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Communicating value to the stake holders: A Case Study

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Communicating value to the stake holders: A Case Study of TATA Steel Company Ltd. The study finds that Tata Steel’s outlook is to mitigate possible challenges and avail every opportunity. Longterm steel demand is expected to be slightly better off, driven by a steady construction sector due to the collapse of the Eurozone economies. Now Check More details about “Communicating value to the stake holders” from below….

Communicating value to the stake holders: A Case Study

The value of an organization depends upon the number of factors, financial or tangible in nature and intangibles like people, natural resources, intellectual capital, markets and competition etc. It is easy to account of the financial or tangibles, where as it is difficult to measure the intangibles. Then the concept of integrated reporting was emerged. It facilitates to an organization to furnish the information with a transparency regarding utilization of its resources and relationships to generate, preserve and grow value in short, medium and long term. This information is useful to investors to manage risks and allocate resources most efficiently.

Objectives of the Study

After verifying the existing literature no author was disclosed the holistic approach for integrated reporting for this the following objectives adopted

  1. To examine the integrated reporting practices followed by the Tata Steel Company Ltd.
  2. To offer a suitable suggestions to have a holistic approach or frame work to adoption of integrated reporting practices by the different organizations.

Methodology of the Study: The data collected from the secondary sources through the journals and website of TATA Steel company Ltd

Case Study of Tata Steel Company: The Tata Steel Company adopts six step procedure for integrated reporting.

1. Organizational Overview of Business Model:

The business of Tata Steel spread across the India, Europe and South-East Asia. The EBITDA 11,698 crore against 11,559 in previous year, best performance in hot metal, crude steel, saleable steel production and sales, installation of LD=3 furnace (1 million tonnes) ,introduction of TATA Astrum for same market, enhanced profit in Ferro Alloys and minerals division .The best performance of Tubes division as a SBU (Strategic Business unit) increased capacity by 0.6 million tones in the next 5 years to reach to 1 million tones, Green field steel project in Odisha as a new subsidiary of Tata Steel Odisha Limited with an amount of Rs 22 800 core, adopted TQM in the year 2012 and under take the brown field expansion. Firm in Europe increased its sales by 20 percent over the past two years. It comprises of manufacturing hubs and integrated businesses. Nat steel consists of 66 percent of value added products, TSTH (Tata steel Thailand) increased its market share from 25 percent to 29 percent, due to strong construction growth in Thailand. It witnessed lowest ever lost time injury frequency rate (LTIFR) of 0.46 with zero facility. Ameliorated its EBITDA performance by 2.5 times

2.Operating contexts, Risks and Opportunities:

The company increases the performance of mines by enhancing its productivity, improve the labour productivity per tonne base with same work force, establishment of training centre, prepare a successful entrepreneurs in the material supply, promotion of self help groups by women in green field project, jamshedpure. Global Wire Business (GWB) as a separate profit centre earned a revenue of US 496 million $ on sale of 535 ktp. Tata growth shop (TGS) a multi disciplinary engineering complex saves an amount of 100 crore through innovative solutions for both design and procurement. The agro division has been operating from 1923 to reach the Indian house holds

3. Strategic Objectives and Strategies:

The long-term value created through the Continuous Improvement Programme consists of six components involving TQM and statistical tools –Throughput, value- in -use, energy efficiency, opportunistic plays, logistics and supply chain. The company maintains the branded product portfolio..The 14 new products launched in 2012-13, collaborate with the university of war wick for research. The company applied Trakker” (known as project and portfolio management) to design the new products. The company’s annual effective capacity will rise from 7.2 million tones to 7.7 millions of liquid steel. It has a greater responsibility towards environment, communities, employees safety and people, for this it takes a leading role in (EULCO) , and also it maintain a stability in terms of quality and availability and recognized reduce the risk against volatile prices, for this Bengal coal project

4. Governance:

The company follow the global practices in terms of code of conduct, appoint committees who review reports periodically and adopted the ethical and transparent governance approaches and zero tolerance towards corruption and unethical behavior. The company formulated management of business ethics comprises of four pillars : ie leadership, communication and awareness ,compliance structure and evaluation of effectiveness

5. Performance:

In this head the company projects a non financial performance indicators in terms of production and sales in million tones, capacity expansion volume in million tones p.a. awards and accolades, initiatives in (CSR Corporate Social Responsibility) health and safety, in terms of lost time injury frequency

6. Outlook:

The out look of the company is mitigate possible challenges and avail the every opportunity. The long steel demand is expected to the slightly better off, driven by a steady construction sector due to collapse of the eurozone economies. The south East Asia attract more demand for infrastructure projects, but there is a business risk with china likely to remain the largest exporter to South East Asia. The company plays its leadership position in Singapore and Thailand

7. Conclusion and Suggestions:

Every company should follow the practices of integrated reporting to project the financial as well as non financial information which is useful to the stakeholders, investors, policy makers, government banks and financial institutions. The organization should include the following factors i.e. (environmental management, climate change, water use, hazardous waste management. Waste management, product formulations, waste savings, employment, human rights, ethics, financial risk, product development, consumer requirements, capacity expansion in million tones, sales and production in volume, health and safety, business model, risks and opportunities, strategies, performance and final out look) in frame work of integrated reporting to view the overall position of the concerned organization.

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