ASSESSMENT OF LEADING AND MANAGING ETHICALLY

Introduction

This paper work will discuss about what is business ethics and importance of the business ethics for Tata steel company. Jamesetji Tata founded the Tata steel company on 26 August 1907 and now it also known as Tata iron and steel company limited. According to Vardaan (2019),states that the Ethisphere institute, a well-known institution for creating ethical standards and business practices and this institute has listed TATA steel as one of the most ethical organisation in the year 2019. The company received the honour eight times of being most ethical organisation to till now. The company intends to deliver significant value from more than a century to the every stakeholder and unity is one of the most important values to the group.

Business Ethics for Tata steel

According to Bhattacharya, Mishra, poddar and Misra (2016), they believe that the core value of the company is playing very important role in the achievement of being most ethical organisation. Followings are the four core values that the company adhere to in order to achieve ethical business practices:

• TATA proving integrity through fair and transparent business practices to all the stakeholders.
• It acts responsibly in order to create balance between social and environmental values. The company believes in giving back to society rather than just focusing upon the returns on investment.
• Tata has Non-negotiable attitude towards quality of standards.
• The company has customer driven focused in order to create better products and services, which are valued, by the customers.

Importance of Business Ethics for TATA steel

Joseph and Hashmi, (2018) mentioned that ethical business practices are keys to operate the business at TATA steels. The ethical standards for manufacturing, employment and corporate governance are define very clearly in the company and the employees are abided and trained to follow the ethical standards in order to maintain organisational ethics. TATA ensures that the company employees and stakeholders are not indulging into any bribery for that management of the company creates better opportunities in business through their strict policy against the corruption (Casey, 2014). According to Maheshwari and Paramasivam (2014), they believe that the main goal of Tata steel company is to develop various strategies for preventing breach of code of ethics. Business ethics is important for increasing self-effectiveness among the staff members of the company and with the assistance of high efficiency; they can take decisions that are more ethical for society. The organisation starts rewards and motivation system, effective control system and frameworks for more transparency.

Sharma and Mukherji (2011) noted that the employment policy in TATA steel is very specific to make sure that the suitable talent across all cultures and ethnic groups provide them equal opportunities. The company focus upon workplace diversity in order to manage the hiring process ethically. The company is against the discrimination based on race, gender, caste and another related factor. The selection process at TATA steel is uniform to make sure that the employees are appointed based on their qualification, ability and experience rather than based on pre conceived notions or biasness of the top managers. The yearly review process for the employees working in different categories and payrolls are define very clearly to make sure that the review of the employee is based on their performance.

However, Venkateswaran and Roy (2018), state that TATA communicates with their employees very clearly in order to describe the company policies and procedures. TATA has strict policy against employee’s harassment in order to protect the interest of the employees. To make sure that all the employees are treated with respect and dignity, the senior leaders in the company are expected to create a progressive environment.

 Contemporary Theories of Ethics      :-

Ethical theories can be categorised into two broad categories namely descriptive and normative. Descriptive theories refer to be the ethical phenomena while normative theories refer to be the code of conduct and established rules in order to act ethically. According to Evan and Freeman (1988 p.59) define that “benefit from or are harmed by, and whose rights are violated or respected by, corporate actions”. According to Sivakumar (2008), notes that stakeholder are improving their business practice. Tata steel has numerous stakeholders, such as employees, Indian Government, Indian communities, suppliers, Investors, mining industry, joint companies and many more.

Employees Stakeholder

According to Ishikawa (1984 as cited in the business ethics of jamsetji Nusserwanji Tata), states the Tata’s first consideration must be the satisfaction of those people linked to it. Well being of workers is the primary concern of the Tata. The organisation also sought to change the industrial environment, where employees are do work. They inspired staff by awarding success awards. Business embraced as five days a week to accommodate the staff, work from home, paternity leave. The organisation has developed a culture of diversity that has assist to raise emphasis on recruiting women and people from scheduled castes.

Consumer stakeholder

Tata steel (n. d.) considers that Consumers are first and effective stakeholder. The company communicates with consumers through various channels as consumers follow retail and social media. Tata steel company concern with their customer’s issues related to resource management enhancement, time to market support, and so on. To resolve these concerns the organisation has taken numerous actions.

Investors stakeholder

Tata Company believes to make a durable relation with the customers. Investors provide the funds and other supports, which assist to growing up the dignity and economy of company.

Government stakeholder

Tata Company follows all rule and regulation, which are implemented by the regime. Such as Tax law, labour law, industrial law. The organisation has taken many steps in conformity to environmental challenges. The company mainly concentrates upon the territorial affairs such as water pollution and health of people.

Utilitarian theory

According to Fryer (2016), utilitarian theory describes in focusing upon the benefits of large audience through action. The action taken will be affecting different people differently. Utilitarian ethical theories are useful for framing the policies in the organisation. It acts as guiding principle to resolve the conflicts in the organisation. Ethical decision making for business can be assist by utilitarian theory. Non-utilitarian theory describes that the action will be guide by the situation of an individual. Equality of the right is one of the prime important factors of utilitarian theory, which is very helpful for the organisation for treating all the employees equally without any discrimination.

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References

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