Business Ethics

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Conscious Capitalism

This case was written by Sumit kumar das, IBS Kolkata for management studies on Business ethics & corporate governance. It was compiled from published sources, and is intended to be used as a basis for class discussion.

Introduction

Conscious Capitalism sheds a shining light over the business community and reveals a deeper purpose for business—a much deeper and more noble purpose than just maximizing profits for the shareholders.

Under the umbrella of Conscious Capitalism business is based on four principals.

1. Social Purpose: The first principle is that businesses have a social purpose beyond merely maximizing profits for the shareholders. 

2. Stakeholder Principal: The second principle is that businesses  must consider the interests of the interconnected stakeholders—shareholders, employees, suppliers, customers and the community.

3. Leadership Philosophy: The third principle is that business leaders are professionals who are ethically bound to put the interests of all stakeholders ahead of their own. They must consider the impact their decisions will have on all the stakeholders. 

4. Business Culture: The business culture must nurture the leadership and stakeholders by encouraging all of them to recognize the principals of Conscious Capitalism. 

“Through this case on TATA GROUP we will discuss the way they do business promoting Conscious Capitalism.” 

TATA GROUP

Background Note

TATA GROUP captures both the deep roots and careful nurturing of the Tata way — a philosophy of trusteeship, community and corporate responsibility, coupled with bold innovation and diversified growth — that has now vaulted the group to a new apex in its 151 year history: $67.4 billion in revenues, a 350,000 member family and a presence in 80 countries.

Clearly for the...