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A STUDY ON
MANAGEMENT OF BUSINESS ETHICS
AT
TATA MOTORS LTD.
JAMSHEDPUR
A Project Report submitted in partial fulfillment of the requirement for MBA in
Human Resource
By soma roll no-22 session 07-09 Xavier institute of social service, ranchi
.
APPROVAL SHEET
This is to certify that the dissertation report entitled “Management of Business
Ethics”, carried out at TATA MOTORS, Jamshedpur has been prepared by
SOMA in partial fulfillment of the requirement for the Post Graduate Diploma in
Personnel Management.
This embodies data collected and analyzed by the student under the guidance of
Prof. M. Spring, Department of Personnel Management, XISS, Ranchi and it is
hereby approved in indicating the proficiency of the candidate.
Prof. M. Spring Prof. S.R. Shauq(R(RESEARCHESEARCH GGUIDEUIDE) ) ( HOD- PM)( HOD- PM)
DDRR. (F. (FRR.) B.) BENIENI EEKKAKKA ((EEXTERNALXTERNAL E EXAMINERXAMINER) ) ((
DDIRECTORIRECTOR,XISS),XISS)
Acknowledgement
It is my privilege to work on the project “Management of
Business Ethics in Tata Motors Ltd”. At the very outset,
I am obliged to TATA MOTORS, for the permission to
undertake training programme and provide us with the basic
infrastructure and facilities.
We express our sincere sentiments of gratitude to Mr.
Pramod Kumar (AGM, IR/W) who guided us throughout
this project. We would also like to thank Mr. Tarun Gupta
(AGM, DIVISIONAL ETHICS COUNCILOR, , HVAL) for his
continuous assistance without which this project would not
have been a success.
It is the spirit of being associated with the management of H
V Axles Ltd. in particular and Tata Motors in general who
inspired us to complete this project successfully.
Last but not the least; we also thank Mr. R.P.Ram (Ethics
Coordinator, HVAL) who has made our stay in the company
such a pleasant memory.
We owe our deep sense of gratitude and sincere thanks to all
of them
Thank you.
PREFACE
The curriculum for PGD in Personal Management provides for
intensive practical training. It strives to strike a balance
between theory and practice. This includes summer
internship. Under summer internship, the students are
placed in various industries and organizations for a period of
two months.
During this period, they get first hand exposure to the
industrial set up. They also get an opportunity to observe
closely the human resource department and its working.
They observe unique HR practices in the organization and
how things work practically. The students acquire concrete
knowledge about the human resources department; it’s
policies, practices, etc. The students also get a chance to
test out the theoretical knowledge that they have learnt in
the classrooms.
As a part of the curriculum requirement for Post Graduate
Diploma in Personal Management, I did my summer
internship at the TATA MOTORS LTD., Jamshedpur.
During this period I was assigned a project on
“MANAGEMENT OF BUSINESS ETHICS” under the
guidance of Mr. PRAMOD KUMAR, (AGM, Welfare &
IR).I did the survey in H V Axles under the guidance of Mr.
Tarun Gupta (AGM, Finance & D.E.C).
List of Figures
Figure Number
Title Page Numbe
r1 Elements of an Ethical
Corporation11
2 Implementation Process of Ethical Programme
15
3 The Ethical Leadership 21
4 Development of Ethical Fitness 225 Vision, Mission, Purpose of TATA
MOTORS 276 Chart of TATA MOTORS LTD 377 Some of the leading products of
Tata Motors 408 The HVAL Team 429 Models of Axles at HVAL 4610 Key business ethics process in
Tata Motors 5311 Implementation of Ethics
program in Tata Motors54, 55
12 Performance measurement 5513 Structure of Ethics council 55
Concern Resolution process 56
List of Tables
Figure Number
TitlePage Number
1 Emergence of Business Ethics 17,182 Benchmarked companies 19
3 Core Values 284 Customers of Tata Motors 295 Suppliers of Tata Motors 306 Manufacturing plant at Jamshedpur 327 Historical Development 33,34,358 Key customer and supplier of HVAL 459 Market position of HVAL 47
CONTENTS
Chapters
Executive Summary
Chapter 1
Introduction
Significance of the topic
Objective of the study
Research Methodology
Chapter 2
Company Profile
Chapter 3
Perception & Interpretation
Chapter 4
Conclusion
Recommendation
Bibliography
Annexure
Executive Summary
Business is the highest level of human activity and the highest level of social
good. It is the people engaged in business who deliver all the goods and
services the community wants. Business demands excellence and abundance of
creativity from the people who engage in it.
The concept of business ethics necessitates a set of standards by which a
corporate entity regulates its behaviour in terms of what is legitimate and
acceptable in the pursuit of its corporate goals. Business ethics defines the
culture of a company and set the new standards in regards to the way business
is conducted and operated in today’s workplace in both inside the office walls
and within the market place. It provides a compliant framework to the
organization that governs all its constituents from the board of directors down to
the subordinates.
To establish an ethical culture within a company, it typically must begin by
creating a code of conduct or a set of rules and regulations that are in the beliefs
and best interest of the company’s employees and associates. Ethical codes
state the regulatory measure taken within a company and iron-out what
behaviour is deemed unethical within the workplace. The reasons as to why
company behaves ethically are: To protect a company’s brand and reputation
and the desire to the right thing.
The importance of business ethics is to continually maintain corporate integrity
and satisfactory stature in the public’s eyes. It creates a uniform business method
that is utilized by all departments and their workers, across the entire company.
Additionally, it minimizes risks including legal action, lawsuits, whistle-blowing
and other potentially harmful consequences.
INTRODUCTION
INTRODUCTION
This project “Management of Business Ethics” seeks to measure the
internalization of business ethics into business processes. This project gives
valuable insights on the prevailing ethical climate and potential organizational
challenges in institutionalizing ethics.
Thirty years ago, Milton Friedman, a winner of the Noble prize for economics
argued that, “there is one and only one social responsibility of business – to use
its resources and engage in activities designed to increase its profits”. But in the
recent years the ground has been shifted. BUSINESS ETHICS – the idea that the
businesses should not only behave according to certain moral standards but also
demonstrate a level of social responsibility and accountability. One powerful
incentive behind this change has been the desire to avoid bad publicity and
damage to the reputation of the company.
Business ethics are considered a management discipline, especially since the
birth of the social responsibility movement in the 1960s. An increasing number of
people asserted that because businesses were making a profit from using our
country's resources, these businesses owed it to our country to work to improve
society.
In the world that is going to be borderless in trade and competition, in order to
survive and sustain businesses, we have to give more than we take. We have to
be competitive in quality and price and ensure better customer service. We can
only achieve all these by focusing on excellent business conduct and behavior.
The relevance and urgency of business ethics demand that it be taken up to a
higher level of consciousness, and that business and industry make a serious
effort to make it a part of their corporate culture.
Expert View
Crane and Matten say: “Global corporations (Nike, Nestle, Enron) have realized
to their cost the threat that perceived ethical violations can pose to their zealously
guarded reputations”. The world has witnessed collapse of many stable and
successful corporations due to unethical behaviours in the recent past. As a
result, there is an ever-increasing recognition of the imperative of ethical
corporate behaviour.
Carlson and Perrewe highlight the three elements that are required for an
ethical corporation.
SIGNIFICANCE
Ethical orientation of the leader
Top management support
Established corporate
ethics policy
Ethical Corporation
1. Communicating the Code of Conduct to all the employees and the
stakeholders and developing an effective process to communicate the same.
2. Educating the employees on the importance of ethical practices for the
sustainability and growth of the business.
3. Assessment of risk involved in the absence of their adherence to the Code of
Conduct.
4. Existence of gaps between the ideal and the actual situation.
5. Ensuring and maintaining confidentiality in order to help people to be more
transparent.
6. Frequent enquiry of roles and contributions of ethics department.
7. The organization’s expectation from the ethics council to promote ethical
practices in the organization by carrying out their responsibility by ensuring
business policies and practices continue to be aligned with ethical principles
OBJECTIVE OF THE STUDY
The objective of the project is to study “Management of Business Ethics” in TATA
MOTORS Ltd. and to know the ground reality, its status of implementation and
the gap areas. My main objectives of this study are:
To asses the awareness level of employees pertaining to the Tata Code of
Conduct.
To evaluate the reinforcement of ethical behavior in the organization.
To review the extent of interest and inclination of senior managers towards
the ethical behavior prescribed in the organization.
SCOPE OF STUDY
The scope of the project is limited to the study of “Management of Business
Ethics” at HVAL, a major subsidiary of TATA MOTORS. The scope
encompassed all the units of HV AXLES LTD .namely:
1. Front Axle
2. Rear Axle
3. Crown Wheel & Pinion Line
4. Maintenance department
5. Materials department
6. General Office of HVAL
The coverage of the study includes the employees of different categories. They
are: Operatives & Supervisors (E & TM (A/B/C) GRADE) and Managerial grade
(EG & TM GRADE)
ETHICS: CONCEPT
Ethics should govern all voluntary human activities and because business is a voluntary human activity, ethics should also govern business.
Ethics has come from the Latin word Ethica which means "moral philosophy”. It is
the study of values and customs of a person or a group. It covers the analysis
and employment of concepts such as right and wrong, good, evil and
responsibility. Hence it can be described as the "science of morality".
Ethics should be part of business activity because like any other human activity it can not exist unless the people involve in the business and its surrounding community adhere to some minimal standards of ethics.
It acts as an interface between individual and organization.
It investigates the ethical problems that an organization may face.
It helps in implementation and enforcement of the codes of ethics.
Applying ethics in business makes good sense. A business that behaves ethically
induces other business associates to behave ethically as well. If a company (or a
manager) exercises particular care in meeting all responsibilities to employees,
customers and suppliers it usually is awarded with a high degree of loyalty,
honesty, quality and productivity. For examples, employees who are treated
ethically will more likely behave ethically themselves in dealing with customers
and business associates. A supplier who refuses to exploit its advantage during a
seller's market retains the loyalty and continued business of its customers when
conditions change to those of a buyer's market. A company that refuses to
discriminate against older or handicapped employees often discovers that they
are fiercely loyal, hard working and productive.
IMPORTANCE OF ETHICS IN BUSINESS
In today's modern business world, the road to success requires more than merely
technical skills, practical knowledge and a good product. The public of today has
high demands of those behind the steering wheel of modern business.
Greater accountability and transparency, up-to-the-minute market information,
reliable financial and market data, etc. are essential gauges for investment
decisions. As leaders of today and tomorrow, one should hold on to such beliefs
and strive to put ethics into practice in one’s corporation.
Commitment and determination to put ethics into practice is the
prerequisite in one’s roadmap to business ethics.
An effective ethics program serves as a basis for policy making as well as
providing guidance in daily decision-making. It should define ethics goals and
objectives and allow the organization to measure progress.
Ethical practices are inherently valuable in the sense that they satisfy the
organization's moral/ethical obligations. There is also a pragmatic side to the
value of ethical practices. Ultimately, ethically founded organizations are more
effective and more successful.
IMPLEMENTATION PROCESS OF ETHICS PROGRAMME
BUSINESS ETHICS
Policies and procedures of the organization on ethical values
Internal Agency: Creating own Ethics division
Steps to strengthen the ethics programme
Standards to measure the desired results
Expectations and requirements to employees
External Agency: Outsourcing ethics programme
Organization developsCommunicate
CONCEPT:
Business ethics is considered as a management discipline, especially since the
birth of the social responsibility movement in the 1960s. An increasing number of
people asserted that because businesses were making a profit from using our
country's resources, these businesses owed it to our country to work to improve
society. Many researchers, business schools and managers have recognized this
broader constituency, and in their planning and operations have replaced the
word "stockholder" with "stakeholder," meaning to include employees, customers,
suppliers and the wider community.
The concept of business ethics necessitates a set of standards by which a
corporate entity regulates its behaviour in terms of what is legitimate and
acceptable in the pursuit of its corporate goals.
It is a set of values such as transparency, responsibility, integrity, passion for
work, fair trade practices and corporate social responsibilities. It translates and
integrates these values at all levels in an organization. It is just about creating a
culture of doing things in a right manner.
Business ethics lays down the principles of conduct governing a business
including its regulations, the institution and the system and how a person in
business deals with his or her colleagues, staff, workers, shareholders,
customers, the community, the government, the environment and the nation at
large. It includes gratitude, loyalty and affection. Business ethics can be both a
normative and a descriptive discipline. As a corporate practice and a career
specialization, the field is primarily normative. In academia descriptive
approaches are also taken.
Business ethics is applied ethics. It is an application of our understanding of what
is good and right to that assortment of institutions, technologies, transactions,
activities, and pursuits that we all call business. It investigates three different
kinds of issues: Systemic, Corporate and Individual
Systemic issues are ethical questions raised about the economic, political, legal
and other social systems within which business operates.
Corporate issues are ethical questions raised about the particular company.
These include questions about the morality of the activities, policies, practices or
organizational structure of an individual company taken as a whole.
Individual issues are ethical questions raised about particular
individual/individuals within a company. These questions include morality of the
decisions, actions or character of an individual.
Business ethics provides numerous benefits such as:
Ethics programs help maintain a moral course in turbulent times.
Ethics programs cultivate strong teamwork and productivity as they align
employee behaviors with those top priorities ethical values preferred by leaders
of the organization.
Ethics programs support employee growth and meaning. Attention to ethics in the
workplace helps employees face reality, both good and bad -- in the organization
and themselves. Employees feel full confidence that they can admit and deal with
whatever comes their way.
EMERGENCE:
Jerry O’ Brien at the Ethics Resource Centre developed the following timeline AND it helps provide some perspective on the ethics implications of major business development.
DECADE ETHICAL CLIMATE
MAJOR ETHICAL DILEMMAS
BUSINESS ETHICS DEVELOPMENT
1960s Social unrest .
Anti-war sentiment.
Employees have an adversarial relationship with management.
Old values are cast aside.
. Environment issues Increased employee-employer tension.
.Drug use escalates.
.The work ethics changes
-Companies begin establishing codes of conduct and values statements-Birth of social responsibility movement-Corporations address ethics issues through legal or personnel departments.
1970s The economy suffers through recession Unemployment escalates .There are heightened environmental concerns.
The public pushes to make businesses accountable for ethical shortcomings.
-Employee militancy(employee versus management mentality)
-Human rights issues surface (forced labor ,sub-standard wages ,unsafe practices)
-Some firm choose to cover rather than correct dilemmas.
-ERC founded (1977)
-Compliance with laws heightened
-Federal Corrupt Practices Act passed in 1977.
-Ethics become more” value-centered” rather than compliance –centered.
1980s The social contract between employers and employees is
-Bribes and illegal contracting practices.-Deceptive
-ERC develops the U.S. code of ethics for Government
redefined. Corporations downsize and employees’ attitudes about loyalty to the employer are eroded. Health care ethics emphasized.
advertising
-Financial fraud (savings and loan scandal)-Transparency issues arise
Service (1980)
-Defense Industry Initiative established.(1986)
-False Claims Act (government contracting)
1990s Global expansion brings new ethical challenges.Major concerns about child labor, bribes and environmental issues. The emergence of the internet challenges cultural borders.
-Unsafe work practices in THIRD WORLD countries-financial mismanagement and fraud -Increased corporate liability for personal damage(Dow companies. .etc)
-ERC establishes international business ethics centers-Royal Dutch /Shell international begins issuing annual reports on its ethical performance
2000s Unprecedented economic growth is followed by financial failures.Ethics issues destroy some high profile firms’ .personal data is collected and sold openly.Hackers, data thieves plague businesses, and government agencies.Acts of terror and aggression occur internationally.
-Cyber crime
-Privacy issues
-Financial mismanagement
-International corruption
-Intellectual property theft
-Anti-corruption efforts grew
-Shift to emphasis on CSR.
-Formation of international ethics centers to serve the needs of global businesses.
BENCHMARKED COMPANIES
Name of the Company
Unique Practices
TEXAS INSTRUMENT
The principle of ethics and integrity are viewed as a primary driver for
business success and are adaptable to other business and communities.
Highest standards of personal integrity and they demanded the same for
others. Ethics awards received:
1) American business award 1994,
2) Bentley college centre for business ethics award 1994,
3) David C .Lincoln award for ethics and excellence in business 1991.
STARBUCKS COFFEE COMPANY
All leadership and excellence In best practices in the field of corporate
responsibility. In Starbucks, decision or workforce and the environment
have bottom line impact.
Company has been long been the leader in providing benefits to all its
employees. Even medical and dental benefits are available to anyone
who is working at least 20 hours in a week.
INTEL Corporation received Business Ethics magazine’s first-ever corporate
social responsibility (CSR) management award at the Business for
Social Responsibility Conference in Washington, D.C.
Intel leads the way in ethics and corporate social responsibility
excellence. Intel was also among the first companies in the United
States to report in accordance with the Global Reporting Initiative, a
rigorous international framework for corporate social and environmental
reporting.
Establishing Ethical infrastructure
Driscoll and Hoffman designed ten basic steps that companies could take to
establish an ethical infrastructure – one that is likely to outlast the tenure of any
particular senior manager, and one that will endure in both good and bad
economic times.
Self-assessmentSelf-assessment It is a necessary step to determine what procedures are needed to address organizational risks and concerns. It looks at an organization’s existing compliance, efforts and identifies deficits.
It is a necessary step to determine what procedures are needed to address organizational risks and concerns. It looks at an organization’s existing compliance, efforts and identifies deficits.
Commitment from the Top
Commitment from the Top
No ethics initiative should begin without senior managers making a commitment to success. Directors specially authorized a senior officer to oversee them and to report to him regularly.
No ethics initiative should begin without senior managers making a commitment to success. Directors specially authorized a senior officer to oversee them and to report to him regularly.
Codes of Business Conduct
Codes of Business Conduct
Codes of conduct are a set of specific rules, a list of do’s and don’ts. These usually correspond to illegal actions such as bribery, price fixing and acceptance of gifts.
Codes of conduct are a set of specific rules, a list of do’s and don’ts. These usually correspond to illegal actions such as bribery, price fixing and acceptance of gifts.
Communication Vehicles
Communication Vehicles
Finding new and effective ways to communicate company values is one of the top priorities because in this respect companies can learn from what others are doing.
Finding new and effective ways to communicate company values is one of the top priorities because in this respect companies can learn from what others are doing.
TrainingTraining Ethical training should help participants to see or recognize ethical issues specially those that are not self evident.
Ethical training should help participants to see or recognize ethical issues specially those that are not self evident.
Resources for assistance
Resources for assistance
Companies choose to rely on an open door policy and a clear code of conduct as a means of encouraging employees to report wrong doing.
Companies choose to rely on an open door policy and a clear code of conduct as a means of encouraging employees to report wrong doing.
Organizational ownership
Organizational ownership
No programme to put ethics into action will be successful without the full involvement of employees across the organization. For this reason multi departmental committees effectively support any ethic initiative.
No programme to put ethics into action will be successful without the full involvement of employees across the organization. For this reason multi departmental committees effectively support any ethic initiative.
Consistent response and enforcement
Consistent response and enforcement The most effective way to undercut an ethic programme is to discipline lower level
employee. Companies co-ordinate with human resources to ensure consistent enforcement or by establishing an ethics coordinating committee.
The most effective way to undercut an ethic programme is to discipline lower level employee. Companies co-ordinate with human resources to ensure consistent enforcement or by establishing an ethics coordinating committee.
Audits and measurements
Audits and measurements
Managers shouldn’t establish ethics training and other infrastructure without constantly measuring their effectiveness. Audit should reveal whether communication vehicles are working and employees are aware of available resources .
Managers shouldn’t establish ethics training and other infrastructure without constantly measuring their effectiveness. Audit should reveal whether communication vehicles are working and employees are aware of available resources .
Revision and Refinement
Revision and Refinement
It comes in an organization to discover an ethical value; it held as sacrosanct and become the subject of debate and divisiveness.
It comes in an organization to discover an ethical value; it held as sacrosanct and become the subject of debate and divisiveness.
The Ethical Leadership
Leadership is the ability to influence the people towards the goal of the
organization. Effective leadership is about striking a balance between skills and
corporate citizenship. Leaders are those who set direction, align people,
motivate, inspire, produce change and challenge existing system. Leaders have
two jobs:
To stimulate and drive the organization they lead so that it survives
and prospers.
To create a climate, culture, conditions that enable people to
contribute effectively to performance.
ETHICAL FITNESS IN TODAY’S BUSINESS ENVIRONMENT
From experiences and research the authors have concluded that ethical fitness
develops through a four step reiterative process.
Development of Ethical Fitness through Four Step Reiterative Process
1. Moral awareness: sensitivity to emerging ethical issues and a
willingness to see their broad implications. The awareness helps to
create condition of trust enabling people to deal with issues and to read
the moral barometer astutely and accurately.
2. Values definition: discovering and articulating the core cross –cultural,
shared moral values underlying any ethical activity, regardless of
culture or geographical location.
3. Ethical Analysis: Identifying and categorizing various paradigms for
right-versus- right dilemmas facing individuals and institutions in
business and elsewhere.
4. Dilemma resolution: Applying a set of principle to arrive at reasoned,
acceptable, defensible choice between two right courses of action
posed by an ethical dilemma.
Moral Awareness
Strengths
Ethical AnalysisValue Definition
COMPANY PROFILE
We have come to recognise that no
wealth or power can be more
valuable than our dignity; no loss of
profit can be more critical than loss
of credibility; no skills or
qualification can substitute the
integrity of our character.
— JRD Tata
TATA GROUP PROFILE
The TATA Group comprises 98 operating companies in seven business sectors:
information systems and communications; engineering; materials; services;
energy; consumer products; and chemicals.
The Group was founded by Jamsetji Tata in the mid 19th century, a period when
India had just set out on the road to gaining independence from British rule.
Consequently, Jamsetji TATA and those who followed him aligned business
opportunities with the objective of nation building. This approach remains
enshrined in the Group's ethos to this day.
By combining ethical values with business acumen, globalisation with national
interests and, core businesses with emerging ones, the Tata Group aims to be
the largest and most respected global brand from India, whilst fulfilling its long-
standing commitment to improving the quality of life of its stakeholders.
ORIGIN OF TATA MOTORS
Tata Motors Limited, formerly known as TELCO (TATA Engineering and Locomotive
Company), is a company of the Tata and Sons Group, founded by Jamshetji Tata. It is
currently headed by Ratan Tata. The company has the workforce of 22000 employees
working in its three plants and other regional and zonal offices across the country.
1) TATA Motors India's largest commercial vehicle manufacturer with
61.3% market share and 2nd largest passenger cars manufacturer
with 16.5% market share
2) 5th largest Commercial Vehicle Manufacturer in the world
3) Over 150 models of Vehicles & Automotive Products which include
a. Cars & Multi utility vehicles
b. Buses from 12 seats to 60 + seats
c. Trucks, Tippers, Tractor Trailers
d. Defense Vehicles
4) Over 3.5 million vehicles driven in 70 countries across the world.
5) Export of vehicles to several countries in Europe, Africa, South
America, Middle East, Asia and Australia
6) Assembly operations in Malaysia, Bangladesh, Kenya, South
Africa, Ukraine & Russia.
TATA MOTORS, Jamshedpur 23
Tata Motors……..a wide range of products
Indica V2 Diesel
Indica V2 Petrol
Indica CNG
Indigo Petrol
Indigo Diesel
Indigo Marina
Safari
Sierra
Sumo
Ace
Light CVs
Medium CVs
Heavy CVs
Defence Vehicles
Buses
SLOGAN
“RACE: Reach and Align for Customer Excitement”.
OBJECTIVE
TATA motors’ main objective is towards cost, quality and discipline
Core Values
Core value Living by value through … For exampleIntegrity 1. code of conduct (TCOC)
2. Fact based mgmt.3. walk the talk4. firm and fair policy
1.training and MBE structure2.performance review at all levels3.transparent and “open culture”4. meritocracy and performance based rewards
Customer focus
1. customer value driving the organization
2. understanding customers needs through NPI
1. products with low life cycle cost(LLCC)
2. new product and services being designed
with customer needs in mind Corporate citizenship
1. surpassing regulatory requirements in performance
2. Going beyond the requirements of key communities.
1. products and facilities with norms much ahead of regulations
2. Adoption of CSR/GRI guidelines at the highest level of TML.
Passion for engineering
1. lead in process and product innovation
2. strengthening product design and development;
Faster response to market requirements.
1. Most of the new products are developed internally such as ACE, Novus tipper, starbus, etc.
2. No.1 R& D in India, installed NPI, a benchmark process
CUSTOMERS OF TATA MOTORS
Internal/External Customers
External customers refers to the end customers who are mainly Tata Motors, India's largest automobile manufacturer, is steadily increasing its presence across the world. Tata passenger cars and trucks are currently being purchased by customers in Europe, Africa, the Middle East, South and South East Asia and Australia
Key Internal/ External Most Important Requirements and Expectations
Internal/ External Customers
Requirements & Expectations (in priority order)
Top Management
1. Productive Industrial Relations2. Progressive Work Culture3. Statutory Compliance
Divisional Management
1. Productive Industrial Relations2. Positive work culture3. Administration and management of flexible work force
Telco Workers’ Union
1. Improved quality of life for employees2. Collaborative & participative working 3. Information sharing meetings
Employees 1. Progressive Service Conditions2. Improved Quality of Life
3. Dignity of work & peace of Mind
Community 1. Improve the quality of life of Society.2. Better and healthy environment.3. Entrepreneurship Development
Government 1. Statutory Compliances2. Maintenance of peace and harmony
Suppliers & Partners
TTL System Support
HRD & Communication Design & implement need based Training
PSDManpower Planning Employee Growth Motivation Schemes
FinanceWages / Final Settlement of employees/ Terminal Benefits
CMSRaw materials for Canteen, Safety equipments & housekeeping appliances
Engg. Services & Construction Maintenance of canteens
Transport
Inter plant transfer of aggregates. Movement of food to the Divisions & satellite dining halls from the kitchen of Canteen. Removal of scrap & garbage.
Administration & Security Liaison with Local Administration
Contracts & PPContract Labour Administration, Engagement of Contractors
Quality AssuranceResponsible for maintaining the overall quality of incoming materials and its vendors. Analysis of effluents in Chemical Labs.
Medical Services Health check-ups
SUPPLIERS OF TATA MOTORS
MANUFACTURING PLANTS
JAMSHEDPUR
This was the first unit of the Company established in 1945 and is spread over
an area of 822 acres. It consists of 3 divisions - Truck, Engine (including the
Gear Box division) and Axle. The divestments in March 2000 hived off the Axle
and Engine plants into independent subsidiaries.
The Truck Division boasts of two assembly lines. The main assembly line,
measuring 180 meters in length, has 20 stations with a vehicle rolling out every
8 minutes while the other line is dedicated to Special Purpose Vehicles (SPVs).
State-of-the-art facilities like a Centralized Paint and Press Shop with a set-up
of a 5000 tonne Siempelkamp press line and a cut-to-length line for strip
preparation purchased from M/s. Kohler of Germany makes it a fairly advanced
production outfit.
This is supported by a fully equipped Foundry, which supplies high-grade SG
Iron castings for automobile components and excavators and is rated as one of
the cleaner, better and highly automated foundries in the world. The Foundry
has a sophisticated Kunkel Wagner high pressure molding line, which has a
rated production capacity of 90 pairs of moulds every hour. The Foundry has its
own melting shop, core shop and sand plant.
Other advanced facilities include Channel Furnaces, Computerized Testing Equipment
etc. In 1993, the Foundry was ISO 9002 certified by the Bureau Veritas Quality
International and later followed it up with the more stringent QS 9000 certification
from the BVQI in the year 2000.
BIRTH JUNE 1, 1945
PLANT AREA 822 acres or 35, 80,632 sq. meters
DIVISIONSAUTOMOBILE, FOUNDRY, FORGE,
HRD, R&D, SUPPORT.
FACILITIES The Township
The unit is also equipped with a semi-automated forging line, with 40,000 mkg
Beche hammer and state-of-the art presses from Kurimoto of Japan and is one
of the most modern forging set-ups in the country. It produces critical forgings
like crankshafts, front axle beams and steering parts for the automobile plant.
The new forging line, installed on April 20, 1984, has the capability to forge
front axle beams at 90 sec per piece and crankshafts at 120 sec per piece.
Mechanical presses help produce a variety of heavy forgings. The
sophisticated FIDIA Digit 165 CC graphite-milling machine links shop floor
machines to the design workstation.
MILESTONES IN TATA MOTORS HISTORY
It has been a long and accelerated journey for Tata Motors, India's leading
automobile manufacturer. Some significant milestones in the company's
journey towards excellence and leadership.
YEAR EVENTS
1945 Tata Engineering and Locomotive Co. Ltd. was established to manufacture locomotives
1948 Steam road roller introduced in collaboration with Marshall Sons (UK).
1959 Collaboration with Daimler Benz AG, West Germany, for manufacture of medium commercial vehicles.
1961 Exports begin with the first truck being shipped to Ceylon, now Sri Lanka.
1966
1971
Setting up of engineering research centre at Pune
Introduction of DI engines
1977
1986
1991
1993
First commercial vehicle manufactured in Pune
Production of light commercial vehicle 406 and 608
Launch of Siera and Estate and Rolling of 1 million vehicle
Joint venture with Cummins
1994
1995
1998
Launch of TATA SUMO
Mercedez Benzcar E220 launched
Safari and country’s first indigenous car Indica launched
2000 Indica with Bharat Stage II engine launched
2002 Launch of Indigo, Petrol version of Indica V2 launched
2003 On 29th July, J. R. D. Tata's birth anniversary, Tata Engineering becomes Tata Motors Limited
2004 Tata Motors and Daewoo Commercial Vehicle Co. Ltd. sign investment agreement , Indigo Advent unveiled at Geneva Motor Show , Tata Motors completes acquisition of Daewoo Commercial Vehicle Company ,
2005 Launch of TATA NOVUS, TATA ACE. TATA MOTORS wins JRDQV award
2006 1 lakh car project at Singur took shape and Tata Motors and Fiat Group announce three additional cooperation agreements
2007 Launch of Indigo XL (stretch limosene)
Launch of Indigo XL (stretch limosene)
2008 Tata Motors unveils the people’s car on 10th January, 2008.
Tata Motors commences sales of Sumo Grande on 21st February, 2008
Tata Motors enters into Definitive Agreement with Ford for purchase of Jaguar Land Rover on 26th march, 2008
Tata Motors posts sale of 582,401 nos. in 2007-08,
highest ever by the company on 1st April, 2008
VARIOUS DIVISIONS OF TATA MOTORS
TRUCK DIVISION
In Truck division automobiles gets assembled. This is fed by other divisions like
the engine division with the aggregates of engine, axles, string and gearbox
ENGINE It is involved in the manufacture of the engines. Raw materials to this division
come in the form of the castings like the cylinder head, block, clutch, housing, or
forging like crankshaft etc.
FORGE
This division is also divided between the inner and outer complex. A variety of the
forging like camshaft, front axle, con rod, pitman arm, bevel gears are made.
Foundry
The foundry division caters to the requirement of both the automobiles and
excavators castings.
Engineering Services The support services of all manufacturing shops in terms of providing electricity,
compressed air, air conditioning, industrial gases
Engineering Research Centre (ERC):
The Research Centre at Jamshedpur regularly upgrades components and
aggregates.
Cab And Cowl:. In Cab (closed truck) and Cowl (open truck) Production, Painting, Fabrication and
Maintenance are done.
TATA MOTORS LIMITED
CVBU PCBU
PUNE JSR LKO PUNE
HVAL TML HVTL TTL TCL
CVBU : Commercial Vehicle Business Unit
PCBU : Public Carrier Business Unit
TML : Tata Motors Limited
HVAL : Heavy Vehicle Axle Limited
HVTL : Heavy Vehicle Transmission Limited
TTL : Tata Technologies Limited
For manufacturing of commercial vehicles, Tata Motors receives aggregates from its two subsidiaries HVAL & HVTL which was formed in 2000. These subsidiaries provide axles and gear box for different models as per the schedule and requirements to Tata Motors Jsr and Lucknow Plant. Being the subsidiaries of TML, common code (TCoC) is applicabe to both HVAL and HVTL. To survey the ethics initiatives and awareness about TCoC, a sample size of 100 in each was considered from all category of employee through random selection.
AWARDS AND ACCOLADES
Organizational Excellence
Tata Motors bags national Award for Excellence in Cost management.
NDTV Profit Business leadership Award for Tata Motors
Tata Motors – CVBU bags “Highest Delta Award” for Business Excellence
Tata Motors Awarded SAP Customer Excellence Award
Aggregates Business of CVBU bags Best Supplier Award from ECEL
Tata Motors receives Uptime Champion Award 2007
Auto Monitor Commercial Vehicle Manufacturer of the Year Award
Golden Peacock Award for Occupational Health and Safety
TRAKIT bags Silver Award for “Excellence in Design”
CSR Excellence
Mr.Vivek joshi from the Uttarakhand Team has been Awarded a patent for
an energy saving devise for a high pressure gas discharge lamps.
Nirmal Gram Puraskar from Honorable President of India for Rural
Sanitation – credits for Community Services department
Runners Up Award in ‘Creative Workplace Contest’ organized by INSSAN
– Eastern India Chapter
Energy Efficient Unit Award at the Competition held for National Award for
Excellence in Energy management 2007 organized by CII
Market Excellence
Tata Motors India’s 5th most valuable brand
Tata Motors among most reputed Indian firms
Tata Motors among 10 most Respected Companies in India
Tata Motors among Asia’s 50 best performing companies
People Excellence
Tata Motors wins Best Paper Award at the Asian Network for Quality
Congress 2007
Tata Motors CVBU Pune Baged the First Prize in “Excellence in
Suggestions Scheme Contest 2007”
Tata Motors, Pune was declared as the “Best Company” at 20th National
Work Skills & 2nd CII World Skills Competitions conducted jointly by CII
and the Directorate General of Employment and Training (DGET), Ministry
of labour, Govt. of India
Won the prestigious Champion’s trophy second time in a row, in the
‘Excellence in Suggestion Schime Contest’ Organised by Indian National
Suggestion Schemes’ Association
Kaizen Team, Jamshedpur awarded second prize in Kaizen
Championship – 2007 at the 8th TPM national Conference organized by CII
& TPM club, India
ENVIRONMENTAL CONCERNS
Towards the end, it shall strive to :
1. Establishes sound environmental objectives and targets with a process of
renewing the same.
2. Company with the entire applicable legal requirement and others to which
organization subscribes to
3. Reduce the emission level of the vehicles in full compliance of the regularity
norms
Tata Motors' joint venture with Cummins Engine Company, USA, in 1992,
was a pioneering effort to introduce emission control.
Tata Motors has planted as many as 80,000 trees in the works and the
township and more than 2.4 million trees have been planted in
Jamshedpur.
SOME OF THE LEADING PRODUCTS OF TATA MOTORS
RANGE OF PRODUCTS : (Jamshedpur Plant)
TATA MOTORS LTD. constantly look for ways to offer the best value for money
which covers all the facts of customer satisfaction i.e. product, safety, reliability, utility
or aesthetics.
Tata LPT A 1621 TC (6X6) Tata LPT 709 E Hard High mobility (Logistics) Troop Carrier
HV AXLES LIMITED
Tata A 1615 TC 4X2LOC Carrier
Tata 407 hard topTroop Carrier
Investment in Hispano, Spain to
facilitate new technology for
Tata Motors’ bus
Globus and Starbus Range of Fully Built Buses launched recently
HV Axles Ltd., a wholly owned subsidiary of Tata Motors .It was established on 13th March 2000 and acquired the axle division of the then Tata Engineering company at Jamshedpur on 30th March 2000.Earlier this was known as axel division of Telco’s Jamshedpur plant.HVAL processes Axels for TATA MOTORS as a sub-contractor. Product design, development, testing, and after sales services of the axels are provide by TATA MOTORS. Shared services support for HR, Engg services, IT –support, community services, corporate affairs etc are being provide by TATA MOTORS Jamshedpur. The manufacturing facilities are located in the industrial belt of Jharkhand, 250 kms from Kolkata,leading metro city and is well connected by road and rail to other major cities /locations .HVALs registered office is located in Mumbai. HVAL is governed by board of directors chaired by Mr. A.P Arya who is also the president of TATA MOTORS. The company is headed by Mr. M.L.Bapna, CEO (HVAL, HVTL).Day to day operation of the plant are looked after by Mr. A.K .Jha .DY .GM (HVAL). HVAL is one of the axels manufacturing facilities of Tata Motors along with axels factory of Tata Motors, Pune plant Their major customer are Tata Motors Jamshedpur plant ,Lukhnow plant and LOB-4 of CVBU(non-O.E business of aggregate and spare parts )vehicle factory Jabalpur (under Ministry of Defence )is also one of their important and valued customer . Starting operations in 1954 today HVAL is currently the market leader in medium & heavy commercial vehicle axles in India with an installed capacity of over two lakh axles per annum. The company’s product range includes Front steer axles – both live and normal, Rear drive axles and dummy / trailer axles .It is currently the sole supplier of M & HCV axles to the Jamshedpur and Lucknow plants.
HVAL has an asset base of Rs 177.5 Crores (US$ 39 Million) and its turnover during 2007-08 was Rs 203 Cr.
Vision
To be a benchmark axles manufacturer, rated as number one in the CV Industry in India & among the recognized top five globally, with lowest ownership cost of products, offering a first overhaul life of more than five Lakh Kilometers and achieving a 20% revenue from an expanded customer base by 2010.
Mission
To provide superior value for money to customers through quality and cost effective Axles and related Products & Services.
To achieve sustainable growth by continuously seeking new business opportunities/challenges, employing contemporary technologies and maintaining a high performance work culture
THE HVAL TEAM
Management:-
Board of Directors
Mr. P. M. Telang (Chairman)Mr. S. B. BorwankaMr. T SinghMr. H K Sethna
Chief Executive Officer
Mr. M.L Bapna
Chief operating officer
Mr. A. Jamaiyar
ORGANIZATIONAL CULTURE
HVAL being one of the erstwhile manufacturing division of Tata Motors , Many aspects of its culture are same as that of its parent company .Some salient features are –
1. Easy access to senior officer.
2. Informality and warmth among employees .(morning hand shakes)
3. Innovative environment (freedom to experiment).
4. Interactive approach to all meetings.
5. Reformatory approach.
6. High team work and co-operative spirit.
7. Gradually moving towards performance –driven approach.
8. The culture of TML is strongly ingrained in HVAL.
9. To achieve seamless working, change- management and growth in the organization, emphasis is laid on team work and empowerment.
10. Core values are adapted from Tata Motors , vision and mission statement and quality policy are the main driving forces for the company while drawing policies and taking decision.
Key suppliers and roles
HVAL is maintaining partnering relationship with its key suppliers. Its suppliers/partners support them in enhancing their values creation through one or more of the following ways-
1. product/processes with improved technology2. Reduction in logistic and inventory cost by localizing
units/distribution centers.3. Passing on benefits accrued to them by virtue of their geographical
location.4. Enhancing the capacity to meet higher demands of HVAL, at a short
notice.5. Provide training on new technologies /concept/products.
CATEGORY KEY SUPPLIERSFORGINGS RKFL,ENCHJAY,TML,JSR,ZENITHY
CASTINGS NELCAST , VIDHYAVASANI , KISWOK , MAYURBHANJ
MACHINING IAL,JMT,SAURAT,UGRA,SINUMERO
PROPRIETORY & OTHER FINISHED ITEMS
SONA OKEGAWA,TUFFSEAL,SUNDARAM,FASTENERS
HEAT TREATMENT
HVTL,TML LUKHNOW,HIGH-TEMP
TOOLS WIDIA ,SANDVIK,CARBORUNDUM,GRINDWEL NORTON
CONSUMABLES CASTROL,ADVANI OERLIKON,ESAB,BPMACHINERY SPARES
SIEMENS,FANUC,HMT,BFW
PROD ENGG ITEMS
PREMAC,MACPROSES,PROM
MACHINE TOOLS NIGATA,TSCHUDIN,MISTUBISHI,PMT,SCHADT,KLINGELNBERG, TAL, GLEASON.
MODELS OF AXLES AT HV AXLES LTD
Live Front Axle
NORMAL FRONT AXLE
REAR AXLE 108
TRAILERS
MARKET POSITONS
PRODUCT KEY CUSTOMER COMPITITOR
Real Axels TML-Jsr, Lko Meritor ,AIL,TML Pune
Front Axels TML-Jsr, Lko TML Pune
Live Front Axles VFG AL
CKD and Spare Parts
VFG,TML-SPD Un organized sector
Future plans
In view of the proposed plan of supplying axels to Tata motors, Pune from 2008-09 and growing needs of Tata motors, Jamshedpur, a detailed capacity expansion plan of the company has been prepared. This will involve a spending of more than 300 crores capex in next two year. The company is also evaluating the possibility of setting up an assembly plant in Lucknow to meet the growing needs of axels of Tata Motors, Lucknow plant. ORIGIN OF BUSINESS ETHICS IN TATA GROUP
Thinking of the Visionaries
We do not claim to be more unselfish, more generous or more
philanthropic than other people. But we think we started on
sound and straightforward business principles, considering the
interest of the shareholders as our own and the health and welfare of the
employees the sure foundation of our prosperity. — Jamsetji Tata
“There is an innate loyalty, a sharing of certain beliefs. We all feel
a certain pride that we are some what different from others. This
factor has also worked against our growth. What would have
happened if our philosophy were like that of some other
companies, which do not stop at any means to attain their ends?
I have often thought of that and I have come to the conclusion that if we were like
other groups, we would be twice as big as they are today. What we have
sacrificed is a 100 percent growth. But we would not want it any other way”.
– J.R.D. Tata.
The values and principles that have governed the manner
in which the Tata Group of companies and their employees
have conducted themselves have never been articulated.
It was, therefore, considered worthwhile to prepare a
clearly defined document that could serve as a guide to
each employee on the values, ethics and business
principles expected of him or her. I urge each employee to read this document
and take pride in upholding the high standards of corporate and personal
behaviour on which the Tata Group's reputation and respectability have been
built over the past 124 years. - Ratan Tata
THE TATA CODE OF CONDUCT
Code of conduct simply means; “set of guidelines or rules that a company and
its employee has to follow”.
TCoC is a documented guideline for the implementation of management of
business ethics programme in company. It consists of 25 clauses to be practiced
in letter and writing in which 16 clauses are related to corporate world and 9
clauses are related to individual. It came into existence in December, 1999.
The Tata Code of Conduct gives expression to the values, ethics and business
principles that have guided the Tata Group over more than a century. The
abiding commitment to these values has, in no small measure, contributed to the
growth of the group and the reputation it has earned among all sections of
people. The code spells out the norms of ethical conduct of business by the
company as well as individual employee. Every employee of Tata Motors is
bound and committed to this Code.
TCoC is applicable to:
TCoC is applicable to Tata Motors and its subsidiaries, who have adopted Tata
Code of Conduct as benchmark for organizational behavior by signing the BE–
BP(Business Equity – Business Partner) agreement on 18th December, 1998
with Tata Sons.
Each and every Tata company’s executive directors and employees
Each and every subsidiary including their executive directors and
employees
All third parties representing the Tata company (consultant, agent, sales
representative, distributor, independent contractors, etc)
TATA CODE OF CONDUCT has following guidelines:
1) National interest
2) Financial Reporting and Records
3) Competition
4) Equal Opportunities Employer
5) Gifts and Donations
6) Government Agencies
7) Political non-alignment
8) Health, Safety and Environment
9) Quality of Products and Services
10) Corporate Citizenship
11) Corporation of Tata Companies
12) Public representation of the Company and the Group
13) Third Party Representation
14) Use of the Tata Brand
15) Group Policies
16) Shareholders
17) Ethical Conduct
18) Regulatory Compliance
19) Concurrent Employment
20) Conflict of Interest
21) Security Transaction and Confidential Information
22) Protecting Company Assets
23) Citizenship
24) Integrity of Data Furnished
25) Reporting concern
Violation of any of the clauses of the Code by any employee, if reasonably
established, is liable to firm actions.
MANAGEMENT OF BUSINESS ETHICS
The management of business ethics (MBE) is an integral part of the overall
excellence initiatives undertaken by the Group. The adoption of a common code
of conduct reinforces Tata group’s commitment to a shared set of ideals and
beliefs. More importantly, the code has strengthened their determination to work
together in the group’s common goal to maintain their leadership position in the
industries and markets which they serve.
Objectives of MBE Program
Train, communicate and reinforce: encourage ethics driven work culture
Demonstrate Senior Management commitment: lead from the front
Share values with partners / community members: build trust for mutual
growth
Empower voice of stakeholders: resolve genuine concerns
Promote Ethical Corporate Governance: align policies and practices
Measure Effectiveness: is MBE program working?
Coordinating Agent: Internal Audit
The components of the program are:
1. Ethics Counselors (EC) appointed at all divisions
25 no of Divisional Ethics Counselors (DEC) supporting the program
across the company’s plants and offices.
2. Training and TCOC clauses booklets:
• TCOC induction programs to all GTEs, PGTs and new recruits.
TCOC booklets distributed in programs
• Re-orientation training programs for re-enforcement of code
3. Display of TCOC clauses:
• Large no of boards with TCOC clauses displayed at all important
locations
• TCOC clauses hosted on company’s intranet, SRM, CRM and DMS
for employees, suppliers and customers
• Open channels for raising concerns like drop boxes, mails, personal
meeting, hotlines for whistle blowers etc.
4. Policies: Policies hosted on intranet on i) whistle blower, ii) human rights,
iii) gifts and donation, iv) bribery and corruption, v) consumer privacy, vi)
sexual harassment, vi) equal opportunity and non-discrimination and vii)
advertising.
5. Concern resolution mechanism is in place
6. Feedback through Surveys: Independent MBE surveys conducted by
TQMS.
KEY BUSINESS ETHICS PROCESS IN TATA MOTORSINPUTS
1. Tata Code of Conduct (TCoC).
2.Tata GEO’S guidelines for implementation of TCoC.
3.Concerns raised and analysed.
4.The CEC, LEC and DEC feedback.
5.Survey Findings.
KEY STEPS IN – “MANAGE MENT
OF BUSINESS ETHICS”
1.Establish framework for MBE
2.Training and communication to all employees, suppliers and channel partners
3.Resolving the concerns and closing the loop
4.Reporting and sharing
5.Evaluations and improvement
6.Review the process
OUTPUTS
1.Enforcement of TCoC
2.MBE findings
3.Q12 Gallup findings
4.Business Ethic Plan
IMPLEMENTATION OF ETHICS PROGRAMME IN TATA MOTORS LTD.
HOW IT OPERATES(METHODS/ PRACTICES)
Establish framework for MBE
Appointment of Chief, Location and Divisional Ethics Counsellors. The mechanism to receive and resolve concern is put in place at each location. CEC functionally reports to Ethics Counsellor of Tata Group.
Training and Communication
A common training module which covers Tata Code of Conduct. TCoC training is a mandatory training to all newcomers. After the training a pledge is signed by the employee for adopting the TCoC.
Concern Resolution mechanism
Concerns are filled with the CEC/LEC/DEC through e-mails, letters (including anonymous letters), intranet, direct lines, toll free ethics helpline, meetings with stakeholders, etc. The concerns are recorded with their updated status in database. Appropriate agencies are involved for concern resolution by the Ethics Counsellors. The resolution for the concern is communicate to the compliant, if known.
Reporting and sharing
CEC/LEC report their monthly and quarterly findings to the management as appropriate. The data are also shared on the intranet.
Evaluation and improvement
Based on the MBE survey findings, action plans for gaps found are prepared
6. Review the process
MANAGEMENT
Evaluation and improvement
Reporting and sharing
Concern Resolution mechanism
Review the process
Establish framework
for MBE
Training and communication
Structure of the Ethics Counsel
PERFORMANCE MEASURE
EFFICIENCYNo. Of concerns resolved to no. of concerns posted in a yearConcern resolved in target time
EFFECTIVENESS
Percentage improvement in MBE score
52 Divisional Ethics Counselors
LocationEthics
Counselor
PuneMr M S Das
LocationEthics
Counselor
PuneMr M S Das
LocationEthics
CounselorJSR
Mr S P Banerji
LocationEthics
CounselorJSR
Mr S P Banerji
LocationEthics
Counselor
Mumbai (including
Sales & Mktg)Mr
Gajendragadkar
LocationEthics
Counselor
Mumbai (including
Sales & Mktg)Mr
Gajendragadkar
(Mr Abhijit Gajendragadkar) (Mr Abhijit Gajendragadkar)
LocationEthics
CounselorLKO
Mr Ranjit Chaterjee
LocationEthics
CounselorLKO
Mr Ranjit Chaterjee
25 DECsat Tata Motors, JSR
Structures demonstrate that MBE program is administered through Chief Ethics Counselor, Sr
management, Location Ethics Counselors & Divisional Ethics Counselors.
RESEARCH METHODOLOGY
SAMPLING DESIGN
DEFINING THE POPULATION.
There are approximately 10,000 employees at TATA MOTORS Limited and its
two subsidiaries HV AXELS Limited and HV TRANSMISSIONS Limited working
as permanent employees.
SAMPLING UNIT
It consists of the employees of different Grades: EG, TM, TM (A, B, C) and E
Grade
SAMPLE STUDY
The researcher went for a sample study rather than census as it was not possible
to cover the whole population in the given time period.
DURATION OF THE STUDY
12th May 2008 to 30 th June 2008
SAMPLING PLAN
SAMPLE SIZE:
TML - 1600 employees
HVAL- 263 employees
HVTL- 200 employees
SAMPLING TECHNIQUES
Sampling techniques used:
Simple random sampling.
Convenience sampling
DATA COLLECTION
Data is primarily of two kinds:
1). Primary data
2). Secondary data
PRIMARY DATA
Primary data was obtained through observations and direct communication with
employees through informal interviews. The information was collected on the
basis of structured questionnaire.
QUESTIONNAIRE
1) Primary role is to draw accurate information from the respondents.
2) It provides structure to the interviews that helps comparability and
assessing the overall picture.
3) The purpose of the questionnaire is to provide a standard form on which
facts, comments, and attitudes can be recorded.
4) Questionnaire facilitates data processing.
SECONDARY DATA
The secondary information was collected from:
Organizational brochure
Previous records
Documents
Personal manuals.
SCALING TECHNIQUE USED
Four points scale was used for the study.
1. Strongly Disagree
2. Disagree
3. Agree
4. Strongly Agree
RESEARCH PROCEDURE
TOPIC OF THE STUDY
The topic of the study is “MANAGEMENT OF BUSINESS ETHICS”.
PERIOD OF THE STUDY
The study was conducted for the period of 45 days i.e. from 12 th of May to 30th
of June 2008.
PLACE OF THE STUDY
The study was conducted in all the divisions of Tata Motors Ltd., HVTL and
HVAL
PURPOSE OF THE STUDY
The employer, the employee and the state have a definite role to play. If each
performs it properly and harmoniously, the problems of inefficiency, undesired
conflicts, low productivity, dissatisfaction on the part of employees and their low
morale resulting can be largely eliminated.
PERCEPTIONS
&
INTERPRETATION
IMPLEMENTATION OF MBE PROCESS FOR E -GRADE
62
63
64
65
66
67
68
69
70
71
72
QUESTIONS 71.5 71 66.5 71.2 65.5
1 2 3 4 5
AREAS OF IMPROVEMENT:
As per the graph it is very clear that Q3 and Q5 are the low scorers
with 66.5% and 65.5%.
E grade employees have not properly understood the MBE process.
PEOPLE AWARENESS & INVOLVEMENT FOR E GRADE
62
64
66
68
70
72
74
76
QUESTIONS 66.5 71.2 74.2 75.2 70
6 7 8 9 10
AREAS OF IMPROVEMENT:
Q6 with 66.5% and Q10 with 70 % needs to be taken into
consideration for further development.
SENIOR MANAGEMENT COMMITMENT &
REINFORCEMENT FOR E GRADE in %
0
10
20
30
40
50
60
70
80
QUESTIONS 65.5 69.7 72.2 72.7 56
11 12 13 14 15
AREAS OF IMPROVEMENT:
Q 11, Q12 and Q 15 with 65.5% ,69.7 % and 56% are the major areas for
improvement.
E grade are visibly not much aware about the senior management
commitment towards the awareness of the TCoC and MBE program.
CONCERN RESOLUTION FOR E GRADE in %
64
66
68
70
72
74
76
78
QUESTIONS 77 72 69.5 72.5 73.2
16 17 18 19 20
AREAS OF IMPROVEMENT:
Q18 (The Concern Resolution Mechanism is well understood and has
sufficient credibility) with 69.5% is a concern area in case of E grade
employees.
IMPLEMENTATION OF MBE PROCESS FOR TM(A/B/C)
GRADE in %
64
6566
67
6869
7071
72
7374
75
QUESTIONS 71.5 70.2 71.2 73.7 67.5
1 2 3 4 5
AREAS OF IMPROVEMENT:
TM (A/B/C) grade employees are not satisfied with the approach of the ECs
in the promotion of understanding of Business Ethics as the score is 67.5%.
Visibility of Business Ethics program is not much among TM (A/B/C) grade
employees ( 70.2 %)
PEOPLE AWARENESS & INVOLVEMENT FOR
TM (A/B/C) GRADE in %
58
60
62
64
66
68
70
72
74
76
78
80
QUESTION 70.7 69.5 74 77.2 65.7
6 7 8 9 10
AREAS OF IMPROVEMENT:
Q7 with 69.5% and Q10 with 65.7% are concern areas which must
be considered for improvement.
SENIOR MANAGEMENT COMMITMENT
&REINFORCEMENT FOR TM ( A/B/C) GRADE in %
0
10
20
30
40
50
60
70
80
90
QUESTIONS 74 62.2 68 78 56.7
11 12 13 14 15
AREAS OF IMPROVEMENT:
Q 15 with 56.7% is the area where more efforts is required.
Others are Q12 and Q13 with 62.2% and 68%.
CONCERN RESOLUTION FOR TM (A/B/C) GRADE in %
0
10
20
30
40
50
60
70
80
90
QUESTIONS 84.7 69.5 67.7 72 76
16 17 18 19 20
AREAS OF IMPROVEMENT:
Q17 and Q 18 with 69.5% and 67.7% must be considered for
improvement.
IMPELMENTATION OF MBE PROCESS FOR EG & TM
GRADE in %
71
72
73
74
75
76
77
QUESTION 76.7 75 75 75.2 73.5
1 2 3 4 5
AREAS OF IMPROVEMENT:
More improvement is required by the ethics councilor for
increasing the awareness among the Officers.
PEOPLE AWARENESS & INVOLVEMENT FOR EG & TM
GRADE in %
66
68
70
72
74
76
78
80
82
84
86
QUESTION 76.7 78.7 73.5 84.5 73
6 7 8 9 10
AREAS OF IMPROVEMENT:
EG & TM grade employees are more aware about the TCoC and
believe in its importance as a tool to enhance the reputation of the
company. But improvement is required in all the areas.
Q10 and Q8 with 735 and 73.5 % respectively need more attention.
STUDY OF SENIOR MANAGEMENT COMMITMENT &
REINFORCEMENT FOR EG & TM GRADE IN %
62
64
66
68
70
72
74
76
78
80
QUESTION 74.5 73.5 70.7 78.2 67.7
11 12 13 14 15
AREAS OF IMPROVEMENT:
Q13 with 70.7% and Q 15 with 67.7 % are the major areas of
concern.
STUDY OF CONCERN RESOLUTION FOR EG & TM
GRADE IN %
70
72
74
76
78
80
82
84
86
88
90
QUESTION 88.7 77 77.5 76.7 78.2
16 17 18 19 20
AREAS OF IMPROVEMENT:
EG & TM grade employees are very much aware of the concern
resolution mechanism and believes in its credibility. But more
improvement is required.
COMPARATIVE STUDY OF OVERALL SCORE IN ALL
CATEGORIES AT ALL GRADES.
AREAS OF IMPROVEMENT:
In general, all the categories need improvement, especially the lower grade.
Special attention should be given to the third category i.e. Senior Management
Commitment and Reinforcement.
COMPARATIVE STUDY IMPLEMENTATION OF MBE PROCESS
AREAS OF IMPROVEMENT:
Q3( Ethics Councilor makes sincere efforts to reach employees at all levels for spreading
awareness about Tata Code of Conduct and business ethics.) is an area of improvement
for TM( A/B/C) & EG & TM grade.
While Q4 needs to be improved in case of EG & TM grade.
COMPARATIVE STUDY OF PEOPLE AWARENESS & INVOLVEMENT
AREA OF IMPROVEMENT:
Q6 for TM (A/B/C ) with 83.2%
Q8 for E grade with 77.5 %
Q10 for TM (A/B/C) with 80 %
COMPARATIVE STUDY OF SENIOR MANAGEMENT COMMITMENT &
REINFORCEMENT
AREAS OF IMPROVEMENT:
Q11 for EG/ TM and E grade as the score is 74.7% and 68.5% respectively.
For Q 12, all the three grades need improvement. Special attention to E
grade as the score is 50%.
E grade needs improvement in Q14 ( 73%)
COMPARATIVE STUDY OF CONCERN RESOLUTION FOR ALL
THE THREE GRADES
AREAS OF IMPROVEMENT:
TM (A/B/C) AND E- grade needs improvement in Q16, Q17, Q19 and Q20 as the scores
are not up to the desired expectations.
The huge difference in the scores in understanding of concern resolution in the upper and
lower grade is an area of concern.
OPPORTUNITIES FOR IMPROVEMENT:
Concern for customers 144Concern for society 45Concern for environment 95Passion for results 51Positive attitude 89Teamwork and communication 126Discipline 112Integrity and honesty 88Respect for laws 19Respect for business partners 14Respect for systems and company regulation 28Willingness to take ownership and responsibility 33 Will to win 36Transparency and openness 78
Confidentiality of intellectual property and sensitive information 3
ETHICAL CLIMATE SURVEY 2008 FOR
VENDORS & SERVICEPROVIDERS
IN
HVAXLES LTD
AT
TATA MOTORS LTD
\
Vendors actively participate in innovative progresses of HVAL by providing better cutting tools ,coolants,cnc programs,fixtures,process fool proofing etc.
The company also has various service providers like Tata Motors (for utilities) TTL & IBM (for it & network support) & various contractor for maintenance, construction, housekeeping.
RESEARCH METHODOLOGY:
SOURCE OF DATA: Questionnaires were sent and received through e-mail.
POPULATION: 134
SAMPLE SIZE: 34
SAMPLING TECHNIQUE: stratified random sampling.
STUDY OF QUESTIONS OF VENDORS AND SERVICE PROVIDORS
65
70
75
80
85
90
95
QUESTION 76.7 85.2 85.2 82.7 85.2 90 87.5 91.5 89 86
1 2 3 4 5 6 7 8 9 10
AREAS OF IMPROVEMENT:
Overall score of Vendors & Service Providers is 85.9%.Q1 with 76.7 % is a major concerned area.
FINDINGS OF THE PROJECT
The TATA code of conduct being the core of ethical values in HVAL has comparatively low level of awareness amongst E grade employees.
Most of the employees are not aware of all the 25 clauses.
Union officers have not actively participated & promoted the importance &relevance of TCoC.
It is observed through assessment & analysis of survey that the average level of awareness among the E grade employee is lower than that of TM & EG grade.
Concern Resolution mechanism is not properly communicated.
Senior management is not using the available forums of communication with the
lower grades properly.
MBE workshops and publications in Tata Flashes have not been effectively
deployed to reinforce business ethics.
Many employees at all level, believe in the importance of the Tata CoC to protect
and enhance the reputation of the company.
Almost all the employees know that they can not accept any gift or contribution
from a business partner.
Whistle Blower Policy is not properly communicated to all the employees.
MBE & TCoC have been properly implemented but more awareness is required
especially at lower level.
ECs effort to reach employees at lower level is not adequately visible.
Adequate channels of communication need to be developed to report concerns and
to increase the credibility of concern resolution mechanism.
Any change in the management at upper level is not properly communicated to
the employees at lower level.
LIMITATIONS OF THE PROJECT
1) Due to the work pressure, employees were not available always and respond
properly.
2) The sample size does not cover the employees of all the shifts.
3) Employees were reluctant to be objective
4) Employees were apprehensive about the outcome of the survey i.e. it will not have
much effect.
5) E grade employees were not able to understand the content of the questionnaire.
6) The survey is rather a biased one to a certain extent for the employees were
discussing and copying each other’s responses.
CONCLUSION
I had collected a snap opinion survey and collection of perception through structured
questionnaire to find out the level of awareness of all the employees on various grades.
Business ethics is largely about managing the risk to an organization’s reputation and
avoid bad publicity that several well known companies have experienced as a result of
their perceived corporate responsibility.
Programme components such as training, reporting system and feedback-gathering
mechanisms must be accompanied by the development of a ethics based culture that
companies see as consistent and believable.
The success of the business ethics management programme will ultimately depend on
having the right combination of spirit and structure. It will also depend on the cause being
championed and supported by senior managers.
Business ethics is about ensuring acceptable standards of behaviour throughout all the
operations of a business where ever they are. There may be short term cost involvement
when a business raises its ethical management programme but, in the longer term,
businesses that are trusted and respected by their employees, suppliers, customers and the
wider community are more likely than businesses that are not to provide their
shareholders with a better return and to be sustainable.
There is no end to this ethical management programme. You never cross the goal
line and you cannot run out the clock. You have to keep up the effort, even when
things seem to be going well.
RECOMMENDATIONS
There are certain steps, which I feel, if implemented can improve the Ethics
policy to certain extent:
1. Ethics should be incorporated for Tata Motors Ltd. employees
especially those connected with ethics division for individual major
performance areas (MPA).
2. Flexible workforce to start with temporary employees should form a part
of the survey.
3. Structured and scheduled reinforcement session for training program.
4. Awareness and compliance of the Tata CoC can be reinforced by
regular training sessions.
5. Exemplary ethical behaviour can be awarded or facilitated by the chief
at various forums such as, JDCs and employee recognition functions.
6. Actions taken for not abiding by the Tata COC can be widely
communicated to avoid recurrence of any such acts.
7. The awareness regarding the Whistle Blower policy should be widely
spread among the employees.
8. The involvement of Union members can be a good medium for
spreading and reinforcing the fundamentals of Tata CoC.
9. Variety and innovation to be added to TCOC sessions.
10.Senior managers in every division should use available forum to
. communicate tata values and encourage the next levels to do the same
on the regular basis
11.Communication and sharing of information about TCoC through SDT
(self directed team) will be more effective.
.
.
12. Drop box should be more in number, present at prominent locations
and frequency for analyzing concern should be determined in consultation
with divisional heads.
13. Performance of divisional ethics counsellors (DEC) should be reviewed
every alternate year. Changes could be made whenever required.
14. Recommendations and findings of both internal and external survey
should be shared and implemented to the extent possible.
15. Distribution of updated TCoC booklet to the employees in languages
easily understandable.
16. Sharing of best practices in Business Ethics with benchmark companies.
.
FOR VENDORS & SERVICE PROVIDERS:
1.Communication process needs to be strengthened between the management & vendors.
2. Out of 25 clauses, since 9 clauses are directly applicable to the vendors so these should be well communicated to them.
ANNEXURE
ETHICAL CLIMATE MATURITY SURVEY 2008FOR THE EMPLOYEES
I Implementation of MBE process StronglyDisagree
Disagree AgreeStrongly
Agree
1. All employees in my division have been trained to business principlesoutlined in Tata CoC.
2 Implementation of business ethics programme in my area is visible.
Survey form contains 20 questions. Response to all questions should be ( √) in appropriate box as per your conviction.
3 Ethics Counsellor makes sincere efforts to reach employees at all levels for spreading awareness about Tata CoC and business ethics.
4 The MBE process has helped to promote harmonious work environment and positive attitude to performance.
5 My divisional Ethics Counsellor played proactive role to promote understanding of business ethics and encourage ethical dealings.
II People awareness and involvement
6 I have understood the 25 clauses of Tata CoC and signed the pledge to abide with the code in letter and spirit.
7 The MBE program has helped to improve awareness of business ethics among employees and commitment towards ethical business dealings.
8 All employees in my division believe in the importance of the Tata CoC to protect and enhance the reputation of the company.
9 Tata CoC can help the organization and its employees to improve work culture, mutual trust and ethical business dealings.
10 Employees are aware of the clauses of Tata CoC and have a positive approach to its implementation in work place.
III Senior Management commitment and reinforcement
11 Senior Management led from the front to encourage ethical behaviour and demonstrate by action its commitment to business ethics.
12 Senior managers in my division use available forums to communicateTata values and encourage the next levels to do the same.
13 The MBE reinforcement workshops organized by Ethics Office helpsin providing proper understanding and appreciation of Tata values.
14 MBE workshops, publications in Tata Flashes, house magazine, posters and Tata CoC Website have been effectively deployed to reinforce business ethics.
15 The Union officials have played a positive role in encouraging adherence to Tata CoC.
IV Concern Resolution
16 I am fully aware that I should avoid any conflict of interest in any form and should not seek any gift or contribution from a business partner.
17 Adequate channels of communication are available to seek clarification and report concerns to Ethics Counselor without fear of retribution.
18 The concern resolution mechanism is well understood and has sufficient credibility.
19 Ethics Office maintains confidentiality in resolving concerns.
20 Management has set-up an effective system to take action in case of proven violation of Tata CoC.
Name (optional) : _________________________ Grade : EG / TM / TM (A, B, C) / EDivision / Department: _____________________ Company: _______________________________Thank you for your valuable time
ETHICAL CLIMATE MATURITY SURVEY 2008FOR VENDORS AND SERVICE PROVIDERS
StronglyDisagree
Disagree AgreeStrongly
Agree
1. The relevant 9-clauses of Tata CoC have been communicated to me and I am aware of the ethical norms expected to be followed by me in all my dealings with the companies (*).
2 The officers of the companies adhere to the Tata CoC in ensuring fair and equitable treatment to business partners.
3 The officers of the companies display high standard of integrity and ethical behaviour in all
Survey form contains 10 questions. Response to all questions should be ( √) in appropriate box as per your conviction.
business dealings.4 The officers of the companies maintain respectful
behaviour and courtesy at all times.5 The officers of the companies actively discourage
any relationship with business partners or personal visits, which may directly or indirectly lead to conflict of interest or undue favour.
6 The officers of the companies do not seek any undue privilege ( including any form of gift, hospitality or contribution) by virtue of(their positions.
7 I have no concern or reservation regarding the ethical conduct of any officers or employees of these companies in course of mynormal business transactions.
8 I am fully aware that I should not do any thing in the course of my business dealings, which will amount to a direct or indirect violation of Tata CoC.
9 The companies have explicitly communicated to us the highest priority to be given to quality, safety, environmental and legal aspects in conduct of our business with the companies.
10 The systems, procedures and transactions of the companies are transparent, efficient and well understood by me in all respect.
BIBLIOGRAPHY
1. Tata Motors Manual (books of TCoC)
2. Ethics Manual of Tata Motors
3. Press release, 2008
4. Magazine of Tata Motors
5. Moon Chris and Bonny Clive (2001), Business Ethics: Facing up to the Issues,
The Economist, New Delhi.
6. Joseph A. Patrick, John F.Quinn (1997), Management Ethics Integrity at work,
Sage series on Business Ethics, New Delhi.
7. John R.Boatright (2007), Ethics and the conduct of business, 4th Edition, Pearson
Education.
8. Velasquez Manuel G. (2006), Business Ethics concepts and cases 6th edition,
Prentice-Hall of India, New Delhi.
9. Journal of Business Ethics, Special issue on: Voluntary Codes of Conduct for
Multinational Corporations, Guest Editor: S.Prakash Sethi, Vol. 59, No.1 and 2,
June, 2005.
10. http://www.mytatamotors.com: accessed on 20th May, 2008
11. http://www.tatamotors.com : accessed on 20th May, 2008
12. http://www.google.com: accessed on 20th May, 2008
13. http://www.globalautoindex.com : accessed on 28th May, 2008