Tata's nano perspective

MBA business primers speak about environmental factors as key in devising strategies. The reaction of businesses to their environment is now a point of intense scrutiny and debate. World over, businesses seem to be at the receiving end of global vicissitudes, some might argue they are the ones who caused it in the first place. Whether its contaminated milk in China, the Financial crisis in the West or what happened to the Nano in our country, businesses are being closely watched for what they do or what they don’t. In fact, a case in point is KV Kamath and the amount of PR activity that ICICI Bank has undertaken to assuage anxieties about whether it will go the Lehman way. An interesting trend is the amount of front page space newspapers provide for businesses and what they are doing. If one were to rewind ten years and do a simple comparison of no of business related headlines then compared to now, it’s a no brainer which way the numbers will show up. The case for business diplomacy, corporate public affairs and leader posturing is a very strong one in such an environment. PR agencies have their acts cut out I guess.
In this context, something significant happened this week, which gave me a disturbing message. The journey that the Nano factory traveled, from an extreme Left state to an extreme Right one was much talked about and speculated. The sight of Mr Ratan Tata in a warm hug with Narendra Modi broke my heart. As a group, Tata has always stood for the Indian virtues led business model that all of us admire. They have genuinely walked the talk, gone beyond the brief and arguably, have been the pioneers of corporate social responsibility in India. Off late, as they have gone global, the manner in which they have been aggressive, yet never hostile, confident yet never arrogant in all their business acquisitions is commendable and sets a shining example for the Indian way of doing business. In fact the Tata Code of Conduct (TCoC) is something that is actively practiced, monitored, audited and celebrated within the group. For such a group to actively endorse a man, who controversially, is responsible for the killings of thousands, directly or indirectly, is disappointing to say the least. Gujarat, to be fair, is the most investor friendly state that India has. Modi, has emerged with flying colors on all hard governance aspects. He is on sticky wicket though when it comes to inclusiveness, harmony and security of all his Gujarati citizens. One might argue that Mr Tata took a business decision, how does it matter which state, as every state has its Godhra equivalent story in its history books.
It’s a complex decision to make. On the one hand, the promise of a one lakh car is not just about selling four wheels but also about showcasing to the world what India can do as a pioneer. Who better than the Tata Group to do so. In a way, the move to Gujarat can be seen as a victory for the country, wherein we managed to find a solution in one state, even as bitter opposition existed in another. It also showcases how states which are nimble and clear in their objectives will attract the best of investment, irrespective of their moral fabric. In my mind, Mr Ratan Tata and the Tata Group operate slightly higher than mere business decisions. Their decisions have a conscience, one which resonates with society. This one though does not have my vote. The Nano will roll out of a land that still has some unanswered questions. It might have an engine but it will never have a heart.