The legacy of JRD continues

TATAs have been at the forefront of nation-building, even after 154 years their commitment to the people remains unflinching

It is not unbeknownst that the group was involved in nation-building since the time it was founded. The conglomerate whose credo didn’t imbue profiteering but generating wealth for the nation, making a profit, and then giving the wealth back to society. The technicalities of the prior pronouncement lie in the notion that no TATA family member is the largest shareholder of any TATA-run company, so no iota of personal wealth’s been racked up. Even the past chairmen had a very minimal stake in the company, commensurate to a zilch. The benedictions, it has earned for ages have helped the group build a positive brand image over the years, and honestly where would anyone find the amalgam of business and benevolence if not at the TATAs? Let’s find out the remaining ingredients for the dish.

One of the distinguishing features of the Tata group is the brand it has built for years. The brand goes beyond the markers of excellence and finds its solace in charity and the welfare of people. If you ever visit Jamshedpur (also known as Tatanagar) you’d be exhilarated to find how remarkably every Tata group company houses its employees and provides standard amenities to the workforce, and it’s not a recent phenomenon they have been doing this for eons.

Jamshedpur as a part of Bihar in the 90s was deemed as the only oasis of intellect in the state. When the Hotel Taj of Mumbai faced the worst terrorist attack in India (termed 26/11) which eventually led to the death of several employees of the Taj hotel, the group assured that every employee who died in the fatal attack received compensation in the range of Rs. 40 lakh to Rs. 90 lakh, in addition to their final income up until their scheduled retirement date.

 The assurance also included full responsibility for the upbringing of children and dependents; lifelong access to comprehensive medical care for the whole family and all dependents; remission of all debts and advances; and lifetime access to a counselor for each individual. All employee categories-including those who had worked only one day as casual employees-were considered to be “on duty” at that time and would be provided with the same incentive and benefits. Proving aid that takes care of the employees, beyond measure; sets the right example for all business houses to follow. The group with this aid methodology earns the faith of the employees who in return give their blood, sweat, and tears for the company. 

Tata group is not only one of the biggest revenue-generating conglomerates of India but also does a phenomenal job of giving back to society colossally. Going back to the Zoroastrian value of Hvarshata which is performing good deeds, the group finds its nobility in charity through Tata Trusts. Tata Trusts is one of the largest charitable trusts in India and has helped create several programs and affiliated organizations to address various welfare and development challenges, such as mental health, malnutrition, innovation, and livelihood. During the initial stages, it helped create and support academic and scientific organizations such as the Tata Institute of Fundamental Research, the Tata Institute of Social Sciences, The Indian Institute of Science, and the Tata Memorial Center for Cancer Research and Treatment. Charity seems to be in the veins of the Tata leadership since its foundation, precedent was set by JN Tata who recently was accorded with the recognition of “Greatest Philanthropist in the world” by Hurun’s research and Edelgive foundation. Tata Trust has a 66% percent stake in the promoter company of the Tata Group, which means a major chunk of dividends of Tata Group goes to the Trust by default which is then used for the welfare of society. Thus, everyone in India prays that the Tata companies remain profitable because they know it’s going to come back to them in the form of educational scholarships, free cancer treatments, vaccines for coronavirus, etc.

So, what makes the TATAs different? To sum up ‘The Values’. The values followed by the TATA group sets a creative moral standard that segregates it from the rest of the business organizations, and these are no ordinary values. These are tested values that have faced the blitz of time; a blend of good business ethics pervaded with integrity and benevolence. Whenever the culture of corruption brewed in the business space, they left the specific deal leaving a very important message that business can be run with strong principles and ethics. This is the sole reason that a group comprising more than a hundred companies and subsidiaries is stuck together with the glue of the same business principles. If the virtue of consideration was ever an elixir for longer living, seems the Tata group was the only contender to sup it, outlasting the four generations of employees from the same families that had worked for the group while the fifth generation has already set its eye on the next career listings at the Tata Sons’ webpage. (concluded)

(Writer is currently an Academic Associate at the Indian School of Business, Hyderabad. Views expressed are personal.)

Disclaimer: Author is a former employee of TATA group

Source: The Pioneer