BUSINESS ETHICS

Ratan Tata: Ethical Leadership

Submitted to-
Prof. Rahul Ashok Kamble

Group 5
Ayush Sikdar MBA21194| Ayush Sidhu MBA21262 | Ayushi MBA21195 | Dziipu
D MBA21206 | Samarth Sandha MBA21235 | Utkarsh MBA21246 | Yatin Bajaj
MBA21252
 TABLE OF CONTENTS

1. Case Introduction . 1

2. About Ratan Tata . 1

3.

4. Challenges . 2

5. Solution to Challenges 3

6. Leadership Style and Ethical values 4-5

 Case Introduction
The case revolves around tata group, largest conglomerate. The tata group is well known for
its ethical leadership practices as well as for its for its CSR
. Under the leadership of ratan tata, the group further
developed the legacy and consolidated its business ventures in India while also gaining international
traction. The nd
"integrity".
The case also talks about the challenge the group is facing regarding the ethical allegations made
by Mistry
tata should do to ensure the group carry forward this valued legacy and not view it as a burden.

About Ratan Tata

Ratan Naval Tata, the former chairman of tata sons, is a well-known industrialist and philanthropist
in India. He was also the chairman of tata group from 1990-2021 and interim chairman from 2016-
2017 along with being the chairman of tata charitable trust.

Date Of Birth: 28th December 1937

Place Of Birth: Mumbai Maharashtra
Alma Matter: Cornell University
Awards: Padma Bhushan, Padma Vibhushan

Ratan Tata Personality

Ratan Tata is an inspirational leader who believes in principles and values. He is a driven individual
with the ambition, passion, and vision to take the tata group to new heights. He usually keeps a low
profile and prefers to be alone. However, when it comes to his job, he is fierce and competitive.
He is a man of integrity and tenacity, with high ethical standards, clear thoughts, and faith in
humanity. He is motivated to work for the city and to make a difference in the process of building
a strong industrial country.

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 Challenges
There were three major challenges faced by ratan tata

Nelco
Central India Textiles
Industrial Unrest At Telco

Nelco:
Nelco started as an electronic company in 1940. It had a troubled history right from
the beginning.
Ratan Tata was appointed in 1971 after which the company made profits in the year
1972-1975 after which national emergency hampered its growth.
Production was reduced at Nelco which led to employee strike and 7-month lockout
in 1980.
Ratan Tata takes his experience at Nelco as one of his greatest learnings.

Central India Textiles:

Ratan Tata took charge of central India textiles in 1977 and played an instrumental
part in changing the course of the company.
The company earned profits in few quarters after which it had a voluntary liquidation
due to recession in Indian textile industry.

Industrial Unrest At Telco:

Telco now known as tata motors was headed by ratan tata. It had unrest when a trade
union leader Rajan Nair who joined as a machine miller catalysed a strike
He was suspended in march 1988 and was later fired from telco for allegedly
threatening to kill a security guard
In January 1989, workers at shop floor of Pune plant went on strike.
Nair was taken into preventive custody by the local authorities but released later. On
march 15,1989 men in different areas of the society, assaulted and stabbed 22
managerial position personnel including some belonging to rival union
This unrest ended on sept 1989 under the leadership of ratan tata who worked
tirelessly to build a trusting relationship between management and workers which lead
telco declaring excellent results.

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 Solution to Challenges
Discuss what Ratan Tata should do to ensure that the group continues to take forward the
legacy of ethical leadership of the tatas and does not view it as a burden while operating in
India
Allegations by Mistry really tarnished the image of Tata especially on ethical grounds, so what
Ratan Tata should do to regain and restore the image back.

Steps to be taken -
As a chairman of philanthropic trust, he could focus on areas such as water, rural infrastructure,
nutrition, and research - since the image of tata as a brand was affected to a great extent ratan tata
should now focus and follow the ideals of JRD Tata which actually made the company famous for
its ethical values and willingness to contribute to the society. As a chairman of the philanthropic
trust, he should focus on the areas as mentioned above which will help in the development of the
country as a whole and they can restore the ethical image of the organization.

Collaborate with other foundations to diminish the disparities and keep making a difference in
- as an ethical organization they have always been putting the people and citizens of
the country as a priority, which made them gain the ethical organization impression in the first place,
so ratan tata should collaborate with other foundations to do good for the people and diminish the

Be fair, honest, transparent and ethical, everything they do must stand the test of public scrutiny
since the reputation was tarnished to a great extent he should now ensure that the activities
conducted by the company are fair, honest, ethical, and most importantly transparent which will
This one is quite important as especially after the
allegations the activities will definitely be under people scanner and scrutiny so ethically sound
activities will help in regaining people's trust.

M
consciousness, fairness and proud of it according to ratan tata function with ethics, integrity,
social, consciousness and fairness were an, integral part of the group. He followed the path

society, and an understanding of the ethical model of business. This is why he wanted the new
chairman to understand the corporation's value properly.

Continue with current model of 63% equity model of tata sons owned by tata trust tata trust owned
companies include tata consultancy services, tata motors tata steel, tata chemicals, tata consumer
products, titan, tata capital, tata power, Indian hotels, tata communications, tata digital, and tata

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electronics. As the tata trust is having the highest percentage of equity model of tata sons , it should
be continued with the current model.

Besides the trust activities like hospitals education and research centre, individual group companies
should take a community development program - tata companies work towards empowering people
by helping them develop the skills they need to succeed in a global economy. The group equips
communities with information, technology and the capacity to achieve improved health, education
and livelihood outcomes. This is why the individual groups should take a community development
program.

Leadership Style And Ethical Values Of Mr. Ratan Tata

1. Visionary
He is a foresightful individual. when he joined the company, it was scarcely
operating outside of India. even though many people disagreed with him, he insisted
that the firm become worldwide. overseas income now accounts for half of Tata's
total revenue. Tetley, Jaguar Land Rover, and Taj Boston were all bought by tata
under his tenure.

2. Humility
He is well-known for his humility, as seen in several instances. he began his career
with tata steel as a blue-collar worker. he paid personal visits to the families of the
80 employees who were affected by the terrorist attacks on September 11th. he
knows practically everyone's first name and is not dismissive. he is widely liked by
everybody who knows him, and there are numerous examples of how attentive he
is.

3. Decision Maker
He is a person who makes decisions. "I don't believe in making the correct
judgments," he once said. I make judgments and then correct them."

4. Inspiration
He can motivate others. tata is successful because its employees and executives live
up to the company's principles. ratan tata has ensured that the massive corporation
adheres to tata principles. the company aims to "Better the lives of the people we
serve across the world."

5. Risk-Taker
He is a daredevil. He's taken significant initiatives like introducing the tata nano and
acquiring second-largest steel producer.

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6. A Man Of Values
He thinks that a business should be managed on values rather than people. Mr. Ratan
Tata and his firm, tata, have a set of basic ideas that they stuck to throughout their
journey. He's also recognized for advocating for financial openness and stringent
scrutiny of grant applications for programs that benefit the poor. Furthermore, they
have always adhered to public safety and welfare as essential ideals. As a result of
this leadership characteristic, they have become one of the most trusted organizations
in the world.

7. A Man With Promise

He is a man who keeps his word. one of his favourite projects, nano, for example,
was engaged in a controversy over site acquisition for the facility. his firm was forced
to leave west Bengal following farmer protests in Singur. But, despite all of this, he
maintained his word and completed the project. Tata was relocated to Gujarat and
was able to fulfil its promise of producing the cheapest automobile.

8. Expert In Handling Human Relations

Human relationships are critical to the company's success. Ratan Tata can manage
human interactions well. He places a high value on this issue. He is adept at getting
all of his company's officials together and inspiring them to work together in unison.
according to the Jaago Re campaign, he cited tata group CEO Ratan Tata's notion
of community philanthropy in the workplace as proof of the company's unwavering
dedication to social service.

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