Learnings from the Sterlite Case

During the discussion in class, different perspectives voiced by different students were observed. Let us
discuss each perspective one by one:

Corporate: This group defended their cause with utmost disregard for their responsibility in the whole
debacle. They acted exactly the way corporate acts when they are on trial for a misdeed. They did not
claim responsibility which would have proved their culpability. At the same time, while they attempted
to pacify the public emotionally, they had no answer for their accusations. Corporate honchos generally
issue gag orders in such cases so as to not pass on any message which might damage their reputation.

Public: This group had the meekest of voices until they started talking about the historical misdeeds of
Vedanta Group i.e. they fought with passion and raised their voices in a manner that it was heard, but
only when the matter had reached a public platform and the company was on the back foot. They held
the company accountable and argued that the government was accomplice to the matter.

Government: This group acted exactly in the way government acts (flaunting its power) and tried to put
the blame on the legal side and the corporate side. However, the complicity between them and the
company was obvious in the fact that they did not accuse the company even once, as it would have shed
further light on their role in the corruption. They did not argue about their role as the conscience keeper
and how they failed to do so: the entire fact of the matter could have been avoided if proper rules and
regulations were followed in the first place, but the government had no answer as to why it was not so.

Legal: This group acted objectively in presenting facts how they were only following the lead of the
government and were subject to arm twisting at some point of time. This not only brought up the ugly
truth of Indian bureaucracy but also showed how the system is vulnerable to subversion under duress.

Conclusion: The Sterlite unit employs 3,500 employees directly and 25,000 indirectly. The permanent
shutdown of the country’s largest copper smelter will have wide ranging repercussions on domestic
copper consumption, which is estimated to be growing at a compounded annual average rate of 5.9% in
the last 10 years. The electrical and the transport sectors are two of the biggest copper consumers. With
global drive on electric vehicles, copper demand is expected to get a boost. Hence, the stakeholders
need to arrive at a solution that balances the economic needs of the company and the nation against
the equally important need of the citizens to live a life of dignity and health. It is expected that with the
recommended solution, the company will have to pay a heavy price, but will benefit in the long run.

While the plant is currently shuttered, it is expected that Sterlite may still move the Supreme Court to
open the gates once again as has happened in the past. It is clear that the government and the company
have acted in collusion for nearly 20 years, with the judiciary a hapless spectator. When the discontent
bubbled over and resulted in the shootings, the Tamil Nadu government issued the closure order merely
to save face. It is little wonder that political parties in the state faulted the AIADMK government for not
acting sooner, which could have avoided the deaths. A battle is looming ahead, and the winner will
decide the diktat for the long term. In conclusion, it is hoped that this will be a precedent, and merely
twisting facts and arms will never again be an escape route for big corporate companies in the future.