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Case Code: CLBE003

Case Length: 3 pages

Period: -

Pub Date: 2008

Teaching Note: Not Available

Subject : Business Ethics

Price:Rs.100

Organization :--

Industry : --

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ArcelorMittal in India: Integrating Plant Management with Corporate Social Responsibility*

ABSTRACT

The world's largest steel maker ArcelorMittal announced that it would spend a whopping US$500 million toward corporate social responsibility (CSR) in the two Indian states where it was setting up multi-billion dollar projects. Analysts felt that the company's success in India would hinge on whether it was able to match its CSR rhetoric with real action considering that such multi-billion dollar projects had faced resistance in India from local farmers and communities who feared loss of their livelihood following land acquisition by big companies.

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Issues:

	Corporate social responsibility.
	Plant Management.
	Plant location.

Introduction

In April 2008, the world's largest steel producer ArcelorMittal announced that it would spend a whopping US$500 million toward corporate social responsibility (CSR) in the two states in India where it was setting up multi-billion dollar projects. The two projects, which marked the entry of ArcelorMittal in India, were expected to displace thousands of families belonging to the small farmer and tribal communities from their lands.The company contended that integrating plant management with CSR would help it to earn the trust of the communities and also quell any potential resistance against the project...

Questions for Discussion:

1. Discuss the challenges before ArcelorMittal in setting up its multi-billion dollar projects in India.

2. Discuss the probable reason for ArcelorMittal's decision to spend such a huge amount towards CSR in India. Do you think that the company's decision to integrate plant management with CSR would help it gain the trust of the communities and quell any potential resistance against the project? Give reasons for your answer.

Keywords

Management, Corporate social responsibility, CSR, CSR rhetoric, plant management, environment, business practices, socio-economic survey, Relief and Rehabilitation, project, community investment, industrial training, leadership, merger & acquisition, M&A, ArcelorMittal, Steel, POSCO, Tata Group, Tata Steel

* This caselet is intended for use only in class discussions.
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