Ratan Tata was great…but was he a family business icon?

Ratan Tata was great – a great businessman, a great philanthropist…and a great lover of dogs (more on that last point below). He was an international icon of the business world and a national hero in India.

The announcement of his death led to an outcry of grief and love for the man. Many luminaries in business and politics lamented his death with their messages of grief and admiration for his life’s achievements. His face, more than most, portrayed his gravitas but, more importantly, his true humanity. 

Ratan was given a state funeral, and some Indian states awarded him a day of mourning in his memory. How many business leaders living today would be remembered so fondly and revered so highly? I would say few, if any. 

Given its vast size and its involvement in so many sectors—“from salt to software,” as it is often said about the company—Tata’s biggest stakeholder was, in fact, the whole of India

Ratan was truly great, but was he a family business icon, and what is meant by the term? I think he was because he held dear the principles of stakeholder values—placing all stakeholders—employees, customers, communities, and shareholders—at the heart of Tata Sons’ purpose. Stakeholder values are at the core of family business success. 

He held to the principle – also so important in the family business universe – of stewardship. To be fair, the principles of Tata Sons, founded by Ratan’s great grandfather Jamshedji Tata in 1868, were always about stakeholder values. As the Tata Group says about its mission: “To improve the quality of life of the communities we serve globally, through long-term stakeholder value creation based on leadership with trust”. But Ratan instilled them to an even higher level. 

Given its vast size and its involvement in so many sectors—“from salt to software,” as it is often said about the company—Tata’s biggest stakeholder was, in fact, the whole of India. Ratan Tata continued that legacy begun by Jamshedji a century earlier. 

Tata played a pivotal role in building India into the economic powerhouse it is today, and Ratan led the conglomerate for many crucial years when India began to matter more in the world economy. 

Of course, Ratan’s stewardship of Tata hit some bumps along the way. There was the well-publicized feud with his chosen successor, Cyrus Mistry, and the disappointment with the role of Tata’s Nano, the ultra-cheap car, a pet project of Ratan, which never took off. 

But there were many more success stories under his leadership, like Ratan growing Tata Consultancy to the $180 billion-plus business it is today. He led the acquisition of British carmaker Jaguar Land Rover from Ford in 2008. The car company became one of the UK’s biggest manufacturing employers, which, given Tata was founded under British colonial rule, must have struck Ratan as a nice irony that Indian company was so influential in the UK economy. 

Ratan placed Tata on the world stage.

He was also a big philanthropist, giving millions of dollars away himself and continuing Tata’s philanthropic efforts while he was at the helm of the family business. 

Ratan also played a big role in soothing India after the terrorist attack in Mumbai in 2008, which involved the Tata-owned Taj Mahal Palace Hotel, where 33 guests and employees were killed. He ensured the families of the victims were taken care of and gave lifelong salaries to the relatives of the deceased employees. 

Ratan was also an animal lover, especially of dogs. He famously eschews Prince Charles’s (now King Charles) invitation to receive a lifetime achievement award to be with his ailing dog. He allowed stray dogs to enter Bombay House, the headquarters of Tata Group. His love of canines was such that his dog Goa attended his funeral. 

All in all, yes, Ratan Tata was, and indeed, still is, a family business icon. His legacy will forever be remembered as one of the titans of the business world, but no less so as a family business icon.