1997
1997
Commissioned
Under
Commissioned
Commissioned
Commissioned
Commissioned
Commissioned
Commissioned
Commissioned
Commissioned
1999
1999
1999
1999
1999
1999
1999
1999
1999
1999
1999
1999
1999
2000
Commissioned
Under
implementation
Commissioned
Commissioned
Commissioned
Under
Implementation
Under
implementation
Commissioned
Commissioned
Commissioned
Under
implementation
Under
implementation
Under
implementation
Ladle Furnace at LD#1 (GHH, MDH, Germany)
2000
Capacity increase at WRM (Morgan, USA)
2000
Continuous galvanising iron#2 at CRM (CMI, Belgium)
2001
Utilisation of sensible heat from blast furnace hot stove waste gas at “G”
2002
Blast Furnace in association with NEDO, Japan)
Installation of electromagnetic stirrer and submerged entry nozzle in the
2002
billet caster of LD#1 (Concast, Switzerland)
Installation of probes in “G” Blast Furnace to monitor various
2002
parameters to carry out intensive R&D activities and thereby acquiring
in-depth knowledge of in-furnace phenomena (Paul Wurth,
Luxembourg)
Since this information is being reported for the first time, the activities undertaken prior to reporting period
are also reported.
EC
5/5
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
SECTION-5
ENVIRONMENTAL
PERFORMANCE
CONTENT INDEX
•
Materials
EN02
•
Energy
EN03
•
Water
EN06
•
Bio-diversity
EN08
•
Emissions, Effluents
EN10
& Waste
•
Suppliers
•
Products & Services
EN16
•
Compliance
EN16
EN16
EN
1/18
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
MATERIALS
EN1 Total Materials use other than water, by type (raw materials are the minerals and semi processed
materials used as inputs in iron and steel making, lubricants are not included in raw materials). The specific
consumption is calculated based on the total tonnage of raw materials divided by crude steel production.
Raw
materials
consumed
(Tonnes)
Iron Ore
Thermal Coal
Coking coal
Limestone and Dolomite
Ferro Manganese
Zinc and Zinc Alloys
Spelter, sulphur, fluxes, alloys etc.
Others
Total
Crude steel production-mtpy
Saleable steel production-mtpy
2001-2002
2000-2001
6,003,776
1,037,241
3,324,820
1,374,277
15,935
9,238
467,812
176,091
12,409,190
3.566
3.413
5,882,897
1,138,964
3,337,350
1,350,575
16,442
2,190
542,982
958,460
13,229,860
3.749
3.596
Raw Material Consumption (t/tcs)
4.4
4.2
4
3.8
3.6
3.4
3.2
3
4.06
4.01
3.93
3.71
3.31
97-98
98-99
99-2K
2K-01 2K1-02
Refractory Consumption (kg/tcs)
17
16.12
Specific Lubricant
Consumption in Steel Works
(kg/tss)
14.25
15
13
11.58
9.89
11
1.4
8.19
9
1.2
1.08
0.88
1
7
97-98
98-99
99-2K
2K-01
2K1-02
0.7
0.8
0.58
0.6
0.55
0.4
Refractories consumed during reporting period30,704 tonnes.
The raw material consumption at Ferro Chrome
Plant will be reported next year. The raw material
consumed in manufacture of Ferro Manganese are;
90,590 tonnes during 01-02.
101,551 tonnes during 00-01.
97-98
98-99
99-2K
2K-01 2K1-02
Lubricant consumed during reporting
period – 2,174 tonnes,
EN2 Percentage of material used that are wastes
(processed or unprocessed) from
sources external to the reporting organization;
The only waste material from external source that is used
by Tata Steel is the iron/steel scrap purchased from
market for Steel Melting Shops. During the year 20012002, the total quantity of scrap purchased was
35,996.13 tonnes, approximately 0.3% of the total raw
material consumed.
EN
2/18
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
ENERGY
EN3 & EN 4 Direct energy use segmented by primary source and Indirect energy use;
A)
1.
a)
b)
i)
ii)
2.
i)
ii)
iii)
3.
4.
Particulars
Power and Fuel Consumption
Electricity
Purchased Units (M.KWH)
Total Amount (Rs. Million) #
Average Rate/Unit (Rs./KWH)
Own Generation
Through Diesel Generator Units
(KWH)
Units per litre of Diesel Oil
(KWH)
Average Cost/Unit (Rs./KWH)
Through steam turbine/generator
Units (M.KWH)
Units per tonne of Coal (KWH)
Average cost/unit (Rs./KWH)
(*This includes generation of
PH#4 in M.KWH that is operated
on by-product gases up to 95%)
Coal
Coking Coal
Quantity (Million Tonnes)
Total Cost (Rs. Millions)
Average Rate (Rs./Tonne)
Blast Furnace Injection Coal
Quantity (Million Tonnes)
Total cost (Rs. Millions)
Average rate (Rs./Tonne)
Middling coal (Million Tonnes) for
power generation.
Total cost (Rs. Millions)
Average Rate (Rs./Tonne)
Furnace Oil
Quantity (Kilo Litres)
Total Amount (Rs. Millions)
Average Rate (Rs./KL)
Others
LDO Quantity (Kilo Litres)
Total Cost (Rs. Millions)
Average Rate (Rs./KL)
2001-2002
2000-2001
1,371.73
3,644.651
2.66
1,085.02
3207.763
2.95
8.10
7.72
3.63
3.35
7.32
1,077.38
7.90
1,273.32
897.13
1.43
375.76
855.16
1.41
458.74
# Excludes electricity duty paid on
purchases.
* CO gas, BF gas and LD gas (by
product of Coke Plant, BF and LD
Shops) are consumed for generation
of power in PH#4 steam turbine
generator.
Accordingly, previous
year’s figures have been modified.
Details of purchased Oxygen (Indirect
Energy)
Supply from BOC India (tonnes/annum)
2001-2002 : 3,24,7302.00
2000-2001 : 3,42,067.00
3.320
6,645.405
2,002.650
0.140
3.340
6,199.387
1,856.100
0.140
405.261
2,951.28
0.86
386.212
2,667.86
0.99
643.759
750.12
695.339
702.36
2,551.67
30.262
11,859.69
1,872.20
22.444
11,987.80
2,957.78
38.968
13,174.67
3,152.89
35.103
11,133.58
(These quantities of Oxygen are
considered in the calculations for specific
energy consumption in the Steel Works.
No other production unit has used
Oxygen in production process).
B) Consumption Per Unit of Production (figures in parenthesis are for the year 2000-2001)
Particulars
Electricity (KWH)
Furnace Oil (Litres)
Coking Coal (Tonnes)
Light Diesel Oil (Litres)
Steel (per
tonne)
Tubes (per
tonne)
Bearings
(per no.)
Ferro Alloys
(per tonne)
464.00
(481.00)
0.95 (1.00)
0.53 (0.82)
124.00
(121.00)
0.06 (0.07)
1.20
(1.14)
-
3,791.09
(3,548.55)
1.20 (25.83)
-
Rings &
Agrico
(per no.)
0.81
(0.79)
0.68 (0.19)
-
Growth Shop
(per tonne)
1,214.51
(1,360.16)
20.12 (20.35)
-
The consumptions per unit for steel production do not include the energy consumption in Mines that is
furnished separately under EN17. The energy consumption at stockyards, marketing offices has also not
been reported.
EN
3/18
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
EN17 Initiative to use renewable energy sources and to increase energy efficiency
No initiative has been taken to use renewable energy such as hydropower and/or biomass. In the Steel
Works (Integrated Iron & Steel Production facilities at Jamshedpur), the specific energy of 30.339 G.
Joule/tonne of crude steel during 2001-2002 was the lowest, a reduction of 0.59% over Annual Business
Plan target and 1.91% (without Cold Rolling Mill-CRM) & 3.61% (with CRM) over 2000-2001. This is the
sixth year in succession that the steel plant has achieved record lowest specific energy consumption. At the
Iron Ore Mines, the consumption of electricity and petro-fuel is also coming down year-after-year as shown
below.
The contributing factors for the reduction in Specific
Energy Consumption at Jamshedpur Works as
compared to last year were;
•
•
•
•
•
•
•
•
Lowest ever specific petro fuel consumption @
0.47 kg/tcs. The trend is shown in the box.
Lowest ever specific middling consumption @
45.15 Kg/t of steam generation at West Plant
Boilers was achieved against 50.60 Kg/t in
2000-2001.
Lowest specific steam consumption at Turbo
Blowers (A-F) Blast Furnaces.
Lowest fuel rate at HSM, WRM and Mearz
Kilns at RPD.
Lowest power rate at Battery#8&9 at Coke
Plant, Sinter Plant#2, LD Shop#2, HSM, WRM
and MM.
Higher boiler efficiency at PH#3 & PH#4.
Higher gross coke and coal tar yield.
Replacement of Al fan blades with FRP blades
in Cooling Towers and elimination of multi
stage pumping in under ground mines.
Better utilization of machineries at Mines.
However the following factors had adverse impact on
the plant Specific Energy Consumption.
•
•
•
Lower recovery of LD gas due to major shut
down of LD Gas Holder, outage of Boiler#3 for
longer period and LD#2 Vessel#3 ID Fan
vibration problem.
Higher venting of BF gas and CO gas due to
less demand at PH#4 Boilers as Boiler#3 was
down for major repair.
Higher coke breeze rate at SP#1 & SP#2.
The formula
consumption-
for
calculation
of
specific
8
Kg/tss
•
Specific Petro Fuel Consumption
(Steel Works)
NOTE : The energy consumption data for Collieries are
not available and shall be furnished next year.
1.6
2
97-98
0.74
0.47
98-99
99-2K
2K-01
01-02
Reduction in Power Consumption
(Kwh/t)
6
4.8
4
4.7
2.8
4.1
2.5
3.9
2.4
3.7
2.4
3.6
2.3
2.3
2
0
FY98
FY99
FY00
FY01
NOA
JODA
FY02
FY03
Reduction in HSD Consumption
(Ltr/t)
n
1
Q = Quantity of solid, liquid & gaseous fuels
CV = Calorific Value of fuels (G.Cal/Unit)
4.23
4
0
energy
∑ Qn x CVn / Crude Steel Production {Tonnes}
6.2
6
0.6
0.4
0.48
0.47
0.46
0.45
0.43
0.42
0.37
0.36
0.37
0.34
0.32
0.29
0.2
0
FY98
FY99
FY00
FY01
NOA
JODA
FY02
FY03
EN
4/18
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
EN18 Energy consumption footprint (i.e. annualised lifetime energy requirements) of major products
Specific Energy Consumption (Steel Works) Continual Improvement
50
49.626
Intensive energy
saving campaign
Phase-III completion, Energy efficient BF,
LD#2, Slab Caster, Process intensification
measures, like O2 enrichment, coal injection,
Tar Injection. Humidity control, Intensified
waste heat recovery. Retirement of old units.
45.396
45
44.105
G.Joule/tcs
40
35
30
39.036
38.643
Phase I & II modernisation,
LD Steel making,
continuous casting, Stamp
Charge coke ovens, Shaft
lime kilns, Modern reheat
furnaces.
There was an oil crisis during
72-73 all over the world. Tata
Steel has initiated several
actions since 72-73 in phased
manner to improve its energy
performance
through
fuel
substitutes,
modernization,
recovery & reuse of by-product
energy.
Higher by-product
gases for steam
and power,
Recovery of waste
steam.
37.339
33.419
32.504
30.929
Phase-IV completion,
Third LD converter at
LD#2 Second Re-Heat fce.
at HSM, retirement of
SMS#2 fces. Retirement of
old units. Stamp Charge
Battery#8.
30.339
25
72-73
77-78
82-83
87-88
92-93
94-95
98-99
99-2K
2K-01
01-02
EN19 Other indirect (upstream/downstream) energy use and implications, such as organizational
travel, product life cycle management, and use of energy-intensive materials.
Organizational travel and its impact on energy use are not included. Product Life Cycle energy
usage is difficult to capture in case of steel products. Iron Ore and Coal, the major raw material
used for steel manufacture, are highly energy intensive due to presence of high alumina, silica and
phosphorous content in Iron Ore and high phosphorous content in coal. Life Cycle Assessment is
carried out using ECOBILAN TEAMTM Software on yearly basis for environmental burdens
associated with steel manufacturing at TATA STEEL from Mining activities to steel despatch at the
gate of Jamshedpur Factory. Other energy intensive material used in the manufacture of steel is
Oxygen that is purchased from BOC India Plant located outside the Steel Works at Jamshedpur.
The energy consumed in the manufacture of Oxygen in BOC Plant is not included in the scope of
this report.
EN
5/18
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
WATER
EN5 Total Water Use
40
35
30
25
20
15
10
8.37
10
8
6.07
25.2
5.65
5.2
19.7
18.9
24.9
19.95
8
6
m3/tss
Total Consumption
(Million m3/annuam)
Tata Steel has taken various actions for optimum use of
water. The increased emphasis on water recirculation in
all process units has contributed to considerable
reduction in specific water consumption. Specific water
consumption (including that for power generation) has
reduced by more than 10% over the last year. Close
monitoring of water losses, recycling of ash quenching
water from Power Houses and recycle of waste water
from various drains have resulted in such reduction. The
domestic consumption at Jamshedpur for entire city is
60 million m3/annum supplied and managed by
Company.
Water Consumption in Steel Works
(excluding captive power generation)
4
2
0
97-98 98-99 99-2K 2K-01 01-02
Total Water Consumption (Million m3/annum)
Specific Water Consumption (m3/tss)
Total water used at Jharia Mines is 0.93 million m3/annum for industrial and 2.92 million m3/annum for
domestic usages. At West Bokaro 5.48 million m3/annum water is used for industrial use and 2.56 million
m3/annum for domestic usages. Water consumption for Joda & Noamundi Iron Ore Mines is furnished
above on per tonne of Run of Mine (ROM) Ore. The water consumption at other locations is comparatively
very-very low and hence not reported. The trends for other unit for previous year are not available and shall
be reported in future.
Total Water Requirement at Mines
Mine
Noamundi
Joda East
Gomardih
Annual water requirement in thousand m3 for the year 2001-2002
Industrial
Dust Suppression
Domestic
1684.0
Noamundi
1684.0
1240.2
Joda East
1240.2
32.8
Gomardih
32.8
EN20 Water sources and related ecosystems/habitats significantly affected by use of water
The water for industrial and domestic usage at Jamshedpur, is drawn from river Subarnarekha. These rivers
are perennial in nature and water abstraction does not have any adverse impact on the eco-system. Other
source of water at Jamshedpur is a captive reservoir at Dimna (Capacity-34.224 million m3 and Area-92.6
sq. km.). Dimna Lake is situated on the Northeastern side of the Jamshedpur town at a distance of 12-13
kms. It is an earthen dam with masonary concrete wall constructed by the company about three decades
ago to meet the emergency water supply demand of the Works and Township particularly during poor
monsoon in the area. Three major drains carrying rainwater and surface run-off water from nearby villages
pour into this artificial impounding. However the Company also pumps water during monsoon and postmonsoon seasons from the river Subarnarekha to Dimna Reservoir.
Studies have been carried out by company appointed consultant M/s. NEERI to find out the impact on ecosystems / habitats of these rivers by the organization’s use of water. The Consultant has reported no
significant adverse impact. The river water analysis is given in the Table below. This analysis indicates that
the quality of river is in conformance with the National Standard (BIS-2296 – 1982 – Class-A).
EN
6/18
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
Parameters
BIS-2296Water Analysis Subarnarekha River
Water Analysis Kharkai River
1982-Class-A
19.1.02
19.7.02
3.1.02
23.7.02
19.1.02
19.7.02
3.1.02
23.7.02
Cd, mg/l
0.01
NT
NT
NT
NT
NT
NT
NT
NT
+6
Cr , mg/l
0.05
NT
0.019
0.02
0.014
NT
0.015
0.014
0.008
Total Cr, mg/l
0.012
0.028
0.030
0.022
0.11
0.031
0.023
0.02
Cu, mg/l
1.5
0.01
0.08
0.03
0.08
0.01
0.09
0.01
0.03
Fe, mg/l
0.3
0.02
0.16
0.02
0.01
0.04
0.23
0.03
0.01
Zn, mg/l
15.0
0.06
0.46
0.18
0.17
0.07
0.19
0.14
0.21
Ni, mg/l
0.01
0.14
0.01
0.15
NT
0.15
0.02
0.05
Mn, mg/l
0.5
NT
0.21
0.09
0.02
NT
0.19
0.04
0.07
NO3 (N), mg/l
20
0.3
0.30
0.24
0.42
3.3
NT
2.5
2.2
Pb, mg/l
0.1
0.02
0.05
0.02
0.04
0.01
0.07
0.05
0.05
pH
6.5-8.5
8.1
8.0
7.1
8.3
8.0
8.7
7.3
8.0
TH, mg/l
300
86
34
99
78
162
160
140
112
DO, mg/l
6.0
8.9
4.9
8.0
5.6
7.4
5.1
09
7.2
TSS, mg/l
15
137
05
140
06
164
09
72
BOD3,, mg/l
23.0
11
04
05
24
05
06
07
NT – No Trace; TH – Total Hardness; DO – Dissolved Oxygen; TSS-Total Suspended Solids
Studies have also been carried out to study the Dimna Lake stratification and eutrophication. No
stratification was observed in the Lake as indicated by no changes in Dissolved Oxygen (DO) levels at
different depth. The company does not use any ground water source for either industrial or domestic use at
Jamshedpur. Details of impact of withdrawal of water resources at Mines locations shall be furnished in
subsequent reports.
EN21
Annual withdrawals of ground
and surface water as a percent of annual
renewable quantity of water available
from the sources.
The flow of river water after 500 meters from
the confluence of Rivers Subarnarekha &
Kharkai
(water
abstraction
point)
at
Jamshedpur is shown in the box.
At Jharia the water is withdrawn from rivers
Damodar & Katri and at West Bokaro from a
seasonal nallah. The ground water from the
under ground Mines is also recovered and
used after treatment for industrial and
domestic purposes at both locations.
At Mines & Quarries the water is drawn from
different sources as shown in the box. Flow
details of mine sources shall be ascertained
and reported in subsequent reports.
EN22 Total recycling & reuse of water
Gross make up water requirement for Steel
Works was 74,000 cum/day (avg) during the
reporting period. 960,000 cum/day of water
remain in circulation in steel manufacturing
processes through close circuit system and
Cooling Ponds. The make up water
represents primary evaporation tones and
blow downs. The data are being reported for
first time. Previous years data are not
available and shall be presented as trend in
future reports. Water recycling data for Mines
shall be presented in the next report.
River flows
at Jsr.
Water pick
up
% age
Post
Monsoon
9.40
cum/sec
3.90
cum/sec
41.5
Winter
Summer
4.50
cum/sec
3.90
cum/sec
86.6
5.93
cum/sec
3.90
cum/sec
50.5
Water Abstraction from River Subarnarekha.
Source: Regional Environmental Impact Assessment
Study Report for Jamshedpur Region by NEERI, NagpurMay 1995.
Name of
Mine
Noamundi
Water
Source
Baitarni
River
Jojo Nalla
Joda
Kundra
Nalla
Gomardih
Nakati
Nalla
Ground
water
Purpose
Remarks
Industrial
Source is about 20
km away from Mines
Source is about 3 km
away from Mines.
Source is about 5 km
away from Mines.
Domestic
Industrial
&
Domestic
Domestic
Industrial
Source is about 5 km
away from Mines.
Ground
water
is
available in the active
mining area
EN
7/18
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
BIO-DIVERSITY
EN6 Location and size of land owned, leased, or
managed in biodiversity-rich habitats.
EN23 Total amount of land owned, leased,
or managed for production activities or
extractive use
The Steel Works is situated at Jamshedpur in the State
of Jharkhand, India. The factory covers 800 hectares of
land. In Jamshedpur 200 hectares land is developed as
eco-park housing a Zoo and a Safari. West Bokaro
Division is housed in 2000 hectares land in which mining
and coal beneficiation activities are performed in
Hazaribagh. Jharia Division occupies 2500 hectares of
land for its industrial, mining and domestic activities in
the District of Dhanbad both in the State of Jharkhand.
The Iron Ore and Dolomite Mines are located at
Noamundi in the State of Jharkhand and at Joda,
Katamati, Khodbond and Gomardih in the State of
Orissa. The lease area for various Units and the details
of usage are furnished in the Box under EN23. The mine
leases are in biodiversity reach area.
Reclamation & Afforestation Measures•
Massive plantation in all the units of
Tata Steel during Green Millennium Count
Down started in1998 to plant 1000 trees/day
for 1000 days to greet new millennium with
one million trees planted by Tata Steel.
•
More than 3.74 million saplings were
planted covering more than 400 hectares at
Mines during 1997 to March 2002.
•
More than 200 hectares of mined out
areas were reclaimed by plantation so far.
•
Survival rates have been improved
from 30% to 85% by providing protection to
the saplings planted and watering the same
during dry periods during past 10 years.
•
Trials were conducted to identify the
species to be planted during the afforestation
programmes during reporting period.
•
In-house nurseries to develop the
saplings for afforestation. Total capacity to
raise 0.4 million saplings every year through
out the company.
•
Sir Dorabji Botanical Parks have
been developed at West Bokaro & Noamundi
during past 8-10 years. These parks housed
ornamental plants, fruit trees, more than 250
varies of cactus, 70 varieties of roses, rare
flowering plants, rock gardens, spices, and
condiments, medicinal plants.
Units
Lease
area in
hectare
Forest
area in
lease in
hectare
Jamshedpur
West
Bokaro
Jharia
Noamundi
Joda East
Gomardih
Khondbond
Katamati
7100
2000
Nil
700
Nonforest
area in
lease in
hectare
7100
2000
2500
1160.06
671.093
372.796
978.000
403.32
Nil
762.430
521.622
836.757
199.17
2500
397.630
149.371
372.796
141.242
205.15
Tree Plantation at various locations
Under
During
During
Green
19992000Millennium
2000
2001
Count-down
Jamshedpur
204969
44152
32774
Location
During
20012002
29940
Mines
Division
Collieries
717500
232000
100000
36000
435555
100455
60000
155000
Cement
Division
FAMD
(Sukinda &
Bamnipal)
Gopalpur
Bearing
Division
TOTAL
(Numbers)
49126
9120
-
-
48250
30000
58000
30000
62043
2653
17042
1200
Nil
500
Nil
500
1519995
433969
251274
250990
Afforestation at Noamundi & Joda
(trees planted in thousand)
150
140
140
80
100
50
Total saplings
planted since 1982
– 1.82 Millions
6
21.4
0
97-98
98-99
99-00
00-01
01-02
EN
8/18
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
EN24 Amount of impermeable surface as a
percentage of land purchased or leased.
The data is not presently available and shall be
reported in future.
EN25 Impacts of activities and operations
on protected and sensitive areas.
Areas of operation of the company do not have
any World Heritage sites or Biosphere
Reserves/ Protected areas.
EN26 Changes to natural habitats resulting
from activities and operations and
percentage of habitat protected or restored.
EN7 Description of the major impacts on
biodiversity associated with activities and/or
products and services in terrestrial, fresh
water, and marine environment.
The
company
conducted
the
Regional
Environmental Impact Assessment Studies for
Jamshedpur Region in 1993 and later on the
Carrying Capacity of the Region by National
Environmental Engineering Research Institute in
the year 2001.
The Environmental Impact
Assessment has been undertaken for all the units
of Tata Steel. The reports indicate that there is
no major impact on bio-diversity associated with
the organization’s activities and/or products and
services in territorial, fresh water environments.
(Also please refer details given in EN23).
No reportable changes to natural habitats have
occurred from the company’s products,
services and activities through Environmental
Impact Assessment Studies conducted for all
the units.
EN27 Objectives, programmes, and targets
for protecting and restoring native
ecosystems and species in degraded areas.
As a part of its compensatory afforestation
commitment and voluntary initiatives, the
company strives to rehabilitate the degraded
lands with local species with a view to restore
native eco system.
EN28 Number of IUCN Red List species with
habitats in areas affected by operations.
Noamundi & Joda mining lease areas have the
following species from Schdule-1&2 of Wildlife
Protection Act 1972.
Schedule-1 – Sloth Bear, Elephant, Peacock.
Schedule-2 – Indian Python
EN29 Business units currently operating or
planning operations in or around protected
or sensitive areas.
No unit of Tata Steel is currently operating or
planning to operate in Protected and Sensitive
Areas.
EN
9/18
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
EMISSIONS, EFFLUENTS & WASTES
EN8 Greenhouse gas emissions
Considerable reduction in effective CO2 emission rate
is evident when the credit for slag granulation (as per
IISI guidelines) (CO2 emitted for equivalent amount of
clinker used in cement making) is taken into account.
The Boxes indicate the trends in specific CO2 emission
from Steel Works and absolute quantities of emissions
over the years.
CO2 emissions calculations have been done using
GHG protocol guideline. Specific emission data
reported in the box opposite are for the scope without
considering mobile emissions, HFC emissions,
purchased power and purchased oxygen.
Carbon Dioxide Emission (t/tcs)
Target (01-02) – 2.85
Benchmark (Corus) – 1.2 (without power)
3.4
3.24
3.2
3.09
3.08
3
3.01
2.91
2.8
2.92
2.82
2.73
2.6
2.65
2.48
2.4
97-98
98-99
99-2K
2K-01
2K1-02
With power generation
After taking credit for slag granulation with power generation
CO2 EMISSIONS AS PER GHG PROTOCOL
EN9 Use and Emissions of Ozone-Depleting
Substances
The company used 8.462 tonnes of refrigerant during
reporting period as against 10.647 tonnes of
refrigerant used during previous year. The trends of
CFC consumption have been provided alongside.
EN30 Other relevant indirect gas emissions
This report does not include green house gas
emissions that are as a consequence of Tata Steel’s
activities but occur from sources owned or controlled
by other entities in and around the organization e.g.,
the refrigerators and air conditioners supplied by the
organization to or owned by the employees at their
residences, GHG emission on account of purchase of
oxygen etc.
Emissions
Process + Stationary
Combustion
Mobile Emissions
HFC Emissions
Total Emissions
Crude Steel Production
CO2 emission t/tcs
Slag credit
Emission including slag
credit
CO2 emission t/tcs
including slag credit
Total emissions (Imported
Elect.+Mobile +HFC)
Total emissions excluding
(Imported Elect.+Mobile
+HFC
CO2 emission t/tcs
excluding imported
Elect.+Mobile +HFC
EN31 All production, transport, import, or export of
any waste deemed “hazardous” under the terms of
the Basel Convention.
The company does not import or export any waste
deemed “hazardous” under the terms of the Basel
Convention Annexure-I, II, III & VIII. All hazardous
waste generated are handled as per the requirement
of Hazardous Waste Management & Handling Rules
1989/2000. All hazardous waste other than chrome
sludge (filled in secure land fill) are recycled. Details of
hazardous wastes are furnished in Section-E11.
00-01
11357200
01-02
106327592
17578
38299
11531047
3435136
3.36
634641
10896406
17098
27340
11401638
3666396
3.20
671259
10730379
19298
4846
10661736
3749499
2.84
659164
10002572
3.17
3.00
2.66
1217307
1223395
575788
9679099
9506984
9426804
2.82
2.67
2.51
Refrigerant consumption
1.487
1.6
1.4
1.2
0.985
0.942
1
0.8
0.607
0.635
2K-01
01-02
0.6
0.4
0.2
0
97-98
EN32
Water
sources
and
related
ecosystems/habitats significantly affected by
discharges of water and runoff.
99-00
11475170
98-99
99-2K
kg/ton of refrigeration
The company discharge its treated effluent from the works and treated domestic sewage from townships to the
rivers Subarnarekha & Kharkai. Studies have been carried out by NEERI to assess impact on eco-systems/habitats
of rivers and have found no significant impact on the eco-system as given in EN20. Noamundi & Joda Mines have
achieved zero discharge. The domestic effluent is discharged through the septic tank – soaking pit route.
EN
10/18
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
EN10
NOx, SOx, and other significant air emissions by type
Emission through process stacks.
Stack Emission - Steel Works (PM) (kg/tcs)
Tata Steel has undertaken several initiatives which
have resulted in considerable reduction in stack
emission as evidenced in the figure in the box
alongside. Indian standards (norms) for SO2, NOx,
& PM for stacks in steel plants are furnished below
along with actual values monitored during the
reporting period. Total emission load for past two
years are also furnished below.
3.5
Target (01-02) – 1.75
Benchmark (Corus Steel) – 0.5
3.15
3
3
2.5
2.02
1.8
2
1.67
1.5
1
97-98
Sl.
No.
1
Process Stacks
Attached to
Blast Furnace
2
Sinter Plant
3
Refractories Production
Department
4
5
Steel Melting Shops
Coke Plant
6
Captive Power Plants
Air
Pollutant
PM
SO2
NOx
PM
SO2
NOx
PM
SO2
NOx
PM
PM
SO2
NOx
PM
Indian
Standard
150 mg/Nm3
No Standard
No Standard
150 mg/Nm3
No Standard
No Standard
150 mg/Nm3
No Standard
No Standard
150 mg/Nm3
50 mg/Nm3
800 mg/Nm3
500 mg/Nm3
350 mg/Nm3
Actual Value
(01-02)
15-84
121-191
74-117
113-325
69-487
57-235
32-83
3-11
103-141
28-44
18-476
83-544
109-437
27-138
Emission load from Steel Works – tonnes/annum
Parameter
2001-2002
2000-2001
Particulate Matter, tpa
6396
6529
Sulpher-di-oxide, tpa
17941
17062
Oxides of Nitrogen, tpa
12247
10744
98-99
99-2K
2K-01
2K1-02
Remarks
ESP is under installation in SP#1
to achieve the norm
PM standard for Battery#3 (top
charge) not complied with and
the same to be retired.
Ambient Air Quality at Noamundi &
Joda (Norm-500 ug/m3)
215
205
200
The gross emissions loads are presented only for the
Steel Works. The loads for other units will be provided
next year. The emissions of substances regulated under
POP’s Convention, Prior Informed Consents, Protocols
to the Convention on long-range trans-boundary air
pollution are not included in the report. These are not
part of Indian Legislation and hence the data are not
being captured. However, actions to capture these data
are being initiated for reporting in future reports.
210
210
198
197
198
197
198
195
197
192
190
185
180
98-99
99-00
NOA
00-01
01-02
JODA
EN
11/18
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
Ambient Air Quality at Jamshedpur.
SPM levels (ug/m3)
Legal 258
Norm:500
280
258
260
271
70
254
247
65
236
240
55
220
200
50
189
182
59
57
52
49.8
45
180
180
64.2
60
220
SO2 level (ug/m3)
Legal Norm:120
167
43
41
38.4
40
152
160
49.6
47.6
35.1
35
140
30
120
25
24.6
20
100
99-2K
2K-01
Main Gate
70
Coke Plant
99-2K
2K1-02
BOD Plant
Main Gate
R&D
NOx level (ug/m3)
Legal Norm:120
68 68
63.2
61
60
233
230
57.5
233
210
53
R&D
225224.7
55.2
55
BOD Plant
247
250
62
Coke Plant
2K1-02
SPM level in Township (ug/m3)
Legal Norm:500
270
65
65
2K-01
204
209
213
210
51
190
49.1
50
190
45.6
45
170
40
150
99-2K
2K-01
Main Gate
60
55
182
178
Coke Plant
2K1-02
BOD Plant
99-2K
R&D
River Pump House
SO2 level in Township (ug/m3)
Legal Norm : 120
57.2
70
66.7
65
53.6
51
52.1
62.362.4
2K-01
Kharkai Garden
47
47
46
41.3
40
38.6
37.9
37.4
55 55
99-2K
River Pump House
2K-01
Kharkai Garden
57
53.3
52.6
50
48.4
45
99-2K
35
56
50
s
Agrico
63.2
55
44
45
Burmamines
NOx level in Township (ug/m3)
Legal Norm : 120
60
50
2K1-02
2K-01
2K1-02
2K1-02
Burmamines
Agrico
River Pump House
Kharkai Garden
Burmamines
Agrico
EN
12/18
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
Work Area Environment
Tata Steel has implemented a variety of mitigative measures to improve the working environment at shop
floor. Work area environment quality at different places in the works is furnished below;
Improvement in Work Area Environment (SPM in
mg/m3)
8
7
6
5
4
3
2
1
0
7.2
Legal Norm - 10
6.4
4.6
3.1
3.5
1.17
99-2K
3.2
2.8
2.7
1.63
1.38
1.25
2K-01
2K1-02
F Bl. Fce Cast House
Discharge platform of Maerz Kiln of Ref. Dept.
Sinter machine floor at Sinter Plant
Near Laddle Fce. Area of LD#2
As per the requirement of Amendment Rules 1997 to the EP Act, 1986, visible fugitive emissions from Coke
Ovens are monitored regularly and furnished below;
Visible Fugitive Emission from Coke Ovens
Parameter
Legal
Batt#3
Batt#5
00-01 01-02 00-01 01-02
Norms
Percentage
*5% for
8.1
7.6
4.3
2.6
Leaking
new Batt.
Doors
10% for
(PLD)
Old Batt.
Percentage
4%
4.1
3.6
2.7
2.2
Leaking
Offtakes
(PLO)
2.4
2.5
2.6
1.8
Percentage
1%
**
Leaking
Lids (PLL)
89
91
89
89
Charging
50 Sec
Emissions
for Old
(Sec/Charg
*16 Sec
e)
for New
**Battery#3 achieved Nil PLL during March 2002
Batt#6
Batt#7
Batt#8
Batt#9*
00-01
01-02
00-01
01-02
00-01
01-02
00-01
01-02
3.8
2.3
5.3
3.9
0.9
0.9
0.2
0.8
2.8
2.6
2.5
2.9
Nil
Nil
Nil
Nil
2.2
1.9
2.2
2.0
Nil
Nil
Nil
Nil
89
90
89
89
36
35
40
38
EN
13/18
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
EN11
Total amount of waste by type and destination
Most of the solid wastes generated from Steel Works are recycled/reused. Some of the waste like, sludges
from BF gas cleaning plant and part of LD slag could not be recycled because of high alkali and high
phosphorous content respectively. During the year 2001-2002, solid wastes utilization statistics including
hazardous wastes are presented below in the table. Quantities of wastes utilized divided by the total solid
waste generation gives the percentage utilization.
Utilization / Sale of Major Solid Waste
Item
Usage Details
2000-2001
Tonnes
%
B F Slag
Cement making
902457
78.54
L D Slag
Sinter making
489925
49.81
B F Sludge
Domestic fuel
26376
67.73
L D Sludge
Sinter making
52723
97.91
Mill Scale
Sinter making
73342
101
Flue Dust
Sinter & dom.
21723
37.53
Fuel
Lime Fines
Sinter making
128927
103.7
Dolo Dust
Sinter making
3262
99.88
Ref. Waste
Sale
19074
99.49
Coal Tar
Coke making
1512
100
Sludge
BOD Sludge
Coke making
304
100
U/S Lime
Sinter making
137999
100
Stone
TOTAL
1857624
70.20
2001-2002
Tonnes
%
948265
79.68
562204
55.98
37379
84.05
66902
95.28
64938
100
21000
35.81
123775
3448
10056
1967
100
99.65
99.54
100
340
104364
100
100
1947796
72.62
Hazardous Wastes Generated at Mines
Process
Maint.
And
repair
work
Lubrication
Batteries
Solid
Waste
-do-
Waste
Quantity
NOA
JODA
3
3
5.4 m
18.9 m
Oily
sludge
Oil
amulsion
Used oil
100 m
Used
battery
Ore
Rejects
Slime
3
20 m
3
85 KL
8 KL
105Nos.
(84 sold)
1229050 t
122 Nos.
200267 t
357797 t
714825 t
Hazardous wastes generated at Mines are auctioned to registered recyclers and oily waste/sludge is land
filled in protected sites. The data on other wastes like scrap, glass, drums & barrels have not been captured
and shall be reported in the subsequent reports.
27% of the process wastes approximately 730000 tonnes during the reporting year was used for filling of
low-lying area and peripheral road construction around Jamshedpur. About 400,000 tonnes of fly ash &
bottom ash is generated in the Power Plants and it was dumped in Jugsalai Muck Dump. Packing wastes
are segregated and auctioned. The details of hazardous wastes generation and utilization in Steel Works
and bio-medical wastes are furnished below (details for other units will be furnished in the next report).
Details of Hazardous Wastes & Bio-Medical Wastes
Hazardous Wastes in Steel Works
Waste
Sl.
No.
1
2
3
4
5
6
7
8
9
10
11
Quantity
01-02
00-01
Method of disposal
Oil containing sludge
1.5
2000 L
2000 L
Tar Sludge
1.8
1691 t
411 t
-do-
BOD Sludge
1.9
340 t
261 t
-do-
Cyanide Sludge
11.1
100 kg
100 kg
Zinc Dross
16.3
816 t
212 t
Sold
Chrome Sludge
17.1
394 kg
30 kg
Protected land fill
Lube oil sludge/Coolant oil sludge
37.1
1413 t
NA
Recycled
Led acid batteries
41.3
323 nos.
NA
Auctioned to registered recycler
Oil containing sludge & emulsions
43.1
271 KL
831 KL
Recycled
Used lube oil
44.1
138 KL
69 KL
Injected in Blast Furnaces
Used transformer
44.2
62 KL
144 KL
-do-
Bio-Medical Wastes (TATA Main Hospital)
Human anatomical wastes
1
2
3
4
5
6
Class/Category
(Indian Law)
Recycled
Treated in BOD Plant
1
650 kg
650 kg
Incineration
Micro-biological/bio-technology waste
3
70 kg
70 kg
Auto clearing
Waste sharps
4
1500 kg
1000 kg
Solid waste
6
25 kg
25 kg
-do-
Solid wastes
7
200 kg
200 kg
Disinfection
Incinerator ash
9
20 kg
30 kg
Land fill
Incineration
EN
14/18
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
EN12
Significant discharges to water by type
Wastewater from processes is being treated with best
available physico-chemical methods and recycled in
the process. Wastewater from coke plant is treated
biologically where organic pollutants are oxidized and
decomposed by micro-organisms. Consumption of
water (7.40 m3/tss) and discharge of wastewater (5
3
m /tss) are much lower than the legal norms of 20
m3/tss & 16 m3/tss respectively.
The levels of total pollutant discharge in the
wastewater streams have reduced considerably at
various locations as shown in the boxes. The absolute
effluent quantities and pollution loads from the Steel
Works are furnished in the box. Noamundi & Joda
Mines do not discharge any over flow from the Slime
Dams. Quality parameters for treated sewage are
furnished in SO-3 under Section-3.0.
Absolute quantities of pollutants & effluents
from Steel Works
Parameter
01-02
00-01
Effluent generation (million
m3/annum)
Total Suspended Solids
(tones per annum)
Oil & Grease (tonnes per
annum)
Ammonia
(tonnes
per
annum)
Cyanide
(tonnes
per
annum)
Phenol (tones per annum)
10.23
11.14
597.84
587.83
19.15
23.44
104.06
84.51
0.996
0.99
1.16
0.27
Total Water Pollutant Discharge (kg/tcs)
Cyanide level (mg/l) in
Susungharia Drain carrying
treated effluent from Coke Ovens
Legal Norm-0.2
Target (01-02)-0.19, BM-Unique
0.35
0.3
0.3
0.27
0.25
0.211
0.2
0.2
0.193
0.15
0.1
97-98
98-99
99-2K
2K-01
2K1-02
0.21
0.19
0.17
0.15
0.13
0.11
0.09
0.07
0.05
0.19
0.138
97-98
Ammonia level (mg/l) in
Susungharia Drain carrying
treated effluent from Coke Ovens
0.134
98-99
0.12
0.116
99-2K
2K-01
Total Suspended Solids in Slime
Dam Seepage (Noamundi)
11.5
15
Legal Norm-50
2K1-02
11.3
11.02
13.96
11
11
11
9
Miligram/litre
13
9
9
9.3
7
10.5
10.25
10
10
9.5
5
97-98
98-99
99-2K
2K-01
2K1-02
9
98-99
99-00
00-01
01-02
EN
15/18
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
EN13
Significant spills of chemicals, oils, and fuels in terms of total number and total volume.
There was no reportable case of occurrence of significant oil spills or near misses of chemicals, oils and
fuels during the year 2001-2002 and 2000-2001 through out the organization.
SUPPLIERS
EN33
Performance of suppliers relative to environmental components of programmes and
procedures
Although supplier’s environmental performance monitoring is not undertaken, stringent procedures have
been developed under ISO-14001 for contractors, including strong punitive actions for defaulters. The
procedure for monitoring contractors/suppliers compliance with Labour Laws also furnished under Section3.16.
PRODUCTS & SERVICES
EN14
Significant environmental impacts of principal products and services
International Iron & Steel Institute (IISI), Brussels, have initiated Life Cycle Study for steel products, at
present restricting the scope from mining of raw materials to the despatch of material from steel plant gases.
At Tata Steel LCA has proved to be very successful in analysing inputs to the processes and discharges to
the atmosphere. As per IISI norms the tracking of performance and significant impacts of products and
services beyond the gate is not considered, hence has not been assessed and reported.
EN15
Percentage of the weight of products sold that is reclaimable at the end of the products’
useful life and percentage that is actually reclaimed.
Steel products are 100% recyclable in their life cycle. However, it is difficult to keep track after the product
leaves the factory gate and hence information is not available.
COMPLIANCE
EN16
Incidents of and fines for non-compliance with all applicable international declarations/
conventions/treaties, and national, sub-national, regional, and local regulations associated
with environmental issues.
i)
The State Pollution Control Board (Jharkand) Regional Office, Jamshedpur, served a notices to the
company in the month of January & May 2002 that the company dumped wastes on the bank of
river Kharkai and thus the encroachment of the width of the river by dumping of wastes, increasing
the pollution in the river and impeding the natural flow of river water under Water Act (Prevention &
st
th
Control), 1974. (Notice# 305 of 31 January 2002 & Notice# 1236 of 28 May 2002).
Company defended the case and approached the State Pollution Control Board with the relevant
information to establish that there had been no indication of increasing pollution load of river and
impediment of the natural flow of river due to dumping of wastes. The dumping process was done
to strengthen the embankment of river. The construction of road along the riverbanks was being
done to reclaim the eroded banks of the river due to brick kiln activities carried out in the past 0
decades on the land, which was leased to Tata Steel. Necessary tree plantation has been done and
pathways have been made. Tata Steel had taken up the construction of Outer Ring Roads to ease
out the traffic congestion in the town. The steel making slag, which is not a hazardous material has
been established by scientific studies conducted by various Institutions in India including NEERI and
Abroad as most suitable material for road construction.
EN
16/18
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
ii)
There was one non-compliance with regard to PM emission from process stacks and 10 numbers
with regard to pollutant discharge through Works drain during reporting period. No fines have been
levied on the company during the reporting year.
TRANSPORT
EN34
Significant environmental impacts of transportation used for logistical purposes.
i)
Diesel and Petrol consumed for transport of raw materials and for plying of in-house vehicles are
accounted for in the calculation of CO2 emission as per GHG protocol.
Contractor’s vehicles are not considered in the GHG calculation. The efforts in future focus on to
collection of data to incorporate in the CO2 emission calculations.
Company vehicles including Locos are monitored for vehicular emission (CO, HC for Petrol and
smoke density for Diesel vehicles) every six months. All the contractors and suppliers vehicles are
checked for Pollution Under Control Certificates at the Factory’s entry gate. The company has put
up vehicle emission monitoring stations at various locations in the township where State Pollution
Control Board checks the vehicles. All Units under EMS follow this practice.
Particulate Matter, Sulpher Dioxide and Nitrogen Oxides are not monitored for transport vehicles as
the same is not a legal requirement.
ii)
iii)
iv)
OVERALL
EN35
Capital Investment in Pollution
Abatement {Rs. million(cumulative)}
Total environmental expenditures by type.
3000
Capital Investment on Pollution Abatement
2500
Under different phases of modernization, several state-of-the art
pollution control systems have been installed to prevent and
control pollution. Box gives details of capital expenditure made
over the years on pollution abatement. Expenditure during
reporting year on pollution abatement also includes facilities
provided at new Cold Rolling Mill Complex. The capital
expenditure is shown for the entire scope of the report.
2000
2550
2665
99-00
00-01
2810
2150
1800
1500
1000
500
0
97-98
98-99
01-02
Operating Cost on Environmental Protection (Rs. In Million) in the Steel Works
Cost Element
Power consumption
Consumables
Revenue expenses
Water Cess & Other
Charges
Total costs
Total crude steel
production (mtpa)
Operating costs,
Rs./tcs
98-99
99-00
00-01
01-02
234.7
238
254
268
43.2
213.4
345
263
6.0
6.9
7.8
8.0
6.3
6.5
7.0
7.6
290.2
464.8
613.8
646.60
3.264
3.434
3.566
3.749
89.02
135
172.1
173
The operating costs include expenditure on
power consumption, consumables chemicals
and spares, water CESS paid, and the revenue
expenditure like cost of chemicals, glass-wares,
the wages & salaries of the employees of
Environmental Management Department. The
capital/ revenue expenditure includes the capital
costs incurred in installation of pollution control
facilities e.g. treatment plants, bag houses,
slime dam construction etc. The expenditure
against item#7,8&9 of the table on Capital/
Revenue Expenditure in Mines (presented in
the next page) is included in the capital cost
shown in above figure. The expenditure at
Jharia & West Bokaro is shown for the reporting
year.
The previous years data are not
available.
The operating expenditure details for other units
are not available and shall be presented in the
future report.
EN
17/18
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
The increase in the operating cost is mainly due to increase in numbers of pollution abatement equipment
facilities and better availability of this equipment. The trend for operating cost is shown in figure.
At Mines & Quarries several projects like,
construction of check dams, construction of slime
dams, provision of water sprinkling and dust
suppression system including environmental
monitoring laboratory have been set up and the
total expenditure both on revenue and capital are
shown in the table below.
Operating Cost at Steel Works
(Environment)
1000
800
89
78
400
300
160
613.8
600
251.7
200
180
135
700
500
173
172
900
650
140
120
464.8
100
80
290.2
Rs./tcs
At Jharia Division Rs.177.9 million and at West
Bokaro Rs.400.00 million have been spent in
providing close circuit effluent management
system and recycling of waste water; ESPs and
dust collection system in ash handling area for
Fluidised Bed Combustion Boilers using coal
tailings and rejects for power generation;
maintenance of greenery and awareness creation
among employees on industrial health and
hygiene.
60
200
40
100
20
0
0
97-98
98-99
99-00
00-01
01-02
Total Operating Cost (Rs. In Million)
Operating Cost (Rs./tcs)
Capital / Revenue Expenditure on Environment in Mines
Sl.
No.
1
2
3
4
5
6
7
8
9
10
Activity
Afforestation and Horticulture
Water Cess
Consent Fees
Awareness
EMS Activities
Maintenance/Construction of Check Dams
Slime Dam Construction
Water Sprinkling
DE & DS System
Environment Monitoring
2000-2001
(Rs. Million)
43.77
7.45
2.43
0.52
17
14.62
220.87
13.47
51.12
1.24
2001-2002
(Rs. Million)
30.01
7.85
1.90
1.0
21
3.1
609.21
40.42
48.52
1.78
EN
18/18
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
SECTION-6
SOCIAL
PERFORMANCE
CONTENT INDEX
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Employment
Labour/Management
Relations
Health & Safety
Training & Education
Diversity & Opportunity
Strategy & Management
Non-Discrimination
Freedom of Association &
Collective Bargaining
Child Labour
Forced & Compulsory Labour
Disciplinary Practices
Security Practices
Indigenous Rights
Community
Bribery & Corruption
Political Contribution
Competition & Pricing
Customer Health & Safety
Products & Services
Advertising
Respect for Privacy
SO02
SO03
SO04
SO07
SO10
SO10
SO12
SO12
SO12
SO12
SO12
SO13
SO13
SO14
SO25
SO26
SO26
SO26
SO26
SO27
SO27
SO
1/27
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
EMPLOYMENT
LA1 Breakdown of workforce
As on 01.04.2002, Tata Steel had a total permanent
workforce of 46,234. The break up is furnished in the box.
In addition, there were approximately 1800 temporary
employees and about 12500 contractor/suppliers
employees working on various sub-contracted/outsourced
jobs in various units of Tata Steel.
LA2 Net employment creation
Tata Steel had 48821 employees on its roll as on
01.04.2001 that has come down to 46234 as on
01.04.2002 as Tata Steel is seriously attempting to reduce
its labour cost, which is currently 18% of the turnover.
However, with the increased production, Tata Steel has
created indirect employment in the area of transportation,
which we have not been able to capture. In addition due to
outsourcing of various activity in various areas there had
been an increase in the employment by contractors /
suppliers which we have not been able to capture and
hope to report these numbers in coming years.
LA12 Employee
mandated
benefits
beyond
these
legally
The benefits given to employees beyond those legally
mandated are summarized below and also presented in the
box. The steel company has spent a sum of Rs.354.80
Million on medical services and Rs.135.70 Million on
educational facilities for the employees and their families.
•
In case of employees pre mature death, the legal
heir gets monthly pension equal to the amount of last
salary drawn by the deceased employee till the time he
would have attained 60 years of age.
•
In case of death due to accident, the legal heir gets
monthly pension equal to the amount of last drawn salary
of the deceased employee, till the time deceased would
have attained 60 years of age.
•
Basic Plant training of 18 months with stipend to
the employees’ wards to enhance their employability.
•
Early Separation Scheme. A monthly pension of 1
time/1.2 time/ 1.5 time of an employee’s salary
depending upon his age and length of service till the time
the employee attains the age of 60.
Location-wise break-up of employees (as on
01.04.2002)
Location
Total
Officers
Non-OPR
MD’s Office &
960
346
614
Admn.
Steel Works &
19810
1766
18044
Marketing
Mines
&
14341
675
13666
Collieries
Tubes Division
1789
132
1657
Rings
&
1286
144
1142
Bearing
Corporate
4997
666
4331
Services
Ferro Alloys
1596
206
1390
Growth Shop
779
129
650
Human
676
214
462
Resource
Management
TOTAL
46234
4278
41956
Employee benefits beyond those legally
mandatory
Facilities
Diverse Work
Groups
15 additional days privilege Lady
leave for ladies having Executives/all
children <5 years age in female
the event of sickness. employees.
Running of crèches.
Preferential
allotment.
Free water
subsidized
housing.
house
&
medical,
electricity,
Working couples.
All employees.
Metro allowance.
Metro employees.
Monetary incentives.
Employees
acquiring higher
education
in
related field.
Works
allowance/Night
shift allowance.
Graduate
Trainees /People
working in shift.
Examples of other benefits (non work
related) include free fuels, free school for
wards, scholarship to meritorious students,
well equipped libraries, recreational clubs,
community halls, adventure programme for
employees, pack price shops. Retired
employees get free medical treatment for
self and spouse and enjoy pension.
SO
2/27
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
LABOUR/MANAGEMENT RELATIONS
LA3 Percentage of employees represented by
independent trade union organization
100% employees (Other than Officers) are
represented by independent trade union
organization. The details of the trade union at
different locations are given in the box. The
Officers do not have any association or union.
LA4
Policy
and
procedures
involving
information, consultation and negotiation with
employees
Tata Steel is pioneer in the area of Joint
Consultation in India and has a three tier Joint
Consultation System that ensures participation of
employees at all the levels including top
management.
Corporate
Communication
Department of Tata Steel is entrusted with the
responsibility of sharing all the relevant information
amongst the employees through various in house
publications such as Khas Baat, Tal Mel, Tisco
News, Tisco Samachar, Hoardings and through
Intranet of Tata Steel.
Collective Bargaining
issues are discussed with the recognized Unions
at different locations on a regular basis. The joint
consultative management system is presented
under LA13.
Location
Steel Works,
Tubes & Agrico
Noamundi &
Joda
Sukinda
Chromite Mines
& Bamnipal
Charge Chrome
Jamadoba &
Jharia
West Bokaro
Union
Tata Workers’ Union
Mumbai
Kolkata
Mumbai Labour Union & Tisco Head
Office Employee Association
The Tata Employees’ Union Kolkata
Adityapur
Tisco Mazdoor Union
Sukinda
Indian National Mining Federation
Kharagpur
The Tisco Ltd. Workers’ Union Bearings
Division
Indian National Mining Federation
Indian National Mining Federation
Rashitrya Coal Mines Federation
Rashitrya Coal Mines Federation
LA13 Provisions for formal
representation in decision making
worker
Office Bearers of respective Unions are
member of Joint Consultative Committees of
Management and in this forum they discuss all
the issues excluding issues of collective
bargaining.
Apex Joint Consultation of Management (JCCM), 10 Members meets once in a quarter
Committees
*Canteen, OH&E,
Suggestion,
Sports & Welfare,
Town & School
Visiting,
General Safety
Joint Works Council (JWC), 12 Members
meets every month
Joint Departmental Council (JDC),
twice a month
Sub Committees
*Suggestion
*Quality
*Safety Health &
Environment
(SHE)
*Welfare
Joint Consultation set up
Joint Departmental Council (Unions & Management) meet twice in a month at unit level to review issues like
safety, environment, productivity, quality and employee well being related issues.
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
HEALTH & SAFETY
LA5 Practices on Recording and Notification of Occupational Accidents & Diseases, and how they
relate to the ILO Code of Practice
Factory Act 1948 & Bihar Factory Rules 1950 guidelines are used to record and notify occupational
accidents and diseases in the organization. Any occupational accident occurring is reported immediately to
safety control room, manned round the clock through phone. Any injury to persons involved in the activity is
first reported to nearby first aid station. There are two first aid stations inside works, equipped with wellmaintained ambulance with trained staff, to take care of any emergency situations. This holds true for
contractor’s employee also.
After receiving information about any accident, the shift safety officers rush to the site of accident/incident for
investigation, observe the site, record the statements of various persons present, report immediately to
higher ups for information and moves to the first aid stations or hospital for recording statement of injured
person/s.
First information on nature, time of accident, person involved, and the damage occurred and the department
concerned to safety department sends cause of accident in the prescribed format. These reporting also
include minor incident, dangerous occurrences and near miss cases. Depending upon nature of injury to the
persons like unfit for less than 48 hours or more than 48 hours, the report is sent to Inspector of Factories.
In case of any fatal accident, the information in writing is sent to Chairman, General Safety Committee,
Inspector of Factories and local government officials on the day of such incident. The jobs are stopped till it
is cleared by Inspector of Factories after site verification. Within 48 hours of accident, enquiry committee is
constituted to investigate into the root cause/s of accident, any human or system failure responsible for
accident and to recommend action to prevent such incidence in future. The finding with recommendation/s
are discussed in monthly meetings of General Safety Committee and are circulated to all Departmental
Heads/Chiefs to take necessary preventive actions to prevent such occurrences.
Occupational Health Services Departments of various units of organization carry out following activities.
•
•
•
•
•
•
•
Pre-employment and during
employment health check up
Health Education & Awareness
First Aid Training
Training on Ergonomics
Curative
and
preventive
activities like running of First Aid
Stations, Tata Nurses, Toxoid
Immunization.
Statutory
Medical/Eye
Examination.
Rehabilitation of employees
found unfit in a department
Medical Examination
1998 – 99
1999-2K
2K-01
01-02
77,404
70,666
65,972
64,302
2,900
7,051
7,579
7,217
Pre-employment
Medical Examinations
1,527
1,505
976
931
Immunisation against
Tetanus
6,239
4,424
3,522
3,413
Total No. of Patients
Visited
Total No. of Statutory
Medical Examinations
done
LA6 Description of formal Joint Health & Safety Committee of management and worker
representatives.
Apex Council on safety is constituted by higher management in consultation with employee’s Union. This
council usually consists of 10 members, 6 from management side and 4 from employee union and is headed
by Managing Director of the company. The complete structure of Joint Committees for Safety, Health,
Environment and other Welfare activities is as follows;
SO
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
JOINT CONSULTATIVE COUNCIL OF MANAGEMENT
(Management Representative + Chairman, Co-Chairman, Member Secretary + Employee Representative)
JOINT WORKS COUNCIL
(12 members – equal representation from Management & Employees Union)
Environmental
Awareness
Committee
Sports &
Welfare
Comm.
Central Canteen Managing
Committee
JW Quality
Comm.
Hospital
Visiting
Comm.
School
Visiting
Comm.
General Safety Committee
Town
Visiting
Comm.
Joint Cost
Control
Comm.
Safety Appliance
Committee
Joint
Amenities
Comm.
Suggestion Box Committee
EIGHT ZONAL SAFETY AND HEALTH COMMITTEES HEADED BY CONCERNED EXECUTIVE INCHARGE
The representatives nominated by Unions are formally elected by the workforce and they represent the
views of entire workforce.
LA7 Standard injury, lost day, and absentee rates and number of work related fatalities;
The highlights of the achievements in safety during the year areAchievements
Records achievements
2001-2002
2 (Feb.2002)
5 (Aug. 2001)
3 (Dec. 2001)
4328
19(2)
43
63(5)
19(2)
4818
34818
0.2432
1.76
Items
Lowest Nos. of accident in a month (Works)
No. of Man days trained in safety and environment (Works)
Lowest Nos. of accident for contractor’s employees (Fatal)
Total number of non reportable accident (Works)
Total number of reportable accidents for employees (Fatal)
Total reportable accident to contractor employees (Fatal)
Man days lost due to employee accident (excluding fatal)
Man days lost due to employee accident (including fatal)
Man days lost/employee/year (excluding fatal)
Man days lost/employee/year (including fatal)
Previous Best
Year
2 (Feb. 1996)
5 (Aug. 1998)
5 (Dec. 1996)
4104
25(6)
48
60 (0)
42 (1)
3979
6599
0.207
0.33
1995-1996
1998-1999
1996-1997
2000-2001
2000-2001
2000-2001
1997-1998
1995-1996
2000-2001
1997-1998
2000-2001
1997-1998
Loss of man days due to accident are not accounted for, if a person becomes fit for duty within 48 hours
from the time of accident. However, if the duration of absence from duty exceeds 48 hours, the entire
duration starting from the time of accident (8 hours of working period per man day) is considered. The
frequency distribution on loss on man-days due to accident for the year 2000-2001 and 2001-2002 is given
below. In case of fatal accidents, 6000 person days’ loss is considered.
Frequency Distribution on Mandays Loss excluding fatal
Mandays Lost
600
473
500
432
426
380
400
300
539
538
384
349
382
333
309
288
276
432
486
452
402
370
356
269
246
232
261
182
200
100
A
M
J
J
A
S
00-01
O
N
D
J
F
M
01-02
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
During the year 2001-2002, Safety Department has initiated ‘GREEN CROSS MOVEMENT’ as per the
guidelines of ILO. It aimed at identifying hazards associated with different activities, identify persons who
are at risk, evaluation of the risk, identify ways to eliminate or reduce risk associated. As a part of “Green
Cross Movement”, Managing Director, launched “Zero Accident Campaign” with effect from 01st
February2002 asking individual commitment for safe work as identified under Green Cross Movement.
LA8 Description of Policies/Programmes (for the workplace and beyond) on HIV & AIDS
In line with the company’s policy of HIV-AIDS (Section-3.7) the organization conducts regularly the
awareness programme. These are organized by Occupational Health Department and Medical Division of
the Company. The grievance redressal procedure ensures that there is no discrimination against HIV
positive employee.
The Company’s Chairman, Mr. Ratan Tata, is an Advisor Member of the Global Business Coalition on
HIV/AIDS, a World Health Organization initiative. Tata Steel was one of the companies asked to display
information material such as diaries, handbills and videocassettes at Barcelona.
The Company’s Nodal Centre at Tata Main Hospital has been coordinating all AIDS related activities of the
company, and operates two-health check up clinics for truckers and their helpers. During the reporting year,
the company conducted 1495 programmes covering 79,960 participants.
Tata Steel’s Response to HIV/AIDS April 2001-March 2002
Thrust Areas
Nodal Centre – AIDS
Help Line 2142032
•
•
AIDS Awareness Programme 1st
December is remembered as World
AIDS Day
AIDS Awareness Programme –
special activities
•
•
•
•
•
•
“Training of Trainers” Programme
•
AIDS Cell at Tata Main Hospital
(dedicated Cell for HIV/AIDS
patients) – since 1994
•
•
•
•
Tata Main Hospital
•
•
•
•
•
Detail Activity
To coordinate all AIDS related activities of Tata Steel especially in
East & West Singhbhum.
2 Free Health check up clinics for truckers and their helpers – 6
days/week.
April 2001-March 2002 = 1495 programmes conducted covering
79,960 participants.
Drugs & Alcohol Awareness Programme April’01 – March’02 = 443
programmes conducted covering 27,853 participants.
Theme for World AIDS Day 2001 – “I Care. Do You”?
Nukkad Nataks (street plays) – 51 (21,006 participants).
42 Video Van road show – in bastees and rural areas (4906
participants).
538 enumerators including 300 teachers distributed 50,000 handbills
during census 2001, R&TS 20,000 & CFI 15,000.
13 training programmes were conducted covering 472 trainers from
grass root level.
Preventive & Promotive activities – generates IEC materials such as
hand bills, posters, information booklets etc HIV/AIDS patients and
their family members, slides for local cable operators, teaching
material on floppies etc.
Conducts & coordinates AIDS Awareness Programmes.
Training of resource people and peer leaders and regular CME of
medical personnel to upgrade knowledge and reduce discriminatory
behaviour.
Curative and Rehabilitative activities – counselling of STD/HIV/AIDS
patients and family members.
Condom distribution.
Policy to treat HIV/AIDS patients without discrimination and also treat
those patients denied treatment elsewhere.
Use of disposable syringes and needles are mandatory.
Facility for ELISA test for HIV and Hepatitis B & C
Rationalized use of blood and blood products.
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
Tata Steel’s Response to HIV/AIDS April 2001-March 2002 (Contd…)
Sharing/Dissemination
Information (IEC)
of
•
•
•
•
Condom Vending Machines
•
Networking/Partnerships
•
Jamshedpur Blood Bank
•
•
•
Slides and documentary films screened regularly on local cable TV
for viewers in and around Jamshedpur, information on AIDS
displayed on hoardings in the works and town, Power point slide
show on HIV/AIDS on Tatanet.
Article on HIV/AIDS appear regularly in in-house publications.
Sharing of information scanned from reputed Internet sites.
Message pillars at 3 locations in town; wall paintings; Translite at
Tatanagar Railway station Inquiry.
4 vending machines placed at Transport Nagar, Sulabh Sauchalay
Bistupur Market, Sulabh Sauchalay Sakchi Market & Bus Stand
Mango.
Global Business Coalition on HIV/AIDS, WHO, NACO, Red Cross,
CII, TCCI, ILO, Rotary International, INP + British Council, Xavier
labour Relations Institute, Ladies Core Group – AIDS Awareness
Signatory of Global Compact.
Encourages voluntary donation by Tata Steel employees and their
family members.
Every unit of blood collected is screened for HIV, Hepatitis B & C and
Syphilis.
Results of tests informed confidentially to the donor on request by
trained counsellors.
LA14 Evidence of substantial compliance with ILO guidelines for Occupational Health & Safety.
The organization during the year has initiated development of OHSMS in line with OHSAS-18001 and SA8000 standards and ILO guidelines on Occupational Safety & Health Management System (ILO-OSH-2001).
The system is under implementation and the target for certification of all the units of Tata Steel to OSHAS18001 is December 2003.
LA15 Description of formal agreements with trade unions on health and safety at work
The Joint Consultation agreement with Trade Union was signed in 1956 to strengthen participation of
workforce in the management of operation of the organization including Health & Safety. The joint
committees as explained above have been formed under these agreements at all locations with equal
participation of employees and management. The representatives from Union are duly elected members of
the workforce of the company.
TRAINING AND EDUCATION
LA9 Average hours of training per year per employee by category of employee
Technical Training & Education – Tisco Management Development Centre and Savak Nanavati Technical
Institute provide the training to the employees and officers. The performance highlights of both TMDC and
SNTI are furnished below. The training provided at TMDC during reporting period and related details are
highlighted below. The data for previous year are not available.
Measures
Total Number of Programmes
Total Number of Training Mandays
Participants Covered
Average Programme Rating*
Average Faculty Rating
No. of Officers nominated for External Training Programmes
Number of Summer Training Candidate
Number of candidates who successfully completed the one year Foremanship programme
* On a 5 point scale
* These statistics has been achieved by a team of six trainers
Achieved
243
12055
4610
4.50
4.73
745
260
46
SO
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
Shavak Nanavati Technical Institute (SNTI) during the year 2001-2002, surpassed all its targets as well as
improved over previous years in performance in all areas.
Performance during the year-at SNTI
Sl.
No.
1
2
3
4
5
Area
Target
2001-2002
Performance
2001-2002
Training Mandays
Quality
Index
of
Training
Programme on (5 point scale)
Programme days/trainer
Training of Trainers
Revenue Earning
a) Through BPT
261500
4.6
b)
c)
6
7
8
External Training
Infrastructural Hiring
Performance
2000-2001
295430
4.67
Performance as
% of Target
2001-2002
113%
102%
185
10
222
10.04
120%
100%
205
14.76
1.0 Million
1.062 Million
0.66 Million
1.2 Million
130
12000
-
1.78 Million
140
14915
632
Knowledge Index (No/Person)
No. of Employees trained
Trainees strength
281228
4.64
1.78 Million for 2
years
2.97 Million
124.26
-
21726
787
The break up of training by category of employees shall be provided in the subsequent reports.
LA16 Description of programmes to support the continued employability of employees.
The training and development of employees through skill enhancement and diversification contributes to
continued employability of employees and accordingly Tata Steel has in house facility of technical as well as
managerial trainings. The training needs of all the employees are identified in the form of Training Need
Survey (for Officers’ – Personal Development Plan). The descriptions of various programmes for training in
place are presented in the boxes below as also at LA17.
Internal Training Programmes
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Achievement Orientation
Change Orientation
Communication
Computers
Conflict Management
Customer Orientation
Empathy
Financial Management
General Management
Influencing Ability
Learning
Marketing
Operations Management
Other Initiatives and Miscellaneous
People Development
Planning & Organizing Skills
Problem Solving & Decision Making
Project Management
Special Initiatives
Strategic Thinking & Management
Team Building
External Training Programmes – INDIA
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Business Environment
Change Orientation
Communication Skills
Finance
General Management & Human Resources
Health Management
Influencing Skills
International Management
Information Technology
Marketing
Operations Management
People Development
Strategic Thinking & Management
Team & Conflict.
External Training Programmes – FOREIGN
•
•
•
•
•
•
•
Finance
General Management
Marketing
Operations Management
Organization & Management
Programmes for Senior Management
Strategic Thinking & Management
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
LA17 Specific Policies and programmes for skills management or for lifelong learning.
Tata Steel has in house technical training facilities and technical skills are enhanced through these
programmes for skill management and lifelong learning. Clusters manning, a multi-skilling process practiced
at Tata Steel, provides for career growth through acquisition of higher skills.
Electrical General
Drives & Robotics
•
•
•
•
•
•
•
•
Electrical operation module for Officers
Training on EOT Crane
Motors & Transformers including protection
Study and interpretation of electrical circuits
Electrical power module for IEM Officers
Electrical safety for Officers
TISCO power supply system.
Job Oriented & Automobile
•
•
•
•
Side discharge loader new
Compressor & pneumatic control
Side discharge loader
WIDS-6 Loco
Safety, Hazard Prevention & First Aid
•
•
•
Gas safety for Supervisors
Managing safety on shop floor
Maintaining safety on shop floor
Computers
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
MS-Word & Excel
Understanding SQL
Overview of Windows
Preliminary course on MS-ACCESS
Presentation by using power point for
Executives
MS-Word 7 Excel
Over view of ‘C++
Terminal Operator Training
UNIX for beginners
Visual basic
Visual basic with data base
Email, Intranet, Internet
Basics of JAVA script
Fundamentals of HTML
SAP production planning
MS-ACCESS
Power Point
Windows 98 configuration & trouble shooting
Lotus Notes R5 messaging
SAP material management
SAP plant maintenance
SAP cost report & cost flow
SAP plant maintenance module
SQL and PL/SQL
Developer 2002
SAP sales & distribution
Basic course on WEB Page design
•
•
•
•
•
•
•
•
•
•
•
•
•
Fundamentals of modern electrical drive –
firing circuit & converter
Fundamental of modern electrical drive – DC
motor control
Fundamentals of modern electrical drive –
Inverter, commutation & chopper
Fundamentals of modern electrical drive – AC
motor control
Course on ADD-32 digital drive regulator –
AVTRON drive
Course on ADD-32 digital drive regulator –
AVTRON drive
Course on ADD-32 digital drive regulator –
AVTRON drive
Course on direct torque control (DTC) AC
drive
Course on SIMOVERT-P AC digital drive
Course on SIMOVERT-P AC digital drive
Course on SIMOVERT-P AC digital drive
Awareness of AC drive
Course on direct torque control (DTC) AC
drive
Siemens DC digital drive
Electronics
•
•
•
•
•
•
•
Allen Bradley PLC5/25 level-1
Electronics for IEM personnels
Siemens PLC 135 U
Workshop on digital technique
IEM orientation programme for Supervisors
Workshop on Micro Controller
Maintenance of push button telephones
Fluid Power (Hydraulics)
•
•
•
•
Industrial Hydraulics
Electro Hydraulics
Advanced Hydraulics
Hands-on Hydraulic Circuits
Fluid Power (Pneumatics)
•
•
•
•
Industrial Pneumatics
PLC based Pneumatic System
PLC controlled pneumatic systems
Electro pneumatics
Steel Making
•
Introduction to Iron & Steel making for
Finance Controllers
Welding
SO
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
DIVERSITY AND OPPORTUNITY
LA10 Description of equal opportunity policies or
programmes, as well as monitoring systems to
ensure compliance and results of monitoring.
Tata Steel is equal opportunity employer. This has been
articulated in the Code of Conduct. All advertisements
of Tata Steel related to recruitments strongly carry this
message. During career progression also equal
opportunities are given to all employees. The
applications for employment do not carry columns like
religion, province, mother tongue. New recruitments
through Graduate Trainee, System Trainee & Trade
Apprentices ensure induction of female candidates also.
Violation of equal opportunity policy is redressed
through the grievance redressal mechanism and Ethics
Counsellor.
LA11 Composition of senior management and
corporate governance bodies (including the
board of directors), including female/male ratio
and other indicators of diversity as culturally
appropriate.
The male/female ratio at Tata Steel is 97:03. The
female employees pre-dominantly represent worker
class and a few in the Officers cadre. Presently
there are no women in board of directors or in top
ten executives of the company.
The company also employs bi-sexual (eunuch)
candidates in its workforce.
STRATEGY AND MANAGEMENT
HR1 Description of policies, guidelines, corporate structure, and procedures to deal with all aspects
of human rights relevant to operations, including monitoring mechanisms and results.
Respect of individual is one of the core values/ beliefs of Tata Steel as indicated in Tata Code of Conduct
(Annexure-II). Any violation to this effect is dealt with the established disciplinary procedure enumerated in
our Works’ Standing Orders 1970.
The human rights issues are included in SNTI training programme. Tata Steel ensures protection of
fundamental rights enshrined in the Constitution of India. There is an employee grievance redressal cell in
Human Resource Management Department, which reviews and addresses the grievances. There was no
recorded case during the reporting year on any violation of human rights. The detailed grievance redressal
procedure is furnished in Annexure-IV. Formal and informal mechanisms are used to encourage
employees to develop and utilize their fool potential as shown below;
Formal
Informal
•
•
•
•
•
•
•
•
•
•
Job Related
Safety Training
PEP Nite/QC Nite
Positional Training
Cluster Manning
TOP Awards
Knowledge Management
Review and Feedback
Picnic Grants
Mentoring of GTs
On the Job Development
•
•
•
•
Career Related & Started in
Evening Classes
Study Leave (higher studies)
Trade Test
Job Rotation
•
•
•
Information Library Networks
Window of the World
Weekly Talks
Personal Development Programme arising out of HR restructuring through Performance Ethic Programme
(PDP), an innovative process of PDP has been developed. It considers the training needs of the Officers
not only for the purpose of effectively discharging present duties, but also for personal development and
career progression. A “Toolkit” has been developed in-house by HR, which is used while formulating PDP.
The assessors and assesses discuss the behaviour, gaps, challenges to decide the PDP which includes
formal as well as on the job assignments to meet the aspirational target as well as organisational needs.
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
HR2 Evidence of consideration of human rights impacts as part of investment and procurement
decisions, including selection of suppliers/contractors.
Tata Steel has not presently instituted any human rights screens or mechanism but at present the contracts
for supply items are signed with the suppliers with an undertaking to not to use child labour. During the
reporting period Tata Steel also has also written to key suppliers to get their units ISO-14001 by 2005 failing
which Tata Steel will discontinue the business dealings with them. As regards the contract labour inside the
Steel Works and other Units the MOUs were signed between the Supply Chain Division of Tata Steel and
the Contractor during reporting period to abide by the guidelines given in the box;
•
No use of Child Labour.
•
Training of each and every employee of contractor on safety, health and
environment (any body not having a training certificate is not allowed to enter the
Tata Steel premises).
•
Follow the Operational Control Procedures under ISO-14001 and OSHAS-18001.
•
Payment of minimum wages (the Personnel Managers of Tata Steel certify the
payments at Contractor Site).
•
Deduction of Provident Fund and Gratuity as per rules prevailing in the
country/region.
•
Payment of penalty on violations of environment, health and safety & Labour Laws.
HR3 Description of policies and procedures to evaluate and address human rights performance
within the supply chain and contractors, including monitoring systems and results of monitoring.
The performance of the organization within the supply chain and the contractors is described in Section-5
on Environment Performance under suppliers and also under Section-3.16.
At present Tata Steel does not have a structured system to assess human rights performance of out
locations suppliers under supply chain. However the contractors working in the premises of the organization
are required to follow the employees benefit schemes and human right policy of the organization including
payment of minimum wages, deduction of provident fund and child labour employment as explained above
under HR2. Concerned departments do the monitoring of the contractor’s performance and wages are paid
under supervision of HR. The tender notices and enquiries issued to the contractors during reporting period
included clauses on human rights, safety and health and the bidders are required to conform their
compliance to these clauses. At present there is no system to assess the performance at suppliers site as
mentioned above.
HR8 Employees training on policies and practices concerning all aspects of human rights relevant to
operations.
“Happy and enthused employees” is one of the most important pillars of VISION 2007 of Tata Steel to
become EVA positive and to improve the quality of life of the employees and the communities we serve.
Under VISION-2007 training all the employees have been covered and everyone has undergone 2 hours of
training on this aspect. The details of the training imparted to the employees are furnished in LA16 & LA17
also. Human rights issues are covered under the training on Code of Conduct for the employees.
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
NON DISCRIMINATION
HR4 Description of global policy and
procedures/programmes preventing all
forms of discrimination in operations,
including monitoring systems and results
of monitoring.
Tata Code of Conduct emphasises on equal
opportunities and non-discrimination. The HR Policy
of Tata Steel lays tress on recognising the people as
primary source for its competitiveness.
The
organization is committed to equal employment
opportunities for attracting best available talent
ensuring cosmopolitan workforce, the quality of life
of its employees developing their talent and
maximizing their productivity and also ensuring
transparency, fairness and equity in all its dealings
with the employees is another component of the
organization’s HR Policy. Tata Steel has created a
position of Ethics Counsellor to monitor any
discrimination in its activities, services and products.
The concerns monitored and resolved by Ethics
Counsellor during past three years are presented in
the box.
CHILD LABOUR
Employee
Concerns
Opportunity Employer
Year
1999-2000
2000-2001
2001-2002
related
to
Equal
No. of Concerns
07
05
06
FREEDOM OF ASSOCIATION
HR5 Description of freedom of association
policy and extent to which this policy is
universally applied independent of local laws,
as well as description of procedures
/programmes to address this issue.
Tata Code of Conduct emphasis on Freedom of
Association. Accordingly all non-Officer employees
of the organization are the members of respective
Unions at different locations.
FORCED & COMPULSORY LABOUR
HR6 Description of policy excluding child labour
as defined by the ILO Convention 138 and extent
to which this policy is visibly stated and applied,
as well as description of procedures
/programmes to address this issue, including
monitoring systems and results of monitoring.
HR7 Description of policy to prevent forced and
compulsory labour and extent to which this policy
stated and applied as well as description of
procedures/programmes to address this issue,
including monitoring systems and results of
monitoring.
As per various Standing Orders of Tata Steel, the
minimum age required for the employment is 18
years and hence Tata Steel engages no child
labour. The recruitment process requires furnishing
of appropriate proof of age to ensure the age bar.
There is no forced and compulsory labour in Tata Steel.
Legally it is prohibited in India. Grievance redressal
committee and Ethics Counsellor adequately monitor
violation of such requirements. The grievance redressal
procedure is furnished in Annexure-IV & Ethics
Counsellor mandate is furnished in Annexure-V.
DISCIPLINARY PRACTICES
HR9 Description of appeal practices, including,
but not limited to, human rights issues.
HR10 Description of non-retaliation policy and
effective, confidential grievance system.
Order#23 of the Works Standing Orders enlists the
issues, which may be considered as misconduct.
Order#24 prescribes the punishment for misconduct
and Order#25 explains the procedures for dealing
with cases of misconduct. These orders are strictly
implemented. These orders are in line with Standing
Orders Act of India.
There is an established three tier Grievance
Management System in Tata Steel and it is
ensured that no retaliation takes place in the
process after the resolution of the grievance. The
process is so effective that there had been no
industrial unrest/strike in past 70 years. For details
of grievance redressal procedure please refer
Annexure-IV.
SO
12/27
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
SECURITY PRACTICES
HR 11 Human rights training for security
personnel. Include type of training, number of
persons trained, and average training duration.
Tata Steel has full-fledged Fire Service
Department consisting of dedicated fire personnel,
which cater to the needs of Steel Works, the
people of the industrial Township with a population
of more than 1.0 million approximately, and all the
local industries. There is a special training centre
dedicated to the training of security personnel on
issues like security practices and human rights.
Trained home guards of Tata Steel along with Fire
Brigade Service assist the District Administration
as and when required.
Tata Steel is fully associated with the off site
emergency planning of the region. The cost borne
by Tata Steel to incorporating security and human
right is Rs. 4.2 million approximately.
Fire Service Calls
Activity
Attended Fire
Calls in Township area
Special type
of Calls i.e.
Rescue,
Water Supply,
Support
during law &
order duty etc.
Fire
Prevention
awareness
programme to
civilian during
religious
gathering
Sports,
Exhibitions
etc.
00-01
81
01-02
64
-
Remarks
158
146
-
-
662
From the year
under review we
have started
participative fire
prevention mgmt.
training programme
for Town & District
Administration
People.
INDIGENOUS RIGHTS
HR 12 Description of policies, guidelines, and
procedures to address the needs of indigenous
people.
In line with the Group Purpose & Code of Conduct of the
organization, Tata Steel returns to the society what it
earns. This evokes trust among consumers, employees,
shareholders and the community it serves. Tata Steel
has a Community Development & Social Welfare
Department. To implement the group purpose, a society
promoted by Tata Steel called Tata Steel Rural
Development Society addresses the needs of the local
people and the community around as explained in
Section-2.9. The performance indicators related to the
work carried out by these two arms of the organization is
furnished under sub-section on Community of this
section. Please refer Section-3.13 also on precautionary
approach and principles.
HR 13 Description of jointly managed community
grievance mechanisms/ authority.
Community Development & Social Services, Tribal
Culture Society and Tata Steel Rural Development
Society
implement
the
community
grievance
management system. Local representatives including
senior citizens are involved at all stages of the services
rendered by these three departments. The concerns of
the society are discussed, prioritised and integrated with
the Business Excellence Model of concerned
department under TBEM.
HR 14 Share of operating revenues from the
area of operations that are redistributed to
local communities.
The expenditure on social and environmental
services during past four years is furnished
below in the table.
(Rs. In Million)
SERVICES
98-99
99-00 00-01 01-02
Municipal
233.0
237.7
239.0
238.0
Services
Community
44.0
42.6
40.6
40.0
Services
Medical
47.0
33.9
30.3
44.0
Services
Grants &
17.0
38.4
37.8
32.0
Donations
TSRDS
32.0
29.0
31.0
38.0
Grants
Environment
640.0
860.0
720.0
795.0
TOTAL
1013.0
1241.6 1098.7 1187.0
PAT
Ratio (%)
Gross
Revenue
Ratio (%)
2820
35.9
63356
4230
29.35
69433
5530
19.9
78100
2050
57.9
76931
1.6
1.79
1.41
1.54
SO
13/27
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
COMMUNITY
SO1. Description of policies to manage impacts on communities in areas affected by activities, as
well as description of procedures/programmes to address this issue, including monitoring systems
and results of monitoring.
I suggest that the most significant contribution Organized Industry can make is by identifying itself
with the life and problems of the people of the Community to which it belongs, and by applying its
resources, skills and talents, to the extent that it can reasonably spare to serve and help them...
- J.R.D. Tata
Tata Steel recognises that its operations have several beneficial as well as adverse impacts on the
community. Accordingly it has instituted several departments, societies, to address the specific impacts and
also specific needs of the community groups. Tata Steel has defined its community as employees and their
families, peripheral community up to 10 km from Works and Rural Community from 10-30 km from the
Works. Accordingly Town Division addresses the needs of the employees and their families & peripheral
communities. Tata Steel Rural Development Society addresses the concerns of rural community.
The community services are rendered by various agencies in Tata Steel under Dy. MD (CS) e.g.; Town
Division, Tata Steel Rural Development Society and Tribal Culture Society. The programmes, procedures
and the performance of these three agencies are elaborated here below. The balance scorecard of DMD
(CS) is cascaded down to these departments for implementation.
TOWN DIVISION
Town Divisions serve the local communities and
employees by providing civic amenities, market
infrastructure and health & social services.
The
performance of various departments in Town Division is
summarised here below.
Performance
Services
Highlights
of
Community
Health
Civic Amenities in Non-TISCO Area (01-02)
No. of Hand pump installed
No. of Tube wells
New Roads constructed
No. of Street lights installed
4 nos.
8 nos.
1.25 KM.
10 nos.
Mobile Community Health Services, consist of the 2
mobile medical vans and benefited, 92732 patients
during reporting period.
2909 youths benefited through the job oriented
vocational training programmes conducted at 12
Community Centres.
In the Sports activities the number of beneficiaries
increased to 14802 as against 9484 in the previous year.
The following medals tally speaks volumes.
Through the Bal Vikas classes, those are aimed at
orienting children from underprivileged section of the
society towards formal education, 1403 children
benefited.
M edals won by the community youths
(Nos.)
46 45
50
40
36
GOLD
30
SILVER
20
5
2 4
10
4 5
BRONZE
0
STATE
ZONAL
NATIONAL
A total of 176 cases of family disputes were
handled by our Employees Service Section of
which 165 (93.75%) were settled amicably. With
mutual consent, over Rs. 7.8 Million was
recovered from the salaries of the employees and
this amount was passed on to aggrieved family
members during reporting period.
SO
14/27
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
Major initiatives by Community Services
Karigar, one-stop shop for ethnic handicrafts, was
inaugurated at Bistupur on 6th February’ 02 by our
Managing
Director
benefiting
31
local
organizations.
4 career counselling workshops were conducted
during the year.
A 16 members’ team of visually challenged
persons and escorts (11+5) from National
Association for the Blind trekked to Darwa pass,
12600 feet above sea level.
BENEFIC IA RIES OF C OM M UNIT Y SPORT S
14802
97- 98
15000
7804
10000
98- 99
9484
8647
99- 00
7050
00- 01
5000
00- 02
0
97-98
98- 99
99- 00
00- 01
00- 02
BENEFICIARIES OF COM M UNITY HEALTH
SERVICES
Integrated Customer Services
A SAMPARK (Contact) Programme has been started
to give more personalized care service to our
employees. The aim is to have closer and one to one
interaction with them regarding Civil maintenance
work carried out in their houses. The Programme
has covered nearly 6500 houses which is 30% of the
total strength of Co’s houses in 01-02.
(Nos.)
20000
(Nos.)
100000
80000
92759 92733
84070
97-98
68502
60000
98-99
51374
40000
99-00
20000
00-01
00-02
0
97-98 98-99 99-00 00-01 00-02
Public Health & Horticultural Services
Dept. in line with Town Division has also taken initiatives
for implementation of Environmental Management
System (ISO-14001). Pre-certification Audit by Indian
Register of Quality System, Calcutta (IRQS) was carried
out from 19-21 March 2002.
Beneficiaries of Vocational Training & Skill
Development
(Nos.)
3,500
PH & HS achieved 100% involvement of employees in
Quality Circles. All 148 Quality Circles of Dept. were
active during the year.
Environmental Sanitation
During the year 1,19,024 M.T. of garbage was removed
from the Township.
2,909
3,000
2,500
2,000
1,844
1,866
2,101
97-98
2,379
98-99
99-00
1,500
00-01
1,000
00-02
0,500
0,000
97-98
98-99
99-00
00-01
00-02
Immunization
Immunization Coverage Survey as per the guidelines of
WHO was conducted to assess the immunization status
in the age group of 1-2 years of children, coverage of
which was found to be 98%.
Blood Donation by m otivate d bus te e dw e lle rs
(Nos.)
700
2nd Rounds of Intensified Pulse Polio Immunization
Campaigns were conducted in the month of Dec.’01 and
Jan’02 in which 1,47,839 doses of Polio vaccine were
given to the children in the Jamshedpur Township.
600
During the year, 53063 doses of oral polio vaccine
antigen, 2777 doses of Tetanus T oxide and 6116
doses of BCG vaccine were given. 6286 Children were
immunized against measles, 43570 children were given
DPT and 3812 children were administered D.T.
200
628
97-98
500
300
98-99
341
400
277
99-00
212
00-01
151
00-02
100
0
97-98
98-99
99-00
00-01
00-02
SO
15/27
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
Other Preventive measures against communicable
diseases :
Tree Plantation Cumulative
Surveillance to maintain hygienic condition in Eating
Houses was intensified. 298 numbers of water samples
were examined and Health Education was imparted to
Hotel owners and workers. 579 cases of various
communicable diseases were investigated and
appropriate control measures were taken.
500000
440704
No. of Trees
450000
Mosquito control measures
389057
400000
311434
350000
261010
300000
250000
197302
200000
150000
100000
85347 95897 85347 95897
50000
0
1,38,927 houses were searched for domestic breeding.
Breeding detected in 16,835 houses and appropriate
measures to control mosquito nuisance was adopted.
Two Nos. of small fogging machines were procured to
provide extended coverage.
93-94
94-95
95-96
96-97
97-98
98-99
99-00
00-01
01-02
Years
Complaints Received & Attended
Veterinary Hospital
Health Education
4 Nos. of Health Exhibitions were organized during
the year
544 Nos. of Health Talks were conducted at various
Bustees and Community Centres.
Weekly immunization cum Health awareness camps
was organized in Bustees and peripheral areas.
40000
No . of Co m plaints
A total number of 6897 cases were treated at Vet.
Hospital. Total Income from Veterinary Hospital was
Rs.1,80,375.00.
36335
35000
32465
30000
30713
27782
25000
24528
20000
15892
12757
15000
10000
5000
0
95-96 96-97 97-98 98-99 99-00 00-01 01-02
Years
Town Electrical
Innovative technology was introduced for switching off
alternate street lights through down count timer
wherever possible after midnight, resulting saving of 545
Mega Watt Hour.
Lighting arrangement was made at Gopal Maidan to
conduct Night Cricket tournament.
Special illumination at Jubilee Park was done to
celebrate the first Anniversary of Jharkhand State
formation.
Town Planning & Engineering
Construction of WELCOME GATE (BIRSA MUNDA
GATE) at Mango Bridge to improve the entrance to the
city was completed.
Construction of 5th Office
Transportnagar, Mango.
Block
at
Jamshedpur
140000
Removal in M.T.
Strengthening & modification in power distribution
system has been done at Kasidih ,Sonari, Sidhgora,
Burmamines area for improving the quality of life & for
better customer satisfaction.
Garbage Removal
120000
100000
96686
101138
107378
114826 112966 117068 119024
80000
60000
40000
20000
0
95-96
96-97
97-98
98-99
99-00
00-01
01-02
Years
Construction of Sulabh Sauchalaya (2 Nos),
Construction of GUEST HOUSE at DIMNA.,
Providing 4 Nos. FOUNTAINS AT SAKCHI ISLAND,
Construction of 2 nos. Garages with Prestressed
Precast Concrete in Bistupur and Detachable
Security Gumti in C.H. Area, 5 Nos. Electrical substation for Augmentation of Power Supply in Town,
Construction of NEEL SAROVAR in ULIYAN,
Construction of AMUSEMENT PARK in JUBILEE
PARK., Construction of Road, Outer Peripheral
Road – 5.0 KM – 1st Lane, Development of Children
Park in Rash Behari Path, Uliyan.
SO
16/27
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
AVERAGE DRINKING WATER
CONSUMPTION IN TOWN
(MILLION GALLONS PER DAY)
RAW SEWAGE & FINAL EFFLUENT
QUALITY AT BARA GARDEN
240
230
220
210
200
190
37
TSS OF RAW
180
170
36
160
TSS/BOD(mg/l)
WATER IN MG
38
35
34
33
150
140
130
120
110
100
90
80
32
BOD OF RAW
70
60
31
50
30
40
30
TSS NORM AS PER
BOD NORM AS PER PCB
20
10
29
MONTH
2000-2001
March-'02
Jan-'02
February-'02
November-'01
December-'01
October-'01
August-'01
MONTHS
September-'01
July-'01
June-'01
May-'01
April-'01
FEB
MAR
JAN
DEC
NOV
SEP
OCT
AUG
JUL
JUN
MAY
APR
0
PCN TSS = 30mg/l,BOD=20mg/l
2001-2002
TSS/R.Sewage
BOD/R.Sewage
TSS/F.E.
BOD/F.E.
SOCIAL SIDE OF TATA MAIN HOSPITAL
TMH at a glance
782
9
740
9
740
9
740
9
5
5
5
5
39,859
39,105
37,189
39,836
13,41,959
01-02
13,89,070
00-01
14,15,449
99 – 2K
13,78,341
Authorised
Beds
Dispensaries
First Aid
Centres
Indoor
Admission
Outpatient
Visit (TMH &
Branch
Dispensaries)
National Awards
98 – 99
Dr. Ashok Sunder
Symposium
First prize
Dr. Asif Ahmed
MBBS paper
First prize
Dr. Upama Dash
Short paper
First prize
Dr. M R Dutta
Long paper
Dr. Sujata Mitra
TQM Paper
Second
prize
First prize
Dr. Sudhir Malhotra
Poster
First prize
Dr. Sujata Mitra
Best Lady
Speaker
Family Planning Activities
98–99
99-2K
2K-01
01-02
Tubectomy
742
639
570
533
IUCD
483
472
372
226
MTP
388
425
377
375
Immunization Activities
TOTAL
BENEFICIARIES
98–99
99-2K
2K-01
01-02
44,374
50,842
38,228
27,356
Preventive, Promotive, Awareness Programme
98–99
99 - 2K
2K-01
01-02
Drugs &
alcohol
--
-
2134
1020
HIV & AIDS
--
--
6800
12,000
AIDS &
HEPATITIS
3,735
5563
4942
3446
Eye Care Camps in Rural Areas
No. OF
CAMPS
TOTAL
BENEFICIARIES
98 – 99
99-2K
2K-01
01-02
19
18
12
11
1,446
1976
1076
1874
SO
17/27
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
Screening Health Camps
Creative / Rehabilitative
98 – 99
99 - 2K
2K-01
01-02
By Dental
Department
2,700
1930
1872
1957
Audiological
Examination
110
656
840
852
53
36
38
Hearing Aid
distribution
9899
992K
2K01
01-02
ENT surgeries in camp
by Bihar Govt.
890
----
----
----
Orthopaedic surgeries
in camps
100
122
150
---
Counselling of STD
cases (Sessions)
----
276
252
192
Immunization-Hepatitis “B” & Pulse Polio
Hepatitis
'B'
Pulse
Polio
299
114
80
99-2K
2K-01
01-02
Counselling at AIDS
Cell (Sessions)
282
98-99
20,891*
2,923
27,173
1,852
14,792
1,624
6,391
Hydrocoele surgeries
with Rotary Club
68
----
64
62
Free Service at Loyola
/ IMA Clinic
2,876
2,982
1,017
606
Admissions to TMH Category-wise
98 – 99
Employees
4,621 (11.59%)
Families
19,512 (48.95%)
Dependent Relations
472 (1.18%)
Associated Company
1,081 (2.71%)
Non-Employees (NE)
14,070 (35.29%)
Govt. Employees
103 (0.25%)
Total
39,859
% of N.E. Cases
39.45 %
SPORTS & ADVENTURES
JRD TATA SPORTS COMPLEX
99-2K
4,136 (10.58%)
20,246 (51.77%)
376 (0.96%)
1,147 (2.93%)
13,134 (33.58%)
66 (0.18%)
39,105
37.65 %
2K-01
3,550 (9.54%)
20,225 (54.38%)
323 (0.86%)
1,269 (3.41%)
11,731 (31.54%)
91 (0.24%)
37,189
36.06 %
'01-'02
3,647 (9.16%)
21,625 (54.28%)
302 (0.76%)
1,263 (3.17%)
12,915 (32.42%)
84 (0.21%)
39,836
36.56 %
Facilities available at the JRD Tata Sports Complex:
Sports Hostel & Residential wing with
accommodation for 250 persons.
Provision of get together at the Eastern wing of JRD
Sports Complex
Tata Archery Academy,
Tennis Training Centre
Boxing Training Centre
Athletic Training Centre
Chess Training Centre
Cricket Training Centre
Handball Training
Ladies Fitness Centres/
Centre
Gymnasium
Multi Gymnasium.
Weight lifting hall
Volleyball Ground
Hockey Ground
Handball Ground
Football Ground
SO
18/27
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
The Steel Company’s contribution to the promotion of
sports gets illustrated by the laurels its employees have
won over a period of time from Govt. of India. The boxes
indicate the Arjuna Award Winners, Daronacharya Award
Winners, and Padamshrees Medal Winners while in the
service of the company.
The organization provides
avenues to the youngsters to develop their skill in various
types of sports. Necessary infrastructure has been created
in all locations and Sports Complexes has been provided all
over the company. The JRD Tata Sports Complex Stadium
houses an international quality football ground and 8 lane
micro synthetic track apart from two baskets ball courts,
tennis court, a hockey ground, archery ground,
handball/volleyball ground, chess and boxing centres and a
state-of-the-art gymnasium. Tata Steel Adventure Club for
sports such as rock climbing, river rafting and parasailing,
are also housed in the JRD Tata Sports Complex.
The Steel Company has also provided a flying club and
numerous private entertainment clubs that provide
opportunity for golf, tennis, squash, billiards, horse riding,
swimming, etc. In all there are five clubs for the officers
and employees in the town of Jamshedpur and one club at
each unit which provide entertainment facilities mentioned
above.
Societies supported by Tata Steel
The following professional bodies are supported by Tata
Steel and several meetings and interactions are held with
these professional bodies to understand their concerns as
part of stakeholder engagement.
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Operational Research Society of India (ORSI)
Institute of Charted Accounts of India (ICAI)
Computer Society of India (CSI)
Indian Value Engineering Society (INVEST)
Jamshedpur Management Association (JMA)
Indian Institute of Supervisory Management (IISM)
Indian Ceramic Society (ICS)
The Institute of Cost & Works Accounts of India
(ICWAI)
The Indian Institute of Materials Management (IIMM)
Indian Institute of Industrial Engineering (IIIE)
Institution of Standard Engineers (SEI)
National Institute of Personnel Management (NIPM)
Confederation of Indian Industry (CII)
Celluloid Chapter of Jamshedpur (CCJ)
Indian Institute of Metals (IIM)
The Indian Institute of Welding (IIW)
Arjuna Award Winners
1961 P K BANNERJEE
Football
1962
CHUNI GOSWAMI
Football
1965
ARUN GHOSH
Football
K L POWELL
Athletics
1967
PARVEEN KUMAR
Athletics
1971
EDWARD SEQUEIRA
Athletics
1974
SHIVNATH SINGH
Athletics
1975
AMAR SINGH
Cycling
1977
T VIJAYARAGHAWAN
Basketball
1978
SUBRATA DUTTA
Powerlifting
1979
SURESH KR MISHRA
Volleyball
1980
MD. HABIB
Football
1982
V C BORROMEO
Athletics
1983
D BARUA
Chess
1984
Cricket
RAVI SHASTRI
BACHENDRI PAL
Mountaineering
1885
A BHATTACHARJEE
Cricket
1986
JAIPAL SINGH
Boxing
1986
PREM C DEGRA
Body Building
1987
BALWINDER SINGH
Athletics
1987
BAGICHA SINGH
Athletics
1989
MERCY KUTTAN
Athletics
LIMBA RAM
Archery
1990
BULA CHOUDHURY
Swimming
1991
SANJEEVA SINGH
Archery
1993
CAWAS BILLIMORIA
Judo
1996
MORAAD ALI KHAN
Shooting
AJIT BHADURIA
Athletics
R K SANGWAN
Boxing
SOURAV GANGULY
Cricket
1997
Daronacharya Award Winners
Ken O Bosen
Athletics
Illyas Babar
Athletics
Padmashrees Award Winners
P K BANNERJEE
Football
CHUNI GOSWAMI
Football
V C BORROMEO
Athletics
BACHENDRI PAL
Mountaineering
PREM C DEGRA
Body Building
SO
19/27
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
TATA STEEL FAMILY INITIATIVES FOUNDATION
Bringing…..Smiles
Understanding the determinants of
a successful family planning
programs a department was
created to address family planning
concerns. There are 28 clinics
provided only in Jamshedpur for
this service. Each unit has similar
facilities across the organization.
This service is now named as Tata
Steel Family Initiative Foundation.
The year under review saw a
progressive
shift
towards
addressing the family planning
concerns
of
the
younger
generation of women and men.
The
principle
aims
and
objectives of the Foundation is
to ensure effective delivery of
appropriate family welfare
services at affordable cost.
Capacity Building
Tata Steel Family Initiative Foundation continuously provides training to its staff members at different
levels for upgrading their theoretical and practical skills.
Topics like listening and counselling skills reproductive health care services, demand fulfilment and
prevention of HIV (+) /AIDS & Drug & Alcohol Abuse were covered.
To extend the services and ensure more effective delivery of system. The Tata Steel Family Initiatives
Foundation was formed for greater outreach and networking with over 30 NGO’s. With the support of the
Tata Steel’s top management and an illustrious board of Trustees The Tata Steel Family Initiatives
Foundation will emerge as a winner in the field of Population Stabilization and contribute significantly to
the nation’s population policy 2000.
SO
20/27
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
Networking
The activity of Reproductive Health and
Mother & Child Health is a vast subject –
TSFIF alone cannot achieve the desired
results. So we have joined hands with
leading NGO’s. At present collaborations
have commenced / or being worked out
with the following:
•
•
•
•
•
•
“The population problem should be officially and
publicly recognised as a major threat to the
progress, and ultimate survival of our nation as a
modern and prosperous state. The country’s health
and the family planning programme must, therefore
be treated as a basic national objective involving all
policies and plans, directly and in-directly,
affecting the people”
J. R. D. Tata
•
Y.M.C.A. – Ranchi clinic opened in
October, 2001
Packard foundation- Staff training
USAIDS in area of HIV(+) / AIDS
Planned parenthood, USA – in area of
RCH
CARE – Jharkhand – RCH & Child
Nutrition
Institute of international education
(IIE), New Delhi – Collaboration for
training of staff.
International council on population
programme (ICOMP), Malaysia –
Training of staff
SAHAS PROJECT
(Strategies
to
improve
Adolescent
Reproductive Health And Rights Through
Advocacy And Services)
A new project SAHAS has been initiated
by Family Initiative Foundation with the
following objectives during the year 2000.
To educate the youth (ages 12-24) on
sexual, reproductive health education,
reproductive rights and contraceptive
services.
Mobilise and educate the communities
against
gender
discrimination,
early
marriage and violence against girls and
women
Motivate young couples to plan and space
their children.
To prepare Youth Advocates to educate
their peers about gender and sexuality,
HIV/AIDS and other reproductive health and
rights.
SO
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
TRIBAL CULTURAL SOCIETY (TCS)
Tribal Cultural Society is a non profit voluntary organization promoted by Tata Steel, to partner sustainable
solutions to the concerns of scheduled caste & scheduled tribe communities residing in peri-urban areas
around Jamshedpur and near by Units. The activities of the society are summarized in the boxes below.
Empowerment
Empowerment certainly changes ones outlook to life.
Every individual deserves the chance to reach an improved
status in life.
Dr. J. J. Irani
Youth Development
Youth, especially tribal excel in various
disciplines like, Archery, Athletics and football
because of their physique, life style and
culture.
Merit Test for awarding financial assistance to the
meritorious ST & SC students
Women’s Development
TCS provides a platform through coaching
and training for the youth to compete at the
district, state and international levels.
Cultural & Heritage
Women from Mahila Samities/SHG during Training
Programme at TCC
TCS tries to build integrated “communities” where women
would be empowered to participate in the developmental
process, bringing their own needs, perspective and abilities
on board. Recognising the role and encouraging women in
the field of social development to be sustained, TCS
initiates and organises developmental programmes for
women in the areas/villages. The vision is to help women
be empowered through various types of training
programmes and generate income to add and improve
economic status of the family. Training classes for women
are organised in tribal populated villages, urban slums and
bustees. Items made by these women are displayed in
various fairs and melas in the city for sale. The society
conducts sewing, embroidery, painting, knitting and Zari
work classes. Classes in fruit preservation, bari, papad,
canning, agarbati, mushroom cultivation etc. also are being
conducted as and where it is demanded.
Preserving the heritage
TCS initiates efforts to revive and maintain the
culture and heritage of tribals of the region.
Various cultural programmes like tribal dance,
drama, music and song competitions are
organised to maintain and provide opportunity to
develop the richness of their culture.
Tribal leaders and other personalities are fondly
remembered and offered homage on their birth
anniversaries such as Birsa Munda, Pandit
Raghunath Murmu, Sidhu Kanhu, Guru Kol. Lako
Bodra, Jaipal Singh Munda.
SO
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
Income Generation
Networking/Interaction with Bank
Income generation through Socio-Economic
activities have become a major part of TCS's
responsibility. The society encourages both men
and women to undergo self-employment training
in various fields. In 2001-02, TCS organised a
number of programme aimed at creating self
employment opportunities for the communities.
Health & Hygiene
Mrs. Muthuraman in Blood Donation Camp
Another major thrust area of TCS is Health &
Hygiene. TCS has a wide range of health and
hygiene related activities starting from providing
basic amenities, to working for reproductive
health to rendering services in the villages.
SO
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
TATA STEEL RURAL DEVELOPMENT SOCIETY
In 2001-2002, TSRDS made strides in sharing with rural
Indians within its operational area, particularly the youth,
the blueprint and the means to become masters of their
own destiny within the very precincts of their villages.
The goal of TSRDS is to transform the village into a unit
of development. It does this through its multi-pronged
strategy of income generation, empowerment and health
and hygiene, irrigation, agri-extension, and Self Help
Groups.
During the reporting year TSRDS assisted the rural
community in following areas;
•
Income generation
•
Health & hygiene
•
Drinking water
•
Empowerment
•
Forestry
•
Animal husbandry
•
Education and awareness
•
Sports and culture
•
Capacity building
In the area of income generation TSRDS assisted the villages around Tata Steel’s operations in bringing wasteland
under cultivation and developing the skill of villagers in cash crop, poultry and piggery development. The women folks
were trained in growing saplings for fruits as well as forestry plants and sale of the same through self help groups this
has improved the income of the villagers.
In the area of health and hygiene TSRDS focused on treatment of TB, Leprosy, Nite blindness, Diarrhoea, Malaria, Skin
diseases, etc. Under immunization programme the children were given the doses of DPT, BCG, Measles, Titanus, and
Polio. The camps were organized for eye care services and family planning. Low cost toilets were constructed in several
villages. Blood donation camps were organized at primary health centres. Several programmes for AIDS awareness
were also organized.
To empower the villagers the agriculture appliances, better quality of seeds were distributed and training on use of these
appliances was imparted. Biogas plants were constructed in eight villages. Adult literacy programme were organized
along with coaching for sports. At village level several inter village tournaments and cultural programme were
conducted. Life Line Express Hospital was sponsored during 19th Nov. to 20th Dec. at Ghatsila and during 20th Feb. to
rd
23 March at Jasidih where villagers were given treatment in hearing, eye care, and surgery.
List of Collaborating Agencies (2001-2002)
Non-Government : NGOs
Government
LD Jhaveri Trust, Japan
Association Pour Une Terre Plus Humaine, France
Sight Savers International
(Royal Commonwealth Society for the Blind, UK)
CARD International (India, Bihar)
UNICEF
Gram Vikas Kendra
Lions Club
Rotary Club
Gandhi Labour Foundation, Puri
Rashtriya Gramin Vikas Nidhi
Voluntary Blood Donors Association of India
(Jamshedpur Chapter)
Delhi School of Social work
TISS. Mumbai
FRCH, Pune
Ghalchiroli
NIPCCD
Govt. of India
Govt. of Orissa
Govt. of Bihar
Govt. of Jharkhand
CAPART New Delhi/ Patna
Orissa Renewable Energy Development Agency
Orissa Marketing Federation
Non-Government : Corporate
Tata Sponge Iron Limited
Small Industries Development Bank of India (SIDBI)
State Bank of India
Frontline Associates
Coca Cola Limited
Hindustan Petroleum
Bilati, Orissa
Tata Council for Community Initiatives
SO
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
COMMUNITY Contd…
SO4 Awards received relevant to social, ethical, and
environmental performance.
During the year Tata Steel has won several prestigious
awards both in its business and social performance. A
summary of few of these awards is given below. Some of
the awards were received during reporting period for the
performance in the previous reporting year.
•
•
•
•
•
•
•
•
•
Corporate Excellence Awards by Economic Times in
July 2001.
National Awards for Excellence in Corporate
Governance for the year 2000 by Finance Ministry and
Unit Trust of India.
Shree Sitaram Rungta Social Awareness Award by
Federation of Indian Mining Industry for the year 2000
for outstanding social services in and around Joda
Mines.
Dr. Amit Chatterjee Conferred Helen Keller Award –
World Disability Day.
World Steel Dynamics Award for Dr. J J Irani.
IIM Quality Award 2000-2001.
DSIR National Award for Tata Steel.
Dr. J J Irani Conferred Lifetime Achievement Award
ISO-14001 EMS Certification to Tata Steel’s Growth
Shop & Cold Rolling Mill.
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
British Safety Council Award for Tata
Steel.
Vishwakarma Rashtriya Puraskar for
suggestion initiatives.
3rd Prize in Regional Management
Games.
3rd Time Prime Minister’s Trophy to Tata
Steel.
SAP Star Installation Award.
Mohta Award for Value Engineering – 8th
time.
CII-EXIM Award for Business Excellence.
Ohio State University honours Ratan
Tata.
Tata Steel’s Website declared best by
IISI, Belgium.
Indira Priyadarshini Vrikshamitra Award
for Colliereis.
Indira Priyadarshini Vrikshamitra Award
for Mines.
National Safety Award for Tata Steel.
FIMI Environment Award 2001-2002.
Young Managers Championship
PCRA Energy Conservation Award 2001
EEPC Award for Tata Steel.
BRIBERY AND CORRUPTION
SO2 Description of the policy, procedures/
management
systems,
and
compliance
mechanisms for organizations and employees
addressing bribery and corruption.
All the Officers of Tata Steel have signed Tata Code
of Conduct. Tata Code of Conduct has a specific
clause pertaining to bribery and corruption. We have
an Ethics Counsellor to ensure all the issues
pertaining to ethics. During the year the concerns
related to Code of Conduct were analysed by Ethics
Counsellor and a summary is presented in the box.
Concerns-Stakeholder-wise
Period
Total
Emplo- Suppyees
liers
99-00
22
17
1
00-01
40
24
3
01-02
45
18
14
Annonymous
4
14
7
Management
6
Concerns Year 2001-2002
Clause
Description
of
TCOC
1
National Interest
4
Equal Opportunity
Employer
rd
13
3 Party Representation (suppliers
conduct)
17
Ethical Conduct
18
Regulatory
Compliance
20
Conflict of Interest
21
Confidential
Information
22
Protecting Co’s
Assets (Misusing
Co’s Assets)
23
Citizenship
24
Integrity of Data
25
Reporting of
Concern
TOTAL
No. of
concerns
%age
1
6
23
13.3
4
9
17
9
38
20
2
1
4.4
2.2
1
2.2
2
1
1
4.4
2.2
2.2
45
100%
SO
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
POLITICAL CONTRIBUTION
SO3 Description of policy, procedures/ management
systems, and compliance mechanisms for managing
political lobbying and contributions.
Tata Steel does not encourage any political lobby or
contribution to political parties as per the Tata Code of
Conduct (Clause#7).
SO5 Amount of money paid to political parties and
institutions whose prime function is to fund political
parties or their candidates.
Tata Steel has not paid any money to political parties
during the reporting year in accordance with its
commitment to Tata Code of Conduct (Clause#7).
CUSTOMER, HEALTH & SAFETY
PR1 Description of policy for preserving customer
health and safety during use of products and services,
and extent to which this policy is visibly stated and
applied,
as
well
as
description
of
procedures/programmes to address this issue,
including monitoring systems and results of
monitoring.
Tata Steel has not instituted any specific procedure for
preserving customer, health & safety during the use of its
products, however, the steel products are environment
friendly and do not pose any health or safety hazard during
their use. Tata Steel addresses the environmental issues
of the products only by carrying out Life Cycle Assessment
Studies to reduce the environmental burdens during
production and mining operations.
PR4 Number and type of instances of non-compliance
with regulations concerning customer health and
safety, including the penalties and fines assessed for
these breaches.
There had been no instance of non-compliance with
regulations related to health and safety aspects of our
product nor have any fines/penalties been imposed.
PR5 Number of complaints upheld by regulatory or
similar official bodies to oversee or regulate the health
and safety of products and services.
COMPETITION & PRICING
SO6 Court decisions regarding case pertaining
to anti-trust and monopoly regulations.
There is no case pending in any Court pertaining to
violation of anti-trust and monopoly regulations.
SO7 Description of policy, procedures/
management
systems,
and
compliance
mechanisms for preventing anti-competitive
behaviour.
The organization follows the Tata Code of Conduct
and monitors the compliance related to various
clauses of Code of Conduct (Annexure-I). The
monitoring results are furnished under SO2.
PRODUCTS & SERVICES
PR2 Description of policy, procedures/
management
systems,
and
compliance
mechanisms related to product information and
labelling.
There are no regulations on product information and
labelling other than physical dimensions and
chemical
composition
of
various
products
manufactured by Tata Steel. Tests certificates are
issued along with the deliveries to the customers.
PR7 Number and type of instances of noncompliance with regulations concerning product
information and labelling, including any
penalties or fines assessed for these breaches.
No instance of non-compliance.
PR8 Description of policy, procedures/
management
systems,
and
compliance
mechanisms related to customer satisfaction,
including results of surveys measuring
customer satisfaction. Identify geographic areas
covered by policy.
There had been no complaints during the reporting year.
PR6 Voluntary code compliance, product labels or
awards with respect to social and/or environmental
responsibility that the reporter is qualified to use or
has received.
Tata Steel is a signatory of Global Compact and CoRE
BCSD Charter (please refer Annexure-I & II). The list of
awards won by Tata Steel during reporting year is
furnished in SO4. ISO-9001 & 14001 standards are also
implemented in the organization and units are certified.
The products are not eco/safety levelled.
Tata Steel regularly monitor the customer
satisfaction index through various inters actions as
elaborated in the chapter on Governance &
Management. We also engaged 3rd parties to carry
out customer satisfaction survey. The results of
customer satisfaction survey are furnished in the
figure on next page.
SO
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
Figure-Trends in improvement in CSI ranks
Year
2001
2000
1999 1998
Tata Steel
1
1
1
1
Bhilai
3
5
2
4
VSP
2
3
2
3
Essar
5
2
2
NA
Bokaro
5
5
3
4
Durgapur
2
5
4
2
Rourkela
4
6
5
5
IISCO
Not
4
5
3
given
SOURCE : IMRB 2000 & ORG MARG-2001
1997
1
3
2
NA
4
6
5
3
1996
1
5
2
NA
6
4
7
3
Overall Customer Satisfaction Index
75
70
65
60
67
67
97-98
98-99
72
74
70
99-00
00-01
01-02
Target-75
ADVERTISING
PR9 Description of policies, procedures/ management
systems, and compliance mechanisms for adherence
to standards and voluntary codes related to
advertising. Identify geographic areas covered by
policy.
Tata Steel’s advertises for its corporate image and product
promotion.
The advertising campaigns have been
governed by the Ethical standards advocated by
Advertising Council of India. Our campaigns have been
appreciated by none less than Prime Minister of India’s
Office (a copy of the letter from PM’s Office shown in the
box).
PR10 Number and types of breaches of advertising
and marketing regulations.
There had been no breaches of advertising and marketing
regulations during the reporting year.
I am writing to convey my deep appreciation of the advertisement,
which Tata Steel has put out recently in several magazines,
showing the close association of Jamshetji Tata and JRD Tata a
many great leaders of India's Freedom Movement. I had read time
back about the amazing correspondence between Jamshetji Tata
and Swami Vivekananda and their joint voyage to America. I had
then thought of suggesting to you that your Group highlight this
inspiring but little-known part of the history of India's industrial
and scientific development. I was therefore heartened to see that
you have already translated this concept into communication.
You will agree that this concept (Tata Group's association with the
nationalist cause, both before and after Independence) has
immense communicative potential beyond the ad that has now
appeared in a section of the print media. It needs to be
communicated widely in diverse creative messages through
television, in the non-English print media, outdoor media and in
other ways targeted at specific influential audiences. This would
no doubt be useful to your Group, reestablishing and further
reinforcing the Tatas' unique nationalist legacy. But in writing this
letter I am prompted by the larger benefit that such communication
would bring to the new generation of entrepreneurs in our country
who know little about the close compact between the pioneers of
India's industrialization and the leadership of the Freedom
Movement.
Even in today's age globalisation, India's political and business
establishments need nationalism as a source of inspiration, energy
and direction – enlightened and broad minded nationalism which
does not shut its eyes to the changes in the international situation
that inevitably take place from time to time but which,
nevertheless, does not shy from being assertive when national
interests ate at stake. This is the true meaning of Swadeshi, an idea
that is as relevant now as in the time of Gandhiji and Jamshetji
Tata, although its meaning and application have doubtlessly
changed.
Before I conclude, let me express another bit of appreciation – for
the new Indica that I saw at the Auto Expo last month. Very best
wishes.
RESPECT FOR PRIVARY
PR3 Description of policy, procedures/ management
systems, and compliance mechanisms for consumer
privacy. Identify geographic areas covered by policy.
Yours sincerely,
The privacy related to consumer information, such as, the
specifications of special products developed for specific
consumers
are
protected
through
confidentiality
agreements.
(Sudheendra Kulkarni)
PR11 Number of substantiated complaints regarding
breaches of consumer privacy.
SO
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002)
SECTION-7
ANNEXURES
CONTENT INDEX
•
Annexure-I (Global Compact)
A2
•
Annexure-II (Tata Code of Conduct)
A2
•
Annexure-III (CoRE Charter)
A4
•
Annexure-IV (Grievance Procedure)
A5
•
Annexure-V (COC Mandate)
A8
•
Annexure-VI (Abbreviations & Glossary)
A9
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2000-2001)
Annexure-I
GLOBAL COMPACT - THE NINE PRINCIPLES
st
At the World Economic Forum, Davos, on 31
January 1999, UN Secretary-General Kofi A.
Annan challenged world business leaders to
“embrace and enact” the Global Compact, both
in their individual corporate practices and by
supporting appropriate public policies. These
principles cover topics in human rights, labour
and environment:
Human Rights
The Secretary-General asked world business to:
Principle 1: support and respect the protection
of international human rights within their sphere
of influence; and
Principle 2: make sure their own corporations
are not complicit in human rights abuses.
Labour
The Secretary-General asked world business to
uphold;
Principle 3: freedom of association and the
effective recognition of the right to collective
bargaining;
Principle 4: the elimination of all forms of forced
and compulsory labour;
Principle 5: the effective abolition of child
labour, and
Principle 6: the elimination of discrimination in
respect of employment and occupation.
Environment
The Secretary-General asked world business to:
Principle 7: support a precautionary approach to
environmental challenges;
Principle 8: undertake initiatives to promote
greater environmental responsibility; and
Principle 9: encourage the development and
diffusion
of
environmentally
friendly
technologies.
Annexure-II
CODE OF CONDUCT (adopted across the
Tata Group in1998-99) (visit
www.tatasteel.com for complete CoC)
Clause pertaining to sustainability from Tata
Code of Conduct (25 numbers total) is
highlighted below;
National Interest (Clause#1)
A Tata Company shall be committed in all its
actions to benefit the economic development of
the countries in which it operates and shall not
engage in any activity that would adversely
affect such 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.
Competition (Clause#3)
A Tata Company shall fully strive for the
establishment and support of a competitive
open market economy in India and abroad and
shall co-operate in the efforts to promote
progressive and judicious liberalisation of trade
and investment by a country.
Specially,
activities,
formation
positions,
practices.
a Tata Company shall not engage in
which generate or support the
of monopolies, dominant market
cartels and similar unfair trade
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.
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.
A
02/12
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2000-2001)
Annexure-II (Contd….)
Equal-Opportunities Employer (Clause#4)
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. Employees of a
Tata Company shall be treated with dignity and
in accordance with the Tata Policy to maintain a
work environment free of sexual harassment,
whether physical, verbal or psychological.
Employee policies and practices shall be
administered in a manner that would ensure that
in all matters equal opportunity is provided to
those eligible and the decisions are merit-based.
Health, Safety and Environment (Clause#8)
A Tata Company shall strive to provide a safe
and healthy working environment and comply, in
the conduct of its business affairs, with all
regulations regarding the preservation of the
environment of the territory in operates in. A
Tata Company shall be committed to prevent the
wasteful use of natural resources and minimise
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 (Clause#9)
A Tata Company shall be committed to supply
goods and services of the highest quality
standards backed by efficient after sales service
consistent with the requirements of the
customers to ensure their total satisfaction. The
quality standards of the Company’s goods and
services should at least meet the required
national standards and the company should
endeavour to achieve international standards.
Corporate Citizenship (Clause#10)
A Tata Company shall be committed to be a
good corporate citizen not only in compliance
with all relevant laws and regulations but also by
actively assisting in the improvement of the
quality of life of the people in the communities in
which it operates with the objective of making
them self reliant. Such social responsibility
would comprises, to initiate and support
community initiatives in the field of community
health and family welfare, water management,
vocational training, education and literacy and
encourage application of modern scientific and
managerial techniques and expertise. This will
be reviewed periodically in consonance with
national and regional priorities. The company
would also not treat these activities as optional
ones but would strive to incorporate them as
integral part of its business plan. The company
would also encourage volunteering amongst its
employees and help them to work in the
communities. Tata companies are encouraged
to develop social accounting systems and to
carry out social audit of their operations.
Public Representation of the Company and
the Group (Clause#12)
The Tata Group honours the information
requirements of the public and its stakeholders.
In all its public appearance with respect to
disclosing company and business information
to public constituencies such as the media, the
financial
community,
employees
and
shareholders, a Tata Company or the Tata
Group shall be represented only by specifically
authorized directors and employees. It will be
the sole responsibility of these authorized
representative to disclose information on the
company.
Ethical Conduct (Clause#17)
Every employee of a Tata Company, which
shall include whole-time Directors and the
Managing Director, shall deal on behalf of the
Company with professionalism, honesty,
integrity as well as high moral and ethical
standards. Such conduct shall be fair and
transparent and be perceived to be as such by
third parties.
Every employee shall be responsible for the
implementation of and compliance with the
Code in his professional environment. Failure
to adhere to the Code could attract the most
severe consequences including termination of
employment.
A
03/12
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2000-2001)
Annexure-II (Contd….)
Annexure-III (Contd….)
Regulatory Compliance (Clause#18)
Every employee of a Tata Company shall, in his
business conduct, comply with all applicable
laws and regulations, both in letter and in spirit,
in all the territories in which he operates. 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.
Political Non-Alignment (Clause#7)
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. The
Company shall not offer or give any company
funds or property as donations, directly or
indirectly, to any specific political party,
candidate or campaign.
Annexure-III
CoRE SUSTAINABILITY CHARTER
Integrated Management:
To integrate these policies, programs and
practices into each business as an essential
element of management in all its functions.
Employee Education:
To educate, train and motivate employees to
conduct their activities in an environmentally
responsible manner.
Prior Assessment:
To assess environmental impacts before
starting a new activity or project and before
decommissioning a facility or leaving a site.
Products and Services:
To develop and provide products or services
those have no undue environmental impacts
and are safe in their intended use, that are
efficient in their consumption of energy and
natural resources, and that can be recycled,
reused, or disposed of safety.
Objective of the Charter:
To express support publicly for these principles
and to provide a basis for pursuing
environmental improvements at the corporate
level.
Customer Advice:
Principles:
To advise, and where relevant educate,
customers, distributors and the public in the
safe use, transportation, storage and disposal
of products provided; and to apply similar
considerations to the provision of services.
Corporate Priority:
Facilities and Operations:
To recognise environmental management as
among the highest corporate priorities and as a
key determinant to sustainable development; to
establish policies, programs and practices for
conducting operations in an environmentally
sound manner.
To develop, design and operate facilities and
conduct activities taking into consideration the
efficient use of energy and materials, the
sustainable use of renewable resources, the
minimisation of adverse environmental impact
and waste generation, and the safe and
responsible disposal of residual wastes.
Process of Improvement:
To continue to improve corporate policies,
programs and environmental performance,
taking into account technical development,
scientific understanding, consumer needs and
community expectations, with legal regulations
as a starting point.
Research:
To conduct or support research on the
environmental impacts of raw materials,
products, processes, emissions and wastes
associated with the enterprise and on the
means of minimizing such adverse impacts.
A
04/12
TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2000-2001)
Annexure-III (Contd...)
Annexure-III (Contd...)
Precautionary Approach:
Compliance and Reporting:
To modify the manufacture, marketing or use of
products or services or the conduct of activities,
consistent with scientific and technical
understanding, to prevent serious or irreversible
environmental degradation.
To measure environmental performance; to
conduct regular environmental audits and
assessments of compliance with company
requirements, legal requirements and these
principles; and periodically to provide
appropriate information to the Board of
Directors, shareholders, employees, the
authorities and the public.
Contractors and Suppliers:
To promote the adoption of these principles by
contractors acting on behalf of the enterprise,
encouraging and, where appropriate, requiring
improvements in their practices to make them
consistent with those of the enterprise, and to
encourage the wider adoption of these principles
by suppliers.
Emergency Preparedness:
To develop and maintain, where significant
hazards exist, emergency preparedness plans in
conjunction with the emergency services,
relevant authorities and the local community,
recognizing potential trans-boundary impacts.
{Drawn from ICC’s (International
Chamber of Commerce) Business
Charter for Sustainable Development}
Annexure-IV
Grievance Procedure
•
Transfer of Technology:
To contribute to the transfer of environmentally
sound technology and management methods
throughout the industrial and public sectors.
•
Contributing to the common effort:
To contribute to the development of public policy
and
to
business,
governmental
and
intergovernmental programs and educational
initiatives that will enhance environmental
awareness and protection.
Openness to concerns :
To foster openness and dialogue with
employees and the public, anticipating and
responding to their concerns about the potential
hazards and impacts of operations, products,
wastes or services, including those of transboundary or global significance.
•
The Grievance Procedure aims at
settlement of grievances of permanent
employees, other than supervisors and
fresh employees on probation, in the
shortest possible time and at the lowest
possible level. It is a three-stage procedure
with an appropriate grievance form for each
stage.
Individual grievances and complaints shall
not be discussed at any level other than
that specified in this procedure except that,
if the Union so desires, such cases may be
put up for discussion at the Central Works
Committee.
Policy matters and their interpretation shall
not be discussed at any level except with
the top management. The Union, however,
can take up such matters at the Central
Works Committee.
Representations for the redressal of
grievances from employees to the various
authorities either directly or through the
Union, when their cases are pending with
any Works Committee, are not conducive
to the working of those committees. Hence,
no representation will be entertained for
discussion at any level of the management
if the case is already referred to and
pending with any Works Committee, until
the same is either disposed of or withdrawn
from the Works Committee.
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2000-2001)
•
Annexure-IV (Contd…)
•
In exceptional cases, however, involving
grievances of a number of workmen other
than routine grievances or questions of
principle or policy or any other important
matter where immediate action is necessary,
the Union may take up the case with the
appropriate level of management. In cases
of importance the President of the General
Secretary of the Union may ask the
management for a joint enquiry.
The following subjects come under the purview
of this procedure;
i)
ii)
iii)
iv)
v)
vi)
vii)
viii)
ix)
x)
xi)
xii)
Acting
Amenities and/or facilities
Continuity of service
Compensation
Discharge/dismissal
Fines
Increment
Leave
Medical
Misconduct
Nature of job
Promotion (excluding selection
interview)
xiii)
Safety appliances
xiv)
Suspension
xv)
Transfer
xvi)
Victimisation
xvii)
Warning letter
Stage Two:
•
by
•
State One:
•
The grievance form should be handed over
to the shift-in-charge, General Foreman or
equivalent, as the case may be, who will
arrange to issue an acknowledgement
receipt. He will make the necessary
enquiries and return the form to the
employee concerned with his remarks in
the space provided for this purpose or, with
the remarks of the head of the department
(where the matter is beyond the jurisdiction
of the General Foreman or the shift-incharge or equivalent), within the next two
working days from the receipt of the form.
In cases requiring reference to higher
authorities this time limit will be relaxed. If
necessary, the employee can discuss the
case further with the supervisor concerned
in the light of his remarks. If so desired, the
employee can take the help of the Union
representative in presenting or discussing
the case at this and/or the next stage.
If an employee has a grievance, he should
meet his shift-in-charge or equivalent and
talk it over with him. In cases of appeal
against punishments excluding suspension,
discharge or dismissal, the employee should
meet his General Foreman or equivalent. If
necessary h should obtain a copy of
Grievance Form-I. This should be filled in
and submitted within one week of the date
on which the facts, on the basis of which the
grievance has arisen, became known to him,
except that in the case of promotions a time
limit of six weeks from the date of the
promotion in question will be allowed.
•
If the employee is not satisfied with the
reply at stage one, he may obtain from the
General Foreman or the shift-in-charge or
equivalent, as the case may be, a copy of
Grievance Form-II, enter therein the
reasons for reconsideration of the case,
and submit this form to the head of his
department within three working days of the
receipt of the reply at stage one and obtain
an acknowledgement receipt thereof.
Appeals against suspension should be
addressed to the head of the department
on Grievance Form-II or on ordinary paper,
within seven days of the receipt of orders or
after the last date of suspension, whichever
is later, and these will be considered at
stage two, in the first instance. If the
appeal is time-barred, it must be clearly
mentioned in the reply.
The head of the department will discuss
the issue with the employee and the
supervisor concerned and return this Form
with his remarks within three working days
of receipt of the Form. In cases requiring
reference to higher authorities or to another
department this time limit will be relaxed.
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2000-2001)
Annexure-IV (Contd…)
Stage Three:
•
•
•
•
If the employee is still not satisfied with the
reply, he may appeal to the Chairman of the
Zonal Works Committee concerned, on
Grievance Form-III, within seven working
days of the receipt of the reply at stage two.
Appeals against orders of discharge or
dismissal should be addressed to the
Chairman of the Zonal Works Committee
concerned, on Grievance Form-III (Copies of
which are available at the Employment
Bureau), or on ordinary paper, and these will
be considered at stage three, in the first
instance. This should be done within six
weeks of the receipt of the orders, except
that in cases where employees discharged
or dismissed are out of Jamshedpur at the
time the order is issued, the time limit should
be three months from the date of issue of
such orders.
The decision reached by the management
after
due
consideration
of
the
recommendations of the Zonal Works
Committee will be communicated to the
employee on Grievance Form-III through
proper channels. The Zonal Works
Committee’s unanimous recommendations,
to which no objection is raised by the
Management or the Union within 10 days of
the receipt of such recommendations, shall
be final.
Where such recommendations are not
unanimous or have not been accepted by
the management or the Union, the Zonal
Works Committee will refer the case to the
Central Works Committee or the Special
Central Works Committee for consideration.
Grouping of Zonal Works Committees:
Zonal Works Committee #I – Blast Furnace &
Coke Ovens, Ore Crushing & Sintering Plant,
Refractories
Department
(Production),
Refractories
Department
(Maintenance,
including Works Masonary), and Industrial
Engineering Department.
Zonal Works Committee #II : Steel Melting
Shops (Nos. 1&3), L D Shop, Canteen
Services, Materials Reclaiming Department,
Energy & Economy Department, Metallurgical
Department, Chemical Laboratory, Research &
Development Department, and Electronics
Department.
Zonal Works Committee #III : Sheet Mill,
Plate Mill, Strip Mill, Bar Forging & Tyre Mill,
Ring Plant, and Bar & Rod Mill.
Zonal Works Committee #IV : Rolling Mill
No.1 (including Rail Finishing and New
Shipping), Rolling Mill No.2, Merchant Mills,
Medium & Light Structural Mills, Lubrication,
Production Scheduling and RT Shop.
Zonal Works Committee #V : Electrical
Department (Power, Operation, Mills, Services,
Inspection and Tele-Communication) General
Maintenance, Stores, Power Engineering
Department and Building Inspection &
Maintenance Department.
Zonal Works Committee #VI : Shops, Loco &
Loco Crane Department, Works General
Services, Agrico, Foundries & Pattern Shop,
Transportation Department, Material Handling
Services, Works Garden, Production Planning
(Shops), Plant Design and Mechanical
Maintenance Department, Central Inspection,
and Standardisation Department.
Non-Factory Employees’ Works Committee
: All ministerial staff of Works and non-Works
departments, all outside works departments.
References:
DIC’s Circular of 15.06.56
25.02.64)
LP/8322/56 of 17.08.56
14.08.64)
AO/7592/58 of 21.10.58
20.02.67)
AO/8013/59 of 04.09.59
08.12.71)
AOC/1198/61 of 08.09.61
23.12.71)
AO/7684/61 of 11.09.61
27.10.76)
AOC/1324/61 of 03.10.61
04.09.80)
DPL/Con/843/62 of 08.05.62
(GSL/2493/64 of
(AO/7073/64
of
(AO/1626/67
of
(AO/14819/71 of
(AO/15480/71 of
(AO/10429/76 of
(AO/9954/80 of
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2000-2001)
Annexure-V
COC MANDATE
MESSAGE
Dear Colleagues,
The Tata Code of Conduct, henceforth referred to as the code, enunciates the values
and norms of behaviour that shall govern the conduct and the activities of our
company, and all our employees.
The Tata House represents more than a century of ethical conduct of business in a
wide array of markets and commercial activities in India and abroad. The Tata name
invokes trust among customers, employees, shareholders and community. This is a
previous heritage, unique in India, and will not only have to be preserved but also
enriched by formalising the high standards of behaviour expected from our employees
in the year to come.
As employees of the Steel Company, it shall be our responsibility to ensure
compliance with the code. Please read the code and abide by all its provisions both in
letter and in spirit.
In case you have any queries regarding the code, please seek certification from your
immediate superior, or from the Ethics Counsellor, then he can also be contacted for
expressing your concerns, if any.
Yours sincerely,
May 24, 1999
Sd/(JAMSHED J IRANI)
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2000-2001)
Annexure-VI
Abbreviations & Glossary
ABP
AES
AGM
AIDS
AIWC
AQUIP
ASSOCHEM
Auto
BAH
BE
BHP
BIS
BIS
Bl. Fce.
BM
BOC
BOD
CAPEX
CAS
CCI
CEDEP
CFC
CFI
CGL
Chief (CC)
CIDA
CII
CIO
CIO
CMR
CO
COB
COC
Comm.
CoRE
CRC (W)
CRM
CS
CSD
CSI
CSMS
Annual Business Plan
Application Engineering Support
Annual General Meeting
Acquired Immune Deficiency
System
All Indian Women Conference
Annual Quality Improvement
Projects
Associated
Chamber
of
Commerce
Automobile
Booz Allan Hamilton
Business Excellence
Broken Hill Property
British Institute of Standards
Bureau of Indian Standards
Blast Furnaces
Bar Mill
British Oxygen Company
Biological Oxidation Plant
Capital Expenditure
Consignment Agent(s)
Corporate Citizenship Index
European Centre for Continuing
Education, France
Chloro Floro Carbon
Centre for Family Initiatives
Continuous Galvanizing Line
Chief Corporate Communication
Canadian
International
Development Agency
Confederation of Indian Industry
Chief Information Officer
Chief Information Officers
Children Mortality Rate
Carbon Monoxide
Committee of Brand
Code of Conduct
Commercial
Corporate Round Table on
Environment & Sustainable
Development
Cold Rolling Complex (West)
Cold Rolling Mill
Corporate Services
Customer Service Department
Customer Satisfaction Index
Corporate
Sustainability
Management System
DEP
DIV
DMD
DO
DS Compound
Dy.
Dy.MD
EBIT
EHS
EIC
Elect.
EMS
ENT
Engg.
EP Act
EPA
ESI
ESP
EVA
EXIM
FAM
FAP
FICCI
FP Plg.
FP
FPTG
GDR
GHG
GM
Govt.
GP
HRC
HRM
HRM/IR
HSM
ICC
IDBI
IFC
IIM
IISI
ILO
Department
Dividend
Deputy Managing Director
Dissolved Oxygen
Desulpharisation Compound
Deputy
Dy. Managing Director
Earning Before Income Tax
Environment Health & Safety
Executive Incharge
Electrical
Environmental
Management
System
Ear, Nose & Throat
Engineering
Environment Protection Act
External Processing Agent
Employee Satisfaction Index
Electrostatic Precipitator
Economic Value Addition
Export Import
Ferro Alloys & Minerals
Ferro Alloys Plant
Federation of Indian Chamber
of Commerce & Industry
Flat Product Planning
Flat Product
Flat
Product
Technology
Group
Global Depository Receipt
Green House Gas
General Manager
Government
Gate Pass
Hot Rolled Coils
Human
Resource
Management
Human Resource / Industrial
Relations
Hot Strip Mill
Indian Chamber of Commerce
Industrial Development Bank
of India
International
Finance
Corporation
Indian Institute of Management
International Iron & Steel
Institute, Brussels
International
Labour
Organization
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2000-2001)
Annexure-VI (Contd…)
IMA
IMRB
IMTG
IR
IRQS
ISO
ISO-14001
IT
ITD
ITW
JAMIPOL
JCCM
JDC
JMA
JRDQV
JWC
JWQC
KM Index
KM
KPM
KRA
KWH
LCA
LD#2&SC
LDO
LIC
LM/CM
LP
LPTG
LPTG
LT
M&S
Maint.
MBA
MC/HC
MCM
Mech.
Mfg.
MGD
Mktg.
Indian Medical Association
Indian Market Research Bureau
Iron making Technology Group
Industrial Relations
Indian Register Quality Shipping
International
Standards
Organization
International Standard on 14001
Information Technology
International Trade Division
International Trade Wing
Jamshedpur Injection Power
Limited
Joint Committee of Consultative
Management
Joint Departmental Council
Jamshedpur
Management
Association
JRD Tata Quality Value
Joint Works Council
Joint Works Quality Council
Knowledge Management Index
Knowledge Management
Key Performance Measures
Key Result Areas
Kilo Watt Hours
Life Cycle Analysis
Steel Melting Shop#2 and Slab
Caster
Light Diesel Oil
Life Insurance Corporation
Long Member / Cross Member
Long Products
Long Product Technology Group
Long Product Technology Group
Long Term
Marketing & Sales
Maintenance
Master
of
Business
Administration
Medium Carbon / High Carbon
Management
Committee
Meetings
Mechanical
Manufacturing
Million Gallon Per Day ~ 4.54
Million Litres
Marketing
MM
MOU
MR
MRO
MTP
NA
NE
NED
NEDO
NEERI
NGO
No.
NOx
NT
OG
OH&E
OHSAS
OM&Q
OPPRESS
OPR
P/E
PAN
PAT
PDP
PEO
PH
PLD
Plg.
PLL
PLO
PM
PPM
PQI
Proj.
PR&CC
QC
QMS
R&A
R&D
Merchant Mill
Memorandum of
Understanding
Management Representative
Maintenance,
Repair
&
Operational Groups
Million Tonne (Metric Tonne)
Production
Not Applicable
Non Employee – those who do
not work as permanent
employees of Tata Steel
Non Executive Directors
New Energy Development
Organization, Japan
National
Environmental
Engineering Research Institute
Non Government Organization
Number(s)
Oxides of Nitrogen
Not Traceable
Order Generation
Occupational
Health
&
Environment
Occupational Health, Safety
Audit System
Ore Mines & Quaries
Online Properly Projection
System
Officers Pay Role
Price to Earning Ratio
Permanent Account Number
Profit After Tax
Personal Development Plan
Principal Executive Officer
Power House
Percent Leaking Door
Planning
Percent Leaking Lids
Percent Leaking Offtakes
Particulate Matter
Parts Per Million
Product Quality Index
Project
Public Relations & Corporate
Communication
Quality Circle
Quality Management System
Rings & Agrico
Research & Development
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2000-2001)
Annexure-VI (Contd…)
R&TS
Refr.
RM&IM
ROIC
ROM
RPD
Rural & Tribal Services
Refractories
Raw Material & Iron Making
Return of Invested Capital
Run of Mines
Refractories
Production
Department
SAL
Saleable
SAP
System, Analysis and Products
for Data Based Management
SC
Supply Chain
Sc.Svc.
Scientific Services
SEBI
Stock Exchange Board of India
SHE
Safety Heal Environment
SMS
Steel Melting Shops
SNTI
Shavak Nanavati Technical
Institute
Oxides of Sulpher
SO2
SOP
Senior Officers Pay Role
SP
Sinter Plant
SPACM
Strategic Planning & Corporate
Marketing
SPPE
Society
for
Promotion
of
Professional Excellence
Sr
Senior
SS&FI
Social Services & Family
Initiatives
ST
Short Term
Sercs.
Services
Tata GA Sheet Tata Galvanized Sheet
Tata SSL
Tata Special Steel Limited
TAYO
Tata Yodogawa Limited
TBEM
Tata Business Excellence Model
TCCI
Tata Council for Community
Initiatives
TCTF
Thermal Coal Task Force
TELCO
Tata Engineering & Locomotive
Company
TERI
Tata Energy Research Institute
TGS
Technology Group
TH
Total Hardness
TIL
Tata International Limited
TKM
Tata Korf Maritime
TMDC
Tata Management Development
Centre
TO
TOP
TPL
TQM
TRF
TRL
TSFIF
TSRDS
ULC/LC
UN
UNIDO
UTI
VP
WACC
WHO
Turn Over
Total Operating Programme
Tta Projects Limited
Total Quality Management
Tata Robins Fraser
Tata Refractories Limited
Tata Steel Family Initiative &
Foundation
Tata Steel Rural Development
Society
Ultra Low Carbon / Low
Carbon
United Nations
United
Nations
Industrial
Development Organization
Unit Trust of India
Vice President
Weight Average Cost of
Capital
World Health Organization
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TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2000-2001)
Annexure-VI (Contd…)
A) Applicable Environmental Acts & Rules
01 (a) The Water (Prevention & Control of Pollution) Act 1974, as amended up to 1988
(b) The Water (Prevention & Control of Pollution) Rules 1975, as amended up to 1989
02 (a) The Water (Prevention & Control of Pollution) Cess Act 1977, as amended up to 1992
(b) The Water (Prevention & Control of Pollution) Cess Rules 1978, as amended up to
1992
03 (a) The Air (Prevention & Control of Pollution) Act 1981, as amended up to 1987
(b) The Air (Prevention & Control of Pollution) Rules 1982
04 (a) The Environment (Protection) Act 1986, as amended up to 1999
(b) The Environment (Protection) Rules 1986, as amended up to 1999
(c) The Environmental (Protection) Rules 1992 & 1993 – Environmental Statement
(d) The Environmental (Protection) Rules 1994/1996 – Environmental Standards
(e) The Environmental (Protection) Rules 1994 – Environmental Clearance
(f) Amendments in the Environmental (Protection) Rules, 1994 – “Public Hearing”
(g) The Noise Pollution (Regulation & Control) Rules 2000
(h) Dumping and Disposal of Fly ash – Notification dated 14.09.1999 amended up to 2002
th
05
The Hazardous Waste (Management & Handling) Rules 1989, as amended up to 6
January 2000
06
Manufacture, Storage & Import of Hazardous Chemicals (Amendment) Rules 1989, as
amended up to 19th January 2000
07 (a) The Public Liability Insurance Act 1991, as amended up to 1992
(b) The Public Liability Insurance Rules 1991, as amended up to 1992
08
Ozone Depleting Substances (Regulation & Control) Rules, 2000
09
Batteries (Management & Handling) Rules 2001
10
Bio-medical Waste (Management & Handling) Rules 1998 as amended till 2000
B) Applicable Occupational Health & Safety Acts & Rules
01
Gas Cylinder Rules, 1984, including Amendment Rules, 1993
02
The Static and Mobile Pressure Vessels (Unfired) Rules, 1981, including Amendment
Rules, 1997
03
The Indian Electricity Act, 1910 & Rule, 1956
04
The Indian Railways act / Rule 1989
05
The Petroleum Act (as amended till 1997), 1934 & Rules (as amended till 2002)
06
The Factories Act (as amended till 1987), 1948
The Bihar Factory Rules (as amended till 1988) 1950
07
The Insecticides Act (as amended till 1977), 1968 & Rule 1971 (as amended till 1999)
08
Contract labour (regulation & Abolition) Act, 1970 & Rule 1971
09
The Motor Vehicle Act 1988 (as amended in 2001) & Central Motor Vehicle Rule 1989
10
The Explosive Act, 1884
The Explosive Rules, 1983, including Amendment Rules, 2002
11
The Indian Boiler Act, 1923 & Boiler Rules, 1950
12
Calcium Carbide Storage & Handling Rule 1987
13
The Workmen Compensations act 9123 (as amended up to 2000) & Rule (as amended up
to 2000)
C) Other Acts
01
Mines Act, 1952
02
Wild Life Conservation Act, 1972
03
Forest Conservation Act (Amendment) 1980
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