Corporate Influence and Ethics in India

Key Points:

• 1600 Crore Gifted House:

  • A significant business personality gifted a 1600 crore house to his close associate or right-hand man.
  • This showcases the wealth and influence of some business leaders and their associates.

• *Ethical Controversies:

  • India's one of the most ethical groups' chairman accused the then-richest person of being overly materialistic by living in a lavish multi-story building while they believed in charity and ethical industry practices.
  • Example: Comparison of living spaces (4800 sq ft per person vs. 14800 sq ft for one person).

• *Hypocrisy in Criticism:

  • Even those criticizing the wealthy for their lavish lifestyle often possess luxurious items themselves.
  • Example: Garages filled with luxury cars like S-Class, BMW, and Ferrari.

• *Use of Wealth:

  • Wealthy individuals have the right to use their money as they see fit without necessarily publicizing charitable actions.

• *Selective Public Relations and Image Management:

  • Some business personalities use public charity and good deeds for image boosting.
  • Others prefer to keep their charitable actions private.

• *Influence of Powerful Individuals:

  • Example: A powerful businessman known for adopting aggressive tactics against competitors.

• Hostile Corporate Tactics:

  • Described an incident where a businessman's right-hand man publicly berated a department head to elicit performance improvements.

• *PR Strategies in Private Social Events:

  • Select celebrity attendees like Shah Rukh Khan and Ranbir Kapoor consistently appear in private parties hosted by wealthy individuals.
  • Different PR treatments for different celebrities based on their closeness to the host.

Historical Anecdotes:

• Corporate Raiders of the 1980s:

  • Story of Manu and Kishore Chhabria, two corporate raiders from Dubai who targeted Indian companies.
  • Their attempt to take over L&T (Larsen & Toubro), a major capital goods company.

• Saving L&T:

  • L&T management sought help from Dhirubhai Ambani to protect the company from a hostile takeover.
  • Reliance bought a significant stake in L&T to prevent the takeover.

• Strategic Corporate Moves:

  • L&T later encouraged employees to buy shares to prevent future hostile takeovers.
  • Created an Employee Trust Fund.
  • Eventually sold stakes to Birla Group after a 14-year lock-in.

Summary:

• Business ethics, criticism, and wealth use controversies are common in the corporate world.
  • Selective public relations and image management play crucial roles in how business personalities are perceived.
  • Historical incidents of corporate raids and strategic defensive moves illustrate the complex interplay of power and business tactics.