Monday, February 05, 2007

Business ethics in India – is Tata’s crown slipping?


Bimal Arora examines how Tata Motors has gone about developing a factory in West Bengal, which demonstrates that even India’s corporate responsibility champion is adopting too narrow an approach to ethical issues
In countries where institutional and public champions promoting corporate responsibility are weak, companies tend to have a narrow approach to business ethics.

Such a narrow approach to corporate responsibility can take several forms, but in essence boils down to a limited response to the concerns of communities where a company operates. Issues of general concern – such as the environment or labour issues – may be addressed, but not the specific matters affecting stakeholder communities.

A broad approach to corporate responsibility, conversely, means consideration of social responsibility in all business decisions and processes, and across business functions, within and without the organisation.

See full Article.