Tata: Couldn't have hit $100bn being unethical

MUMBAI: Tata Group chairman emeritus Ratan Tata said that the conglomerate would not have been a $100-billion-plus house through "mismanagement" and "unethical procedures". The group has been accused of corporate governance lapses and mismanagement by former chairman Cyrus Mistry. Recently, the company law tribunal had dismissed these charges.
Speaking to the conglomerate's leadership on Sunday, Ratan Tata said that the group has been under "fire" for the past few months due to allegations of mismanagement and "being in business for reasons other than good corporate governance". "The spirit that we had that made us grow to $100-billion revenues has not been through mismanagement and unethical procedures," he said, adding that it has grown by being a visionary, having a spirit of integrity, unity and doing philanthropy.

This was the first time Tata spoke at the annual leadership summit after he stepped down as group chairman in 2012. "If I look back, it was not for profit that we set up India's first textile mill, it was not for profit that we went into power for Bombay, it was not for profits that we put up a steel plant or a hotel or a salt works - it is because the leadership at that time felt that the country needed it," he said. "So the challenge for us is the quest constantly for us to do what the country needs, doing it profitably, setting examples of integrity and by being far-sighted rather than near-sighted."

Every July 29, the conglomerate's chairman addresses the top leadership, sharing the group's financial performance and marking out goals. This time N Chandrasekaran highlighted group companies, TCS and Titan's strong market capitalisation and growth performance, while stating that he wants the Tata brand to be the best across the board - be it in terms of employer, industry benchmarks and impact on community.