In an era marked by volatility and growing complexity, Suresh Narayanan, Chairman of Nestlé India, has issued a clarion call for a cultural shift in corporate leadership. Speaking at the second edition of the HR and L&D Conclave, Narayanan emphasized that Indian corporations must cultivate leaders grounded in empathy, ethics, and long-term vision rather than short-term performance metrics. Drawing on his decades-long leadership journey, including crises such as the 2015 Maggi episode, Narayanan advocated for a leadership model that transcends personal ambition and champions collective well-being, resilience, and integrity as core pillars of sustainable business success.
The Leadership Deficit in Indian Corporations
Narayanan began with a sobering observation: India Inc. is facing a leadership vacuum. While financial metrics remain dominant in boardroom discussions, qualities such as moral courage, emotional intelligence, and crisis stewardship are conspicuously missing from executive evaluations. According to him, the contemporary workplace has become "pretty corrosive," shaped by a culture of self-promotion and a weakening sense of organizational unity.
He urged corporate boards and HR leaders to rethink how they identify, train, and measure leaders. The ability to deliver earnings per share or maximize return on capital, while essential, should not be the sole yardstick. Instead, sustainable leadership—rooted in values and vision—deserves greater emphasis.
Ethics and Empathy Over Excel Sheets
In a departure from the numbers-driven leadership culture, Narayanan proposed a broader definition of what it means to lead. He articulated a leadership triad:
- Clarity of Direction – The capacity to interpret complex scenarios and chart a realistic path forward.
- Values-Based Leadership – Aligning personal ethics with organizational purpose.
- People-Centric Management – Recognizing and orchestrating the latent power of teams to drive long-term success.
"Leadership isn’t about becoming a superman; it’s about becoming a servant to the purpose," he remarked, pointing to his handling of Nestlé India’s biggest crisis—the Maggi ban in 2015—as a textbook example of humility-led leadership.
The Maggi Crisis: A Masterclass in Crisis Management
Revisiting the Maggi noodles controversy, which led to a nationwide recall and nearly halved the company’s business in India, Narayanan recounted his decision to externalize leadership. Instead of adopting a command-and-control approach, he engaged collaboratively with regulators, consumers, and internal stakeholders to restore credibility and rebuild trust.
The incident not only tested his strategic mettle but also revealed how leadership built on transparency and resilience can convert a near-collapse into an enduring comeback. The recovery of the brand and the strengthening of stakeholder trust became emblematic of the power of value-driven leadership.
Rethinking How Investors Value Companies
Narayanan’s critique extended beyond internal leadership practices. He also called upon investors and analysts to broaden their valuation models. “Sustainable leadership,” he argued, “should be seen as a core metric—alongside financial indicators—when evaluating an organization’s intrinsic worth.”
His assertion comes amid a growing global movement that challenges traditional valuation frameworks, advocating for environmental, social, and governance (ESG) metrics as integral to investment decisions. For Narayanan, ethical leadership is not just good practice—it’s good business.
The Immutable Core of Leadership
Despite evolving technologies and shifting market dynamics, Narayanan believes the essence of leadership remains constant. True leaders must be confident but not arrogant, principled yet adaptable, and above all, selfless. He emphasized that great organizations falter not due to strategic miscalculations, but because of leadership that lacks vision, humility, and accountability.
“Most failures,” he said, “stem from hubris, self-centeredness, and compromised governance—not poor strategy.”
Final Thoughts: Building a Culture of Purpose
Narayanan’s reflections serve as a timely reminder that India’s economic aspirations must be matched by ethical leadership capable of navigating uncertainty with clarity and compassion. As he prepares to step down from his role, his parting advice to corporate India is clear: cultivate a cadre of leaders who don’t just excel on paper but elevate the human spirit of the workplace.
In an age of disruption, the companies that endure will not be those who chase quarterly profits, but those who anchor themselves in purpose, people, and principle.
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