If you had to explain ‘Business with a Purpose’ to someone, I cannot think of a better way to do it than to point them to the traditions of the Tata Group. Not just in India, but anywhere in the world, there are few parallels of the founders having the primary goal of giving back to society in establishing their business. Starting with Empress Mills, the areas the group has expanded to over the years is vast including – steel, technology, automobiles, education, power, healthcare & others, and all of it in turn has had a role in making India the country it is today.
As you read the book, each of the stories reinforces how Jamshedji Tata, JRD Tata, Darbari Sheth, Xerxes Desai and others relentlessly strived for excellence in what the group companies did, never taking their eyes off the greater good for the country. And yet, this was not an isolationist attitude, and they sought and shared expertise with others across the globe. Once Jamshedji Tata was convinced that steel would be very important to the nation, he then set out to painstakingly acquire capability to make it happen. In his first meeting with Julian Kennedy & Charles Page Perin in the US, he convinced them to help him establish the plant. Charles Perin’s own words express this well on how the sincerity and resolve which Jamshedji conveyed through his words made him accept. While establishing Taj Hotels, he again ensured it stood up to global standards of excellence.
The leaders to follow Jamshedji had their own set of challenges. And when the time came, the women folk contributed as well. Lady Meherbai Tata gave up the Jubilee diamond (twice as large as the legendary Kohinoor) to help Tata Steel continue paying its employees and cope with a difficult period. As Tata Motors was set to release the Indica, there were many skeptics, especially since a diesel car was also announced (this I distinctly remember, and the Indica diesel was the first car I owned). In a market dominated by HMT and other global brands, Titan set out to make among the slimmest watches in the world. The group also pioneered Eka, the first Indian supercomputer (it was 4th globally in benchmarks at that time). There is also the story of the Valvan dam – the first hydroelectric power project. The story of Air India, and how JRD Tata made it a national symbol with his attention to quality is well known, and now with the airline back to the Tata fold, there is a touch of nostalgia.
There are various examples of how doing good for people was always a priority – establishment of the Tata Memorial Hospital, TIFR, IISc, NCPA, Childcare & retirals for employees well before it became law, supporting archaeological excavation of Pataliputra, supporting sports etc. Prior to independence JRD Tata collaborated with other industrialists in proposing the Bombay Plan for development. Though ignored by the government then, it was later acknowledged by President R Venkataraman as brilliant – to which JRD Tata graciously gave the credit to Dr John Mathai, in discussion with many others.
The leadership has always personified grace, dignity, maturity & values. And even at times, when the group has disagreed with the government of the day, it has expressed itself factually, collaboratively and with maturity. There is this example in the book of JRD Tata pitching for holistic broad-based education which encouraged scientific thinking (he emphasized mathematics being vital for encouraging clarity of deep thought & logic) fusing it with learning from other disciplines like arts. Dr Karan Singh vehemently disagreed (calling maths being that important as nonsense) and the idea was shelved but saw the light of the day may years later with the establishment of the National Institute of Advanced Studies. In another instance, shortly before India gained independence, a group of industrialists had planned a trip abroad to meet with experts to gain insights into how successful businesses were run. This irritated Mahatma Gandhi, who thought striking deals at a time when India should be pushing for independence was a bad idea. However, once JRD Tata and Birla explained their reasoning of the purpose being learning to incubate industries in India, Gandhiji then lent them his support. Gandhiji’s visit to Jamshedpur makes for interesting reading as well.
While each of the stories is very inspiring, I found the letter JRD Tata wrote to schoolteacher K C Bhanshali on the key principles he practiced to be striking. The response is beautiful as it is simple, honest and timeless – devoid of jargons & fluff (so typical of management literature today).
Just like India, which has the oldest continuous civilization in the world, the Tata group represents an unbroken and unwavering cultural continuity. And as Harish Bhat says, I am sure there will be many more stories to be told of the group, its leaders and its people.
Disclosure: I work for a Tata Group company.