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An alternative Stakeholder Management Tool
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of industrialization in the area due to
various reason, mostly attributed to ill
experience of Hirakud Dam displaced
people for not being compensated
adequately, lack of confidence on
Government machineries in the stringent
land acquisition process and fear for not
being able to cope up with changing
economy due to loss of agriculture. In the
process, there were changes in the village
dynamic and leadership creating mostly
three categories of stakeholders within the
community. The first category “people
who are at bottom of pyramid” perceive
Industry as a cause of their vulnerability
due to loss of land and agriculture, remain
in apprehension of being marginalized due
to livelihood insecurity. They have usually
opposed industry but remained passive.
Restoration of livelihood and access to
better health and education services are
the basic need they thrust upon that
Industry should provide to them. The
second category “people at top of the
pyramid” who have some positive and
savoring experience with existing Industry,
have the ability to influence the business
environment of the company and have
resources to participate in development
process due to industry set up and
perceived Industry as a boon for their
economic prosperity, however act as key
stakeholder to influence the decision of
company in any developmental
intervention in the village. They often use
the people of bottom of pyramid as a shield
for them to arm twist the project authority.
They always expect better employment,
health and education for their children
through Corporation. The third category;
“socio-political group” who often take the
cream of development due to Industry
through acting a as a balance between two
other categories of community
stakeholder. The decision related any
developmental activities in the villages are
mostly taken by them. Thus within different
conflicting groups of stakeholder
community, corporate social responsibility
of Industries has always acted as a
communication tool to build trust and
confidence with the stakeholder while
addressing existing development issues in
the area. The expectation of stakeholder
is mainly built on three issues, such as
existing developmental gaps mostly in the
field of infrastructure in the villages, adverse
impact of industry on local community and
people’s perception based on assumed or
perceived benefits from company. In
response to the stakeholder’s expectation,
companies are taking three areas of
intervention, infrastructure development,
health, women empowerment etc.
Companies are involved mainly spending
their CSR budget on construction of CC
road, community halls and school building
in the villages, conducting health camps
and providing free medicine. They are also
renovating ponds and installing tube wells
and supplying drinking water during water
scarcity in summer. However, all these
development efforts are putto build the
initial relationship with the community and
gain their confidence to smooth the project
activities. Although the development is