Ratan Tata questions 'definition of ethics' to India Inc on layoffs amid pandemic

On Thursday, Tata Group head Ratan Tata said layoffs by Indian companies amid the Covid-19 pandemic was a merciless reaction and lack of empathy among the top management.

"These are the people that have worked for you. These are the people who 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?" asked Tata in an interview to Your Story.

While the Tata Group has never laid off any employee, several Indian companies have cut back staff due to lack of cash flow after lockdown.

However, the Tata group has cut salaries of its top management by up to 20 per cent. Several Tata Group companies, like airlines, hotels, financial services, and auto business, are brutally hit, but they not laid off employees till date.

"It is impossible to survive as a company if one is not sensitive to its people," said Tata, adding, "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 to survive."

"While everyone chases profits, the question is how ethical the journey has been.

Business is not only about making money. One has to do everything right and ethically for customers and stakeholders," said Ratan Tata.

Making errors is part and parcel of business. The essential thing is to do the right thing at every turn and not shy away from difficult choices, he further said. "It's not been yachts, manors, and huge estates. It's been a wonderful experience of interacting with people who stand for the same ideas as you do... That's something I've come to miss," said Tata.