Ethc

In: Business and Management

Submitted By elrawy
Words 838
Pages 4
“Can we build a car for $2000?” asked Tata’s Indian management and the reply came back “yes”. Now we know the right answer was “no”. The response also revealed the vehicle’s executives as devoid of ethical leadership.

code of ethicsThe Tata Nano is a disgrace and does a huge disservice to the larger, global organisation. From the start, the group’s ethical code says:

No Tata company shall undertake any project or activity to the detriment of the wider interests of the communities in which it operates.

The safety code is even more explicit:

A Tata company, in the process of production and sale of its products and services, shall strive for economic, social and environmental sustainability.”

The apparent vulnerability of users to this vehicle makes the car socially and environmentally unsustainable.

As for quality the organisation claims a commitment to: “Supply goods and services of world-class quality standards”

That the Nano even got past the mock up stage, with no airbag—at least on some models, and whose fragile structure “folded like a cardboard after hitting a wall at 40 mph” is reprehensible.

The Nano appears to trash Tata’s ethics code. Where were the compliance officers when the vehicle was on the drawing board?

There is a dreadful echo of the classic Pinto scandal of the last century. Ford’s then management was aware of the weakness of the fuel tank. A crash from the rear could cause the tank to explode and incinerate the occupants. To correct the fault required a few dollars.

A so-called cost-benefit analysis allowed Ford engineers to show “taking no action” would cost less” than paying the expected legal damages. This was a craven disregard for the lives of the company’s customers, people died in terrible circumstances due to such false accounting.Ford Pinto

The Tata Nano story looks all…...

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