ASSIGNMENT - 2

SUBJECT: BUSINESS ETHICS & CORPORATE GOVERNANCE

Submitted to Submitted by
Asst prof Cyriac Jose Abin Thomas
Submitted on MBA
27-01-2020 Batch B
Tata Motors Limited, formerly Tata Engineering and Locomotive
Company (TELCO), is an Indian multinational automotive manufacturing
company headquartered in Mumbai, Maharashtra, India. It is a part of Tata Group,
an Indian conglomerate. Its products include passenger cars, trucks, vans, coaches,
buses, sports cars, construction equipment and military vehicles.

Tata Motors has auto manufacturing and assembly plants

in Jamshedpur, Pantnagar, Lucknow, Sanand, Dharwad, and Pune in India, as well
as in Argentina, South Africa, Great Britain, and Thailand. It has research and
development centres in Pune, Jamshedpur, Lucknow, and Dharwad, India and
South Korea, Great Britain, and Spain. Tata Motors' principal subsidiaries
purchased the English premium car maker Jaguar Land Rover (the maker of Jaguar
and Land Rover cars) and the South Korean commercial vehicle manufacturer Tata
Daewoo. Tata Motors has a bus-manufacturing joint venture with Marcopolo
S.A. (Tata Marcopolo), a construction-equipment manufacturing joint venture
with Hitachi (Tata Hitachi Construction Machinery), and a joint venture with Fiat
Chrysler which manufactures automotive components and Fiat Chrysler and Tata
branded vehicles.

Founded in 1945 as a manufacturer of locomotives, the company manufactured its

first commercial vehicle in 1954 in a collaboration with Daimler-Benz AG, which
ended in 1969. Tata Motors entered the passenger vehicle market in 1988 with the
launch of the TataMobile followed by the Tata Sierra in 1991, becoming the first
Indian manufacturer to achieve the capability of developing a competitive
indigenous automobile.[4] In 1998, Tata launched the first fully indigenous Indian
passenger car, the Indica, and in 2008 launched the Tata Nano, the world's
cheapest car. Tata Motors acquired the South Korean truck manufacturer Daewoo
Commercial Vehicles Company in 2004 and purchased Jaguar Land
Rover from Ford in 2008.

Tata Motors is listed on the (BSE) Bombay Stock Exchange, where it is a

constituent of the BSE SENSEX index, the National Stock Exchange of India, and
the New York Stock Exchange. The company is ranked 265th on the Fortune
Global 500 list of the world's biggest corporations as of 2019.

CODE OF CONDUCT

Tata companies have consistently adhered to the values and ideals articulated by
the Founder for over 150 years. The Tata Code of Conduct was first formalized by
Mr Ratan Tata. It articulates the Group’s values and ideals that guide and govern
the conduct of our companies as well as our colleagues in all matters relating to
business. Today, the Code is a bedrock on which we base our individual, as well as
leadership commitments to core Tata values. The Tata Code of Conduct outlines
our commitment to each of our stakeholders, including the communities in which
we operate, and is our guiding light when we are sometimes faced with business
dilemmas that leave us at ethical crossroads. The Code is also dynamic in that it
has been periodically refreshed in order to remain contemporary and contextual to
the changes in law and regulations. However it remains unaltered at its core. Our
stellar reputation and success as a business entity has been defined by the powerful
commitment and adherence to the core values and principles expressed in this
Code, by all our employees, directors and partners. I trust every Tata colleague and
Tata company will continue to not only comply with the laws and regulations that
govern our business interests around the world, but will continue to set new
standards of ethical conduct that will generate deep respect and inspire emulation
by others.

ETHICAL DILEMMA

An ethical dilemma is a situation where one is in conflict between moral

imperatives. Often rejecting either solution has major consequences. It is also
known as ethical paradox. Ethical dilemma is also known as moral dilemma. An
ethical dilemma is typically described as a complex situation that involves a
conflict between different morals. Ethical dilemmas are commonly found in
medicine. Dilemma faced by the company Insider trading:

• It is no secret that the Tata group has been struggling with several problems over
the past few years.
• Tata Steel is burdened by the failure of its European bet. Tata Teleservices is in
the midst of a messy separation with NTT DoCoMo. Tata Global Beverages is
tackling stressed assets in Eastern Europe. Tata Consultancy Services continues to
spew out free cash for the rest of the group but it too cannot escape the growing
problems with the software services model. The Jaguar Land Rover unit of Tata
Motors has been a rare success.
• Cyrus Mistry inherited these legacies. Still, the market capitalization of the
overall Tata group too grew faster than the benchmark indices during the nearly
four years he was in charge.
• CAVEAT: Nothing personal: The ambitious global expansion launched by Ratan
Tata during the second half of his tenure was against the backdrop of a booming
global economy. Much has changed since then.
• Curiously, the challenges that Mistry faced when he took charge of the Tata
group nearly four years ago has striking parallels with the battles that Ratan Tata
had to fight when J.R.D. Tata stepped down in his favour.
• Ratan Tata had to streamline a sprawling industrial empire that had little strategic
synergy. His battle to streamline the group led to a clash with powerful corporate
satraps who had tremendous influence in the loose federation that J.R.D. oversaw.
• Mistry had similar challenges—to take a hard look at the relevance of the
business portfolio in the new circumstances, build a team that was close to him
rather than the previous chairman and chart out a new strategic road map for the
group.
• Ratan Tata had two decades to make his mark. But Mistry got less than four years
to set his house in order.
• Was that enough? A question worth asking in this context is whether his removal
was less to do with the ability to deal with legacy issues and more to do with a lack
of clarity about the future. Or was it just a clash of personalities?
CONCLUSION

As per the above discussion on the code of conduct and ethical dilemma of Tata
motors limited . we can say that ethics is a field of interaction between business
and ethics. Company always follow a code of conduct
The Code does not provide a comprehensive and complete explanation of all
expectations from a company standpoint or obligations from a stakeholder
standpoint. Tata employees have a continuing obligation to familiarise themselves
with all applicable law, group-level advisories and policies, company-level
policies, procedures and work rules as relevant. For any guidance on interpretation
of the Code, Tata seek support from our company’s Ethics Counsellor or from the
group’s Chief Ethics Officer, as appropriate.