Business Ethics is an important and most versatile initial of an organisation's success in this corporate world. The word ethics has been derived from Greek word 'ethos' meaning character and manners. When we actually talk about the business ethics, it is big bag full of certain principles-
Indian companies have made India proud by acquiring the 8th position in the world ranking by following best business ethical practises which either may be in the form of HR practises, Ethical Marketing, Corporate Governance and also CSR practises.
Taking example of the world's best example in Ethical practises is the TATA GROUP which is a private organisation part of a conglomerate industry founded in 1868 by Jamshedji Tata. It has core competence in many lines of automation, airlines, chemicals finance, hospitality, real estate, steel, telecom etc. Key people have been Ratan Tata and N.Chandrasekaran. It serves around 706511 employees in its subsidiaries.
It has actually been rewarded for conducting all aspects of business and dealing with all stakeholders in an ethical manner. It has been served as the company incubating best practises, principles and values fair in nature.
TATA GROUP chairman once in his speech mentioned how business ethics are important for the company stating that-
- It maintains a moral course for the company in turbulent times.
- It actually cultivates a strong team-work and productivity.
- It supports employee growth as an individual.
- It helps in detection of issues and violations.
TATA as a big organisation has been following certain business ethics since starting and is a leading example of this in any field of public interest-
It has actually been committed to the benefit to the economic development of countries by promoting the national interest. It prepares and maintains its accounts fairly and accurately in accordance with the accounting and financial prudence of the country. It is a full supporter of the development and operation of the competitive open markets whereby it never restricts competition and be a part pf always healthy and fair competition.
TATA always provides equal opportunities to its employees which may be in the form of financial and non-financial matters which are recognised worldwide. It is a full supporter of fair and honest political alignment by being a full supporter of the constitution and governance of the company. Also, it has a record of punishing a large number of employees every financial year who involve in illegal activities of buying and selling shares and accepting donations on the name of company.
The products sold by company are perfect in quality and quantity with no complaints and it has the best after sales service strategy recognised worldwide. Apart from this has been recognised since it has a cooperative strategy of sharing knowledge and physical, mental- human and management resources with the subsidiaries as overall goal is to make the whole company to win.
Very importantly TATA is really conscious about its brand name and it never allows anyone to use it's name in any wrong manner which is prefixed with certain agreements. The best part was that TATA never allowed the 3rd party to take representation in it's name in any case without the written permission. But it has actually incorporated one best practise of shareholder rights portal where separate forum for shareholders grievance is taken care of.
Confidentiality of information is one of the most important task to be undertaken in today's world and TATA has actually created many prohibitions and punishments for the employees who are actually involved in sharing the information to the outsiders which is really unethical and bad for the image of the company. The company has started a new policy where certain laws have been made so that the assets of the company are used in an ethical manner including certain provisions. Apart from the company makes itself for liable for the information delivered and stand by it.
CORPORATE SOCIAL RESPONSIBILITY is also another way it remains ethical in the industrial world-
- Dedicates around 10-12% of net profit to CSR activities.
- Partnering with social and public sector industries.
- Hospital being run in many cities of the country to serve the society.
- Sports training centre for the poor athletes at Jamshedpur.
- Technical and Vocational training centres for youth members.
- In all the cases major concern has been on the Special provisions for training and employing of women it's industries.
- Hellen Keller Award for CSR.
- CII award for Corporate Sustainability Reporting
- Golden Peacock Award for CSR.
- Bombay National History Award for Green Governance.
RATAN TATA on application of Business Ethics in the company.
In all the cases TATA has been of the finest ethical companies reputed in the world. It is improving on the aspects which it is lacking behind.
I hope this blog has been helpful in enlightening you with best business ethics strategies and practices of a big multinational.
THANKS
MANAV GOEL
