Question:
Describe about the case Study for Business Ethics for History of Business Ethics.
Tata Motors is one of the renowned automobile companies in India. The company was on track under the parent company, Tata Group since 1945. It was nominated as the first automobile company in India, which was added in the list of the New York Stock exchange. The company started manufacturing the commercial vehicles in 1954 by collaborating with Daimler Benz, which was situated in Germany. This step lead Tata motors to become not only India’s major automobile company but also they got the opportunity of becoming world’s largest automobile company, which provide commercial vehicles (Weiss 2014). According to the present scenario, Tata Motors is the India’s second large industry which manufactures passenger vehicles. Tata was privileged for developing the Tata Ace, India’s first indigenously manufactured passenger car. In addition to this, Tata Nano was another innovation which was treated as the India’s least expensive car.
Businesses have a crucial role in the considering the organizational ethics and ethical practices developed in the organization, which indirectly develop the atmosphere for the employees to work properly. This report is discussing the importance of Business ethics in the context of Tata Motors. The rationale of the study states the value of ethics in the organization. The strategic analysis on the Tata Motors explains the social, political role in the market. At last the qualitative analysis of the above mentioned scenario highlights different factors about the ethical practices in the Tata Motors.
1.1 Rationale
Company valuation is carried out to protect the interests and demands of the consumer, who are purchasing the invented products and services (Halinen and Jokela 2016). Here Tata Motors is the India’s one of the most popular automobile company, which have their own code of conduct and ethical strategies for maintaining the ethics within the company.
The case study of ethical practices in Tata Motors is expected to bring the strategies and involved into understanding the political, social and industrial situation of the company in the competitive market (Baviera et al. 2016). The advantage of the research is that, the paper would be helpful for the further understanding the ethical issues incorporated with in Tata Motors. This paper not only elaborates about the analytical perspective of the ethical practices in the organization but also it gives a detailed view of the practical scenarios within the organization.
The methodology utilized in this paper highlighted the various data collection methods, which shows the internal condition and involvement of the external resources in Tata Motors.
This research has the base about the contribution of business ethics in Tata Motors (Jennings 2014). The research methodology used a combination of techniques for satisfying the needs of the research paper.
Tata Motors is intelligent enough to uphold and expand their business by keeping the focus on the core capabilities. Tata Motors have made themselves bloodthirsty, active, and dynamic from the different aspect of the automobile industry. These aspects highlight that, the company needs to be diversified and empower their knowledge in different sectors for the improvisations. Through the R&D approach of the company Tata Motors can make continuous improvements by producing new products and services (Metcalfe and Syed 2015). The company has set their boundaries higher than their competitors by developing the cheapest vehicles in India. Another core competency of the Tata Motors is, their hold is being located in India. This aspect not only motivated them to understand the local market of India but also helped to gather knowledge about the dynamics of the emerging technology.
2.1 SWOT Analysis on Tata Motors
Strengths: Tata Motors shows their core capabilities, when it comes to the intensive research and development. They have first invented the least expensive car Nano which earned 2,500 dollar at the first stage of the promotion of it. To provide the organization’s core competencies, which make the positioning better. Tata Motors manufacture from tractors to the world’s slightest expensive cars. Product diversity leads them to achieve grab the opportunities of the competitive market. Strength of the Tata Motors is their commercial accountability (Tsalikis and Fritzsche 2013). They always contribute their one percentage of the earning to the charity at the end of the all collections from the market and their consumers.
Weaknesses: There are always a few strings attached with every improvement. These strings are known as the weakness of the Tata Motors. Weakness is the inability of the company while meeting the safety standards for their products. The consumer raises questions in case of the safety standard of the cheapest car (Rasche and Gilbert 2015). Though the company provides the car with in a very low cost but still the customers are not satisfied with the quality of the product. Another weakness of the Tata Motors is problems faced by the company within its domestic market. This issue draw a problem that, the company doesn’t get the sales that the company has planned to earn (Hansen et al. 2015). Another aspect is that, the OneCAT still have some rough spots, which must be recovered.
Figure 1: SWOT Analysis of Tata Motors
(Source: Giacalone and Promislo 2013, pp- 97)
Opportunities: Tata Motors have already started welcoming the innovative ideas and strategies, which can be taken as new opportunities but also some new threats to their company also. One of the advantageous opportunities of Tata Motors is that, presently 90 % of the India’s inhabitants do not obtain cars as they have financial crisis (Giacalone and Promislo 2013). But the organization is inventing new cars in cheap rate.
Threats: The intellectual property rights are the major threats of the company (Rasche and Gilbert 2015). Tata motors had invented the world’s cheapest car, Every customer wants to know how this was designed at this particular cost.
Political Aspect: In view of the fact that Tata Motors is operating their business in several countries all over the world, it needs to have close concentration to the political environment of the around the organization. The law, regulation acts are totally different in each of the country, so it is mandatory for the organization for providing consideration to the regional governing bodies (Michaelson et al. 2014). Laws operating the commerce, growth and trade are totally reliant on the local authorities, as glowing as the international economy and markets are affected by the local political scenario.
On 2008, Tata Motors signed an agreement with the Ford for purchasing the Jaguar and Land Rover. For this acquisition the organization should have the permission of the local authority of Ford.
Economic Aspects: Tata Motors deals with the world’s different countries, so it have to operate their economic condition while considering the global economic perspective by keeping eye on the individual markets. Since 2004 the organization is operating their business with world’s best 4 countries, this supports their rapid growth according to the global perspective (Abend 2014). The experienced resources from these top five countries provide economic supplement for the development of the organization. As an example, if the cost of the aluminum requisite to get the engine block goes up in Kenya, then Tata Motors have the opportunity to get the aluminum from other supplier among those five countries and they can transport these goods in Ukraine and Russia.
Figure 2: PESTLE Analysis of Tata Motors
(Source: Michaelson et al. 2014, pp- 89)
Social Aspects: The beliefs and judgment and attitude of the stakeholder in a organization manipulate the performance of the company. This involves all the stakeholders from CEO to the general members of the company (Moore 2016). The work culture and the attitude towards the organization decide the future of the company. This aspect makes sure about the positive development of the company.
Technological Aspects: The Tata Motors and its parent organization, the Tata Group, are in a good position in the field of the technology. As the company operates themselves in a range of countries, they have good experience about the research and developmental aspect (Edward and Willmott 2013). The foundations of the enterprise have great stimuli for achieving the good R&D. Tata Motors R&D team have a good set of platforms and knowledge for achieving better opportunities in the competitive market (Nica 2013). Tata Nano and Tata Ace are two inventions of Tata Motors, which shows the advanced technological level of the company.
Legal Aspects: According to the research done on the legal aspects on Tata Motors it is found that, the organization had acquired 997 acres of land for manufacturing Nano with the state government support (West 2014). Though this acquisition, there the organization required the displacement of the farmers. This issue was highlighted as a great controversy.
Environmental aspect: The environmental aspect of the Tata Motors introduced that, the organization manufactured their vehicles with the regulations provided in the Euro standards emission (Ellerman 2015). The organization always follows the rules for maintaining the low fuel and gas usages. Except all of these the organization has invested a lot amount of money for the R&D section of the organization.
Business ethics is a crucial factor to be implemented in the business practices of the any organization. Tata Motors is the largest automobile company, which not only in India but also in from the perspective of the global business. If the consideration is about the ethical practices employed within the organization, then corporate governance policy is core ethical practice of the organization. The principal target of the organization is to improve the quality of the life of the group of IT services. The core values and ideologies of the company help the company to bring these changes to the organization (Nica 2013). The philosophy of the corporate governance of the company is established on the basis of the fair, ethical policies and practices. From the global perspective of the organization, the corporate governance practices followed by the organization are all about the honesty, legacy, integrity of the employees and customer and employee relationship. The corporate governance policy further focuses on the Tata Business Excellence Model, to achieve the excellent performance in the global business market. The Tata Code of Conduct and the balanced score card approach is there for tracking the progressive nature of the company (Giacalone and Promislo 2013). The core competency lies in between the internal relationship between the employees and the higher authority of the organization. Business ethics is all about the conduction of all aspects of the business processes n a ethical manner. Corporate governance is all about the principles and values of the company which guides the organization by maintaining the ethics in their business ideologies (Rasche and Gilbert 2015). Tata Motors are focused on their establishment of the strategies they have employed on for satisfying their goals according to the organizational perspective. All of these above mentioned approaches and strategies prove the ethical practices in Tata Motors.
The business ethics is totally followed by the organizational heads of the Tata Motors. Tata Motors always focuses on the aspect that, they will provide their customers a good quality of products and services according to their demands and priorities (Abend 2014). The corporate governance policy is one good example among a huge ethical practices applied in the organization. This policy take care of the advancements of the technology and customer demands incorporated according to the emerging market trends.
One of the most effective strategies is continuous environmental scanning for the opportunity for increasing the value of the stock. In case of the Tata Motors they provided huge amount of variety of products for satisfying their customer demands. There are several programs and strategies implemented on the organizational objectives for the betterment of the organization (Moore 2016.). The above mentioned aspects give the detailed information about the core ethical practices and their implementation within the organization. The organization have the intense knowledge of the handling the different strategic processes of the Tata Motors. Importance of the ethics in the organizational perspective is totally made clear in this case study.
Conclusion:
Tata Motors is an in general strapping organization that has strengthened their root through the help of the parent company, Tata Group. Though in this matter the numerous amount of mergers and acquisitions helped a lot. Although he Tata Motors stock prices fallen down for a certain period time, then the organization realized their negativities and back logs in their strategic movement for achieving their objectives. In addition to this, they have found the Tata Motors have developed various innovative services for attracting their customers and they also provided fair and relevant choices to their customers. These ethical practices and ethical programs set their position high in their target market. Their most important competitive advantage was, they had a good grip over their local markets and ethical practices attracted more the customers in their home ground, which made them more perfect in their domain of work. This case study highlights the importance of ethical practices in the context of the Tata Motors and provided a clear and strategic view point for understanding the demand and emerging trends for the understanding the present scenario for Tata Motors. Business ethics shows the improvised way for the betterment of the organization.
References:
Abend, G., 2014. The moral background: an inquiry into the history of business ethics. Princeton University Press.
Baviera, T., English, W. and Guillén, M., 2016. The ‘Logic of Gift’: Inspiring Behavior in Organizations Beyond the Limits of Duty and Exchange.Business Ethics Quarterly, 26(02), pp.159-180.
Edward, P. and Willmott, H., 2013. Discourse and normative business ethics. In Handbook of the philosophical foundations of business ethics (pp. 549-580). Springer Netherlands.
Ellerman, D., 2015. The democratic worker-owned firm: A new model for the East and West.
Giacalone, R.A. and Promislo, M.D., 2013. Broken when entering: The stigmatization of goodness and business ethics education. Academy of Management Learning & Education, 12(1), pp.86-101.
Halinen, A. and Jokela, P., 2016. Exploring Ethics in Business Networks: Propositions for Future Research. In Extending the Business Network Approach (pp. 333-356). Palgrave Macmillan UK.
Hansen, E., Kozak, R.A. and Vidal, N., 2015. Adoption and Implementation of Corporate Responsibility PracticesComparative models of social responsibilityWhy companies go green: A model of ecological responsivenessA three-dimensional conceptual model of corporate performanceThe pyramid of corporate social responsibility: Toward the moral management of organizational stakeholdersAbsorptive capacity: A new perspective on learning and innovationThe constituents of corporate responsibility: Separate, but not separable, interests? The current status of ….
Jennings, M.M., 2014. Business ethics: Case studies and selected readings. Cengage Learning.
Metcalfe, B.D. and Syed, J., 2015. How Islamic Business Ethics Impact Women Entrepreneurs: Insights from Four Arab Middle Eastern Countries.
Michaelson, C., Pratt, M.G., Grant, A.M. and Dunn, C.P., 2014. Meaningful work: Connecting business ethics and organization studies. Journal of Business Ethics, 121(1), pp.77-90.
Moore, B., 2016. 48. Privacy: Studies in Social and Cultural History.
Nica, E., 2013. Social Responsibility, Corporate Welfare, and Business Ethics. Psychosociological Issues in Human Resource Management, 1(1), pp.9-14.
Rasche, A. and Gilbert, D.U., 2015. 14. What drives ethics education in business schools? studying influences on ethics in the Mba curriculum.Handbook on Ethics and Marketing, p.284.
Tsalikis, J. and Fritzsche, D.J., 2013. Business Ethics: A literature review with a focus on marketing ethics. In Citation Classics from the Journal of Business Ethics (pp. 337-404). Springer Netherlands.
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