TATA Industries: Addressing Source and Secondary Problems
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The report discusses the source problem faced by TATA Industries in managing its huge number of employees through efficient leadership strategies and maintaining their commitment to their stakeholders and communities through effective corporate social responsibility programs. The report also highlights some secondary problems faced by the industry, including systematic violation of human rights of employees and lack of leadership. Alternative strategies and recommendations have been outlined to address these problems.
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Running head: INTERNATIONAL MANAGEMENT
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1INTERNATIONAL MANAGEMENT
Introduction:
The following report is based on the case study for TATA industries, which is a well
known multinational organization from India and have shown a remarkable growth and
diversification over the last few decades to have become one of the most prominent and
promising international player in global business market. Through this report, one source
problem faced by TATA industries have been discussed, which needs to be addressed by the
organization, as well as some secondary problems faced by the industry. The aim of the study
is to analyze the cause and effects of these problems and how the company can address and
overcome these problems to ensure better survival of the organization in the international
market in the long term1. Alternative strategies have also been outlined which the
organization can consider to address the problems as well as key recommendations for the
company and how they can help in the long term sustenance. Moreover, strategies to
implement the outlined measures and how to follow up with their progress are also discussed
in the report.
1. Source problem
Since the foundation in 1868 by Jamsetji Tata, the TATA industries have grown
exponentially, expanding its business to more than 100 independent companies and operating
from more than 100 nations, making it one of the biggest international organizations. Its
headquarters are located in India. TATA is involved in several industries such as iron and
steel, automotives, consultancy services, teleservices, hotel and hospitality, beverages and
1 tataglobalbeverages.com. 2018. "Tata Global Beverages". Tataglobalbeverages.Com.
http://www.tataglobalbeverages.com/company/overview.
Introduction:
The following report is based on the case study for TATA industries, which is a well
known multinational organization from India and have shown a remarkable growth and
diversification over the last few decades to have become one of the most prominent and
promising international player in global business market. Through this report, one source
problem faced by TATA industries have been discussed, which needs to be addressed by the
organization, as well as some secondary problems faced by the industry. The aim of the study
is to analyze the cause and effects of these problems and how the company can address and
overcome these problems to ensure better survival of the organization in the international
market in the long term1. Alternative strategies have also been outlined which the
organization can consider to address the problems as well as key recommendations for the
company and how they can help in the long term sustenance. Moreover, strategies to
implement the outlined measures and how to follow up with their progress are also discussed
in the report.
1. Source problem
Since the foundation in 1868 by Jamsetji Tata, the TATA industries have grown
exponentially, expanding its business to more than 100 independent companies and operating
from more than 100 nations, making it one of the biggest international organizations. Its
headquarters are located in India. TATA is involved in several industries such as iron and
steel, automotives, consultancy services, teleservices, hotel and hospitality, beverages and
1 tataglobalbeverages.com. 2018. "Tata Global Beverages". Tataglobalbeverages.Com.
http://www.tataglobalbeverages.com/company/overview.
2INTERNATIONAL MANAGEMENT
also telecommunication and employs more than 660,000 people and its revenue between
2015 and 2016 was estimated to be around USD 103 billion2.
Despite the major success of TATA industries, a significant challenge faced by the
organization is in the management in this huge number of employees through efficient
leadership strategies and maintain their commitment to their stakeholders and the
communities through effective corporate social responsibility programs. The case study have
shown that the organization is struggling to maintain an effective engagement with the CSR
activities, because of which they are not able to achieve the desired results from their CSR
programs and facilitate better engagement with the stakeholders and causing a fragmented
leadership. One of the biggest factors that are responsible for the fragmented leadership is the
inability of all the companies of TATA to act as a single functional unit.
2. Secondary problem
2.1 TATA Global beverages:
One significant accusation that was made on TATA industries and more specifically on
TATA Global Beverages was of systematic violation of Human Rights of the employees,
working in the tea plantations. According to some reports the tea pickers working in tea
gardens of TATA were seriously underpaid and overworked3. The reports have also
complained that the workers live in poor living as well as working conditions, and proper
measures are not in place to prevent workplace hazards or to ensure the workers against work
2 tataglobalbeverages.com. 2018. "Tata Global Beverages". Tataglobalbeverages.Com.
http://www.tataglobalbeverages.com/company/overview.
3 Bhalla, Nita. 2014. "World Bank Probes Tata Tea Project Over Worker Abuse". IN.
https://in.reuters.com/article/india-tata-tea-humanrights-idINDEEA1C0GG20140213.
also telecommunication and employs more than 660,000 people and its revenue between
2015 and 2016 was estimated to be around USD 103 billion2.
Despite the major success of TATA industries, a significant challenge faced by the
organization is in the management in this huge number of employees through efficient
leadership strategies and maintain their commitment to their stakeholders and the
communities through effective corporate social responsibility programs. The case study have
shown that the organization is struggling to maintain an effective engagement with the CSR
activities, because of which they are not able to achieve the desired results from their CSR
programs and facilitate better engagement with the stakeholders and causing a fragmented
leadership. One of the biggest factors that are responsible for the fragmented leadership is the
inability of all the companies of TATA to act as a single functional unit.
2. Secondary problem
2.1 TATA Global beverages:
One significant accusation that was made on TATA industries and more specifically on
TATA Global Beverages was of systematic violation of Human Rights of the employees,
working in the tea plantations. According to some reports the tea pickers working in tea
gardens of TATA were seriously underpaid and overworked3. The reports have also
complained that the workers live in poor living as well as working conditions, and proper
measures are not in place to prevent workplace hazards or to ensure the workers against work
2 tataglobalbeverages.com. 2018. "Tata Global Beverages". Tataglobalbeverages.Com.
http://www.tataglobalbeverages.com/company/overview.
3 Bhalla, Nita. 2014. "World Bank Probes Tata Tea Project Over Worker Abuse". IN.
https://in.reuters.com/article/india-tata-tea-humanrights-idINDEEA1C0GG20140213.
3INTERNATIONAL MANAGEMENT
related injuries and accidents45. Moreover, it was also reported that the employees are often
coaxed to purchase the shares of the company, which is an unethical act6.
2.2 Lack of Leadership:
The report also shows that the organization is highly fragmented with more than 100
companies having its own structure and there is a significant lack of consolidation and
coordination among the different businesses7. Due to this fragmentation, there is no central
strategy that is followed by the entire organization and only a small fraction of the TATA
employees spearheaded by TATA and Sons are in a leadership position. However, according
to FP Staff (2016), due to the large diversity in the businesses under TATA group, they were
not able to implement an effective leadership strategy that can lead the entire organization,
and instead have a fragmented leadership across the various businesses. This is causing
failures in companies such as TATA Motors8.
3 Analysis
3.1 TATA Global Beverages:
TATA Global Beverages is one of the most prominent global tea businesses and is the
largest tea brand in India in terms of its brand value and the volume of sales and it contributes
to approximately 36% of the turnover of the organization. Financial reports from 2017
4 Bannerji, Annie, and Zarir Hussain. 2018. "India Tea Workers Live In 'Appalling' Conditions On $2 A Day -
Report". U.S.. https://www.reuters.com/article/us-india-tea-workers/india-tea-workers-live-in-appalling-
conditions-on-2-a-day-report-idUSKCN1IO2XY.
5 Bera, Sayantan. 2015. "Tata Tea Under Scanner For Poor Living Condition And Coercion Of Workers".
Downtoearth.Org.In. https://www.downtoearth.org.in/news/tata-tea-under-scanner-for-poor-living-condition-
and-coercion-of-workers-43489.
6 Rukmini, S. 2016. "World Bank Finds Evidence Of Labour Abuse On Assam Tea Plantations It Owns With
The Tatas". Huffpost India. https://www.huffingtonpost.in/2016/11/07/world-bank-finds-evidence-of-labour-
abuse-on-assam-tea-plantatio_a_21600044/.
7 Khanna, Sundeep. 2017. "Selection, Not Cyrus Mistry, Was The Problem At Tata Sons".
Https://Www.Livemint.Com/. https://www.livemint.com/Opinion/HSkdlN275GHPY0QE2pVAyK/Selection-
not-Cyrus-Mistry-was-the-problem-at-Tata-Sons.html.
8 Thakkar, Ketan. 2018. "It Hurt When Country Looked At Tata Motors As A Failing Company: Ratan Tata".
The Economic Times. https://economictimes.indiatimes.com/industry/auto/auto-news/it-hurt-when-country-
looked-at-tata-motors-as-a-failing-company-ratan-tata/articleshow/63581246.cms.
related injuries and accidents45. Moreover, it was also reported that the employees are often
coaxed to purchase the shares of the company, which is an unethical act6.
2.2 Lack of Leadership:
The report also shows that the organization is highly fragmented with more than 100
companies having its own structure and there is a significant lack of consolidation and
coordination among the different businesses7. Due to this fragmentation, there is no central
strategy that is followed by the entire organization and only a small fraction of the TATA
employees spearheaded by TATA and Sons are in a leadership position. However, according
to FP Staff (2016), due to the large diversity in the businesses under TATA group, they were
not able to implement an effective leadership strategy that can lead the entire organization,
and instead have a fragmented leadership across the various businesses. This is causing
failures in companies such as TATA Motors8.
3 Analysis
3.1 TATA Global Beverages:
TATA Global Beverages is one of the most prominent global tea businesses and is the
largest tea brand in India in terms of its brand value and the volume of sales and it contributes
to approximately 36% of the turnover of the organization. Financial reports from 2017
4 Bannerji, Annie, and Zarir Hussain. 2018. "India Tea Workers Live In 'Appalling' Conditions On $2 A Day -
Report". U.S.. https://www.reuters.com/article/us-india-tea-workers/india-tea-workers-live-in-appalling-
conditions-on-2-a-day-report-idUSKCN1IO2XY.
5 Bera, Sayantan. 2015. "Tata Tea Under Scanner For Poor Living Condition And Coercion Of Workers".
Downtoearth.Org.In. https://www.downtoearth.org.in/news/tata-tea-under-scanner-for-poor-living-condition-
and-coercion-of-workers-43489.
6 Rukmini, S. 2016. "World Bank Finds Evidence Of Labour Abuse On Assam Tea Plantations It Owns With
The Tatas". Huffpost India. https://www.huffingtonpost.in/2016/11/07/world-bank-finds-evidence-of-labour-
abuse-on-assam-tea-plantatio_a_21600044/.
7 Khanna, Sundeep. 2017. "Selection, Not Cyrus Mistry, Was The Problem At Tata Sons".
Https://Www.Livemint.Com/. https://www.livemint.com/Opinion/HSkdlN275GHPY0QE2pVAyK/Selection-
not-Cyrus-Mistry-was-the-problem-at-Tata-Sons.html.
8 Thakkar, Ketan. 2018. "It Hurt When Country Looked At Tata Motors As A Failing Company: Ratan Tata".
The Economic Times. https://economictimes.indiatimes.com/industry/auto/auto-news/it-hurt-when-country-
looked-at-tata-motors-as-a-failing-company-ratan-tata/articleshow/63581246.cms.
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4INTERNATIONAL MANAGEMENT
showed an improvement in the profits by TATA Global beverages from 2016 to 20179. In
addition, the company has significant investments in their CSR policy which helps to support
its brand image10. However, the allegations of human rights violations have adversely
affected the reputation of the organization that invests more than 50 million USD towards its
CSR programs, undermining its efforts to improve the company’s image1112.
3.2 Lack of Leadership:
One of the biggest reasons of a lack of leadership faced by TATA is because of the
lack of leadership values of the current CEO of the company Cyrus Mistry, as a result of
which there has been a significant reduction in the CSR activities of TATA as well as a
reduction in its revenues and increase in the debts of the company1314. During the Tenure of
Ratan Tata, the company prospered under his efficient leadership and his values of improving
the quality of life across various communities that serves the organization, which showed
down after the company was handed over to Cyrus Mistry15.
4. Alternatives
4.1 Getting back the trust of the stakeholders and communities:
9 tataglobalbeverages.com. 2018. "Tata Global Beverages". Tataglobalbeverages.Com.
http://www.tataglobalbeverages.com/company/overview.
10 tata.com. 2018. "Corporate Social Responsibility Via @Tatacompanies". Tata.Com.
http://www.tata.com/sustainability/articlesinside/corporate-social-responsibility.
11 economictimes.indiatimes.com. 2018. "Tata Global Beverages Profit And Loss Reports - The Economic
Times". Economictimes.Indiatimes.Com.
https://economictimes.indiatimes.com/tata-global-beverages-ltd/profitandlose/companyid-12929.cms.
12 Tatasteel.com. 2014. "CSR Policy- Tata Steel India". Tatasteel.Com.
https://www.tatasteel.com/media/1879/csr-policy-version-20.pdf.
13 Kang, Lakhwinder Singh, and Abha Bhalla. 2016. "Tata Motors: Struggling For Leadership".
Thecasecentre.Org. https://www.thecasecentre.org/programmeAdmin/products/view?id=134006.
14 Roy, Prabal Basu. 2018. "The Tata-Mistry Case Verdict Is Not Surprising".
Https://Www.Hindustantimes.Com/. https://www.hindustantimes.com/analysis/the-tata-mistry-case-verdict-is-
not-surprising/story-mEOrpyTINRjgmSDhD0XahM.html.
15 Kurian, Boby. 2016. "Changes In Culture And Management Style Were Seen To Erode ‘Values’ - Times Of
India". The Times Of India. https://timesofindia.indiatimes.com/business/india-business/Changes-in-culture-and-
management-style-were-seen-to-erode-values/articleshow/55040342.cms.
showed an improvement in the profits by TATA Global beverages from 2016 to 20179. In
addition, the company has significant investments in their CSR policy which helps to support
its brand image10. However, the allegations of human rights violations have adversely
affected the reputation of the organization that invests more than 50 million USD towards its
CSR programs, undermining its efforts to improve the company’s image1112.
3.2 Lack of Leadership:
One of the biggest reasons of a lack of leadership faced by TATA is because of the
lack of leadership values of the current CEO of the company Cyrus Mistry, as a result of
which there has been a significant reduction in the CSR activities of TATA as well as a
reduction in its revenues and increase in the debts of the company1314. During the Tenure of
Ratan Tata, the company prospered under his efficient leadership and his values of improving
the quality of life across various communities that serves the organization, which showed
down after the company was handed over to Cyrus Mistry15.
4. Alternatives
4.1 Getting back the trust of the stakeholders and communities:
9 tataglobalbeverages.com. 2018. "Tata Global Beverages". Tataglobalbeverages.Com.
http://www.tataglobalbeverages.com/company/overview.
10 tata.com. 2018. "Corporate Social Responsibility Via @Tatacompanies". Tata.Com.
http://www.tata.com/sustainability/articlesinside/corporate-social-responsibility.
11 economictimes.indiatimes.com. 2018. "Tata Global Beverages Profit And Loss Reports - The Economic
Times". Economictimes.Indiatimes.Com.
https://economictimes.indiatimes.com/tata-global-beverages-ltd/profitandlose/companyid-12929.cms.
12 Tatasteel.com. 2014. "CSR Policy- Tata Steel India". Tatasteel.Com.
https://www.tatasteel.com/media/1879/csr-policy-version-20.pdf.
13 Kang, Lakhwinder Singh, and Abha Bhalla. 2016. "Tata Motors: Struggling For Leadership".
Thecasecentre.Org. https://www.thecasecentre.org/programmeAdmin/products/view?id=134006.
14 Roy, Prabal Basu. 2018. "The Tata-Mistry Case Verdict Is Not Surprising".
Https://Www.Hindustantimes.Com/. https://www.hindustantimes.com/analysis/the-tata-mistry-case-verdict-is-
not-surprising/story-mEOrpyTINRjgmSDhD0XahM.html.
15 Kurian, Boby. 2016. "Changes In Culture And Management Style Were Seen To Erode ‘Values’ - Times Of
India". The Times Of India. https://timesofindia.indiatimes.com/business/india-business/Changes-in-culture-and-
management-style-were-seen-to-erode-values/articleshow/55040342.cms.
5INTERNATIONAL MANAGEMENT
In order to win back the trust of the stakeholders, TATA can ensure the full
implementation of its CSR programs to help the different communities, and maintain regular
updates of the progression of the program for the public to follow16. This can help to improve
transparency and clarity of its CSR programs and helps to gain positive publicity17.
4.2 Retention of experienced employees:
Retaining experienced employees is another strategy that can help the organization to
maintain its orientation towards the organizational objectives by leveraging the experiences
of the employees to guide and mentor the employees who are new to the organization and
helping them to understand the organizational commitment to improve the wellbeing and
quality of life of the people of the communities serving TATA1819.
4.3 Involving independent reviewers:
Independent reviewers can help the CEO to keep a close observation of the operations
of the organization and whether they are helping to uphold the organizational objectives and
values, and whether the operations follow the organizational policies20. The independent
reviews also can ensure an unbiased and impartial assessment of organizational
performance21.
16 Datta, Prosenjit. 2016. "Tata Trusts Should Look Beyond Tata Companies- Business News".
Businesstoday.In. https://www.businesstoday.in/magazine/features/tata-trusts-should-look-beyond-tata-
companies/story/240003.html.
17 hindustantimes.com. 2016. "Full Text: Appeal From Tata Group To Stakeholders Over Charges Against
Cyrus Mistry". Https://Www.Hindustantimes.Com/. https://www.hindustantimes.com/business-news/full-text-
appeal-from-tata-group-to-stakeholders-over-charges-against-cyrus-mistry/story-
F0eEwdqeUHxWMA57XX0q3K.html.
18 Aguenza, Benjamin Balbuena, and Ahmad Puad Mat Som. "Motivational factors of employee retention and
engagement in organizations." IJAME (2018).
19 tatatechnologies.com. 2018. "Corporate Sustainability - Tata Technologies". Tata.
https://www.tatatechnologies.com/in/about-us/corporate-sustainability/.
20 He, Xianjie, Jeffrey A. Pittman, Oliver M. Rui, and Donghui Wu. "Do social ties between external auditors
and audit committee members affect audit quality?." The Accounting Review 92, no. 5 (2017): 61-87.
21 Tepalagul, Nopmanee, and Ling Lin. "Auditor independence and audit quality: A literature review." Journal
of Accounting, Auditing & Finance 30, no. 1 (2015): 101-121.
In order to win back the trust of the stakeholders, TATA can ensure the full
implementation of its CSR programs to help the different communities, and maintain regular
updates of the progression of the program for the public to follow16. This can help to improve
transparency and clarity of its CSR programs and helps to gain positive publicity17.
4.2 Retention of experienced employees:
Retaining experienced employees is another strategy that can help the organization to
maintain its orientation towards the organizational objectives by leveraging the experiences
of the employees to guide and mentor the employees who are new to the organization and
helping them to understand the organizational commitment to improve the wellbeing and
quality of life of the people of the communities serving TATA1819.
4.3 Involving independent reviewers:
Independent reviewers can help the CEO to keep a close observation of the operations
of the organization and whether they are helping to uphold the organizational objectives and
values, and whether the operations follow the organizational policies20. The independent
reviews also can ensure an unbiased and impartial assessment of organizational
performance21.
16 Datta, Prosenjit. 2016. "Tata Trusts Should Look Beyond Tata Companies- Business News".
Businesstoday.In. https://www.businesstoday.in/magazine/features/tata-trusts-should-look-beyond-tata-
companies/story/240003.html.
17 hindustantimes.com. 2016. "Full Text: Appeal From Tata Group To Stakeholders Over Charges Against
Cyrus Mistry". Https://Www.Hindustantimes.Com/. https://www.hindustantimes.com/business-news/full-text-
appeal-from-tata-group-to-stakeholders-over-charges-against-cyrus-mistry/story-
F0eEwdqeUHxWMA57XX0q3K.html.
18 Aguenza, Benjamin Balbuena, and Ahmad Puad Mat Som. "Motivational factors of employee retention and
engagement in organizations." IJAME (2018).
19 tatatechnologies.com. 2018. "Corporate Sustainability - Tata Technologies". Tata.
https://www.tatatechnologies.com/in/about-us/corporate-sustainability/.
20 He, Xianjie, Jeffrey A. Pittman, Oliver M. Rui, and Donghui Wu. "Do social ties between external auditors
and audit committee members affect audit quality?." The Accounting Review 92, no. 5 (2017): 61-87.
21 Tepalagul, Nopmanee, and Ling Lin. "Auditor independence and audit quality: A literature review." Journal
of Accounting, Auditing & Finance 30, no. 1 (2015): 101-121.
6INTERNATIONAL MANAGEMENT
4.4 Damage Control:
It is also vital that in order to overcome the adverse effects of the reports of human
rights violations by TGB, the company implements damage control policies to rectify the
situation and how that the organization is takes accountability and responsibility for the
wrong actions, is committed to remedy the situation and ask for forgiveness from the
communities affected by the human rights violations by TATA2223.
5. Recommendation and Justification:
5.1 Getting back the trust of the stakeholders and communities:
It has been proposed by many authors that gaining trust of the stakeholders is one of
the most important strategies for any business that has suffered tarnishing of its brand image
through a loss of trust of the stakeholders24. According to authors, one the trust of the
stakeholders are lost, gaining it back becomes more difficult, and the organizations needs to
give more effort to show their commitment and the ability to accept their mistakes and the
willingness to overcome them and show better responsibility to the stakeholders 2526.
5.2 Involving independent reviewers:
Studies have also shows that involvement of independent and external reviewers to
assess the organization’s performance helps to maintain an unbiased reporting of the
22 PTI. 2018. "Tata Global Beverages To Exit Loss-Making Subsidiaries - ET Retail". Etretail.Com.
https://retail.economictimes.indiatimes.com/news/food-entertainment/grocery/tata-global-beverages-to-exit-
loss-making-subsidiaries/64877762.
23 Press Trust of India. 2018. "Tata Global Beverages To Exit Loss-Making Subsidiaries". Business-
Standard.Com. https://www.business-standard.com/article/pti-stories/tata-global-beverages-to-exit-loss-making-
subsidiaries-118070500699_1.html.
24 hindustantimes.com. 2016. "Full Text: Appeal From Tata Group To Stakeholders Over Charges Against
Cyrus Mistry". Https://Www.Hindustantimes.Com/. https://www.hindustantimes.com/business-news/full-text-
appeal-from-tata-group-to-stakeholders-over-charges-against-cyrus-mistry/story-
F0eEwdqeUHxWMA57XX0q3K.html.
25 Inam, Henna. 2018. "Three Steps To Rebuild Trust". Forbes.Com.
https://www.forbes.com/sites/hennainam/2014/01/27/how-to-rebuild-trust/.
26 Dietz, Graham. 2012. "How To Rebuild Trust In Business". The Guardian.
https://www.theguardian.com/sustainable-business/rebuild-restore-recover-trust-business.
4.4 Damage Control:
It is also vital that in order to overcome the adverse effects of the reports of human
rights violations by TGB, the company implements damage control policies to rectify the
situation and how that the organization is takes accountability and responsibility for the
wrong actions, is committed to remedy the situation and ask for forgiveness from the
communities affected by the human rights violations by TATA2223.
5. Recommendation and Justification:
5.1 Getting back the trust of the stakeholders and communities:
It has been proposed by many authors that gaining trust of the stakeholders is one of
the most important strategies for any business that has suffered tarnishing of its brand image
through a loss of trust of the stakeholders24. According to authors, one the trust of the
stakeholders are lost, gaining it back becomes more difficult, and the organizations needs to
give more effort to show their commitment and the ability to accept their mistakes and the
willingness to overcome them and show better responsibility to the stakeholders 2526.
5.2 Involving independent reviewers:
Studies have also shows that involvement of independent and external reviewers to
assess the organization’s performance helps to maintain an unbiased reporting of the
22 PTI. 2018. "Tata Global Beverages To Exit Loss-Making Subsidiaries - ET Retail". Etretail.Com.
https://retail.economictimes.indiatimes.com/news/food-entertainment/grocery/tata-global-beverages-to-exit-
loss-making-subsidiaries/64877762.
23 Press Trust of India. 2018. "Tata Global Beverages To Exit Loss-Making Subsidiaries". Business-
Standard.Com. https://www.business-standard.com/article/pti-stories/tata-global-beverages-to-exit-loss-making-
subsidiaries-118070500699_1.html.
24 hindustantimes.com. 2016. "Full Text: Appeal From Tata Group To Stakeholders Over Charges Against
Cyrus Mistry". Https://Www.Hindustantimes.Com/. https://www.hindustantimes.com/business-news/full-text-
appeal-from-tata-group-to-stakeholders-over-charges-against-cyrus-mistry/story-
F0eEwdqeUHxWMA57XX0q3K.html.
25 Inam, Henna. 2018. "Three Steps To Rebuild Trust". Forbes.Com.
https://www.forbes.com/sites/hennainam/2014/01/27/how-to-rebuild-trust/.
26 Dietz, Graham. 2012. "How To Rebuild Trust In Business". The Guardian.
https://www.theguardian.com/sustainable-business/rebuild-restore-recover-trust-business.
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7INTERNATIONAL MANAGEMENT
organizational performance thus helping to achieve better audits or organizations
operations27.
6. Implementation, Control and Follow Up:
In order to implement and control the recommended action, the organization can
increase its CSR activities, highlighting the organizations commitment to acknowledge
rectify its mistakes, helping the affected communities (tea pickers and employees of the tea
business) and keep the shareholders informed of its progress to show that the organization is
actively involved to ensure it is taking care of its responsibilities to the community28. The
organization can also employ independent boards and professionals to audit the performance
of the organization in its CSR programs, and if the programs are able to achieve the key
milestones and objectives identified by the organizations and whether it is able to uphold the
organizational values and improve the brand image of the company, winning back the trust of
the stakeholders29.
Conclusion:
TATA industries are a large organization that spans across various countries,
diversified across several businesses, making it one of the biggest international organizations.
The organization has tremendous growth since its founding about 150 years ago. The
company had very powerful commitment towards its CSR policies, however since the
succession of leadership from Ratan Tata to Cyrus Mistry, the company’s focus on CSR
activities has been affected and there have been accusations of Human Rights Violations in
27 He, Xianjie, Jeffrey A. Pittman, Oliver M. Rui, and Donghui Wu. "Do social ties between external auditors
and audit committee members affect audit quality?." The Accounting Review 92, no. 5 (2017): 61-87.
28 Tatasteel.com. 2014. "CSR Policy- Tata Steel India". Tatasteel.Com.
https://www.tatasteel.com/media/1879/csr-policy-version-20.pdf.
29 Dietz, Graham. 2012. "How To Rebuild Trust In Business". The Guardian.
https://www.theguardian.com/sustainable-business/rebuild-restore-recover-trust-business.
organizational performance thus helping to achieve better audits or organizations
operations27.
6. Implementation, Control and Follow Up:
In order to implement and control the recommended action, the organization can
increase its CSR activities, highlighting the organizations commitment to acknowledge
rectify its mistakes, helping the affected communities (tea pickers and employees of the tea
business) and keep the shareholders informed of its progress to show that the organization is
actively involved to ensure it is taking care of its responsibilities to the community28. The
organization can also employ independent boards and professionals to audit the performance
of the organization in its CSR programs, and if the programs are able to achieve the key
milestones and objectives identified by the organizations and whether it is able to uphold the
organizational values and improve the brand image of the company, winning back the trust of
the stakeholders29.
Conclusion:
TATA industries are a large organization that spans across various countries,
diversified across several businesses, making it one of the biggest international organizations.
The organization has tremendous growth since its founding about 150 years ago. The
company had very powerful commitment towards its CSR policies, however since the
succession of leadership from Ratan Tata to Cyrus Mistry, the company’s focus on CSR
activities has been affected and there have been accusations of Human Rights Violations in
27 He, Xianjie, Jeffrey A. Pittman, Oliver M. Rui, and Donghui Wu. "Do social ties between external auditors
and audit committee members affect audit quality?." The Accounting Review 92, no. 5 (2017): 61-87.
28 Tatasteel.com. 2014. "CSR Policy- Tata Steel India". Tatasteel.Com.
https://www.tatasteel.com/media/1879/csr-policy-version-20.pdf.
29 Dietz, Graham. 2012. "How To Rebuild Trust In Business". The Guardian.
https://www.theguardian.com/sustainable-business/rebuild-restore-recover-trust-business.
8INTERNATIONAL MANAGEMENT
TATA Global Beverages. Due to which, the organization should step up their CSR programs
to gain back the trust of the people and control the damage done by the business. Using
independent reviewers can ensure unbiased assessment of the performance and ensure
compliance to the organizational polices.
References:
Aguenza, Benjamin Balbuena, and Ahmad Puad Mat Som. "Motivational factors of employee
retention and engagement in organizations." IJAME (2018).
Bannerji, Annie, and Zarir Hussain. 2018. "India Tea Workers Live In 'Appalling' Conditions
On $2 A Day - Report". U.S.. https://www.reuters.com/article/us-india-tea-workers/india-tea-
workers-live-in-appalling-conditions-on-2-a-day-report-idUSKCN1IO2XY.
Bera, Sayantan. 2015. "Tata Tea Under Scanner For Poor Living Condition And Coercion Of
Workers". Downtoearth.Org.In. https://www.downtoearth.org.in/news/tata-tea-under-
scanner-for-poor-living-condition-and-coercion-of-workers-43489.
TATA Global Beverages. Due to which, the organization should step up their CSR programs
to gain back the trust of the people and control the damage done by the business. Using
independent reviewers can ensure unbiased assessment of the performance and ensure
compliance to the organizational polices.
References:
Aguenza, Benjamin Balbuena, and Ahmad Puad Mat Som. "Motivational factors of employee
retention and engagement in organizations." IJAME (2018).
Bannerji, Annie, and Zarir Hussain. 2018. "India Tea Workers Live In 'Appalling' Conditions
On $2 A Day - Report". U.S.. https://www.reuters.com/article/us-india-tea-workers/india-tea-
workers-live-in-appalling-conditions-on-2-a-day-report-idUSKCN1IO2XY.
Bera, Sayantan. 2015. "Tata Tea Under Scanner For Poor Living Condition And Coercion Of
Workers". Downtoearth.Org.In. https://www.downtoearth.org.in/news/tata-tea-under-
scanner-for-poor-living-condition-and-coercion-of-workers-43489.
9INTERNATIONAL MANAGEMENT
Bhalla, Nita. 2014. "World Bank Probes Tata Tea Project Over Worker Abuse". IN.
https://in.reuters.com/article/india-tata-tea-humanrights-idINDEEA1C0GG20140213.
Datta, Prosenjit. 2016. "Tata Trusts Should Look Beyond Tata Companies- Business News".
Businesstoday.In. https://www.businesstoday.in/magazine/features/tata-trusts-should-look-
beyond-tata-companies/story/240003.html.
Dietz, Graham. 2012. "How To Rebuild Trust In Business". The Guardian.
https://www.theguardian.com/sustainable-business/rebuild-restore-recover-trust-business.
economictimes.indiatimes.com. 2018. "Tata Global Beverages Profit And Loss Reports - The
Economic Times". Economictimes.Indiatimes.Com.
https://economictimes.indiatimes.com/tata-global-beverages-ltd/profitandlose/companyid-
12929.cms.
hindustantimes.com. 2016. "Full Text: Appeal From Tata Group To Stakeholders Over
Charges Against Cyrus Mistry". Https://Www.Hindustantimes.Com/.
https://www.hindustantimes.com/business-news/full-text-appeal-from-tata-group-to-
stakeholders-over-charges-against-cyrus-mistry/story-F0eEwdqeUHxWMA57XX0q3K.html.
Inam, Henna. 2018. "Three Steps To Rebuild Trust". Forbes.Com.
https://www.forbes.com/sites/hennainam/2014/01/27/how-to-rebuild-trust/.
Kang, Lakhwinder Singh, and Abha Bhalla. 2016. "Tata Motors: Struggling For Leadership".
Thecasecentre.Org. https://www.thecasecentre.org/programmeAdmin/products/view?
id=134006.
Khanna, Sundeep. 2017. "Selection, Not Cyrus Mistry, Was The Problem At Tata Sons".
Https://Www.Livemint.Com/.
Bhalla, Nita. 2014. "World Bank Probes Tata Tea Project Over Worker Abuse". IN.
https://in.reuters.com/article/india-tata-tea-humanrights-idINDEEA1C0GG20140213.
Datta, Prosenjit. 2016. "Tata Trusts Should Look Beyond Tata Companies- Business News".
Businesstoday.In. https://www.businesstoday.in/magazine/features/tata-trusts-should-look-
beyond-tata-companies/story/240003.html.
Dietz, Graham. 2012. "How To Rebuild Trust In Business". The Guardian.
https://www.theguardian.com/sustainable-business/rebuild-restore-recover-trust-business.
economictimes.indiatimes.com. 2018. "Tata Global Beverages Profit And Loss Reports - The
Economic Times". Economictimes.Indiatimes.Com.
https://economictimes.indiatimes.com/tata-global-beverages-ltd/profitandlose/companyid-
12929.cms.
hindustantimes.com. 2016. "Full Text: Appeal From Tata Group To Stakeholders Over
Charges Against Cyrus Mistry". Https://Www.Hindustantimes.Com/.
https://www.hindustantimes.com/business-news/full-text-appeal-from-tata-group-to-
stakeholders-over-charges-against-cyrus-mistry/story-F0eEwdqeUHxWMA57XX0q3K.html.
Inam, Henna. 2018. "Three Steps To Rebuild Trust". Forbes.Com.
https://www.forbes.com/sites/hennainam/2014/01/27/how-to-rebuild-trust/.
Kang, Lakhwinder Singh, and Abha Bhalla. 2016. "Tata Motors: Struggling For Leadership".
Thecasecentre.Org. https://www.thecasecentre.org/programmeAdmin/products/view?
id=134006.
Khanna, Sundeep. 2017. "Selection, Not Cyrus Mistry, Was The Problem At Tata Sons".
Https://Www.Livemint.Com/.
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10INTERNATIONAL MANAGEMENT
https://www.livemint.com/Opinion/HSkdlN275GHPY0QE2pVAyK/Selection-not-Cyrus-
Mistry-was-the-problem-at-Tata-Sons.html.
Kurian, Boby. 2016. "Changes In Culture And Management Style Were Seen To Erode
‘Values’ - Times Of India". The Times Of India.
https://timesofindia.indiatimes.com/business/india-business/Changes-in-culture-and-
management-style-were-seen-to-erode-values/articleshow/55040342.cms.
Press Trust of India. 2018. "Tata Global Beverages To Exit Loss-Making Subsidiaries".
Business-Standard.Com. https://www.business-standard.com/article/pti-stories/tata-global-
beverages-to-exit-loss-making-subsidiaries-118070500699_1.html.
PTI. 2018. "Tata Global Beverages To Exit Loss-Making Subsidiaries - ET Retail".
Etretail.Com. https://retail.economictimes.indiatimes.com/news/food-entertainment/grocery/
tata-global-beverages-to-exit-loss-making-subsidiaries/64877762.
Roy, Prabal Basu. 2018. "The Tata-Mistry Case Verdict Is Not Surprising".
Https://Www.Hindustantimes.Com/. https://www.hindustantimes.com/analysis/the-tata-
mistry-case-verdict-is-not-surprising/story-mEOrpyTINRjgmSDhD0XahM.html.
Rukmini, S. 2016. "World Bank Finds Evidence Of Labour Abuse On Assam Tea Plantations
It Owns With The Tatas". Huffpost India. https://www.huffingtonpost.in/2016/11/07/world-
bank-finds-evidence-of-labour-abuse-on-assam-tea-plantatio_a_21600044/.
tata.com. 2018. "Corporate Social Responsibility Via @Tatacompanies". Tata.Com.
http://www.tata.com/sustainability/articlesinside/corporate-social-responsibility.
tataglobalbeverages.com. 2018. "Tata Global Beverages". Tataglobalbeverages.Com.
http://www.tataglobalbeverages.com/company/overview.
https://www.livemint.com/Opinion/HSkdlN275GHPY0QE2pVAyK/Selection-not-Cyrus-
Mistry-was-the-problem-at-Tata-Sons.html.
Kurian, Boby. 2016. "Changes In Culture And Management Style Were Seen To Erode
‘Values’ - Times Of India". The Times Of India.
https://timesofindia.indiatimes.com/business/india-business/Changes-in-culture-and-
management-style-were-seen-to-erode-values/articleshow/55040342.cms.
Press Trust of India. 2018. "Tata Global Beverages To Exit Loss-Making Subsidiaries".
Business-Standard.Com. https://www.business-standard.com/article/pti-stories/tata-global-
beverages-to-exit-loss-making-subsidiaries-118070500699_1.html.
PTI. 2018. "Tata Global Beverages To Exit Loss-Making Subsidiaries - ET Retail".
Etretail.Com. https://retail.economictimes.indiatimes.com/news/food-entertainment/grocery/
tata-global-beverages-to-exit-loss-making-subsidiaries/64877762.
Roy, Prabal Basu. 2018. "The Tata-Mistry Case Verdict Is Not Surprising".
Https://Www.Hindustantimes.Com/. https://www.hindustantimes.com/analysis/the-tata-
mistry-case-verdict-is-not-surprising/story-mEOrpyTINRjgmSDhD0XahM.html.
Rukmini, S. 2016. "World Bank Finds Evidence Of Labour Abuse On Assam Tea Plantations
It Owns With The Tatas". Huffpost India. https://www.huffingtonpost.in/2016/11/07/world-
bank-finds-evidence-of-labour-abuse-on-assam-tea-plantatio_a_21600044/.
tata.com. 2018. "Corporate Social Responsibility Via @Tatacompanies". Tata.Com.
http://www.tata.com/sustainability/articlesinside/corporate-social-responsibility.
tataglobalbeverages.com. 2018. "Tata Global Beverages". Tataglobalbeverages.Com.
http://www.tataglobalbeverages.com/company/overview.
11INTERNATIONAL MANAGEMENT
Tatasteel.com. 2014. "CSR Policy- Tata Steel India". Tatasteel.Com.
https://www.tatasteel.com/media/1879/csr-policy-version-20.pdf.
tatatechnologies.com. 2018. "Corporate Sustainability - Tata Technologies". Tata.
https://www.tatatechnologies.com/in/about-us/corporate-sustainability/.
Tepalagul, Nopmanee, and Ling Lin. "Auditor independence and audit quality: A literature
review." Journal of Accounting, Auditing & Finance 30, no. 1 (2015): 101-121.
Thakkar, Ketan. 2018. "It Hurt When Country Looked At Tata Motors As A Failing
Company: Ratan Tata". The Economic Times.
https://economictimes.indiatimes.com/industry/auto/auto-news/it-hurt-when-country-looked-
at-tata-motors-as-a-failing-company-ratan-tata/articleshow/63581246.cms.
Tatasteel.com. 2014. "CSR Policy- Tata Steel India". Tatasteel.Com.
https://www.tatasteel.com/media/1879/csr-policy-version-20.pdf.
tatatechnologies.com. 2018. "Corporate Sustainability - Tata Technologies". Tata.
https://www.tatatechnologies.com/in/about-us/corporate-sustainability/.
Tepalagul, Nopmanee, and Ling Lin. "Auditor independence and audit quality: A literature
review." Journal of Accounting, Auditing & Finance 30, no. 1 (2015): 101-121.
Thakkar, Ketan. 2018. "It Hurt When Country Looked At Tata Motors As A Failing
Company: Ratan Tata". The Economic Times.
https://economictimes.indiatimes.com/industry/auto/auto-news/it-hurt-when-country-looked-
at-tata-motors-as-a-failing-company-ratan-tata/articleshow/63581246.cms.
12INTERNATIONAL MANAGEMENT
APPENDIX 1
SWOT Analysis of TATA Industries:
APPENDIX 2:
PESTEL Analysis
Political:
APPENDIX 1
SWOT Analysis of TATA Industries:
APPENDIX 2:
PESTEL Analysis
Political:
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13INTERNATIONAL MANAGEMENT
1. By supporting the improvement of infrastructure of the country, TATA can improve
its relation with the governmental agencies, get positive coverage, improve its image
as well as reduce costs of transportation and logistics.
2. TATA has also made investments to start operations in Iran and Bangladesh which
have increased costs of production
3. TATA already has strong political influences through the continued efforts of the
organization to help the communities.
Economic:
1.The costs of production is dependent on the price of energy. Currently TATA depends
mostly on non renewable energy and due to an increase in price of the energy, the costs of
production will increase further.
2. TATA can be affected by economic fluctuation (such as the recession in Europe) in the
markets of different countries where its operations are located.
3. The cyclical economic condition led to a significant loss for the organization.
Socio-Cultural:
1. TATA received the Golden Peacock Global Award for ethical behavior and
commitment to social development which increased the brand image of the company
2. Tata also focused on the cultural development of communities affected by natural
disasters across the country
3. TATA also initiated many healthcare programs to support people with special needs
and disabilities.
Technological:
1. By supporting the improvement of infrastructure of the country, TATA can improve
its relation with the governmental agencies, get positive coverage, improve its image
as well as reduce costs of transportation and logistics.
2. TATA has also made investments to start operations in Iran and Bangladesh which
have increased costs of production
3. TATA already has strong political influences through the continued efforts of the
organization to help the communities.
Economic:
1.The costs of production is dependent on the price of energy. Currently TATA depends
mostly on non renewable energy and due to an increase in price of the energy, the costs of
production will increase further.
2. TATA can be affected by economic fluctuation (such as the recession in Europe) in the
markets of different countries where its operations are located.
3. The cyclical economic condition led to a significant loss for the organization.
Socio-Cultural:
1. TATA received the Golden Peacock Global Award for ethical behavior and
commitment to social development which increased the brand image of the company
2. Tata also focused on the cultural development of communities affected by natural
disasters across the country
3. TATA also initiated many healthcare programs to support people with special needs
and disabilities.
Technological:
14INTERNATIONAL MANAGEMENT
1. TATA has started investment on reducing emissions from its production unit and
switching over to renewable resources
2. TATA started an online portal system called Metal Junction which helps in the e
market practices.
3. TATA has also developed plans for energy consumption and optimization of energy
usage to reduce consumption of energy.
Environmental:
1. TATA industries aim to reduce its carbon dioxide emissions by 20% by 2020.
2. The company supports the planting of almost half a million saplings per year.
3. Helped to set up the DHARMA port along with Larsen and Tubro to protect Olive
Ridley Turtles and saltwater crocodiles.
Legal:
1. Increased stress from Governmental agencies and Human Resources department due
to the recent events concerning TGB
2. Political instability in various parts of india causing problems with the production
units such as TATA Steel.
3. According to Mines and Minerals (Regulation and Development and Regulation) Bill,
2010, mining companies have to share atleast 25% of its profits with the local
communities.
1. TATA has started investment on reducing emissions from its production unit and
switching over to renewable resources
2. TATA started an online portal system called Metal Junction which helps in the e
market practices.
3. TATA has also developed plans for energy consumption and optimization of energy
usage to reduce consumption of energy.
Environmental:
1. TATA industries aim to reduce its carbon dioxide emissions by 20% by 2020.
2. The company supports the planting of almost half a million saplings per year.
3. Helped to set up the DHARMA port along with Larsen and Tubro to protect Olive
Ridley Turtles and saltwater crocodiles.
Legal:
1. Increased stress from Governmental agencies and Human Resources department due
to the recent events concerning TGB
2. Political instability in various parts of india causing problems with the production
units such as TATA Steel.
3. According to Mines and Minerals (Regulation and Development and Regulation) Bill,
2010, mining companies have to share atleast 25% of its profits with the local
communities.
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