Review of Resource Management Group issue completed, action taken: TCS

Tata Consultancy Services (TCS) said that the company concluded the review to examine allegations pertaining to its Resource Management Group (RMG) functions and action against 19 employees have been taken.

“We would like to inform you that TCS has concluded its investigation and the following actions have been taken. Our investigation found 19 employees to be involved and action has been taken against all,” said the company in a regulatory filing.

TCS stated that of the 19 employees, 16 have been separated from the company for code of conduct violations, and three employees have been removed from the Resource Management function. Also, six vendor entities, their owners and affiliates have been debarred from doing any business with TCS.

The company also stated that as part of its attempt to enhance its governance efforts, certain measures have also been taken. This includes regular rotation of personnel performing key roles in the Resource Management function, enhanced analytics on supplier management, periodic declarations by vendors on compliance to the Tata Code of Conduct, and a 'know your supplier' process to cover additional declarations and vendor management process audits.

“We would like to reiterate that this does not involve any fraud by or against the company and there is no financial impact; the issue relates to breach of the company’s Code of Conduct by certain employees and vendors supplying contractors; and no key managerial person of the company has been found to be involved,” said the company in the statement.

In June this year, the company had informed the stock exchanges that RMG does not handle the recruitment requirements of the company and that the company is looking into the issue where a breach of code of conduct was found by some employees and vendors providing contractors.

“As a Tata Group company, we have a zero-tolerance policy towards such unethical conduct and the actions of these individuals do not reflect our values. We expect all our stakeholders and our employees to strictly adhere to the Tata Code of Conduct, which forms the bedrock of our integrity,” said the regulatory filing.

The management had shared during the media briefing post the Q2 FY24 results that the review was completed and appropriate action has been taken against those who violated the code of conduct.