ASSOCIATION OF BUSINESS EXECUTIVE (UK)
FORTUNE SCHOOL OF TECHNOLOGY AND MANAGEMENT SINGAPORE
CORPORATE MANAGEMENT INACTION ASSINGMENT ON TATA CONSULTANCY SERVICES
Submitted By: Prashant Singh
ABE MEMBERSHIP NO: W09527 EXECUTIVE SUMMARY 1
TCS was started as the “Tata Computer Centre” a dissection of the Tata group whose chief business was to offer computer services to other concerns. TCS marked a tremendous growth with marking its presence in 34 countries across 6 continents, with an absolute range of services across diverse industrial fields. TCS ranked in top ten in the fortunes rank list for the year 2009.The concern shaped consolidated income of US $5.7 billion for economic year ended 31 March 2009 and is listed on the Bombay Stock Exchange and National Stock Exchange in India. TCS expanded into China, Hungary, Brazil, and Mexico in order to incarcerate the opportunities in financial services and services like Remote Infrastructure management and BPO in those countries, TCS always offered a unique manner to its global customers by positioning its brand in the worldwide market. The zenith of all these lead to the concern’s contributions of TM Global Network Delivery Model(GNDM) across Europe, China, India, US and Latin America as well as incorporated full overhaul offerings, all backed by the promise of certainty of experience for customers. By 2007, the value enunciation of “Experience certainty” was officially initiated, acknowledged and authenticated by global customers. TCS is always keen in upholding the strategic relationships with various International technology vendors. These relations are distinguished in various magnitudes such as service provider, customer, supplier, and alliance partner. Corporate governance helps to serve corporate purposes by providing a framework within which stakeholders can pursue the objectives of the organisation most effectively. Corporate governance signifies acceptance by management of the inalienable rights of shareholders as the true owners of the organisation and of their own role as trustees on behalf of the shareholders.
Table of Contents INTRODUCTION:...............................................................................................................4 2
LITERATURE REVIEW........................................................................................................5 GLOBALIZATION OF TCS...................................................................................................8 STRATEGIC ALLIANCES:..................................................................................................10 CORPORATE SOCIAL RESPONSIBILITY & SUSTANIBILITY.................................................12 TCS ETHICAL ISSUE (TATA CODE OF CONDUCT)............................................................14 CORPORATE GOVERNANCE............................................................................................17 EXTERNAL ENVIOURMENTAL FACTOR OF TCS (PESTEL ANALYSIS).................................18 REFLECTION:..................................................................................................................21 CONCLUSION..................................................................................................................22 REFERENCES..................................................................................................................23 APPENDIX 1....................................................................................................................24 LEARNING LOG............................................................................................................24 APPENDIX 2....................................................................................................................29 CORPORATE GOVERNANCE.........................................................................................29 CORPORATE GOVERNANCE
INTRODUCTION:
3
Being a employer of such well reputed company and TCS follows all the ethics and limitation to make its company to reach to its highest desired level ,so this is the reason to take a case on this company. Tata Consultancy Services Limited (TCS) is an Indian IT services, business solutions and outsourcing company headquartered in Mumbai, India. TCS is the largest provider of information technology in Asia and second largest provider of business process outsourcing services in India. TCS has offices in 47 countries with more than 142 branches across the globe. The company is listed on the National Stock Exchange and Bombay Stock Exchange of India.TCS is one of the operative subsidiaries of one of India's largest and oldest conglomerate company, the Tata Group or Tata Sons Limited, which has interests in areas such as energy, telecommunications, financial services, manufacturing, chemicals, engineering, materials, government and Ratan N Tata has been the Chairman of Tata Sons, the holding company of the Tata Group, since 1991. He is also the Chairman of the major Tata companies including Tata Motors, Tata Steel, Tata Consultancy Services, Tata Power, Tata Tea, Tata Chemicals, Indian Hotels and Tata Teleservices. During his tenure, the group’s revenues have grown over 13-fold to annualized group revenues of over $80 bn. In the early 1970s, Tata Consultancy Services started exporting its services. The company pioneered the global delivery model for IT services with its first offshore client in 1974. TCS's first international order came from Burroughs, one of the first business computer manufacturers. TCS was assigned to write code for the Burroughs machines for several US-based clients. This experience also helped TCS bag its first onsite project - the Institutional Group & Information Company (IGIC), a data centre for ten banks, which catered to two million customers in the US, assigned TCS the task of maintaining and upgrading its computer systems.(Chandrasekaran N., 2011)
LITERATURE REVIEW GLOBAL NETWORK DELIVERY MODEL 4
Global Network Delivery Model is the engine that allows providing reliable, scalable and costeffective delivery of services and solutions. This time-tested model has helped to achieve a client satisfaction rating of 89% for meeting quality expectations and an average project budget variation of just 3%, both figures ranging far higher than industry standards. With TCS' Global Network Delivery Model, customer can •
Choose a sourcing strategy best suited to the most important business considerations, e.g., cost optimization, cultural alignment, proximity of location, language capabilities or risk mitigation.
•
Assure of the highest quality of service regardless of the mix of services, technologies and locations.
•
Lower the Total Cost of Ownership (TCO) of Information Technology by managing different service streams. The Global Network Delivery Model consists of three integrated components:
1. Global Workforce ➢ Highly effective and scalable talent management: recruiting, staffing, training and retention 2. Integrated Processes ➢ CMMI Level 5 quality processes ➢ World-class security procedures ➢ Project Management processes and tools (iQMS, etc.)
3. Multi-Tiered Infrastructure ➢ Multi-continental and interconnected global development center network (local, regional,
global model) to allow for better risk management and follow-the-sun coverage ➢ State of the art telecommunications network ➢ Global collaboration tools.(Kavita, 2009)
STRATEGIC ALLIANCES A Strategic Alliance is a relationship between two or more parties to pursue a set of agreed upon goals or to meet a critical business need while remaining independent organizations. 5
Partners may provide the strategic alliance with resources such as products, distribution channels, manufacturing capability, project funding, capital equipment, knowledge, expertise, or intellectual property. The alliance is cooperation or collaboration which aims for a synergy where each partner hopes that the benefits from the alliance will be greater than those from individual efforts. The alliance often involves technology transfer (access to knowledge and expertise), economic specialization, shared expenses and shared risk.(Gerry Johnson, 2008)
CORPORATE SOCIAL RESPONSIBILITY Social responsibility is an ethical ideology or theory that an entity, be it an organization or individual, has an obligation to act to benefit society at large. This responsibility can be passive, by avoiding engaging in socially harmful acts, or active, by performing activities that directly advance social goals. Businesses can use ethical decision making to secure their businesses by making decisions that allow for government agencies to minimize their involvement with the corporation. For instance if a company is proactive and follows the United States Environmental Protection Agency (EPA) guidelines for emissions on dangerous pollutants and even goes an extra step to get involved in the community and address those concerns that the public might have; they would be less likely to have the EPA investigate them for environmental concerns
ETHICAL ISSUE A problem or situation that requires a person or organization to choose between alternatives that must be evaluated as right (ethical) or wrong (unethical) Business ethics (also known as corporate ethics) is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations.(Gerry Johnson, 2008)
CORPORATE GOVERNANCE is the set of processes, customs, policies, laws, and institutions affecting the way a corporation (or company) is directed, administered or controlled. Corporate governance also includes the relationships among the many stakeholders involved and the goals for which the corporation is governed. In contemporary business corporations, the main external stakeholder groups are shareholders, debt holders, trade creditors, suppliers, customers and communities affected by the 6
corporation’s activities. Internal stakeholders are the board of directors, executives, and other employees.(Gerry Johnson, 2008)
PESTEL ANALYSIS Examines the political, economic, socio-cultural, technological, (physical) environmental and legal forces within which businesses operate and which act on them There are many factors in the macro-environment that will affect the decisions of the managers of any organisation. Tax changes, new laws, trade barriers, demographic change and government policy changes are all examples of macro change. To help analyse these factors managers can categorise them using the PESTEL model.(Gerry Johnson, 2008)
GLOBALIZATION OF TCS GLOBALIZATION TESTING SERVICES TCS launches products and portals simultaneously across geographies, to ensure that they meet diverse lingual and regional requirements. TCS has the right approach to scale operations optimally and deliver quick time-to-market solutions. Tata Consultancy Services (TCS) is Globalization (G11N) Testing Services to aid rapid product and portal rollout across markets. Leveraging the 7
proven experience, talent pool, ready-to-use assets and tools, and outsourcing expertise, we ensure quick scalability of products, without a corresponding increase in investments.
GLOBAL STRATEGIES TCS reconstructed its structure towards its global operations to implement a Customer centric and integrated approach which is anticipated to assist in avoiding the risk factors arising from the Economic Meltdown in western countries. TCS’s operation units are mainly divided into five main divisions. The well established markets are North America, U.K and Western Europe and the new markets are Latin America, Middle East, India and Eastern Europe. The new restructured plan was considered as the very good change by the TCS as it is attaining impetus in Europe and other markets, which is obvious in the company’s marked growth rate of 40% every year. The operations In Middle East and Latin America had also seen a substantial growth. TCS had built new delivery and offshore centres in Latin America like Uruguay, Mexico and Brazil.
OVERVIEW The world has truly evolved into a ‘global village’, compelling enterprises to meet market needs at the international as well as local levels. This calls for an increase in resources and investment, which could escalate the development costs. TCS is equipped with a comprehensive testing facility, complete with localized operating systems and globalization experts, to help address your issues. Its global reach, comprehensive G11N testing process, globalization testing talent, and a Foreign Language Group, comprising experts for language training help to release software products and websites in multiple languages.
BENEFITS OF GLOBALIZATION •
Maximizing your gains and enhancing global business, our offering brings with it several advantages. These include:
•
Reduced product development and support costs, through efficient testing and deployment of exhaustive I18N and L10N checklists;
•
Reduced G11N testing cycle time and quicker time-to-market for your products by leveraging our test automation framework, RAFT;
•
Performance predictability, as we undertake rigorous testing; Flexible engagement models, which allow the necessary scalability.(Chandrasekaran N., 2010) 8
STRATEGIC ALLIANCES: TCS is always keen in upholding the strategic relationships with various International technology vendors. These relations are distinguished in various magnitudes such as service provider, customer, supplier, and alliance partner. The relationships with the international technology vendors have made TCS to maintain a holistic. TCS made a joint venture with these vendors on joint research influencing each other strengths to research and to develop the best breed offerings. Joint advancing engagements, significantly new or improved solution, Joint go-to-market strategies for the solutions.(Satyaprakash, 2008)
1. ACQUISITION STRATEGY: TCS is concentrating the growth in two ways the organic means and inorganic means. The Inorganic way is in the course of acquisitions of companies which craft business sense to 9
TCS. The concerns should adjoin great value to TCS. The Business with CMC is assisting TCS taking a very sharp gaze to the domestic Industry. Both companies have synergies in the government sector. They made various agreements with various companies some of them are the agreement with the citi group to transfer 12,000 employees in banking sectors for cash and external support in IT. Tata InfoTech Limited (TIL) was merged in early 2006. It was also a software service company like TCS which have branches around the world like America, Europe and Australia. Comparable to the financial venture made greater than, TCS yet again prolonged its banking commodities and shared its European operations after attaining a 75% equity wager in its Switzerland-based partner, TKS- Tekno soft. TKS was the marketing representative for TCS in Europe. TCS: 2.
CO INNOVATION NETWORK (COIN): TCS is following a coin strategy in order to face the competition as the globalisation has created a elevated competition among the IT companies. It is necessary for the IT companies in order to follow an innovative technology thus resulted in the Advanced Information and Communication Technology which made practicable for companies to collaborate and perform “Globally Distributed Network (GDN)”. TCS it is the customer driven innovation network where the participants are delivery rudiments and explorations.(Richa, 2010)(TCS, 2010)
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CORPORATE SOCIAL RESPONSIBILITY & SUSTANIBILITY TCS set up the 'Adult Literacy Programme' to help the Indian government eradicate illiteracy, a major social concern affecting a third of the Indian population comprising of old and young adults. TCS believe in developing innovative methods using theories of cognition, language and communication to make people literate within the next five years. TCS is committed in using computers and IT as the medium to facilitate the process, monitor administration and manage logistics.
TCS ENVIRONMENTAL POLICY TCS regards climate change mitigation and environmental improvement as essential features of its sustainable business philosophy.TCS aims to fulfil our environmental commitments through the following broad-level actions: •
Integrate energy and environmental considerations in the design of new infrastructural facilities
•
Improve resource efficiency in operations, especially for key resources such as energy and water 11
•
Adopt the "3-R" (reduce, reuse and recycle) philosophy for all types of wastes toward prevention of pollution and dispose of "inevitable" wastes, especially electronic waste, in line with regulatory requirements or industry best practices
•
Promote "green procurement" to the maximum extent possible
•
Consider stakeholder expectations on our environmental performance in the design of infrastructure, operations, processes and solutions to the extent feasible
•
Set, monitor and review objectives and targets on an ongoing basis toward achieving continuous improvement in environmental performance and the overall environmental management system
•
Remain committed to complying with all the applicable environmental and related legal and other requirements and, wherever feasible, enhance the prescribed standards in all the countries that we operate out of
•
Continue public reporting of our environmental performance and our contribution to climate change-related issues through relevant national and international forums and to other stakeholders through appropriate communication channels
•
Communicate the environmental policy to all employees, business associates and other stakeholders and ensure that the policy is available to the public
•
Review the environmental policy and allied management systems periodically to ensure their continuing applicability and relevance to our operations and evolving stakeholder expectations
•
Strive to support various voluntary national and international protocols, conventions and agreements on environment protection and proactively engage with governmental and other agencies in driving future environmental policy and regulation At TCS, concern for the environment is integral to our business strategy toward sustainability, and we shall strive to fulfil all our environmental obligations and commitments toward being responsible global corporate citizens.
WASTE REDUCTION POLICY
12
At TCS, we are committed to reducing the environmental impact of our operations through appropriate ongoing material management. This calls for a conscious effort across TCS in the following areas: •
Reduction water at source: Printing reports and documents, whenever possible, on both sides of the paper. Updating mailing and distribution lists periodically to avoid overrun; use of e-mail whenever appropriate Giving preferential purchasing consideration to products that are reusable, refillable, repairable, more durable, less toxic, recyclable and which avoid excess packaging.
•
Reuse of material wherever possible: All products and materials must be reused wherever possible.
•
Recycling: It is the responsibility of every associate to separate identified recyclable materials and place them in appropriate recycling containers.
•
Purchasing products with recycled content: All offices across TCS must purchase and use products manufactured from recycled materials whenever feasible. (TCS, 2010)(Anil, 2005)
TCS ETHICAL ISSUE (TATA CODE OF CONDUCT) FINANCIAL REPORTING AND RECORDS A Tata company prepare and maintain its accounts fairly and accurately in accordance with the accounting and financial reporting standards that represent the generally accepted guidelines, principles, standards, laws and regulations of the country in which the company conducts its business affairs. Internal accounting and audit procedures fairly and accurately reflect all of the company’s business transactions and disposition of assets. Competition A Tata Company is fully strived for the establishment and support of a competitive open market economy in India and abroad and shall cooperate in the efforts to promote the progressive and judicious liberalisation of trade and investment by a country.
Equal Opportunities Employer
13
A Tata company provide equal opportunities to all its employees and all quailed applicants for employment, without regard to their race, caste, religion, colour, ancestry, marital status, sex, age, nationality, disability and veteran status.
Gifts and Donations A Tata company and its employees neither receive nor over or make, directly or indirectly, any illegal payments, remuneration, gifts, donations or comparable benefit that are intended to, or perceived to obtain business or uncompetitive favours for the conduct of its business.
Political Non-alignment A Tata company is committed to and support a functioning democratic constitution and system with a transparent and fair electoral system in India.
HEALTH, SAFETY AND ENVIRONMENT A Tata company strives to provide a safe and healthy working environment and comply, in the conduct of its business affairs, with all l regulations regarding the preservation of the environment of the territory it operates in.
QUALITY OF PRODUCTS AND SERVICES A Tata company is committed to supply goods and services of the highest quality standards backed by efficient after-sales service consistent with the requirements of the customers to ensure their total satisfaction.
Corporate Citizenship A Tata company is committed to be a good corporate citizen not only in compliance with all relevant laws and regulations but also by actively assisting in the improvement of the quality of life of the people in the communities in which it operates with the objective of making them self-reliant.
PUBLIC REPRESENTATION OF THE COMPANY AND THE GROUP A Tata company honours the information requirements of the public and its stakeholders. In all its public appearances, with respect to disclosing company and business information to public constituencies such as the media, the financial community, employees and shareholders, a Tata company or the Tata Group shall be represented only by specifically authorised directors and employees. 14
SHAREHOLDERS A Tata company is committed to enhance shareholder value and comply with all regulations and laws that govern shareholders’ rights. The board of directors of a Tata company have duly and fairly inform its shareholders about all relevant aspects of the company’s business and disclose such information in accordance with the respective regulations and agreements.
REGULATORY COMPLIANCE Every employee of a Tata company shall, in his business conduct, comply with all applicable laws and regulations, both in letter and in spirit, in all the territories in which he operates. If the ethical and professional standards set out in the applicable laws and regulations are below that of the code, then the standards of the code shall prevail.
PROTECTING COMPANY ASSETS The assets of a Tata company never be misused but employed for the purpose of conducting the business for which they are duly authorised. These include tangible assets such as equipment and machinery, systems, facilities, materials, resources as well as intangible assets such as proprietary information, relationships with customers and suppliers, etc.(TATA, 2010)(Sk, 2010)
15
CORPORATE GOVERNANCE Corporate governance helps to serve corporate purposes by providing a framework within which stakeholders can pursue the objectives of the organisation most effectively. Corporate governance signifies acceptance by management of the inalienable rights of shareholders as the true owners of the organisation and of their own role as trustees on behalf of the shareholders. By combining ethical values with business acumen, globalisation with national interests and core business with emerging business, the Company aims to be amongst the largest and most respected global organisations. The Company will continue to focus its resources, strengths and strategies to achieve its vision of becoming a truly global leader in software services, while upholding the core values of excellence, integrity, responsibility, unity and understanding, which are fundamental to the Tata companies. The Company has a strong legacy of fair, transparent and ethical governance practices. The Company has adopted Code of Conduct for its employees including the Executive Directors and the Managing Director. In addition, the Company has adopted a Code of Conduct for its Non-Executive Directors. Both these codes are available on the Company’s website. The Company’s corporate governance philosophy has been further strengthened through the Tata Business Excellence Model, the Tata Code of Conduct for Prevention of Insider Trading, as also the Code of Corporate Disclosure Practices. The Tata Code of Conduct for Prevention of Insider Trading has been amended during the year in line with the amended Securities and Exchange Board of India (SEBI) Regulations 16
in this regard. The Company has in place an Information Security Policy that ensures proper utilisation of IT resources. The Company is in compliance with the requirements of the guidelines on corporate governance stipulated under Clause 49 of the Listing Agreements with the Stock Exchanges. With the adoption of a Whistle Blower Policy and the setting up of a Nominations Committee and an Executive Committee of the Directors, the Company has moved ahead in its pursuit of excellence in corporate governance.(Chandrasekaran N, 2010)(Chandra, 2009) (For more details please refer appendix 2)
EXTERNAL ENVIOURMENTAL FACTOR OF TCS (PESTEL ANALYSIS) POLITICAL: The three major revenue zones of TCS are US, Europe and India. The political structure in India is constant as the ruling party started to rule again after a majority win in the 2009 General Election which is a positive view for the company as the political influence will remain constant in this zone. In US the government had announced a new rule on outsourcing as the companies which outsource the work outside US; they will not get the Tax benefits which even creates a negative phase. TCS is very well established in US as it can work from US itself, But even then the ratio of outsourcing the new projects will be much reduced in future. The government organizations and PSU had decided to give more domestic projects to TCS which is positive strategy.
ECONOMIC: The Steady fluctuation in the International market and the fluctuation in the country’s currency rate are considered to be the major negative influences. The Global meltdown which paused the IT’s vigorous growth had reduced the IT business internationally. But even then the TCS and other firms where managed to maintain their breakeven profits. The Domestic Markets had grown by 20% and approximately reached USD 25 billion in 2009-10 which was estimated by NASSCOM which is an advantage for the Indian companies in order to maintain the equilibrium. The crash in the Real estate 17
market is also considered as one of the advantages for the companies as they can buy sites for new branches for lesser rates and the reduction in the Rental costs. The rapid increase in the complexities in IT Industry, the new innovative services and products from competitors. The new competitors entering the IT market is not a very big threat but also to be taken in account. SOCIAL: English is taken as the official language of TCS which made the organization to make the business dealings with the English speaking nations like US and Western Europe. The manpower available in India is an added advantage for the Indian IT firms. The availability of Technicians in India is bit more than the resources available to the other countries. India is going to lead the next twenty years of spam for holding the highest working population globally, which is a major advantage for all the IT companies. The recent job cuts in US and other European countries where TCS widen their business boundaries which lead to give new job offers to the native peoples, which created a soft bond towards the company. The availability of high quality manpower globally, the frequent and rapid transform in consumer lifestyles, the improvement in the relationships between the clients. Technological: India is considered to be a well developed country in the telecommunication field which provides the lowest call rate(1-2 US cents)which makes Indian firms like TCS to thrive high in the field of BPO, as the core of these business is to communicate among customers and company representatives. India holds the largest population with mobiles and an average population expected to have the subscriber base of 503 million the end of 2010. TCS holds its global head quarters in India which has the highest telephone network after china.TCS is much more concentrating in the next generation on wireless which the global technology is attracted towards that. Strategic Partners •
Microsoft - Global System Integrator Partner
•
IBM - Global System Integrator Partner\
•
Oracle - Global System Integrator and Global Certified Advantage Partner
•
SAP - Global Consulting Partner
Growth Engine Partners •
Siebel - Consulting Partner
•
SUN - System Integrator Partner, GSS Partner
•
BEA - TCS is BEA’ Strategic Partner
•
Web Methods - Global System Integrator, Preferred Offshore Partner 18
LEGAL: IT firms in India is frequently facing the legal issues from the employees and other mutual competitors, Each Indian IT Company is extended their boundaries globally and have their own global HR policies, all the IT companies including TCS have undergone the issue of legal bonding made to make the employee to stick into their companies for long term which is an negative aspect on TCS. Except in US TCS is getting tax benefits globally. \
Environmental The Environmental concern of TCS shoots from the Tata Group which is also added in the “Code of Conduct”. TCS considers the change in the climate is considered as the main aspect which affects the economic stabilities. TCS is much more concentrated on the environmental issues like global warming, energy utilization, water consumption and etc.(Ariandam, 2007)
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REFLECTION: One lesson that can be learnt from TCS is that large corporations are never out of the limelight, even when conducting business in developing countries many thousands of miles from global headquarters. Public concern over multinational (mal)practice has grown in recent years, and as such any large company must be prepared to take full responsibility for its actions and be held fully accountable at all times. As such, TCS knows how to treat its protestors and the media. While the allegations remain unproven, it seems that the company is understandably acting defensively. However, a refusal to accept that there is a problem, or to take on board what the protestors are saying, might ultimately do the TCS brand more harm than a CSR programme does good. Which leads to the final issue arising from this case study, and that is the nature of “corporate social responsibility.” TCS India’s “afterprofit” initiatives are undoubtedly serving poor communities and benefiting many people. Yet there is still great dissatisfaction regarding the company’s “before-profit” behaviour, whether the allegations are valid or otherwise. Indeed, the manner in which a company makes its money is still more important to people in the vicinity of a plant than how the company spends or reinvests its profits later. Therefore CSR might be better understood as charitable after-profit investments only when before-profit policy and practice is environmentally, and socially, responsible. Today world is technology renounced world and all the things have its advantage and disadvantage side by side in action but as I am employee of TCS and much flourish by globalization as it take over or have joint venture,alliances with many globalize company.
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CSR
is duly done by TCS nationally as well as internationally that influence many other
organization to take a social responsibility and it follows its own and government issue for the welfare of society. This is the main reason why I have chosen TCS as my company because I can learn much responsibility toward society and to take the any firm to its highest level.
CONCLUSION This described how innovation in action can be a win-win situation for all parties in the network. However the benefits of global cooperation and co-innovation have been barely scratched. While attempts by TCS to develop a client driven but open and uncontrolled innovation network has no doubt been commendable, many argue that a linking together of all regional and corporate networks into a truly unique and global giant network could be the holy grail of innovation network development. This would be similar to how linking together of all information networks led to the formation of the World Wide Web. However, many questions on the sustainability and management of such a vast uncontrolled network towards delivery of the perceived advantages, remain.But one thing is for sure, that we should brace ourselves for a future revolution in global innovation.
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REFERENCES Anil, 2005. TCS committed to CSR, says company report. Business Standard. Ariandam, D.C., 2007. TCS Enviourmental stratagies. Business outlook . Chandra, D.S., 2009. In Corporate Governance: Codes Systems. PHI Learning Pvt. Ltd. Chandrasekaran N., 2010. Globalization Testing Services. [Online] Available at: http://www.tcs.com/SiteCollectionDocuments/Brochures/HiTech_Brochure_Globalization _Testing_Services_09_2010.pdf. Chandrasekaran N., 2011. About us. [Online] Available at: http://www.tcs.com/. Chandrasekaran N, 2010. Annual Report 2009-2010. [Online] Available at: http://www.tcs.com/investors/Documents/Annual%20Reports/TCS_Annual_Report_20092010.pdf. Gerry Johnson, K.S.W., 2008. In P. Education, ed. Exploring Corporate Strategy. 7th ed. Kavita, S., 2009. Global netwotk delivary model. In Organizational Behaviour. Pearson Education India. Richa, B., 2010. Tata Consultancy Services global alliance & patnership. Satyaprakash, S., 2008. TCS form strategic alliance. Economic Times. Sk, M., 2010. Responsibility For Business in Ethics. In Ethics In Business & Corp Governance. Tata McGraw-Hill Education. TATA, 2010. TATA Code of Conduct. [Online] Available at: http://www.tcs.com/SiteCollectionDocuments/About%20TCS/TCS_Associates_Code.pdf. TCS, 2010. Corporate Sustainability. [Online] Available at: http://www.tcs.com/about/corp_responsibility/Pages/default.aspx.
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TCS, 2010. Thunderhead and TCS Form Global Strategic Alliance. [Online] Available at: http://www.tcs.com/news_events/tcs_news/Pages/Thunder-head-TCS-Form-GlobalStrategic-Alliance.aspx.
APPENDIX 1 LEARNING LOG
23
Sr. No.
Date of event
1
16
th
March 2011
What was The development activity?
What was I Expecting to learn?
Cultural Organizational culture, cultural Environments behaviour Facing The
What have I Learnt?
How will I Apply this learning?
International cultural factors and problems.
Business 2
17
th
March 2011
3
17
th
March 2011
4
18
th
March 2011
Organizations follow the political and legal assessment according I have enlighten to geographic the PESTLE in variation. this assignment Facing which TCS has implemented in Business different countries. Economic analysis Many economic The and consequences of issues, including Economic taxes, regulations and economic change trade, affect the Environments business Facing environment. Business Political Political and legal factors which affect and Legal the business. Environments The
Globalization and Society
Globalization of the FDI, Global ethical After organization issues, Corporate globalization Social Responsibility market share, reputation, outsourcing increased of TCS. Ethically TCS is strong and social responsible.
24
Sr.
Date of
What
was What
was
No.
event
The
Expecting
development
learn?
I What
have
to Learned?
I How
will
Apply
I
this
learning?
activity? 5
18
th
March 2011
Trade theory of international trade, Trade and product life cycle, factor mobility mobility theory International
10 theories of international trade.
Not covered in this assignment.
theory. 6
7
23
rd
March
influence
2011
trade
24
th
Government policies Government role in Not covered in this and effects. influencing assignment. on international trade.
Government
Cross-
March
National
2011
Cooperation
Economic integration,
WTO and major regional trading groups
Not covered in this assignment.
Foreign exchange and market
Type of market and Not covered in this Foreign exchange assignment. trading process
and Agreements. 8
25
th
Global
March
Exchange
2011
Market
25
26
Sr.
Date of
What
was What
was
No.
event
the
expecting
development
learn?
I What
have
to learned?
I How
will
apply
I
this
learning?
activity? 9
25
th
March 2011
International monetary firm and Determination exchange rate. of Exchange The
Exchange rates and Not covered in this related factors assignment.
Rates 10
11
12
30
th
Risks
Country
March
Evaluation
2011
and Selection
th
Export
March
Import
2011
strategies.
30
31
st
Scanning and evaluating risks
Not covered in this assignment.
Strategies, brokers and technology.
Not covered in this assignment.
Modes of international business
Joint venture, alliances and collaboration.
TCS has done some important alliances which increase its business.
Organization operation and structure
Structure type and culture.
Not covered in this assignment.
and Export and Import and its factors
Direct
March
Investment
2011
and collaborative strategies.
13
1
st
April The
2011
Organization of International Business
27
28
Sr.
Date of
What
was What
was
No.
event
The
Expecting
development
learn?
I What
have
to Learned?
I How
will
Apply
I
this
learning?
activity? 14
6
th
April
Marketing Globally
Marketing strategies Marketing mix and orientation
Not covered in this assignment.
2011 15
7
th
Global
April
Manufacturing
2011
and
Strategy of supply and chain
Control and sourcing Not covered in this assignment.
HR management functions and importance
Expatriates and functions
Business level, international, evaluative, innovation
Importance and Not covered in this working of strategic assignment. choices.
supply
chain management 16
17
7
th
Human
April
Resource
2011
Management
8
th
April 2011
Strategic Choice
Not covered in this assignment.
29
Sr.
Date of
What
was What
was
No.
event
The
Expecting
development
learn?
I What
have
to Learned?
I How
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activity? 18
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Strategy Action
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Corporate Governance
in Processes, resourcing, practice, Changing, structuring,
Strategy in action is Not covered in this concerned with assignment. ensuring that strategies are working in practice.
Importance and practices.
Working of corporate TCS has effective governance corporate governance which has made it global leader.
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APPENDIX 2 CORPORATE GOVERNANCE Board of Directors All departments of the Company schedule their work plans in advance, particularly with regard to matters requiring consideration at the Board/Committee Meetings. All such matters are communicated to the Company Secretary in advance so that the same could be included in the Agenda for the Board/Committee Meeting Post meeting follow-up mechanism: Important decisions taken at the Board/Committee Meetings are promptly communicated to the concerned departments. Action Taken Report on decisions/minutes of previous meetings is placed at the succeeding meetings of the Board/Committee for noting.. Audit Committee (i) The Audit Committee of the Company is constituted in line with the provisions of Clause 49 of the Listing Agreements with the Stock Exchanges read with Section 292A of the Companies Act, 1956. (ii) The terms of reference of the Audit Committee are broadly as under: •
Overview of their company financial reporting and the disclosure of its financial information to ensure that the financial statements reflect a true and fair position and that sufficient and credible information is disclosed.
•
Recommending the appointment and removal of external auditors fixation audit free also approval for payment for any other services.
•
Discussion with external auditors before audit commences, of the nature and scope of audit as well as post-audit discussion to ascertain any area of concern.
•
Reviewing the financial statement and draft reports audit report including the quarterly half yearly financial information
•
Reviewing with the management the annual financial statement before submission to the board 31
Focusing primarily on: ➢ Any changes in accounting policies and practices; ➢ major accounting entries based on exercise of judgment by management; ➢ qualifications in draft audit report; ➢ significant adjustments arising out of audit; ➢ the going concern assumption; ➢ compliance with accounting standards; ➢ compliance with stock exchange and legal requirements concerning financial statements; ➢ any related party transactions as per Accounting Standard 18 •
Reviewing the company financial and risk management policies.
•
Disclosure the contingent liabilities.
Remuneration Committee The broad terms of reference of the Remuneration Committee are as under: •
To the approval the annual remuneration plan of the company.
•
Approve the remuneration and commissionincentive remuneration payable to the Managing Director each financial year.
•
Approve the remuneration and annual performance bonus payable to the chief financial officer and the Executive Vice Presidents of the Company for each financial year;
Shareholders/Investors Grievance Committee The Company has always valued its customer relationships. This philosophy has been extended to investor relationship and an Investor Relations Department (IRD) was set up in June 2004, prior to the Company’s Initial Public Offer of shares. The IRD focuses on servicing the needs of investors, analysts, brokers and the general public. Other Committees 1. Ethics and Compliance Committee: In terms of the Company’s Code of Conduct for Prevention of Insider Trading and Code of Corporate Disclosure Practices (Insider Trading Code) to be followed by the Directors, Officers and other employees, the Company has an Ethics and Compliance Committee of Directors. The 32
Committee considers matters relating to the Insider Trading Code and also considers matters relating to the Company’s Code of Conduct (CoC). 2. Bank Account Committee: The Company has a Bank Account Committee of Directors to approve of the opening and closing of bank accounts of the Company and to authorise persons to operate the bank accounts of the Company. 3. Nominations Committee The Nominations Committee is responsible for making recommendations regarding the composition of the Board and in this regard shall identify Independent Directors to be inducted to the Board and take steps to refresh the composition of the Board from time to time. 4. Executive Committee: The Company has an Executive Committee of Directors. The Executive Committee’s role covers a detailed review of the following matters before these are presented to the Board: ➢ Business and strategy review. ➢ Long term financial projection and cash flow. ➢ Capital and revenue budgets and capital expenditure programme. ➢ Acquisition divestments and business restructuring proposal. 5. Risk Management Committee: The Risk Management Committee is responsible for advising the Company on foreign exchange matters and framing the broad guidelines for investment of surplus funds of the Company Disclosures The Board has received disclosures from Key Managerial Personnel relating to material, financial and commercial transactions where they and/or their relatives have personal interest. There are no materially significant related party transactions of the Company which have potential conflict with the interests of the Company at large.
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