Tata: Leadership with Trust
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Publication Date:
May 10, 2010
Source:
Ivey Publishing
The case illustrates the opportunities, challenges, and trade-offs involved in the design, evolution, and institutionalization of corporate social responsibility (CSR) and corporate sustainability (CS) within the Tata Group – an India-based indigenous multinational enterprise (MNE) with a unique 140-year-old commitment to the community as the key stakeholder of business. Despite the 2008-2009 global recession, the Tata Group topped the economic value creation charts. In 2008-2009, the Group had grossed US$70.8 billion in revenues; 64.7% of the Group’s revenues were now coming from outside India. Its 96 independent companies spanned seven sectors: information systems and communications, engineering, materials, services, energy, consumer products, and chemicals. Economic turbulence had put a break on social and environmental investing for many other companies but renewed Tata Group’s commitment: the Group had recently revised its charitable giving, adopted a group-wide climate change policy, and separated its mandatory and voluntary initiatives. The case deals with the intricate connections between the Group’s profitability and competitiveness on the one hand and its long-standing tradition of social responsibility on the other. It explores value creation, leadership, ethics, and sustainable development on the backdrop of rapid internationalizations and shifting stakeholders’ expectations for corporate social responsibility.
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Tata: Leadership with Trust
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