Corporate Governance and Ethics in Tata Motors

UGB 364 Corporate
governance and Ethics

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Information about Tata Motors....................................................................................................3
Corporate Governance Internal Mechanism................................................................................4
External Mechanism- the role of institutional investors..............................................................4
Perspective of Stakeholder and Shareholder in context to ethics................................................4
Ethics and the Employees............................................................................................................5
Corporate governance failures and weaknesses that have led to the problems of TATA motors
and the consequences of weak corporate governance experienced.............................................5
Response of TATA motors to Corporate governance..................................................................7
System of Comparative Corporate Governance..........................................................................7
Issues of Globalization to the Comparative analysis and the Corporate Governance.................8
Ethical Behaviour Managing, Values and the Leadership...........................................................9
Corporate Social Responsibilities and Ethics towards the Global Context...............................10
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
The combination of rules, laws in the business, controlled, regulated is the corporate
governance. The environment of the business in the manner of professional ethics, principal and
the moral values (Ingale).
Thus, the report will include the information of Tata motors and its corporate governance
including the internal and the external mechanism. The report further evaluate the failures and
the weakness of the corporate governance. The report also evaluated the role of government
regulations in context with the corporate governance.
MAIN BODY
Information about Tata Motors
Nature- The nature of the company is that it provides a range of vehicles such as buses, trucks,
cars, defence vehicles, pickups and is leading the manufacturing across the global world.
Incorporation- Tata motors was incorporated on the 1 September 1945. It was registered under
the Indian Companies Act VII of 1913 as the name of the Tata Locomotive Engineering
company limited (SOLANKI, 2021). It is a public limited company and receive the
commencement certificate in the November 20, 1945.
Size- The organization of the Tata motors is more than $37 billion, it is one among the global
leaders in the auto-mobile sector.
History- Tata motors is the largest auto mobile company in India. It was situated in many
countries globally such as the UK, Thailand, South Korea, South Africa with the part of USD
113 billion. To the roads of India 9 million vehicles were the top passengers of the vehicle
manufacturer (SOLANKI, 2021).
Stock Market listing- Tata motors is listed on the Bombay Stock Exchange Limited, New york
Stock Exchange and the National Stock Exchange of India Limited. Company was the part of the
following indices such as the Nifty, BSE – 100, BSE – 200, S&P CNX 50.
Vision- The vision of the company is to deliver the best value service and the product through
the most reliable global networks for the suppliers and the customers.
Mission- To provide the best contactless platform sales to the customer which will allow them to
buy car from the comfort of the homes. It wants to provide the best quality vehicles to the
customers with the affordable price (Mahadev, 2019).

Corporate Governance Internal Mechanism
The internal mechanism of Tata motors including the board of directors, remuneration
structure and the non-executive directors in relation to the corporate governance. Company is
situated globally thus it is following the practice of corporate governance.
Board of Directors- To oversee the function of the company the shareholder constitute the apex
body in constitute with the Board of Directors (Furlotti and Mazza, 2020). To the management of
the company, Board of Directors provides guidance, leadership, strategic and the direction. To
create the value for long term period for the stakeholders it monitors the company's performance
(Furlotti and Mazza, 2020). Tata motors have currently the 6 directors in which 5 non-executive
directors are there and it includes the 2 women directors. 2 women independent directors were
included in the 3 independent directors and includes one non-executive chairman.
Remuneration Policy- To create a high performance culture company has designed a
remuneration policy. To attract and retain the employees the remuneration policy compliance
with the local regulations by supporting the mobility.
External Mechanism- the role of institutional investors
The role of the institutional investors in Tata motors is to manage the stocks, bonds, buy
and sell of stocks. The institutional investors play the role to put the shareholder interest prior
before the interest of the manager in the organization to put the long time interest in the
corporate governance (Nalukenge, Nkundabanyanga and Ntayi, 2018). To the clients the
institutional investors plays a big role in dealing with the large number of funds. To the
corporation of the public traded in the response to the corporate governance the investor engaged
by the institutional investors.
Perspective of Stakeholder and Shareholder in context to ethics
Tata motors adopts the approach of integrated thinking to create the values for its
stakeholders. The shareholders of the Tata motors are the promoters. Foreign institutes, central
government, public and many more (Ingale). The ethics and the corporate governance is
balanced to get higher interest. Collective actions were to be managed through the perspective of
interest without damaging the behaviour. It also takes care of maintaining a good control over the
responsibilities and the powers.