CSR Course Material -Session 4-5

Case Analysis on Stakeholder Management

Group Exercise

XYZ Ltd, a public limited company, has decided to set up a power plant in the Banaskantha district,
which is identified as an Aspirational district by the govt of India. It requires acquiring 2000 acres of
land for the plant, which will directly impact 200 tribal families from 10 villages of two panchayats of
the tribal district of Gujarat. Although the project is not going to displace households, it will,
however, acquire cultivable lands. The Sanjay River flows down the area through 30 villages of 5
Panchayats. It is a seasonal river with water in it till December/January, and after that, water recedes
significantly to meet just the daily needs of communities. It includes those mentioned above in 10
(to be) impacted villages. The plant will require a huge amount of water which the Company will
fetch through a pipeline from the Narmada River, which flows 30 km from the area. The district
admin is facilitating the land acquisition process and all other requirements.

The area is agrarian, but some are employed in small and medium-sized industries operating from
the locality. The area overall is socio-economically very backwards on almost all indicators of human
development. 9-10 local NGOs are working in the district on multiple issues. Government
interventions are found to be weak.

Socio-economic conditions: Although the entire district is identified as an aspirational district by the
govt of India, the project area is marked for deep-rooted poverty, illiteracy, malnourishment
(hunger), High IMR/MMR, diseases, water, the mono-cropping pattern of agriculture, etc.

History: The area has a history of public unrest. Some ten years back, farmers of the area had
formed a group against an industrial project (Chemical Plant) which wanted to acquire 3000 acres of
land. The chemical plant needed help to acquire land. Also, farmers in the area have been
demanding irrigation and other support for agricultural development. And people of the area are
very much aware of an ongoing movement of Narmada Bachao Andolan, and a few of them from the
area are directly involved in the NBA.

The Company has obtained all information about the area, people, and issues. In order to make the
process of land acquisition smooth, the company has decided to undertake some CSR projects.
Knowing about the past and some anticipated risks, the company’s management decided first to
strengthen agriculture by building a dam on the Sanjay River and irrigating the land through a
network of canals and water channels.

It is a big CSR project for the company. The company will likely invest INR 25 crores and has the
government’s endorsement. The company has decided to get it implemented through an
engineering firm from Delhi. It would be the first project for the firm in Gujarat.

Although it made positive news in the media, one big section of the communities was unhappy and
against the power plant. These people oppose the project and are, therefore, against the CSR project
too. The company faces resistance from the land losers, non-land losers, and neighbouring villages,
while some farmers, panchayat sarpanch and govt officials support this CSR project. The local MP
supports the CSR project, but the MLA from the other party in power in the state opposes this
project.

The Company wants you as the CSR Head to deliver the project.
Task: Read the case carefully and analyze and identify the following.

1. Stakeholder mapping, quantification and their rankings according to the Salience model
2. Mapping of risks
3. Your proposed engagement plan and strategy with stakeholders
4. Your overall management and expert recommendations to the company