A case study is a comprehensive and in-depth examination of a particular subject, often within its real-life context. It serves as a methodological tool to explore, analyze, and understand complex issues or phenomena, ranging from individual experiences to organizational challenges. Typically employed in various academic disciplines, business settings, and scientific research, a case study involves an extensive investigation that aims to provide a detailed account of the subject under scrutiny. By delving into the intricate details of a specific case, researchers can uncover valuable insights, draw conclusions, and offer practical solutions. This method offers a holistic approach, allowing for a nuanced understanding of the multifaceted factors influencing the subject, making it an invaluable tool for gaining knowledge and informing decision-making processes.
Q13. ABC Ltd. Is a large transnational company having diversified business activities with a huge shareholder base. The company is continuously expanding and generating employment. The company, in its expansion and diversification programme, decides to establish a new plant at Vikaspuri, an area which is underdeveloped. The new plant is designed to use energy efficient technology that will help the company to save production cost by 20%. The company’s decision goes well with the Government policy of attracting investment to develop such underdeveloped regions. The government has also announced a tax holiday for five years for the companies that invest in underdeveloped areas. However, the new plant may bring chaos for the inhabitants of Vikaspuri region, which is otherwise tranquil. The new plant may result in increased cost of living, aliens migrating to the region, disturbing the social and economic order. The company sensing the possible protest tried to educate the people of Vikaspuri region and public in general that how its Corporate Social Responsibility (CSR) policy would help overcome the likely difficulties of the residents of Vikaspuri region. In spite of this the protests began and some of the residents decided to approach the judiciary as their plea before the Government did not yield any result.
- Identify the issues involved in the case.
- What can be suggested to satisfy the company’s goal and to address the residents’ concern? (300 Words, 25 marks)
Tag: Case Study
Answer:
The business should include a sense of social responsibility. Social responsibility is an obligation that industries have to act in ways that benefit the society. It means that businesses have a compulsion to help out the poor, or to help clean up the environment because a lot they extract from society and the environment to grow economically.
Issues involved in this case:
- Due to limited livelihood options, the increased cost of living for the people most of which might belong to lower middle-class strata or below will become a major problem to handle.
- Since the area is already underdeveloped resources like land, water, public services like health, and education, a planned sewer management system will be inadequate. An under-planned area with sudden migration of people will not be able to cater to the basic needs like health, residence or education for the people which is known to have long-term effects.
- Though the company claims to tackle all the difficulties through CSR, construction of basic infrastructure can take a lot of time which may further add to the chaos.
Ways to satisfy the company’s goals to address resident’s concerns:
- Environmental impact assessment should be conducted in the first place with a non-partisan approach.
- Government and Company must work in tandem to ensure that the problems of the residents are taken care of through the CSR programs. However, CSR programs alone will not be able to do much, so correct initiatives must be taken by the government too.
- Legislative representatives of the area should accompany the company officials when information camps about the project are set up to develop a sense of belief amongst the residents. If the residents are convinced that the intentions are as genuine as the talks they will not be bothered with the project.
Blockade always arises due to lack of faith and doubt on the intentions of the company, which is always seen as profit making. To negate this company should adhere to its promises which in turn will be benevolent for both the parties. Such cases bring in the question of right of life versus development of community. For example, lands were acquired by the Andhra government for developing the capital city of Amravati and they were promised that 20% of their land will be returned after being developed. Such initiatives instill confidence in people, and they would eventually not oppose such development.
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