Enterprise Leadership
MANAGEMENT: TATA MOTORS
Learning Outcome
CLO 1: Communicate effectively using discipline-appropriate literacy and verbal skills that are suited to audience and context.
CLO 5: Identify discipline-appropriate cultural issues and make recommendations for Business practice.
solution
MANAGEMENT: TATA MOTORS
Corporate Social Responsibility at TATA.. 3
Managing Culture and Diversity of Employment Practices. 7
Commencing from the periods of barter system to the current era of online transactions, humanity has made significant progress in the operational dynamics of an organisation. Undoubtedly, the prospect of profitability has become the central focus among the organisational with the reduced emphasis on corporate social responsibility. However, from the analysis of Tata Motor group, the emphasis on corporate social responsibility has become fundamental since its inception over a century and a half ago. From its founder, Jamshedji Nusserwanji Tata to the present CEO, Tata has been centred towards ensuring that transparency and community focus is at the core of their operational dynamics. Accordingly, the growth of a competitive environment has led to the organisatr5ion investing in transparency and environmentally conscious approaches that ensure that the company generates peaceful coexistence with the society of operation. As a large multinational organisation, Tata has maintained a leadership role in the protection of the environment and ensuring sustainability in operations. Therefore, this paper will examine Tata in regards to its CSR in the global environment.
Corporate Social Responsibility at TATA
The operations of Tata are numerous and centred at various sectors such as automotive, software, telecommunication and consumer goods (Hossain, et al., 2015). Accordingly, with operations in more than 40 countries, with 80 companies, the company employs 200,000 employees and is steadfast in developing effective strategies towards CSR (Robbins, DeCenzo, and Coulter 2008). Admittedly, the company at the core of operations has been its emphasis on community welfare. Admittedly, the corporate social responsibility of the company has been centred on two important circles:
The inner circle entails the development of clear-cut well-established responsibilities that should be expected to ensure products and services are developed to meet the demands of the potential consumers. Accordingly, in the inner circle, it is important to concentrate on the employees who are the most important resource towards ensuring successful policy implementation (Hossain, et al. 2015). Admittedly, Tata appreciates the significant role that the employees play towards its success through investing in various initiatives to improve their welfare. In reference to Robbins, DeCenzo, and Coulter, (2008) the organisation has one of the most widely acclaimed labour welfare laws. As a clear example, it was one of the founding companies to implement the Welfare Department in 1917, which later became law in 1948. Further, the company was the founding organisation in regards to the Maternity benefit that was set up in 1928 and later became law in 1946 (Haugh and Talwar 2010). The organisation has pioneered various areas of operations in regards to ensuring an enabling environment for its employees. In reference to Hossain, et al., (2015) among the projects that the company has started includes:
- The company focuses on the employee welfare through the emphasis on the employee health. Accordingly, the company implements health benefits that catapult their day to day welfare. The organisation is part of the Bill and Melinda Gates Foundation in the AIDS initiative (Haugh and Talwar 2010)
- Tata believes in the enhancement of employee education through various training and development initiatives. Across the various markets of operation, the company encompasses the STEM program geared towards making an emphasis on science, technology, and mathematics (Haugh and Talwar 2010).
- The company also focuses on the improvement of the working conditions of the employees. There are the research and development department that is geared towards ensuring that there is comprehensive risk monitoring and development of innovative ways to ensure that the wellbeing of the employees is in a heightened manner
The intermediate circle entails the emphasis on the economic function with an emphasis on awareness on the changing social coupled with priorities of the potential market (Hossain, et al. 2015). Tata believes that the social and economic environment is fundamental towards the profitability of the company. Hence, the organisation has to maintain a healthy intermediate circle through ensuring that there is environmental conservation, hiring of competent employees and ensuring information access to the customers (Thite, 2013). From the analysis of Tata, it has established an environment whereby there is a need for comprehensive initiatives focused towards heightening the environmental welfare. As a clear example, the company invests into conservation projects. Among the various intermediate aspects of analysis include:
- Pollution control: Tata was the first company to introduce vehicles that meet the Euro norms in regards to pollution. Accordingly, the company to meet the set priorities regarding environmental protection established the emission control technology. The company has also made initiatives towards the enhancement of the engines of their vehicles through consultations with individuals and companies such as Ricardo and AVL (Robbins, DeCenzo, and Coulter 2008).
- Restoration of ecological balance: the organisation has planted more than 90,000 trees in the areas in which they work with Jamshedpur region a case example. On the other hand, over half a million trees gave been planted in Poona Region (Banerjee 2011). The company has also been steadfast in directing its suppliers to invest in an alternative packaging of products.
- Employment generation: relative to the employees at Pune, the company has been investing in encouraging industrial cooperation to ensure effective performance. As a clear example, the Tata Grihini Social Welfare Society has been on the front step in assisting employees through ensuring that they harness their talents for successful outcomes (Jayanti & Gowda 2014).
Sustainability is at the core of the operational dynamics at Tata. From the organisational standpoint, it is fundamental to catapult the environmental performance of the company through an emphasis on the people. Hence, the sustainability policy is dependent on the founder’s statement that success is only worthwhile when it meets the interest of a country’s people (Thite 2013). Admittedly, the organisation emphasises on ensuring that there is the internalisation of sustainability development for all its stakeholders. Accordingly, in the corporate sustainability policy, there is the inclusion of the following aspects of their operations:
- Demonstration of responsibility coupled with sensitivity to the biodiversity coupled with environment
- Complying with the rules and regulations that relate to the environment
- Investment in constant upgrade of technology through application of sophisticated processes with the emphasis on institutional arrangement enhances environmental sustainability (Hossain, et al. 2015)
- Creating sustainable livelihoods for both its employees and target consumers through building community social programs
- Enhancing balance among the organisation, society, and the environment by improving economic, human, social, and natural capital
The success of the business in their sustainability report has been reliant on the harmony and initiatives of the employees in conforming to the set targets of the organisation. At Tata, the employees comprehend the organisational policies in regards to the obligations and objectives that the organisation would like to meet (Thite 2013). The emphasis on the employee communication or information relay has generated an organisation whereby the employees are aligned to the performance policies of the company.
Managing Culture and Diversity of Employment Practices
Diversity and inclusion are part of the operational culture at Tata since its founding. Admittedly, Banerjee, (2011) emphasises that the letter by Jamsedji to his son Sir Dorabji Tata made a significant role towards outlining the vision for the company, which later became the Jamshedpur whereby religious inclusivity was at the core of the statements by the founder. Accordingly, Tata’s commitment to diversity coupled with inclusion has been prevalent in its over 140 years of operation with the establishment of Tata Code of Conduct through focusing on unity coupled with understanding (Mahaptra 2013). There is respect to the unity coupled with understanding in the development of an inclusive environment. Hence, the diversity and inclusive culture among the employees is focused on ensuring that the achievement of the full potential of the employees prevails. There is need to ensure there is no prevalent discrimination based on age, gender, ethnicity, physical or mental ability. Therefore, from the analysis of the company, to promote inclusivity, it focuses on:
- Senior leadership conclaves in which there is inclusion of people from different settings such as emphasis on female leadership
- Inclusivity management workshops in which there is need for employees to have information on the contemporary information about inclusivity
- Internship programs that are focused towards exposing employees to the different employment settings to catapult cross-cultural interaction
Ensuring that there is a general balance between the economic and social arena is the focus at Tata. Admittedly, the company appreciates the prospect that it owes a duty of care to the society, nation and the global environment in which it operates. Accordingly, the company from the above analysis should continue investing in the sustainable development of the environment, emphasis on employee welfare and continuous investment in its diversity and inclusion policy. The emphasis on the three strategies is bound to ensure that it aligns itself with its founding father’s vision that is fundamental towards ensuring that an organisation that is both profitable and centred towards social and environmental benefits.
Banerjee, S.B. 2011, Embedding Sustainability Across the Organisation: A Critical Perspective, Academy of Management Learning and Education, vol. 10, no. 4, pp.719- 731.
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Hossain, M.M., Alam, M., Islam, M.A. and Hecimovic, A., 2015. Do stakeholders or social obligations drive corporate social and environmental responsibility reporting? Managerial views from a developing country. Qualitative Research in Accounting & Management, 12(3), pp.287-314.
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Robbins, S.P., DeCenzo, D.A., and Coulter, M.K., 2008. Fundamentals of Management: Essential concepts and applications. Upper Saddle River, NJ: Pearson Prentice Hall.
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