TIGE Caux Lecture: R. Gopalakrishnan (Photo: Adriana Borra)

R Gopalakrishnan, the Executive Director, Tata Sons and a Member of the Group Executive Board, Tata Group, spoke today on ‘Beyond consumer capitalism – towards sustainability and free trade’ at the Initiatives of Change conference centre in Caux.

According to the Indian business leader, ‘capitalism has evolved so differently across different regions of the world, and this has given rise to multiple interpretations, conflicts and contradictions in the way that it is understood and practices.’ Gopalakrishnan saluted the title of the Caux conference, ‘Trust and Integrity in the Global Economy: Exploring ways to help create a just and equitable global economy’ and likened the current world economic crisis to ‘a deficit of trust’.

In answer to a question from the audience, he noted that ‘traditional capitalism is perhaps not dead, but it is certainly in intensive care’. Civil society was increasingly questioning the avarice of some business leaders. ‘Capitalism that is not in harmony with nature and humanity will not survive,’ he said.

Caux 2010 TIGE Caux Lecture's audience (Photo: Adriana Borra)Based on his experience with Tatas – but also drawing on many other examples of industry in East and West – he claimed that if firms focus on stakeholder value, profits follow. ‘Some of the most profitable firms do not sport direct profit-orientation,’ he said. ‘They simply do the right things and end up being nicely profitable.’ A company ‘is an organic part of society,’ he continued. ‘When businesses put social responsibility at the core of their activities, other “lag” measures like profits will automatically follow.’ The central purpose of a business is to serve society, he claimed.

Gopalakrishnan, who has been president of the All India Management Association and is involved with education through his board memberships of a school and two management colleges, said ‘Tata is not unique, but perhaps different’. The challenge for the Indian multi-national was perhaps not so much to pass on their values to others, ‘but to maintain those core values in ourselves’.

The Tata Group is a multinational conglomerate company headquartered in Mumbai, India. In terms of market capitalization and revenues, Tata Group is the largest private corporate group in India. It has interests in steel, automobiles, information technology, communication, power, tea and hospitality.

>> Interview with R Gopalakrishnan (video)

>> Listen to R Gopalakrishnan's online

>> Download R Gopalakrishnan's speech

>> Further information about the International Caux Conferences 2010