Question
Sterlite Industries. Using information available in the public domain, and criteria developed by you based on our class discussion, assess whether this company is a responsible corporate citizen. In making this assessment, please consider the company from the perspective of all important stakeholders.

Objective
To assess whether Sterlite Industries India Ltd. is a responsible corporate citizen.

Criteria
Who is a responsible corporate citizen? 1. Social and Environment innovation 2. Social Benefits 3. Creating new markets to boost employee morale 4. Voluntary 5. Civil regulation 6. Behave Ethically 7. Response to the changing societal priorities and expectations 8. Willingness to act ahaead of regulatory confrontation 9. Balancing shareholders interest against the interest of the wider community 10. Being a good citizen in community 11. CSR as Indirect form of regulation
About the company
Sterlite Industries India Ltd. is a principal subsidiary of Vedanta Resources plc, a diversified and integrated metals and mining group headquartered in London. Sterlite is India's largest non-ferrous metals and mining company and is one of the fastest growing private sector companies based in Mumbai. It was the first Indian Metals & Mining Company to list on the New York Stock Exchange in June 2007. Company’s principle business includes production of Copper, Aluminium, Lead, Zinc etc. Company also engages in mining of Bauxite, zinc ore and in the manufacture of zinc ingots and lead ingots. In addition, Sterlite Industries produces various chemical products, such as sulphuric acids, phosphoric acids, phospho gypsum, hydro fluo silicic acids, and granulated slag. Moreover, the company involves in trading gold, as well as in paper business. During the past 10 years, the Company witnessed an increase in turnover from Rs. 50 crores in 1997 to Rs. 11,566 crores in 2008-09
Sterlite’s principal operating companies comprise Hindustan Zinc Limited (HZL) for its fully integrated zinc and lead operations; and Copper Mines of Tasmania Pty Limited (CMT) for its copper operations in India/Australia; and Bharat Aluminium Company (BALCO), for its aluminium and alumina operations and Sterlite Energy for its commercial power generation business which is very clear from the Exhibit 1
Mission of the Company
The company’s mission for the near future is to harness technology to its full potential in a safe and clean environment in the entire business cycle and integrate quality with continuous improvement. It also aims to become a vibrant, learning organization by building skills and competencies of employees for growth and to be the best and most respectable corporate citizen, which speaks volume about the company’s commitment to sustainable growth - to business, community and the environment.

Exhibit [ 1 ] Sterlite group structure

Important Stakeholders
Stakeholders as identified by Sterlite Industries India Ltd are shown in Exhibit 2, which include: * Communities and NGOs * Government and Regulators * Employees * Customers * Suppliers / Transporters * Contract Labourers * Educational Institutions

In addition to these, following stakeholders should also be considered: * Shareholders / Investors * Environment

Assumptions
Allegations against Vedanta Resources with respect to BALCO, HZL, Sterlite Energy Ltd, Copper Mines of Tasmania can be considered to be allegations against Sterlite Industries India Ltd since they are direct subsidiaries of Sterlite Industries India Ltd.

Exhibit [ 2 ] Stakeholders identified by Sterlite Industries India Ltd

Corporate Social Responsibility Initiatives [ 2 ], by the company with respect to the stakeholders
In addition to the initiatives mentioned in the Exhibit 2, following initiatives have been taken up by the company.
Communities and NGOs
Rural Infrastructure
In the field of rural infrastructure, Sterlite has proposed a “Model Village Programme” which aims at improvements in the areas of health, education, livelihood, agriculture and infrastructure. The most important project of the Model Village Programme is the “Child Friendly Village” which concentrates on education, health and women empowerment in the village.
Health
Sterlite’s health initiatives are focused on providing holistic health services to rural communities. Sterlite has completed the construction of an exclusive paediatric block in the government hospital campus in Tuticorin, and is also operating seven rural health clinics in the neighbourhood providing health access to two Panchayats on a weekly basis covering a population of 6,270, and benefitting about 1,500 people
Livelihood
To improve the conditions of livelihood in rural areas, Sterlite runs Sterlite Women Empowerment Project (SWEP) which aims at social and economic empowerment of women. The project consists of 1012 Self-Help Groups (SHG) covering 14, 095 rural women from marginalized sections of society. Sterlite also started ‘Coastal Livelihood Project’ to provide technical training to young people from coastal Tuticorin.
Government and Regulators
Employees
The company has standard practices for the employees catering to their learning and development, leadership and talent development, employee benefits and human rights. They strive to create safe working conditions are ensured in all our operations. Relevant personal protective equipment is provided to all employees who work on the shop floor. Also healthcare facilities are provided in terms of Company run OHC as well as through tie-ups with other hospitals. We ensure that communication tools like house magazines of respective group companies are bilingual so that all our employees can comfortably read the same and feel involved.
Customers
Suppliers / Transporters
The company takes measures to ensure the safety of transporters’ employees. These measures include providing a Transport Emergency Card giving information for measures to be taken in case of accidents, providing instruction sheets to make users familiar with Do’s and Don’ts within the plant and while driving and displaying safety instructions at different locations of the plant along with images to reinforce the importance of safety.
Contract Labourers
Contract employees are trained in health, safety and operation practices. Contract labour also forms a part of 5S and housekeeping improvement teams. The core idea here is to think beyond legal compliances and strive to be a preferred Company to work with. It is against the Company’s philosophy to have any exploitative practices for manpower.
Educational Institutions
The company’s commitment towards education is quite evident from the fact that it runs 24 evening study centres in economic backward areas of Tuticorin town, and serves 1781 students on a daily basis. In addition to providing financial assistance to the needed students, the company also recognizes merit by awarding awarded ‘Scholastic Excellence Awards’ to the 24 District toppers in SSLC and HSC. HZL endeavours to increase attendance in schools by starting a mid day meal programme which caters to more than 180,000 students through six hi-tech centralized kitchens. At BALCO, 11 child care centres provide preschool education and combats malnutrition in children by providing them with nutritious meals.
Shareholders / Investors
The company has a provision for ‘The Shareholders’ Grievances Redressal Committee,’ empowered to perform all functions of the Board in relation to handling of Shareholders’ Grievances, primarily focusing on review of investor complaints and their redressal, queries received from investors i.e. transfer of shares, issue of share certificates, etc. [ 2 ]
Environment
Sustainability
Sterlite lays high emphasis on innovation to bring about sustainable development. Sterlite in association with several reputed institutions has discovered that copper slag obtained after copper production can be used as an alternative material for other industrial applications such as cement manufacturing, concrete preparation, road construction etc. To combat climate change, Sterlite employs a dedicated and formalized Clean Development Mechanism (CDM) Cell which has succeeded in developing 3 projects that has resulted in a net reduction of 65,000 tonnes of Carbon dioxide to the atmosphere per year. Also efficient use of resources has resulted in a decrease of 3% in energy consumption involved in the production of copper rod.

Allegations against the company with respect to the stakeholders
Communities and NGOs
In October 2009 it was reported that the British Government has criticised Vedanta for its treatment of the Dongria Kondh tribe in Orissa, India.
Amnesty also called on the Indian authorities to seek the consent of local people before allowing Vedanta to begin mining bauxite in the nearby Niyamgiri Hills.
Government and Regulators
Employees
In 2007, unsafe mining operations led to 1,246 injuries and 18 deaths, including ten fatalities at KCM, four at HZL, two at Balco, and one each at MALCO and VAL. In 2009, there were 22 such fatalities majorly due to collapse of a chimney under construction at the Balco smelter in Korba, Chhattisgarh on 23 September 2009.
Customers
Suppliers / Transporters
Contract Labourers
Educational Institutions
Shareholders / Investors
In February 2010, the Church of England decided to disinvest from the company, selling off its shares worth 3.75 million pounds, saying it was "not satisfied" with the company's human rights records in Orissa.
Environment
Vedanta's Alumina Refinery in Lanjigarh, operated by Vedanta Aluminium Limited was critiqued by the Orissa State Pollution Control Board (the statutory environmental regulation body) for air pollution and water pollution in the area. An environmental impact assessment by the government found dust pollution was within acceptable limits. Vedanta officials claimed there was no dust pollution from the plant at all. An environmental inspection of the plant reported water pollution by the plant including increasing the pH value of the river Vamshadhara below the refinery and a high level of SPM in the stack emissions.
Evaluation

Conclusion