Corporate Citizenship Report 2009/2010 Corporate Citizenship Report 2009/2010

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Corporate Citizenship Report 2009/2010 Corporate Citizenship Report 2009/2010 Corporate Citizenship Report 2009/2010 Corporate Citizenship Report 2009/2010 For further information and other Tata Steel reports: http://www.tatasteel.com/investors/performance/annual-report.asp http://www.tatasteel.com/corporate-citizen/corporate-sustainability/sustainability-report.asp www.corusstaalmjv.nl Please e-mail your comments or questions to [email protected] On the front cover: Karen Gilbert, environmental engineer, on site at Tata Steel Colors, Shotton, UK. INDEX AT A GLANCE 2 LETTER TO STAKEHOLDERS 4 OUR VISION AND OUR VALUES 6 A SAFE AND HEALTHY WORKPLACE 8 RESPEctING THE ENVIRONMENt 13 CARING FOR COMMUNITIES 24 CREATING VALUE 32 HIGH EtHICAL STANDARds 34 EMPLOYER OF CHOICE 36 WHAT WE OFFER OUR CUSTOMERs 40 IMPROVING THROUGH INNOVATION 43 PERFORMANCE SUMMARy 47 ASSURANCE REPORt 48 GLOSSARy 49 2009/10 AwARds 51 The fume extraction baghouse, helping improve air quality at NatSteel’s Singapore mill. The Tata Steel Group Corporate Citizenship Report 2009/10 was produced on behalf of the Tata Steel Group by Group Communications in conjunction with superscript.uk.com. ©2011 The Tata Steel Group and the contributors. CORPORATE CITIZENSHIP REPORT 2009/10 1 SEctION Long Products Europe, Scunthorpe, UK. Strip Products UK, Port Talbot. Tata Steel, Thailand. Manufacturing Raw Materials Projects Sales Offices 2 CORPORATE CITIZENSHIP REPORT 2009/10 SECTION Strip Products Mainland Europe, IJmuiden, the Netherlands. Jamshedpur works, Jharkhand, India. NatSteel, Singapore. CORPORATE CITIZENSHIP REPORT 2009/10 3 LEttER to STAKEHOLDERS Letter to stakeholders Tata Steel is an ambitious and results-orientated enterprise. Like all Tata companies, we strive for leadership and global competitiveness in the business sectors in which we operate. Yet throughout its long history, the Tata Group has viewed the creation of wealth not as an end in itself, but as the means by which we make a positive contribution to the communities we serve around the world. This distinctive philosophy of leadership with thousands of employees and new recruits risks and promote wellbeing for employees trust dates back to the Group’s founder, Jamsetji worldwide. The company did everything and their families, a number of which are Tata, who wrote more than a century ago that practical to minimise involuntary redundancies highlighted in this report. “the community is not just another stakeholder while ensuring critical skills were retained. in the business, but is in fact the very purpose A comprehensive range of redundancy benefits Employer of choice of its existence.” Two thirds of the equity of the and support services were provided to those Tata Steel’s employment philosophy and Group’s holding company, Tata Sons, is held by who left Tata Steel during 2009/10. practices have always been based on the philanthropic trusts which continue to benefit recognition that our people are the primary a vast range of medical, academic, social and While Tata Steel’s Indian operations remained source of our competitiveness, and we cultural projects and institutions. profitable throughout the year, albeit at a strive to create a workplace which fosters reduced level, our manufacturing sites in equality of opportunity, continuing personal Today, Tata Steel is the world’s tenth largest Europe were forced to operate below capacity. development, mutual trust, and teamwork. steel company, with a presence in over 50 However, they returned to profitability in the markets and manufacturing operations in second half of the year, and the benefits of the While our worldwide recruitment level 26 countries. We employ over 80,000 people restructuring are expected to become more this year remained below the long-term across five continents and have more than apparent as the slow recovery continues in average following the global downturn, 800,000 shareholders. European markets. Much stronger growth is we continued to recruit new talent In leading this complex and increasingly now being seen in developing countries, and through our graduate and apprentice global organisation, it is our responsibility particularly in China, India and Brazil. In both training programmes. Retention of existing to ensure that Tata Steel acts at all times as a developed and developing markets, the steel talent is equally important, and we believe good corporate citizen by: industry will continue to be an important that the best way of earning the loyalty and ingredient in the global economic recovery. continuing commitment of our employees n Ensuring the safety and wellbeing of our is by providing them with challenging employees; Health and safety and fulfilling jobs, with opportunities for n Respecting and safeguarding the Our goal is to become the global steel development and progression, and with environment; industry leader in ensuring the safety, rewarding and fair compensation and n Providing our customers with the best health and wellbeing of our employees benefits schemes. possible products and services; and onsite contractors. n Contributing to our local communities and Our investment in training has actually to society in general; Tragically and unacceptably, five people increased through the downturn – enabling n Generating a good return on their died as a result of accidents at our sites in employees individually to help the investment to our shareholders, and 2009/10. We are absolutely determined to organisation collectively to respond effectively n Maintaining the highest ethical standards do everything possible to achieve a zero- to the changing market realities. with our suppliers and contractors and in harm environment at all times. Incidents all our business dealings. and near-misses are investigated thoroughly During 2009/10, for example, a new We believe passionately that good corporate and the lessons learned are promptly shared performance management model called citizenship and good business performance throughout the organisation. Driving Performance was launched. The go hand in hand and nurture each other aim of the model is to further raise our through good times and bad. The last two More positively, our lost time injury frequency performance and to ensure behaviour is years have seen an unprecedented economic rate (the number of lost time incidents per fully aligned with the five Tata core values of downturn, particularly in Europe, which has million hours worked) for all employees integrity, understanding, excellence, unity forced Tata Steel to defer some of its investment and contractor staff continued to improve and responsibility. More than 1,000 senior plans and close some its facilities, resulting significantly this year, to 0.95, which is well managers have so far received training in in job losses. These actions were painful but below the worldwide steel industry average. the values and competencies at the heart essential in ensuring the long-term viability of Driving Performance, and the model of our European business, which continues We have also initiated a range of programmes continues to be rolled out throughout the to provide rewarding careers for many at all our major locations to minimise health global Tata Steel organisation. 4 CORPORATE CITIZENSHIP REPORT 2009/10 LEttER to STAKEHOLDERS Tata Steel also believes as a matter of principle, We are also mindful that the global steel Scholarship Programme fully funds their and knows from its long history in India and industry is a significant generator of OC 2 professional education, enabling them to in Europe, that diversity greatly enhances our emissions. At the same time, we believe become doctors, engineers, technicians overall capabilities and spirit of innovation. Tata Steel has a positive contribution to and managers. To date, 39 children within We also encourage clear, honest, two-way make in addressing the problem of climate the Trijanga Township have received communication between management, change because our high-strength steels are scholarship assistance. unions and employees at all levels. making it possible to design and produce lighter and more fuel-efficient vehicles, n UK Steel Enterprise: This wholly-owned Responding to the needs of our including hybrid and electric vehicles, and subsidiary of Tata Steel was established 35 customers buildings that are more energy efficient and years ago to help improve the economies While basic steel is a commodity product, less material intensive. of those areas of the UK most affected by we recognise the value of creating close changes in the steel industry. Since then, it In the last 40 years, we have halved the energy and mutually beneficial relationships with has helped to create nearly 70,000 new jobs needed to make a tonne of steel and, despite our customers and partners throughout the and support more than 4,500 small the disruption caused by the severe global supply chain. This helps us to develop new and businesses. Anyone in those regions with a economic downturn, we remain committed to better products and services that are more sound business idea and the determination making further substantial reductions in our responsive to their needs. to make it work can seek advice and total CO emissions. Our strategy for achieving 2 assistance from UK Steel Enterprise, which During the year under review, we developed a this challenge encompasses ongoing also supports local community projects. new, more outward looking operating model improvements to current manufacturing for our business in Europe. The thrust of this processes, investment in
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