Address by Mr. Satish Pradhan – CEO Conclave

Mr. Satish Pradhan, Chief, Group HR, Tata Sons, was the first speaker of the CEO Conclave. He spoke on 3BL – People, Planet, Profit, the theme of L’Attitude 13 05, 2011.

Highlights of his address (not verbatim) –

3BL as imperatives

People, planet and profit are not options but imperatives of enterprises. This might be sounding overzealous to some and an understatement to others but nevertheless, it is a fundamental reality. The bottom line in 3BL has an accounting and Wall Street connotation; it is not a measure of inclusiveness because everything cannot be reduced to top line and bottom line.

Questions to ponder

What is the difference between wanting to look good and looking good? We should introspect on the difference. Are we diminishers or multipliers of inclusiveness? Are we diminishers or multipliers of environment? Are we diminishers or multipliers of profitability? These three are not options or tradeoffs. It is simply not about economic development at the cost of the environment anymore. We need leadership that can think beyond the ‘tomorrow’ and the ‘day after’.

Integration with a firm’s strategy

Jamsetji Tata, founder of the Tata group of companies, way back in the 1860s believed that “The community is not merely one of the stakeholders. It is the very purpose of our existence”.

While everyone can’t run a charitable institution dedicated to the cause of philanthropy, very few firms factor in considerations about people and planet when devising their strategy. The Tata group has developed a ‘human development index’ that measures the impact of a firm on human development in the environment. This will determine the degree to which intent is getting converted to impact.

The frameworks that CK Prahalad has offered us can be used for good 3BL practices. Examples of Tata group's products and services in this aspect abound – a one lakh car, an affordable water purifier and hotel infrastructure…

Mr. Pradhan thus left the audience with the thought that all the three imperatives can be achieved successfully and without conflict if 3BL is built into a firm’s strategy.