Humanistic Leadership and the Paradoxical Pursuit of Sustainability and Profitability: A Case Study of the Tata Group in India

The Tata group, one of the biggest global business enterprises founded in 1868 in pre-independent India, stays committed to the founder Jamsetji Tata’s (1839–1904) belief and conviction that the ‘community is not just another stakeholder in business but the very purpose of its existence.’ The giant strides that the Tata group has made in building its business revenue, profits, and brand in the 150-plus years of its growth is next only to its continued commitment to organized philanthropy and humanitarian goals. The latter maps closely with UN’s 2030 Agenda for Sustainable Development announced in 2015 with the 17 Sustainable Development Goals (SDGs). Tata group’s achievements in the paradoxical goals of sustainability and profitability can be theoretically reconciled by looking at Tata’s uniquely humanistic approach to leading and governing the enterprise. We specifically take note of three values in the Tata group: (1) wealth and profits are not a goal but an outcome, (2) virtuous circle of giving many times over, and (3) the ceaseless momentum of the founder’s vision. Tata group further institutionalized its sustainability values with the creation of the Tata Sustainability Group (TSG) in 2014. We discuss the key activities of TSG. Finally, we use the example of Tata Steel to highlight how in a high-stakes mining industry, indigenization initiatives are critical to industrialization for ensuring sustainability.