“Lack of Empathy”

Tata Group patriarch Ratan Tata commented on the layoffs by Indian companies amid the Covid-19 pandemic was a knee-jerk reaction and showed a lack of empathy among the top leadership.

“These employees have worked for you and have served you all their careers. You send them out to live in the rain. Is that your definition of ethics when you treat your labour force that way?”.

While Tata Group has not laid off any employee, several Indian companies have retrenched staff due to a lack of cash flow after India’s nationwide lockdown.

The Tata Group has cut salaries of its top management by up to 20 per cent,  while several Tata Group companies, including its airlines, hotels, financial services, auto business are severely hit, have not laid out any employees to date.

Mr. Tata further said: “ It’s impossible to survive as a company if one is not sensitive to its people, Covid-19 hits you wherever you are. Whatever your reasons may be, you have to change in terms of what you consider fair or good or necessary in order to survive>”

“While everyone chases profits, the question is how ethical the journey has been. Business is not only about making money but one has to do everything right and ethically for customers and stakeholders. Making mistakes is part and parcel of business, remembering the important thing is to do the right thing in every turn and do not shy away from difficult decisions” Mr. Tata continued.