GS-4 · Case Studies Based on Private Sector

201625 marksQ7vs Community Protests

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 costs 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 the Vikaspuri region, which is otherwise tranquil. The new plant may result in an increased cost of living and aliens migrating to the region, disturbing the social and economic order. The company, sensing the possible protest, tried to educate the people of the Vikaspuri region and the public in general on how its Corporate Social Responsibility (CSR) policy would help overcome the likely difficulties of the residents of the Vikaspuri region. In spite of this, 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) What can be suggested to satisfy the Company’s goal and to address the residents’ concern?

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Paper:
GS-4
Section:
Case Studies Based on Private Sector
Year:
2016
Marks:
25

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