"Understanding the
Closure of the Sterlite
Copper Plant: A
Thorough Analysis”
Presented By:
Soumyadip Mukerjee(24MB4002)
Sushmita Mishra(24MB4003)
Preetam P. Bebarta(24MB4005)
Anamika Mandi(24MB4007)
Arindam Mukerjee(24MB4015)
Sushma Pat Pingua(24MB4018)
Jibika Roy(24MB4023)
Sneha Sinha(24MB4027)
Ashish Kumar(24MB4031)
Introduction to the Case Study
Overview: Key Focus Areas:
The Sterlite Copper plant, operated by Vedanta Environmental Impact vs. Economic
Limited in Thoothukudi, Tamil Nadu, was shut Growth: Balancing industrial benefits
down in May 2018. with ecological costs
The shutdown followed violent protests, with
local communities raising concerns over Social Justice and Community
Welfare: Addressing the rights and
environmental damage and public health risks.
well-being of affected populations
This case highlights key issues around business Legal and Regulatory Compliance
ethics, environmental sustainability, corporate Corporate Responsibility and Public
responsibility, and social justice. Health: Examining ethical duties
towards local communities.
Environmental Impact vs. Economic
Growth
Environmental Issues:
Pollution: Air contamination from sulfur dioxide, water pollution from improper
waste disposal.
Health Concerns: Increased respiratory and skin diseases in the nearby
community.
Long-term Impact: Soil degradation, environmental damage affecting
agriculture and local resources.
Business Ethics Conflict:
Economic Growth: The factory helped the local economy grow by creating
thousands of employment.
Environment vs. Growth: Should companies put more emphasis on
environmentally friendly operations than on financial gains?
Ethical Decision: Since damaging the environment has long-term effects on
society and the company itself, businesses must strike a balance between profit
and environmental responsibility.
Public Health and Safety
Health Impacts: Respiratory issues among local residents.
Water Contamination: Skin problems and other illnesses
Ethical Duty: Businesses must not harm public health.
Business Ethics Comparison
•Duty of Care: Companies have an ethical obligation to make sure that their
activities don't negatively impact the public's health.
•Ethical Conundrum: Vedanta's actions sparked debate regarding its obligation to
the welfare of the community.
•Public Health vs. Profit: Whether financial gains outweigh the possible harm to
public health is the ethical question at hand.
Employment and Economic Impact
Job Creation:
The Sterlite Copper Plant : gave local communities a means of
subsistence by employing thousands of people.
Local Economy: By creating economic possibilities for regional
suppliers and generating tax income, the factory made a
substantial contribution to the local economy.
Business Ethics Comparison:
Social Responsibility vs. Economic Gains: Due to the plant's
closure, many people lost their employment, which raised moral
concerns about the duty of corporations to provide both long-
term sustainability and economic opportunity.
CSR: Should Vedanta have put more effort into preventing
environmental damage and safeguarding public health, or should
it have placed a higher priority on employment?
Regulatory Compliance and Legal
Issues
Regulatory Failures:
Vedanta’s plant had repeatedly violated environmental
regulations set by the Tamil Nadu Pollution Control
Board (TNPCB) and National Green Tribunal (NGT).
The shutdown order came after numerous warnings about
pollution levels and unsafe waste disposal practices.
Business Ethics Comparison:
Corporate Responsibility: Ethical businesses must comply
with environmental laws and regulations, ensuring safe and
legal operations.
Legal Compliance vs. Ethical Responsibility:
Even if a company follows the law, its practices may still be
unethical if they harm the environment or public health. In
this case, the plant’s actions raised the question: Did Vedanta
comply with the spirit of the law in protecting the
environment?
Corporate Social Responsibility (CSR) and
Reputation
Vedanta’s CSR Initiatives:
The company invested in local infrastructure, education, and healthcare as part of its CSR.
However, its environmental violations overshadowed these initiatives, raising concerns
about the authenticity and effectiveness of its CSR efforts.
Business Ethics Comparison:
Ethical CSR: Effective CSR should address long-term environmental sustainability and
community health rather than focusing only on short-term social welfare projects.
Public Perception: Vedanta’s CSR initiatives did not adequately address the most pressing
issues faced by the community, such as pollution and health risks, leading to questions
about the company’s genuine commitment to social welfare.
Social Movements and Public Opinion
Protests and Civil Disobedience:
Large-scale demonstrations were planned by activists, environmental
organizations, and local communities demanded for the plant to be shut down
for causing environmental harm.
Protests were held in support of social justice—the right of all people to live
in a healthy environment—as well as environmental conservation.
Business Ethics Comparison:
Ethical Response to Public Opinion: Should Vedanta have responded more
proactively to public concerns, even before protests escalated? Ethical
companies should engage with stakeholders and listen to public concerns,
especially when they affect the local community.
Civil Society’s Role: The ethical role of civil society and activists in holding
companies accountable when business practices threaten the environment or
public health.
Technological Innovation and Sustainability
Sustainability Solutions:
There were calls for Vedanta to adopt more green
technologies to mitigate pollution, such as cleaner waste
management practices and reducing harmful emissions.
Technological Progress:
The ethical question: Should companies invest in
environmentally friendly technologies, even if it requires
initial financial investments?
Business Ethics Comparison:
Innovation vs. Profit: From a business ethics perspective,
long-term profitability should align with environmental
sustainability. Investing in green technologies may be
more expensive initially but is crucial for a sustainable
future.
Comparative Analysis with Other Business Ethics
Cases
Bhopal Gas Tragedy (1984):
Like Sterlite, Union Carbide failed to prevent a disastrous
environmental and health crisis. Both cases highlight negligence in
corporate responsibility and the failure to protect public welfare.
Volkswagen Emissions Scandal (2015):
Both involve companies misleading the public and avoiding
responsibility for harmful environmental impacts.
Amazon’s Working Conditions:
Similar ethical dilemma: businesses must balance employee
welfare, profit, and environmental responsibility.
Key Takeaways and Lessons Learned
Environmental Responsibility:
Companies must adopt practices that safeguard the
environment, as environmental damage can result in long-
term harm to both society and business.
Corporate Accountability:
Ethical businesses are transparent and engage with
stakeholders to understand concerns before they escalate.
Long-Term vs. Short-Term Thinking:
Profit should not come at the expense of public health or
environmental sustainability. Long-term planning and
sustainable practices are essential.
Conclusion
Final Thoughts:
Businesses must achieve a delicate balance
between social welfare, public health,
environmental protection, and economic
progress, as demonstrated by the closure of
the Sterlite Copper Plant.
Maximizing profits is only one aspect of
business ethics; another is making choices
that advance society and preserve the
environment for next generations.
THANK
YOU!
