Since its inception the Tata Group has pioneered new enterprises and explored new horizons. Tata Steel’s recent acquisition of the Anglo-Dutch steel major Corus has catapulted them to the fifth position (from 56th) in global steel production capacity. What is the driving force that has motivated Ratan N. Tata to carry the Tata legacy to new heights?
Tatas have always believed that the purpose of private wealth is the advancement of the public weal. When the foundation stone of the Walwhan dam was laid, the late Sir Dorabji Tata said that for his late father, Jamsetji, who proposed the hydro-electric scheme, "the acquisition of wealth was only a secondary object in life; it was always subordinate to the constant desire in his heart to improve the industrial and intellectual condition of this country.”
The five core values that direct the group’s growth and businesses are integrity, understanding, excellence, unity and responsibility. Jamsetji Tata began with a textile mill in central India in the 1870s. His powerful vision inspired the steel and power industries in the country, set the foundation for technical education and philanthropy, helping India jumpstart from the dark ages to the 21st century. In 1892 he set up an endowment fund for higher education of deserving Indians. Among the J. N. Tata scholars have been Dr Raja Ramanna and K. R. Narayanan, former President of India.
Before the dawn of the 20th century Jamsetji introduced accident compensation for his textile workers, a benefit unheard of till then. In 1970 J. R. D. Tata institutionalized corporate social responsibility by amending the Articles of Association of major Tata companies to include the clause: "the company shall be mindful of its social and moral responsibilities to the consumers, employees, shareholders, society and the local community.” The group institutionalized its social responsibility charter further when it included a clause on this in the code of conduct by which companies have to actively assist in improving the quality of life in the communities in which they operate.
The house of Tata is unique among Indian industrial houses in that a sizable percent of the capital of the parent firm, Tata Sons Limited, is held by Tata (Philanthropic) Trusts endowed by Sir Dorabji Tata and Sir Ratan Tata which have sponsored and promoted hospitals, education and research centers, and scientific and cultural establishments. The many public charitable trusts created by the Tata Group have funded educational and healthcare institutions and scientific and artistic teaching and practice, besides aiding community welfare activities.
When Ratan Naval Tata succeeded J. R. D. Tata as the group’s chairman he had a daunting task ahead of him. He was not just chairman of one of India’s biggest business conglomerates but also one who had been entrusted with trusteeship of enormous wealth and values. He admits, "One very important person who shaped the way I think is J. R. D. Tata who I worked with in varying degrees of closeness. He had strong values. He had integrity of a high order and a very forceful social consciousness in terms of what Tatas did. In addition, he was warm, thoughtful and a caring human being.”
NOSHIR DADRAWALA