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Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large"
Corporate Social Responsibility activities:Â
The Company continues to place emphasis on inclusive growth and has put in place certain processes for delivering the intended social outcome in measurable terms. The company has adopted a voluntary code of conduct for affirmative action, which is effective from 1Â December 2006 and has placed the same on its website. The company believes strongly that its competitiveness is interlinked with the well being of all sections of Indian society and that equal opportunity for all sections of the society is a component of its growth and competitiveness. The company will constantly endeavour to ensure that no discrimination of any type is shown to the socially disadvantaged sections of the society in the work place. 16% of the fresh employees added during the year belonged to the weaker sections (SC / ST) of the society under the affirmative action drive, and was well above the6% for the period prior to the drive.
Centre for AIDS patients
Under the Government of India, Ministry of Health and Family Welfare, National Aids Control Organisation (NACO) at the initiative of CII has come forward for Public Private Partnership (PPP) in order to provide better health care to Aids patients. The company has signed an MoU with NACO to set up anÂ AntiÂ RetroviralÂ TreatmentÂ CenterÂ (ART Centre) with the co-operation ofÂ YeswantraoÂ ChavanÂ MunicipalÂ Hospital,
Pimpri, for the benefit of the affected people in the surrounding areas. This will be the first such Centre in Pimpri Chinchwad Municipal Corporation area. The company will fully equip this Centre and provide necessary medical and paramedical staff at a capital expenditure of around ßRs.35 lakhs and an annual outgo of Rs.15 lakhs. This initiative will bring solace to the 3,000 affected poor families in PCMC area, besides containing the spread of this dreaded disease and helping humanity.
Other major initiatives
2 SC-ST students were offered the course fee of Rs.35,000 per head to train them for IIT Joint
Entrance Examination - JEE and financial aid will be extended to cover their full course duration of 4 years on their securing admission to IIT.Â For employees who opted for voluntaryÂ retirement, the company took a number of stepsÂ to develop and implement a new initiative, viz.Â Guidance and Future Planning Program. TheÂ Program was a resounding success, which wasÂ reflected in the company receiving theÂ "Best HR.Initiative of the year"Â award from Auto Monitor declared on 7 March 2008.
Rural and community development activities and empowerment of women
The company continued its rural development activities in Pune andÂ AurangabadÂ districts ofÂ MaharashtraÂ through Jankidevi Bajaj Gram Vikas Sanstha (JBGVS).
JBGVS aims at integrateddevelopment of 44 selected villages, to be carried out by the villagers under their own leadership and through unified efforts forged by local organisations with JBGVS acting as a catalyst.
During the year, JBGVS conducted a number of development programmes includingÂ watershed development, sanitation, healthÂ care, dairy development, education, womenÂ empowerment etc. JBGVS continued supporting 104 Self Help Groups (SHG) and organised training programmes for SHGs.
Â Out of 28 Gram Panchayats in JBGVS area, 14 have lady Sarpanch, one of whom has been felicitated as the Best Lady Tribal Sarpanch by Zilla Parishad, Pune.
Five of the villages, where JBGVS had worked in the past, receivedÂ "Nirmal Gram Abhiyan"Â award. JBGVS has withdrawn from these villages as they attained 80% development as per its laid down indicators. It continues to give themguidance when necessary.
Â Samaj Seva Kendra (SSK) as part of JBGVSprovides facilities for social development of the residents of Akurdi, Nigdi and adjoining townships, with the aim of improving their qualityÂ of life, through skill development training, hobby centre, nursery education, health care, sports, music, dance, cultural programmes etc.
Â The Rotary Club of EnshedeÂ NetherlandsÂ and the Rotary Club of Poona North together through JBGVS donated one cow each to 164 poor farmers. These 164 families are now additionally earning Rs.2200 per family per month, to supplement their family income.
Corporate Social Responsibilty activities:
Tata group had never compromised on ethics, it last year edited whistle blower policy for the benefits of the company & society The Company believes in the conduct of the affairs of its constituents in a fair and transparent manner by adopting highest standards of professionalism, honesty, integrity and ethical behavior.
MARKET SHARE & future planning
Tata said that the initial target production volume would be 250,000 cars per annum on two shifts, expandable to 350,000 per annum on three shifts. In earlier media interviews, Ratan Tata talked about a one million production target by 2010
Die Welt reports that the car conforms with environmental protection, and will have the lowest emissions in India.
Product focus Model versions
The basic Tata Nano Std priced at 123,000 Rupees has no extras; The deluxe Tata Nano CX at 151,000 Rupees has air conditioning; The luxury Tata Nano LX at 172,000 Rupees has air conditioning, power windows, fabric seats and central locking
Tata Motors will offer a version of the Nano with these safety-features, including an airbag system in its electric version.The Nano has an all sheet-metal body made from Japanese and Korean steel, with safety features such as crumple zones, intrusion-resistant doors, seat-belts, strong seats and anchorages, and the rear tailgate glass bonded to the body. Tires are tubeless
Introducing the car with an artificially low price through government subsidies and tax-breaks Forgoing profit on the car.
Green Matters: Tata Motors, a Company that cares about the future...
Tata Motors concern is manifested by a dual approach
1) Reduction of environmental pollution and regular pollution control drives 2) Restoration of ecological balance.
Tata Motors has been at the forefront of the Indian automobile industry's antipollution efforts by introducing cleaner engines. It is the first Indian Company to introduce vehicles with Euro norms well ahead of the mandated dates.
Restoring Ecological Balance:
Tata Motors has set up effluent treatment facilities in its plants, to avoid release of polluted water into the ecosystem. In Pune, the treated water is conserved in lakes attracting various species of birds from around the world thus turning the space into a green belt. Tata Motors is committed in letter and spirit to Corporate Social Responsibility. It is a signatory to the United Nations Global Compact, and is engaged in community and social initiatives on labour and environment standards in compliance with the principles of the Global Compact.
Some Other social responsibilities are Community Development Health & Sanitation Employment Generation Community Centres Revenue maximization Tata initially targeted the vehicle as "the least expensive production car in the world aiming for a starting price of 100,000 rupees or approximately US$2000
Overcome competition Tata initially targeted the vehicle as "the least expensive production car in the world[ 11] aiming for a starting price of 100,000 rupees or approximately US$2000
Rival car makers including Bajaj Auto, Fiat, General Motors, Ford Motor, Hyundai and Toyota Motor have all expressed interest in building a small car that is affordable to more middle-class consumers in emerging markets. The bulk of demand there is for small cars because people are much more sensitive to fuel prices. Honda and Toyota are leading the way on so called cleaner gasoline-electric hybrids, and some environmentalists argue getting prices down on these technologies is where efforts should be concentrated. Inexpensive and eco-friendly electric-cars like Tara Tiny, Oreva Super (both reportedly even cheaper than Tata Nano) and REVA pose even more significant danger to Nano. There are also rumors of Maruti Suzuki introducing a lower priced version of Alto to counter Tata Nano
1085 youth from areas adjacent to the Company's plants, were trained in various technical and vocational trades. At the new plant location of Singur alone, over 350 local youth have been trained in partnership with the government and the social sector, enhancing their employability
As a part of its skill development programme, the company has identified 10ITIs across the country to upgrade their facilities and enhance the relevance of their programmes to industry needs. Of these four it is have been covered in 2007-08. They have been equipped with the latest machines and tools, the students have been taken on exposure visits to understand manufacturing processes and Train the Trainer programmes have been organised for their faculty
In addition as a part of the company's women empowerment programme 1058 women have been trained in manufacturing food products and utility items, sewing and beautician cources.
All the students of the company-supported Mechanic Motor Vehicle Trade course 2007-08 in association with the Ramakrishna Mission at Sakwar, Thane district,Â MaharashtraÂ have been successfully placed at the company's dealership. Two students from the previous batch have been facilitated to open their own workship on theÂ Mumbai-Ahmedabad Highway
REPORT OF CORPORATE GOVERNANCE
Philosophy of Tata Motors on Corporate Governance
Tata group is founded upon a rich legacy of fair, and follows ethical and transparent governance pratices. They believe in adopting highest of professionalism, honesty, integrity and ethical behaviour. Since the shareholders are residual claimants, the value creation and sustainability of all the other stakeholders that includes customers, creditors, employees, vendors, community and the Government (of countries in which the Company operates) are of paramount significance to the Company and its shareholders. The Board would therefore have a fiduciary relationship and a corresponding duty to all its stakeholders to ensure that their rights are protected. Through the Governance mechanism in the Company, the Board along with its Committees endeavours to strike
the right balance with its various stakeholders.
THE BOARD OF DIRECTORS
The Board of Directors of Company along with its Committees provide leadership and guidance to the Company's management and directs, supervises and controls the performance of the Company. The Board of Directors comprised of 12 Directors, out of which 10 (83.33%) were Non-Executive Directors. As of date, out of the Board composition of 12 Directors, 11 Directors (91.67%) comprises of Non-Executive Directors. The Company has a Non-Executive Chairman and the 6 Independent Directors comprised of half of the total strength of the Board. All the Independent Directors have confirmed that they meet the 'independence.' criteria as mentioned under Clause 49 of the Listing Agreement
COMMITTES OF BOARDS
Company makes sure to work effectively on the issues and ensure expedient resolution of diverse issues, and for that the Board has constituted a set of committee with specific terms and references.The Board acts as mentioned terms and conditions in Memorandom of Association. The minutes of the meetings of all Committees of the Board are placed before the Board for discussions / noting.
The Audit committee functions according to its Memorandum of Association that defines it Composition, Authority, Responsibility and Reporting functions in accordance with the Companies Act 1956
The Committee meetings are held at the Company's Corporate Headquarters or at its plant locations and are usually attended by the Managing Director, the Executive Director, the Chief Internal Auditor, the Statutory Auditor and the Cost Auditor. The Committee relies on the expertise and knowledge of management, the internal auditors and the independent Statutory Auditor in carrying out its oversight responsibilities.
The Chairman of the Audit Committee also attended the last Annual General Meeting of the Company. During the period under review, 10 Audit Committee meetings were held on May 27, 2008, June 30, 2008, July 14, 2008, July 29, 2008, August 20, 2008, August 25, 2008, October 30, 2008, November 21,2008, January 29, 2009, and February 24, 2009.
The Remuneration Committee of the Company is empowered to review the remuneration of the Managing Director and the Executive Director, retirement benefits to be paid to them under the Retirement Benefit Guidelines approved by the Board and deal with matters pertaining to Employees' Stock Option Scheme.
They have remuneration policy by which the remuneration is of the Executive Directors is recommended by remuneration committee based on the criteria such as industry benchmarks, the Company's performance of the industry, responsibilities shouldered, performance/track record, economic review on remuneration packages of heads of other organisations and is decided by the Board of Directors.
Retirement Policy for Directors
On the recommendation of Tata Sons Ltd., the Company has adopted the Guidelines for retirement age wherein Managing and Executive Directors retire at the age of 65 years whilst all the Non-Executive Directors retire at the age of 75 years. The Company has also adopted a Retirement Policy for Managing and Executive Directors which has also been approved by the Members of the Company, offering special retirement benefits including pension, ex-gratia, medical and other benefits. In addition to the above, the retiring Managing Director is entitled to residential accommodation or compensation in lieu of accommodation on retirement. The quantum and payment of the said benefits are subject to an eligibility criteria of the retiring director and is payable at the discretion of the Board in each individual case on the recommendation of the Remuneration Committee.
Curative and preventive health services were provided to over 92390 persons through the company's community health programmes. In Jameshedpur, 374 indivisuals benefited from cataract operations conducted free of cost.
Special country-wide programmes were conducted for drivers during service camps
Towards the company's drive for total sanitation in adopted viallages, 1940 low cost toilets were constructed
12 hand pumps were installed and 3 wells were repaired , ensuring clean drinking water supply for over 3500 villagers. Tanker facilities were deployed during summer months to meet drinking water requirements of rain-parched rural areas in Pune district,Â Maharashtra
Shiksha Prasar Kendra, a TATA Motors society at Jamshedupur supported 18000 students from across 33 schools . Scholarships for higher studies were awarded to 375 students. Extra curricular activities were organised in 31 schools in which over 4300 students participated
Infrastructure was improved at 13 schools , promoting higher education for 2000 children from over 25 villages. This includes a computer lab atÂ BeraberiÂ High schoolÂ at Singur inÂ West Bengal
Over 175242 saplings have been planted with a 80% survival rate
Community irrigation wells and check dams have been constructed at villages near Pune , augmenting incomes of families through improved irrigation. InÂ Jamshedpur, 85 acres of land has been brought under irrigation and tree plantation has extensively been carried out in over 152 acres