Chairman of Tata Trusts, Ratan Tata on July 23 said sensitivity towards employees is crucial to survive and do well in the long run. Layoffs amid the COVID-19 pandemic was a knee-jerk reaction and shows lack of empathy among the top leadership, Tata said.
The nationwide lockdowns have impacted businesses across sectors. Several have resorted to layoffs and salary cuts to trim costs.
"These are the people that have worked for you, these are the people who have served you all their careers so you send them out to live in the rain? Is that your definition of ethics when you treat your labour force that way?" Tata quipped.
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Speaking to Your Story, the philanthropist said the way of doing business has to change and laying off employees is not the solution.
"Accept that you have to change what you consider is fair and necessary in order to survive. One cannot continue to do business in certain ways and one won't survive if you are not sensitive towards all your stakeholders. Laying-off people will not solve your problems as you have a responsibility towards those employees," the 82-year-old said.
Speaking about the plight migrant workers, who were left to fend for themselves after Centre imposed lockdown, the industrialist said, "Labour force one day was just told that there is no work for you and we don't have the means to send you home. This highlights the lack of business ethics."
Tata said that if there ever was another crisis like COVID-19, businesses would be in a better position to tackle it.
"I hope we never have another case, but if we do, I think companies will react much faster in the right way, rather than just letting people go," he said.
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