Tata Steel Corporate Sustainability Report 2001-2002
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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 provided the basis for the independent assurance by PricewaterhouseCoopers. 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 mis- stated”. “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 Economic Social 1.1 VS-2 Core Additional Core Additional 1.2 VS-7 Monitory Flow Indicator Employment EC1 EC-2 LA1 SO-2 LA12 SO-2 Profile EC2 EC-2 LA2 SO-2 2.1 P-2 Suppliers Labour/Management Relation 2.2 P-2 EC3 EC-2 EC11 EC-2 LA3 S0-3 LA13 SO-3 2.3 P-2 EC4 EC-2 LA4 SO-3 Employees 2.4 P-2 Health & Safety 2.5 P-2 EC5 EC-2 LA5 SO-4 LA14 SO-7 2.6 P-2 Providers of Capital LA6 SO-4 LA15 SO-7 2.7 P-4 EC6 EC-2 LA7 SO-5 2.8 P-4 EC7 EC-2 LA8 SO-6 2.9 P-6 Public Sector Training & Education 2.10 P-7 EC8 EC-3 EC12 EC-3 LA9 SO-7 LA16 SO-8 2.11 P-7 EC9 EC-3 LA17 SO-9 2.12 P-7 EC10 EC-3 Diversity & Opportunity 2.13 P-7 Indirect Economic Impacts LA10 SO-10 2.14 P-8 EC13 EC-3 LA11 SO-10 2.15 P-8 Strategy & Management 2.16 P-8 HR1 SO-10 HR8 SO-11 2.17 P-8 HR2 SO-11 Environmental 2.18 P-8 HR3 SO-11 Core Additional 2.19 P-9 Non-Discrimination Materials 2.20 P-9 HR4 SO-12 EN1 EN-2 2.21 P-9 Freedom of Asocn. & Colect. Bargaining EN2 EN-2 2.22 P-9 HR5 SO-12 Energy Child Labour EN3 EN-3 EN17 EN-4 HR6 SO-12 Management EN4 EN-3 EN18 EN-5 Forced & Compulsory Labour System EN19 EN-5 HR7 SO-12 3.1 MS-2 Water Disciplinary Practices 3.2 MS-7 EN5 EN-6 EN20 EN-6 HR9 SO-12 3.3 MS-7 EN21 EN-7 HR10 SO-12 3.4 MS-7 EN22 EN-7 Security Practices 3.5 MS-7 Bio-Diversity HR11 SO-13 3.6 MS-7 EN6 EN-8 EN23 EN-8 Indigenous Rights 3.7 MS-7 EN7 EN-9 EN24 EN-9 HR12 SO-13 3.8 MS-9 EN25 EN-9 HR13 SO-13 3.9 MS-9 EN26 EN-9 HR14 SO-13 3.10 MS-9 EN27 EN-9 Community 3.11 MS-10 EN28 EN-9 SO1 SO-14 SO4 SO-25 3.12 MS-11 EN29 EN-9 Bribery & Corruption 3.13 MS-11 Emissions, Effluents & Wastes SO2 SO-25 3.14 MS-12 EN8 EN-10 EN30 EN-10 Political Contribution 3.15 MS-12 EN9 EN-10 EN31 EN-10 SO3 SO-26 SO5 SO-26 3.16 MS-12 EN10 EN-11 EN32 EN-10 Competition & Pricing 3.17 MS-14 EN11 EN-14 SO6 SO-26 3.18 MS-14 EN12 EN-15 SO7 SO-26 3.19 MS-14 EN13 EN-16 Customer Health & Safety 3.20 MS-20 Suppliers PR1 SO-26 PR4 SO-26 EN33 EN-16 ANNEXURES PR5 SO-26 Products & Services I A-2 PR6 SO-26 EN14 EN-16 II A-2 Products & Services EN15 EN-16 III A-4 PR2 SO-26 PR7 SO-26 Compliance IV A-5 PR8 SO-26 EN16 EN-16 V A-8 Advertising Transport VI A-9 PR9 SO-27 EN34 EN-17 PR10 SO-27 Others Respect for Privacy EN35 EN-17 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 “Be sure to lay wide streets planted unselfish, more generous or more with shady trees, every other of a quick philanthropic than others, but we growing variety. Be sure that there is think, we started on sound and plenty of space for lawns and gardens. straightforward business principles Reserve large areas for football, considering the interests of the hockey and parks. Earmark areas for shareholders, our own and health Hindu Temples, Mohammedan and welfare of our Mosques and Christian Churches…” Employees……………. the sure foundation of our prosperity. Jamshedji N Tata, 1902 J N TATA, 1895 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 Visit us on Tata Steel. Steel’s Website www.tatasteel.com TATA STEEL – CORPORATE SUSTAINABILITY REPORT (2001-2002) SECTION-1 VISION & STRATEGY CONTENT INDEX 1.1 Organization’s Vision - VS2 & Strategy 1.2 Statement from CEO - VS7 describing Key Elements of the Report. VS 1/9 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 Figure-1.1 – VISION social goals. The Vision steers the organization to become a knowledge based, learning and happy Tata Steel enters the new millennium organization in 21st century, by establishing itself as a with the confidence of learning, supplier of choice of the products & services. To knowledge based and a happy organization. improve the economic performance, Tata Steel shall optimise the cost by modernization, right sizing, We will establish ourselves as the outsourcing, resource conservation and waste supplier of choice by delighting our recycling/reuse. Tata Steel shall maintain the customers with our service and our leadership by excelling in economic, environmental products. and social performance through stakeholder engagement at planning, implementation and post In the coming decade, we will become implementation stages. Tata Steel has introduced the most cost competitive steel plant these practices in Tata Business Excellence Model and so serve the community and the nation. (TBEM). Stakeholder concerns identified through engagement processes, elaborated later in this report Where Tata Steel ventures….others are systematically prioritised and integrated into will follow. business decision-making process. How are stakeholders included in identifying sustainability issues? For each issue, which stakeholders are most affected by the organization? Inputs from stakeholders are taken through several structured/formal/informal engagement processes and considered in setting strategic objectives of the company.