Corporate India Must Cultivate Ethical Leadership for Employee Well-Being, Says Nestle India CMD

A shortage of effective leadership exists, and corporate India must cultivate leaders who can manage crises with ethics and empathy, according to Nestle India Chairman Suresh Narayanan. He emphasised that workplaces are becoming increasingly toxic as individuals attribute success solely to themselves. Narayanan advocated for leaders to engage empathetically with employees, fostering a culture of trust and support even during difficult times.

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Narayanan highlighted the importance of prioritising the well-being of the organisation and its employees over personal career ambitions. Speaking at the HR and L&D Conclave's second edition, he stressed that corporate India should focus on developing leaders who are both competent and ethical. He argued that leadership should not be solely based on financial performance but should also incorporate ethics and empathy.

Leadership Qualities and Organisational Success

Narayanan outlined three key characteristics for evaluating leaders within an organisation. Firstly, leaders should have the ability to chart a course for the organisation under various circumstances. Secondly, they must embody the purpose and values of both themselves and the organisation. Lastly, they should harness and coordinate the power of people effectively.

He also suggested that investors should consider sustainable leadership as a metric for assessing an organisation's value, rather than focusing solely on earnings per share or return on invested capital. Narayanan shared his experiences managing crises for Nestle SA in markets like Egypt, the Philippines, and India, particularly during the Maggi crisis in 2015.

Lessons from Crisis Management

During the Maggi crisis, reports emerged about lead content in some samples of the noodle brand, which significantly impacted Nestle India's business. Narayanan chose to externalise himself rather than act as a superman for the company. He worked collaboratively with stakeholders to revive the business.

Narayanan believes that most organisational failures stem from poor leadership rather than flawed strategies. Issues such as self-centeredness, hubris, and governance problems often contribute to these failures. He stressed that essential leadership qualities should remain unchanged over time.

The outgoing chairman underscored the need for leaders to be confident and selfless while prioritising organisational culture over personal success. He reiterated that corporate India needs to develop a cadre of leaders who can navigate challenges with integrity and empathy.

With inputs from PTI