ABC Ltd. is a large transnational company having diversified business activities with a hugeshareholder base. The company is continuously expanding and generating employment. Thecompany, in its expansion and diversification programme, decides to establish a new plant atVikaspuri, an area which is underdeveloped. The new plant is designed to use energyefficient technology that will help the company to save production cost by 20%. Thecompany’s decision goes well with the Government policy of attracting investment todevelop such underdeveloped regions. The government has also announced tax holiday forfive years for the companies that invest in underdeveloped areas. However, the new plantmay bring chaos for the inhabitants of Vikaspuri region, which is otherwise tranquil. Thenew plant may result in increased cost of living, aliens migrating to the region, disturbingthe social and economic order. The company sensing the possible protest tried to educate thepeople of Vikaspuri region and public in general that how its Corporate SocialResponsibility (CSR) policy would help overcome the likely difficulties of the residents ofVikaspuri region. In spite of this the protests begin and some of the residents decided toapproach 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 thecompany’s goal and to address the residents’ concern?
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