Ram S. Tarneja's* memories of Naval Tata are crystal clear to this day, specially his farsighted and innovative thinking, and his belief that corporate houses had an obligation to society

They say time rolls by. In the case of my friendship with Naval Tata, time seems to have flown by. He left us back in 1989, but I can still clearly visualise him having a lively discussion. Such was the impact of his personality on me.

I started my first job in India in 1963 in Calcutta. I was associated with Sahu Jain Industries as personnel director and Shantiprasad Jain, the chairman of our business group, was on intimate terms with Navalbhai. That's how I came to meet him in the mid-1960s. I was the vice-chairman of the Calcutta Indian Chamber of Commerce's labour commission and he was the president of the Employers' Federation of India (EFI). I soon realised that this was a man who could stand up and speak openly with the powers that be.

I observed the warmth of his friendship one evening at the palatial Tata Bungalow at Delhi. He not only poured a cup of tea for me, but also asked how much sugar and milk I needed. This meticulous and personal aspect was repeated many times in my long association with Navalbhai.
I came to Mumbai in March 1970 to be a part of the top management of Bennett Coleman, the publishers of The Times of India. Despite the large difference in age, we became friends. We would discuss managerial issues and ways to tackle them. Naval introduced me to the EFI and ensured that I took an active interest in the organisation.

Naval was a unique personality, farsighted and innovative in his thinking. The views he expressed on the employment situation in India and the need to introduce automation are as relevant today as they were in the 1970s. Naval was critical of our politicians approaching economic issues purely from a political angle.

He believed that the corporate world had to make the fulfilling of its social responsibility an intrinsic part of business policy. In this connection, his foresight was extraordinary, as evidenced by the following excerpt from an address he made at the annual general body meeting of the EFI way back in 1972:

"In the broader context of the future of the capitalist system, let us look at some of the global developments that have taken place in industrially advanced countries over the last few years. Although the capitalist system has thus far survived the onslaught of Marxism, the business world faces a new challenge today from the so-called New Left, which symbolises the voice of youth. A large proportion of young people in Europe and America are questioning the age-old belief in corporate giants and their multinational ramifications. They scoff at the very character of the free-enterprise system. They look down on the system of mass production, industrial efficiency and automation as a kind of grind to perpetuate drudgery.

"As a result of this attitude, there are visible changes in the approach of US and European corporate leaders. They have begun to believe that they are obliged to tackle a broad range of social problems, even though such action may temporarily retard profits. This new mood reflects genuine altruism, and is a reaction to the mounting attacks on big business. More and more businessmen are becoming aware that fulfilment of social goals is not generosity but an obligation. They realise that they have to change, or change will be forced on them."

Naval was instrumental in introducing me to the International Labour Organisation [ILO] of which he was a member for long. He invited me to meet the ILO's director general and a couple of deputy director generals. I served on the ILO's governing body for three years, from 1990 to 1993, as a substitute member representing Indian employers. This, of course, happened after Naval had passed away. It was also through Naval that I was invited to join the board of Tata Power in the mid-1980s. That was the beginning of my association with Bombay House.

My friendship with Naval grew stronger with every passing year. One evening, Naval and Simone Tata were having dinner with their sons, Ratan, Jimmy and Noel, at the Taj Mahal Hotel. I was at another table with my wife and my daughters. Naval walked up to our table and shook hands with all of us and greeted us with a large smile. I walked back with Naval to their table and told him that Ratan, who had studied with me at Cornell University in the US, would one day succeed JRD Tata.

Naval looked at me with amusement and amazement and said, "Ram, what makes you say that?" My response was this: "Naval, I am placing a bet that when this happens you will remember my saying so and entertain me suitably and sufficiently." Sure enough, Naval invited me to his palatial house after what I had said came to be, when Ratan Tata was appointed as Chairman of Tata Industries Ltd.

Today, I can say with a great degree of satisfaction that Ratan has justified the confidence bestowed upon him by the senior Tatas. Indians no longer drive only a British Oxford car styled as an Ambassador in India. Today the British ride in an Indica styled as a City Rover in Britain. This reflects the contribution of Naval's eldest son Ratan in a restructured Indian economy and entrepreneurial leadership.

Naval Tata's contribution to Indian business and labour relations will ever be alive. His constant quest was for a social dialogue involving all stakeholders in the development process: employees, employers and the government. This is his greatest legacy.

*Ram S. Tarneja retired as managing director of Bennet, Coleman & Company, the publishers of The Times of India, in 1991. He is currently president of the Indian Institute of Health Management and Research, and the chairman of Nissin ABC Logistics as well as Jolly Board.

Uploaded on August 30, 2004