Ratan Tata Ethical Leadership

Ratan Tata: Ethical leadership

Question 1

Values are operated behind all our behaviours, actions and decisions. The behaviours, actions and decisions are driven by the core values. People are motivated by the values when they make decisions and their actions and behaviours reflect certain values.

Nelco were not performing well financially. But Nelco made a profit and wiped off some of its past losses under Ratan Tata’s leadership. It reflects the value of excellence. The company was able to make profit and growth.  

Nelco then faced reduced production from an industrial relations problem that eventually led to a strike. It experienced lockout due to a case of indiscipline arising out of a fracas between workers. We can see trust, reliability and commitment to the community in this case since the four people involved in the indiscipline were dismissed from the company. Ratan Tata managed to protect the interest of the community and build a good relationship between workers and employers.

TELCO experienced a tool-town strike. Ratan Tata initiated multi-pronged measures to handle the situation. The strike was smashed when police authorities rounded up Nair and his supporters. Ratan Tata worked tirelessly to build a trusting relationship between management and workers. The value of unity is reflected here. TELCO’s production and sales increased after the issue. It reflects the value of excellence and responsibility for its growth and business.

Question 2

Ratan Tata implement the following reforms:

1. Unifying the Tata group by retiring chief executives who did not follow the value system, disposing of companies that were not performing well, creating identity, rebuilding integrity and so on.
2. Delivering on promise and making a car that serve the needs of ordinary people by providing them with safe transportation. The car was not profit but saving lives.
3. Exercising greater control through increased shareholding to make sure Ratan Tata has legal and moral right to manage the subsidiary companies and the Tata group as a whole insists its core values.
4. Restructuring the Tata Group. Ratan Tata focus on business rationalization and synergy and restructured the company based on its ability to compete globally and tis profitability.
5. Creating the Tata corporate brand. The group companies have to sign the Tata Brand Equity and Business Promotion Agreement before they are allowed to use the Tata name and trademark to ensure that the companies reflect the same tradition of trust, leadership and integrity, and the use was not free.
6. Expanding beyond the shores of India through overseas acquisitions.

Question 3

Tata group was driven by universal values since inception. The cores values are integrity, pioneering, excellence, unity and responsibility for its growth and business. In addition, the three key values are trust, reliability and commitment to the community.

Tata group had created its identity and company culture. Moreover, Tata group has a solid tradition of obeying its core values and maintaining ethical leadership. It discloses its findings of fraud and tried to kick off people who did not follow the value system.