The Indian government put up the country’s national airline Air India for sale in 2001. Ratan Tata – the chairman of India’s biggest conglomerate Tata Sons – bid for it. He really really wanted to own it. Why? Because his uncle and mentor JRD Tata had started the airline.

It was his uncle JRD Tata who had gotten the first flying licence issued in India. It was his uncle who had flown the first commercial flight in India in 1932 – from Karachi to Mumbai. JRD had started Tata Airlines, which the Indian government took over and nationalised in 1953 after Independence, and against the founder’s wishes.

So when there was a chance to reclaim his uncle’s legacy, Ratan Tata bid for Air India with fervour. And then a few politicians approached him. They asked for a small bribe to make sure Tata would win the bid for the airline.

But Ratan Tata refused. And he saw Air India slip out of his hands!

This wasn’t the first time Tata faced issues because of his ethical stand. 

Tata had lost many contracts and faced a lot of red tape that a few well placed bribes would have solved in a flash. After all, everyone in India paid bribes – it was the norm!

But not Tata. To him, it was ok to bear a loss, than to do something unethical. It took courage to take such a strong ethical stand. With such intense pressure to compete and survive, how can one resist the temptation to take quick shortcuts? 

How can one resist the devil’s argument of: bribes may be a little bit bad, but it will allow us to do much more good?

When Tata could not buy Air India back, he bought Jaguar

Tata bought brands like Tetley, Daewoo, Corus Steel, Jaguar, Land Rover in the 2000s. He started projects like building the Tata Nano car. He didn’t sit on the Air India acquisition failure. The good does not stop with one failure.

If one door closes, another opens up. New options always show up. So why go with unethical options?

Moreover, paying bribes may bring short term benefits, but at the expense of the long term! Because once people know you are willing to pay bribes, you’ll always be made to pay bribes! You will always have fear of getting caught. Fear of loss of reputation.

Once you understand that only the ethical can live a fearless life, resisting unethical temptations becomes easy. 

“I don’t believe in short-term goals. I believe in long-term vision.” – Ratan Tata

Tata could always remain honest and ethical because he measures success differently. His timeline is different. He focuses on the long term.

And it is a matter of focus. 

When you make the focus switch in your mind – to think of the long term growth instead of the short term benefit, you will always value your reputation over money. Because a good reputation makes it easier to earn more money and more success in the future.

“None can destroy iron, but its own rust can.” – Ratan Tata

There is a reason why Tata Group is the largest as well as the oldest conglomerate from India. It was started in 1868 and is still going strong. And it’s because the stewards of the company have made sure to prevent the iron from rusting.

In the 21 years when he was the chairman, Ratan Tata grew Tata Sons by over 40 times! He did not need any shortcuts to do so.

And oh – the government’s Air India divestment plan in 2001 collapsed. And Tata could finally buy Air India in 2021 when the government put it up for sale again!

Action Summary:

• You will face many unethical temptations on your path. That promise you big gains for small corruptions. But resist them and you will outlast everyone else who gives in. 

• The way to resist them is by keeping an eye on the long term vision, instead of short term benefits.