How Tata Global beverage is addressing ethical issues

Tata Global Beverages, now known as Tata consumer products limited, is a multinational non-alcoholic beverage manufactures in India, with its headquarters in Mumbai and is a subsidiary of Tata Group. The company has significant tea brands such as Tata Tea, Tetley, and good earth tea. The company sells Tata tea majorly in India while they export Tetley brand to Canada (their most prominent customer) and in the United Kingdom and the United States. (Sudhakar, 2018) identified nonethical issues with one of the bosses faced with unethical matters and compliance with the company culture, which saw investors lost a lot of money and affected the companies’ stock values, com address the issue, the manager s replaced.

According to (Mistry and de Abreu, 2016), the group’s social responsibility based on the belief that trades should enable all human life to have a portion of the earth’s resources. Tata has a philosophy of giving back to the community.

4.1 Actual or potential ethical, sustainability and SR issues faced by the company

The study on the path to competitive advantage by (Yadav et al. 2017) noted that Tata group companies to be consistently doing well on matters on ecology, water preservation, energy production, waste managing, communal development, employee well-being, and performance. Nevertheless, the company needs to focus on issues to do with leadership and linking management senior levels with other administrative levels. Tata Company issue of not providing drinking water and sanitation to workers at working at Assam tea plantation. The company’s accusation on women’s harassment and their supervisor also harassed other workers. The management had put restriction on working intent to form unions. Also, there were claims of poor housing and manipulation of workers welfare benefits.

4.2 Impact for response and non-response to these issues to the company’s performance in the next ten years

Green tea production to increase annually, according to research on Technavio Research. (2017) conduced in China. The research projections show that China, Kenya, and Sri Lanka are estimated to produce a total of 3.31 million tonnes in 2027, which is a clear implication of industrial growth. Despite the quality issues affecting Vietnam, the country’s production his expected to increase as well. According to Technavio research, there are prospects in the tea industry, and Tata can take advantage of the opportunities and grow with the economy. The company takes sustainability as the heart of the plans for future long term success. The company is focusing on sustainable sourcing, waste management, and climate change initiatives that ensure sustainable foods and beverages.

The company should adopt the measures that the research thinks will contribute to the anticipated growth in China, India, and Kenya to have a prospective future. According to (Kumar et al. 2018), there is a growing demand for health tea and expansion of new products and flavor, that makes it possible for a company to grow. Also, tea yield expected to increase if there will be abundant water supply and irrigation optimization in all tea zones. The company has realized the importance of maintaining sustainability on its current resources and operations, as well as in the future. Also, the company has committed to source up to 100% of its tea brands globally, which will benchmark its sustainable standards and link them with international and Indian codes.

4.3 Possible measures for the firm to mitigate these issues

Tata Global Company should consider moving its cultivation to new areas to increase the crop disease resistance. According to (Reay, 2019), companies should look for renewable energies so as to cut down the cost of production and to reduce carbon emission. Tata Global beverage has a sustainability reporting committee that observes and provides guidance on sustainability matters and gives advice on corporate social responsibility, ensures environmental management, ensures health and safety to the workers and community, community development, among others.