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 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 resid
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 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 begin and some of the residents decided to
approach the judiciary as their plea before the Government did not yield any result.
(a) Identify the issues involved in the case.
(b) Keeping in mind the ancient Indian wisdom, what can be suggested to achieve the
company’s goal and to address the residents’ concern?
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