Business Report

Corporate Social Responsibility Strategy

For
Tata Motors

Name: Fahim Maqsood

NVQ-7
F M Business School
Birmingham.

Submitted To: Chris Cain

Date: 29/ 07/ 2010

Acknowledgement

By the name of Allah, the most gracious and the most merciful."I would like to
thank my casion, Mrs. Amira Khan, for the valuable advice and Support she has

given me in the writing of this report. I would also like to thank my Teachers, Mr.

Chairs Cain for their encouragement and guidance. My deepest thanks go to my

Friends, understanding and support."

Abstract

This paper provides an overview of several standard and guidelines for CSR

and gives perspective for CSR. A Tata motor is developed on basis of socially

responsible. Social responsibility is their in code of ethics, that way Tata motors

brands are very well recognised in not only India rather globally as well. Obviously

behalf of socially Responsibility company is very well established, in term of

financially and well reputed among competitors. Social responsibility to be an

increasingly integral part of business operations and long-term viability. Internally

company is concern with employee satisfaction,performance and productivity , but

externally try to invest in society for long term benefits. Tata motors set a base of

socially responsible among competitor and escape from less government

intervene .Tata motors shareholders are successful because of company core

objectives is help poor people , and this strategy gives them back value and

financially growth. Socially responsibility strategy is already developed since this

organisation founded,so brings changes as per need is integral part of executive

manager. According to resources to implant strategy properly Tata executive set

strategy. Tata motors has both internal and external stakeholders, so their strategy

to gain our confidence for stakeholder is vital role in Tata management. Need and

wants of stakeholder is also very important, because Tata has already set standard

so they have to conscious about all rule and regulation. Tata motors is very well

established inside the country,its acquired other brands shows that company is
stable . Now Tata group has made own name all over the world , every year Tata

group is going ahead and try to maintain their core values and ethics.

Contents Page

Content........................................................................Page

1. Introduction...................................................................6

1.1 Domestic................................................................6

1.2 Overview…………………………..6

1.3 International Profile…………….6.7

1.4 Tata Time line………………………..8.9

1 2. Corporate social responsibility objectives and measures………..9

2.1 Objectives…………………………….9-10

2.2 Three types of core social objectives……………………11

Society, Environmentally, Economy …11.12

2.3 Measures……………………………..13

2 3. Corporate social responsibility strategy and resource

implications.....................13
 3.1 Domestic………………………..14

1.1 JOHNSON model ………………….15

1.2 3.3 Suitability..................16

1.3 3.4 Acceptability..............17

1.4 3.5 Feasibility.................18

3.2.1 Resource Implications………........21

3.2.2 Human Resources..........22

3.2.3 Financial Resources............22.23

1 4.Timetable for implementation……………..23

Present………………………………24

Year 1……………………………….25

Year 2……………………………….25.26

Year 3………………………………26.27

Year 4-10…………………………….27.28

1.1

1.2Allocation of Budget for ten year strategy..........29

1.3
 1
2 5. Gaining commitment stakeholders…………30

1.15.1 Internal Stakeholder................31

1.25.2 External Stakeholder……………………32

1.35.3 Key Stakeholders………………………..33

1.1.1Process of commitment to gain stakeholders

commitment........................34.35

1.1.2
1 6. Monitoring and evaluation…………………35

6.1 Appendix............................36

6.2 Financial Perspective………………………36

6.3 Customer perspectives …………………….36

6.4 Internal business perspective……………….37

6.5 Innovation and learning perspectives………37

7: References……………………………………38

8: Bibliography …………………………………38

1.
2.
3.
4. 1. Introduction
5.
1.1 1.1 Domestic
1.2
Tata Motors is India largest company. It is the largest commercial vehicle

Manufacture in India and 2nd largest passenger car manufacture. It is the fifth

medium and heavy commercial vehicle manufacture in the world . the popular

brands of the company are Tata indigo, Tata sun nod Tata safari.

1.1Overview

Founder Jamsetji Nusserwanji Tata

Year of establishment 1945

Industry Automotive

Business group The Tata group

Listings & its codes BSE-code: 500570 Nse- code: Telco &

Tata motors NYSE- code: Ttm

Corporate Bombay house

1.3 International Profile

Tata motors is not only at the forefront of the Indian auto mobile industry, it is also

one of India best known brands in international markets. Today, Tata branded cars,

trucks and buses are seen in most parts of south Asia, Africa,middle east and

Europe. Tata motors recently entered into an agreement with mg rover U.K for

manufacture of rover branded Tata indices in U.K and continental Europe. Tata

motors , vehicles meet international norms like Euro 3 emission for passenger cars,

Euro 2 for light commercial vehicles

including pick up vans and European standards for frontal and side safety impact

for passenger cars. It has series of quality systems in place including ISO

accreditation from bureau venture quality international. The company vehicles are
known for their reliability, durability, safety, comfort and value for money.

1.4 Tata Time line

1868: Jamsetji Nusserwanji Tata, age 29, establishes a private trading firm in

Bombay.

1877: Queen Victoria is proclaimed empress of India,. J.N. Tata open his first

textile mill on the same day, January.

1890: The J.N Tata endowment for higher education, one of the first charitable

trusts, is set up.

1893: J.N Tata meets George wasting houses and vests naira falls to see first

hand how hydro power generation works.

1903: The Tata open the Taj Mahal place, India for luxury hotel and one of the

first buildings in Bombay with electricity.

1904: J.N Tata dies. Dobra Tata becomes chairman of Tata sons.

1912: The first ingots of steel roll off the assembly lines of the sakachi plant.

Tata steel introduces an eight hour workday.

1919: Viceroy lord Chelmsford renames the cit of sakachi as Jamshedpur in

honour of J.N Tata.

1932: Nowroji Saklatwala becomes chairman of Tata sons. Tata Airlines, the first

India Airline is launched. Jahangir R.D Tata pilots the inaugural flights.

1939: Tata chemicals set up a soda ash factory in Mithapur, Gujarat on the

Arabian sea.

1953: Air India is nationalised.

1968: Tata consultancy services Tcs is founded.

1998: Tata motors lunches the India first indigenously manufactured passenger

car in India.

2000: Tata Tea acquired first cross border leveraged buyout.

2008: Tata motors buy the luxury car brand Jaguar land rover for 2.3 billion.

2009: Tata motors launch the Nano, the world lowest cost auto mobile.

2010: Tata is $70.8 billion enterprise with 90 major operating companies and

350,000 employees in 80 countries.

(strategy+Business Too good)

2. Corporate social responsibility objectives and measures

1.1Objectives

1 Basically Tata motors reason of founded is help poor people therefore Tata
 motors executives has to face challenges to maintain the CSR of Tata

motors . Very vital objective of CSR to do community prosperity ,

through motivation and education to make their good life standard .

Tata motors made affordable brands so that everybody could buy . As

well strong and better educated workforce they gave people awareness

about health, especially urban areas and build so many dispensers for

those who are far away from city and can not afford treatment. Some

very important objectives are following.

1.Education

12 schools in 12 villages by Aug, next year.

3 colleges in 3 different Distt by Mar, next year.

1 University by next to following year in capital of India.

1. 2. Health

1 big hospital in city of Gujarat by Jun, next year.

13 health centre in 13 village by Sep,next year

3. Environmental stewardship

5 Environmental Centre in 5 different cities within 2 years.

4. Technical Training courses for young’s

6 different types of courses in 100 villages by Dec, next year.

Vocational training in 30 villages by Dec, next year.

 1.Education

One of major corporate social responsibility objective is build 12 Primary and middle school in

12 different villages. Where children’s having very limited option of study, since a decade those

villages are forgotten by Government to make any establishment.

Also corporate social responsibility objective is build 3 new Colleges in 3 cities , where Adult

student can come from different villages for higher study. These Colleges will be equipped with

new standard and students will have many choices in studies. This three Colleges will be

completed by Mar, next years.

One very modern University will be completed by next to following year, which is situated in

Heart of India capital. This University will be equipped with new technology and every on can

access easily in this University. Although its work has already started but its huge building which

will take time to complete.

1. 1. Health

As well as education sector Tata Motors corporate social responsible objectives

in Health sector are following.

Gujarat is one of the big city of India and day by population is rapidly growing

up so there is only one big hospital where every body has to come and they

have to wait for their tern. Around that city there are so many villages where

from peoples totally dependent on this hospital.

Objective is build new big hospital in city by Jun, next year. So that peoples do

not have to wait who come from villages.

Second objective is in Health sector build 13 new little Health centre in different

13 villages, so that peoples could have nearest facilities in emergencies. This

project will be completed by Sep, next year.

 1. 2. Environmental stewardship

This project objective is look after environmental issues and give awareness

to people about environment , which will be completed with in 2 years.

Mostly people does not know about environmental issues but this are very

sever issues for people health.

1. 3. Technical Training courses for youth

Corporate social responsibility objective is give training 6 different types of

course to young people. Every course will be for one week which everybody

can get access, and for every course different teams will go to villages for

this course. Initially we have set for One hundred villages which will be

completed by Dec, next year.

Second objective is give Vocational training to house wives in different villages,

the Purpose of this courses to make women able to earn money and look after

themselves.This course is for 30 villages and completion date is by Dec,next year.

1 2.4: Basically Tata motors has three types of core social

objectives, which they consider more important to do.

These are following.

Society

Since Tata motors has been established its core objective is make better society ,

around where Tata motors operating. Its focus on large society of India to invest

there , such as proper health center , school, Prosperity center and pure water

plants. Tata motors objective is give them awareness about health and safety, so

that Tata could make own image among people as well.

Also very vital objective is establish institute in different areas to give people

awareness all human rights, so that people could do respect each other and could

live as a good human.

Community prosperity is also core objective of Tata motors strategy to build

helpful work for those people who don not have any skill , education,any

professional to do any work. Basic purpose of this objective to give them awareness

about all their basic need to live proper life and make try to good environment

around people.

Environment

Pollution control

Tata motors objective is try to control pollution which harm society and make

separate division to look upon this serious problem. Which about facing all over the

world this issue. Tata motors has different participation globally as well to control

pollution.
Reduction of resources use contribution to waste minimization

Tata motors try to minimize waste resources and taking few step to tackle this problem. How we

can recycle wastage resources back and make them to useable.

Economy

Fiduciary duty

Of course to do all this social responsible effort because Tata motors want to grow

economically and create value among people. It is true that they are socially

responsible because want to make profit , and generate good revenue for business.

Economic prosperity

2.2.1 Measures for evaluation

1.1.1

See Q no 5, Balance Scorecard.

( See Exhibit-1 in Appendix)

1. 3. Corporate social responsibility strategy

Existing ten years strategy
1.1

1.1Internal Strategy

Centralized consulting support for all business unit

Tata sustainability strategy would have a heavily staffed and funded group ensure

that sustainability opportunities are promoted , monitored , and cross utilized

between Tata businesses. In the medium to long term this same consulting function

could be used externally to provide the same service as consulting firm such as blue

sky and Domain, effectively monetizing a Tata core competence and providing

funding for future internal sustainable initiatives.

Increased Transparency

TSS reporting function would utilize outside auditors and consultants to validate its

numbers. Its social and environmental metrics would cross all Tata organization.

Capitalization and financial information would be key to provide outsider

stakeholders (especially shareholders) with a transparent view of funding and

return for a sustainability projects.

Financial Independence
The new subsidiary would be funded through a pool a funds, approach . This is

analogous to us bond covenant contracts for dividends payments. Also shareholders

want firm should be conscious about long term sustainability regardless profit.

Management Development
Management development would involve a significant rotation in this subsidiary ,

and training on relevant sustainability practices and measurement provide . This

would not only ensure top managerial talent in the group but also continue to

spread idea and best practice throughout the organization after employee rotation

are complete.

Fundraising ease and salability

Tata has established itself as forward thinking company that has often predated the

Indian government (a major Tata shareholders) in the key worker protation

policies. With the increased transparency of TSS, Tata could organize funding from

employees, outside investors , and government agencies. This fund raising power

could help TSS duplicate the rapid growth of Tata other lines. TSS management

ability , knowledge , and continued success help other donors maximize the social

environmental impact of their contributions.

Strategic Continuity

Creating a separate business subsidiary and a document with

shareholders/stakeholders that details the funding and reporting process for TSS

would ensure that the company ,s sustainability initiatives themselves are clear

throughout the organization and allow for quick implementation in the event of a

CEO leadership transition.

Consistency of business practices.

Tata will need to maintain clear and consistent treatment of employees, business

partners, and N Gos in all of its worldwide markets. TSS would maintain these

standard and modify them with the group of Executive office (GEO) and Group

corporate center.

This is proposed ten years strategy for Tata motors , structure of sustainability

strategy which developed by Tata Executives managers for long term sustainability.

Tata is not merely operate inside the country rather outside as well, so its also very

important for Tata motors to expand globally . But this strategy has challenged to

maintain sustainability inside and outside the country. (The Tata Group

Sustainability journey to 2020)

3.2 Recommend Corporate Social Responsible Strategy using the

Johnson Model.

Cross functional projects and senior management communication can

mitigate this creation of a subsidiary may cause dilution of the company core
sustainability values. Overburdening Total sustainability strategy will be
avoided with the staggered initiative rollout. Total sustainability strategy
should provide frequent management rotation.

I am going to look through to Johnson model whether this strategy is Suitable ,

Acceptable,and Feasible.
 JOHNSON model

Suitability

Acceptability

Feasibility

1.1Suitability

Centralized consulting support for all business unit

This proposed strategy for Tata motors does suit along with its objectives.

Because it indicate that Tata motors has good opportunities to sustain business for

long term . This consulting service independently monitor , promote and cross

utilize between Tata business. Also it will monitor externally as well and provide

them funding for future internally sustainable initiatives.

Increased Transparency

This strategy is also very suitable for Tata motors to achieve long term objectives.

Because and make sure that company does care about own shareholders, and

publicly enclose the financial report. And also good that outsider consulting body

will audit company financial information, so then it will be transparent view of

funding and return for sustainability projects.

Financial independence
New subsidence would be also good step for Tata motors , Because it indicate that

all separate unites will be responsible for any outcome. So Tata Executives can

easily manage and control independently , this movement toward transparency in

finance and satisfy all shareholder group those who focus on sustainability rather

than profit.

Globally growth

It clearly indicate that presently this strategy does not suitable for Tata motors

globally recession is ongoing all over the world , So I would not agree with this

strategy because I think that organization inside the country should focus on

sustainability and if it will go outside the country then it must has to change

strategy and keep it sustain for long time will be challenged.

I think Tata motors should more focus on inside the country , because if company

base will be strong and sustain then it can compete internally and externally as

well.

During the very bad recession in all over the world Tata motors should retain the

existing position nor expansion . To maintain CSR strategy inside the country is also

challenged,because Tata motors has already acquired globally brand as well. To

retain quality, reputation, existing customer, and good profit is also very vital

objective of company .

Local sensitivity with global reach

It also does not suit with Tata motors objectives. Because

I think several project proposals for Tata management to consider properly for ten

years, these projects resulted from a global opportunity analysis of Tata twelve
target markets . The unique sustainability need of each region were considered in

those proposals, the US and Europe already have numerous social program in

place, so focus on those areas was placed on environmental opportunities . The

political risks and barriers involved in certain initiatives were weighed as well, for

instance, the chines government reaction to a heavily advertised worker rights

program must be carefully considered.

Acceptability

1.1
Personally I do believe that strategy is then acceptable if three factor are going

very well according to company objectives.

What is the Risk

What is the Return

How does shareholders feel

Risk

All proposed strategies for Tata motors is try to minimize the risk internally and

externally as well , most of the strategies does base on metegation of risk which

can be dangerous for Tata motors long term sustainability .

But I think that go to expand globally business is quite huge risk, and in the future

company can face challenges inside the country as well. So if Tata motors couldn't

penetrate in global market successfully , it must bring risk back to main hub of the

company. Company executives must evolve this strategy again and carefully set

acceptability strategy for all stakeholders.

Tata motors company should do call for meeting of executives and discuss with

them about this crucial strategy, and developed the acceptability strategy for all
key shareholders.

Return

Tata motors return for its shareholder is very satisfied , and more they spend for social activity they get

return back sufficient return back , that way they do concern about strategy for long time. As here is some

return information which they got in 2009.

(ROCE) Total debt /Capital employed= .42

During 2009 Tata motors got very good return, though it is not good than last year but it is

because of whole world recession .

(GP) Gross profit/sales= .29

During 2009 Tata motors Gross Profit is not good, but still it is acceptable because strategy is going very

well but because of world recession profit went down .

(NP) Net profit/sales= .17

Net profit of Tata motors in 2009 is very low , but still acceptable and try to find how we can handle this

situation.

Risk

(CA) Current asset/current liabilities= 1.01

Tata motors has huge risk in terms of current liquidity , and efficiency to pay its own short term debt. But

here in this year Tata motor liquidity ratio is good to pay its all short debt. Risk is less for its stakeholders

they do accept strategy.

(QR) CA – Invent / CL= .85

Shareholder

EPS =

Dividend every year for Tata motors shareholders is going to increase , so Tat motors

shareholders are satisfied with this strategy. But some strategy got question Because of border

crossing, and world recession. So shareholders want some Tata strategy should change according

to situation.

1.1.1 3.2.1 Resource Implications of the strategy

For successfully implement this ten years strategy need two type of resources .

3.2.2 Human Resources

3.2.3 Financial Resources

Tata motors has both type of resources to implement the strategy and evaluate the
time by time , so that when ever need for change then could do change to achieve
desired goal.

Human Resources

Tata has currently has four pillars , of sustainability within the organization .
Tata Trust

Tata relief committee (TRC)

Tata council for community initiatives (TCCI)

Total quality management services (TQMS)

Tata chemicals innovation center

One solution that would allow Tata to continue sustainability in its tepidly expanding

operation is the creation of a company subsidiary devoted to social and

environmental stewardship. This subsidiary TSS , would function like any others

Tata business unit, that it would operate at first as a cost center/ support function

rather than a profit center. TSS would centralize a number of company function,

including educational trust,TRC, and TCCI,. The subsidiary would have a function

including internal and external consultation support for sustainable initiatives, a

division for social projects that do not meet traditional definition of EVA knowledge

sharing and training functions, a cross functional innovation center.

Financial Resources

Total budget is $1.5 B

Strategy designed for next ten years so total budget has been allocated to

implement strategy through assigned budget.

Strategies Time Cost $ (million) %

Create local task 3 months 23.5m 14%

force.
Revise internal 21months 33.2m 21%
sustainability system.

Increase coordination 6 months 26m 17.6%

with all stakeholders.

Roll out new life cycle 12 months 31.2m 19.3%

based index.

Commence roll out of 24 months 53.8m 32%

CSR credits trading market.

Implement and Revise CSR 54 months 89.5m 46%

trading market as necessary.

Total 10years 1.2b 100%

(Reserve 3m)

4. Timetable for implementation of the strategy

The framework needed for success sustainable expansion will include the new

sustainability credo, the creation and staffing of TSS, and management of internal

sustainability practices in Tata offices and business across the Tata group . Our

action plan to implement the ten year sustainability strategy include short and long

term step to reach our goals.

Present
Implement the new Tata sustainability credo through a multi faceted corporate

communication process including CEO and business unit communication training in

town hall meeting allowing for employee engagement and input.

Legally establish TSS as a separately capitalized corp rote subsidiary. Draft rules

governing the excess profit criteria from each business unit that will fund TSS

expansion in future collaborate closely with key shareholder blocks on this rules.

From a task company task force , including senior executives, to validate that all

internal sustainability opportunities have been identified and explored.

In collaboration with senior management , establish rules for equitable employee

treatment across all countries of operation, building on current TCCI initiatives.

Standard may not be equal across all countries , but should be favorable compared

to local standard, especially in the case of less developed countries.

Year 1

Upon establishment of Tata sustainability strategy, Tata,s social philanthropic effort

should be given continued prominence in the new organization. Possible area for

expansion include water reclamation projects in new markets, cell phone recycling

and donation programs through initiatives with key consumer facing partners, and

driver safety outreach program to complement car insurance businesses.

Implement the Tata Tea group,s new global strategy, including the transparent

reporting alliance certification for its both western European and north American tea

product over the next five years to remain competitive with industry leaders. Nine

in ten American sat that the words conscious consumer describe them well and are
more likely to buy from companies that manufacture energy efficient product

promote health and safety benefits, support fair labor and fair trade practices and

commit to environmentally friendly practice.

Tata power should consider diversifying its energy mix and develop strategies to

meet expanding demand for power over the next ten years, as coal currently

provides 68% of the electricity. Unfortunately the pay back period for coal

alternatives cannot be addressed in a ten year span due to unpredictable renewable

energy technology improvements and government regulatory barriers . Tata power

must begin working with government stakeholder and exploring the possibility of

developing alternative energy technology.

Year 2

European union (EU) standards have expanded to include mandatory ELV

processing for vehicles. Anticipating this trend in other countries, Tata motors

undertake the development of a complete ELV system in India and Asia. Tata would

partner with Tata chemical and Tata international to create this process , splitting

the proceeds with consumers.

Expand current supply chain management initiatives to include additional trucks

and trailers in growth market to decrees diesel fuel consumption and meet carbon

foot print , utilizing Tata international expertise.

The sustainability software consulting market predominantly revolves around

enterprise carbon Accounting software . Tata soft ware consulting should develop a

strategy to enter this strategy to enter this market , engage its existing customer

base, and consider expanding this market to include social sustainability

measurement .
 Year 3

The three year old TSS organization should seek to monetize its sustainability

implementation best practice by looking for opportunities to serve as external

consultants.

Pursue longer term higher cost sustainability certification including LEED building

standard and fair trade certified product and standards.

Year 4-10

The goal of this longer time frame is to get high value sustainability certification for

Tata businesses.

LEED certification for all Taj hotels.

C2C certification for Tata motors, enhancing the existing ELV processes discussed

earlier.

After the TSS is established, revenues can be used to support long term

development initiatives including water purification, education, and health project in

developing markets. (Tata Group Sustainability Strategy)

4.1 Allocation of Budget for ten year strategy

Time Period Budget Revenue %

Present 89m 102m 39%

Year 1 28m 38m 15%

Year 2 33m 43.5m 18%

Year 3 17m 26.2m 9%

Year 4-10 47m 63.1m 19%

10 year 1.2b 2.7b 100%

(Reserve 3b)

1.
2.
3.
4.
5. Dissemination process to gain commitment from key
stakeholder
6.

5.1 Internal Stakeholder

Tata motors is critical consider about their key stake holder to maintain relationship

with them. So they ensuring leadership continuity, appropriateness for global

growth, sensitivity to shareholder reaction, meeting coordination challenge across

the entire enterprise , main thing the corporate culture and commitment with key

stakeholder. Sustainability from the employees through leadership fostering

innovation, and leveraging core competencies.

5.2 External Stakeholder

External consideration were also consider including impact on the ability to raise

capital, relationship with local government and regulating bodies, non governmental

organization and local community member.

 5.3 Key Stakeholders

Corporate level Shareholders(consistent return)

Compliance Committee

Channel partners/Suppliers:

Operation level Employees(Health safety welfare)

Customers / dealer

Executive Director

This are following activities which Tata motors is used to gain commitment from key
stakeholders.

5.2.1 Process of commitment to gain stakeholders commitment

Shareholders/Investors

A monthly shareholders report is sent to the Board members which describes the

shareholding pattern and also the performance of Tata Motors stock with

respect to the other auto mobile companies and the stock indices. The report

also highlights the expectations from various equity analysts and the Company’s

performance vis-à-vis the same. The Ethics & Values.

Compliance Committee

also reviews on a monthly basis the trading in the Company’s shares by the

designated employees to ensure that they do not unduly benefit on

account of access to unpublished price sensitive information. Investors’

Grievance Committee reviews the investor grievance redress al procedure and also

pro actively gives suggestions/directions to protect the interest of the investor.

On recommendations of the Investors’ Grievance Committee, the

Company has taken various investor friendly initiatives like sending of reminders to

investors who have not claimed their dues, launching an odd lot scheme,

sending nominations forms, launching a shareholders’ discount scheme, arranging

factory visits, etc. Critical feedback, complaints and suggestions received from

investors are considered appropriately and addressed.

Channel partners/Suppliers:

A Supplier Relationship Management program and Dealer Management System are

in place and the Management Committee reviews the program from time to time.

The key indicators of review are the Supplier coverage and the efficiency of the

transactions with the Company. The Company also organizes Supplier’s day/Vendor

meets/Channel partner meets where suppliers can touch base with the Board

members and share their thoughts and inputs.

Operation level Employees(Health safety welfare)

The Management Committee on a very regular basis reviews the employees’

issues. The remuneration guidelines, the employee satisfaction, the employee

growth plan and the organization culture are discussed in these meetings. Major

employee welfare schemes are put up to the Board for approval. The Board is also

kept informed of senior level changes in management, status on signing of Union

wage agreements, remuneration of senior executives, etc.

Customers /Union trade

The Company is also in the midst of implementing a very comprehensive Customer

Relationship management program which is reviewed by the Management

Committee and the Board sub- Committees from time to time. This program

ensures that the Customers are treated in the fair manner by the channel members

of the Company and their needs are also captured and responded to through this

program.

Linkage between executive compensation and

Achievement of the organization's financial and non-financial goals

Executive Director

The annual performance/appraisal of the Whole-time Directors are reviewed by the

Remuneration Committee through a structured Balance Scorecard mechanism as

agreed to at the beginning of the year and the performance of the individual Whole-

time Director is evaluated against the same. The Company pays remuneration by

way of salary, perquisites and allowances (fixed component), incentive

remuneration and commission (which are major variable components depending on

the performance parameters) to its Whole-time directors after a review of their

individual performance.

Annual increments of each Whole-time Director are decided by the Remuneration

Committee within the salary scale approved by the Members and are effective from

April 1, annually. The Company has not issued any stock options to its senior

management/employees. Approval of the shareholders is obtained for payment of

remuneration to the Executive and Non-Executive Directors and adequate

disclosures on terms of appointment, tenure and remuneration are included in the

Explanatory Notes .(Get some point from NET.)

Communication

Corporate communication process including CEO and business unit communication/

training in town hall meetings, allowing for employee engagement and input.

Quarterly meetings between managers and executives to make ensure that

everything is going according to plan.

Participation

Through employees personal development process , training and discussing with

different issues Tata motors gain commitment from its stakeholders.

Education

Give regularly some education on different issues which should be address Tata

motors gain commitment from stakeholders.

6. Monitoring and evaluation system as a balance scorecard.

Corporate social responsibility (CSR) can help you cut costs and boost sales.

However, there are other significant benefits which businesses sometime forget

about, as they are slightly harder to measure. Benefits such as improved

reputation, stronger customer loyalty and motivated employees should not be

overlooked, and can in fact be measured. For example, improved motivation could

lead to reduced absenteeism and reduced staff turnover. Similarly, customer loyalty

could Increase levels of repeat purchasing.

6.1 Appendix

Exhibit 1: Balance scorecard

We will translate goals into specific objectives within each of the four

performance perspectives. According to this year result we will set objective

for future which will be our target. Which are those KPI's indicator are we

will have to address time by time to check that whether we are achieving

our prediction.
 1.1 1 Financial Perspective

KPI's $2009 By $2010

Target
Turnover 7% 11%

Net assets 9.1m 10.2m

ROI 14% 21%

Current Ratio 1.09 2.03

EPS 12.3% 17%

Turnover

Source: Profit and loss Account in the financial statements. Which 7% of

Tata Motors in 2009, and next target is 11% by 2010.

Net assets

Source: Balance sheet in the financial statement. Tata Motors has net asset

worth 9.1m in 2009, and target is 10.2m by next year 2010.

In 2009 one of the major KPI's ROI is only 14 %, which does not give sense

so next our target is 21% which we will have to achieve by 2010.

In financial perspectives Tata Motors every objective eventully link with

financial growth, so basically objectives in financial perspective formulating

and executing budgeting in line with good stewardship of public funds,

allocating resources, providing consumers and stakeholders with the best

value. And analyzing financial data to enable the agency to respond to

changing needs.

6.2 Customer perspectives

KPI's $2009 By $2010

Target

Customer satisfaction. 75% 90%

Market share in 44% 65%

target segments.

Responsive supply 8.5 hours within 6 hours

In customer's perspective what we are delivering to customer and how much

they are satisfied with our service and product.

We are here evaluating the system of Tata Motors using a balance

scorecard, As I have mention above some KPI's interim of customer

perspective. In 2009 according to research we have 75% customer

satisfaction level and by the next year our target is 90%, which we will have

to achieve.

Second KPI's was Market share in target market which is only 44% in this

year and our target is 65% by next year where we will have to focus more in

order to get this achievement.

Next KPI's is give quick response to customer about our service , either it is

delivery their order or after sale service. In 2009 our service response is

within 8.5 hours but our target is reduce it so that customer do not have any

problem, at least it will be 6 hours by next year.

6.3 Internal business perspective

KPI's $2009 By $2010

Target

Efficiency 5 month 3.5 Month

Standards and 23 complains 9 complains

guideline compliance

Quality 23 complains 9 complains

In term of evaluating internal perspective in 2009 business efficiency to lunch new product in
market is 5 month which is above our target so by next year target is 3.5 month so that our

product line could expand gradually.

In 2009 we are above the standard in customer compliance, and according to our measurement

we have 23 complain during this year about product. By next year we will reduce it till 9 and try

to give proper guide to our customer's.

6.4 Innovation and learning perspectives

KPI's $2009 By $2010

Target

Employee 5% Bounce 8% Bounce

satisfaction

Education & 3 training course 7 Training course

training

Information 22 computer 65 computer

Technology

After evaluation through Balance scorecard Tata motors did achieve some

objectives, like its expand globally very successfully, and acquired some others

brands. But financially Tata motors had to borrow fund to pay its short term debts,
and had to pay huge amount of interest of bank. According to Balance card four

factor Tata motors did learning and growth inside the country and outside the

country as well. But in order to expand business globally organization structure and

polices badly affected so its also big challenge for Tata motors to restructure

internal process. For customers Tata motors Brands are still valuable and affordable

as well , but its also critical challenge to maintain existing customers for Tata

motors.

7: References

Lynch R- corporate Strategy (Prentice Hall, 2002) ISBN: 0273658549

www.hks.harvard.edu/m-rcbg/CSRI/
www.mallenbaker.net/csr/page.php

www.tatacarsworldwide.com

www.scribd.com