You are appointed as the Project Director in a large infrastructure company of the country. The company has won the rights to develop a port and its hinterland in a state. The project has economic and strategic significance for the country as it would develop a leading transshipment hub in the region and would lead to higher exports and earnings through its operation, flourishing of new businesses and also create employment opportunities. Also, the successful completion and operationalization of the project is important for the company as some of its previous projects were halted due to protests by the local communities and not only the reputation of the company but also significant investments are at stake. The land acquisition for the project has been completed as per the laid down rules and regulations. The Environmental Impact Assessment has been carried out and the project has received the go ahead from the concerned authorities. Also, rehabilitation and alternative livelihood opportunities are made available to the affected people as per the laid down norms. However, once the construction started, some farmer groups started agitating on the grounds that they have not been adequately compensated and that the project will negatively impact their livelihoods. They are demanding that either the project be halted or the compensation provided to them be increased substantially by way of money and assured jobs. In this context, answer the following: (a) Identify the relevant stakeholders in this case and the issues affecting them. (b) Evaluate the merits and demerits of ceding to the demands of the protesting groups, in the given context. (c) What course of action will you follow? (Answer in 250 words)

The above case study represents the grievances of the local community against the development project. Leading to protest and it is raised, it can affect the economic development of country. a Stakeholders and their issues i Farmer groups and local people: - They are concerned about the displacement at their community after the project - They have not been adequately compensated.

Local communities are concerned of the larger social, economic, environmental and livelihood impact ii Company and employees: (1) Delivery of project is essential to maintain its reputation (2) Financially invested a lot, prospects of employees are in danger iv Government: National, state, local: (1) Construction of project is being done as per rules (2) If project is stalled, it will lead to economic and employment loss iv Project Director: (1) My top priority is to deliver the project for the company as per rules - maintain practice

company as per rules - maintain practice (2) at the same time, ensure adequate compensation to Project Affected Families PAF. b Ceding to demands of farmers: Merits: i Ceding to the demand of the protesting group would ensure addressing the demands of the farmers ii Resolution of dispute and will lead to timely completion of project iii Will not dampen company's image and profits iv Creates moral hazard as a for short term pecuniary benefit, other groups may also stall the project Demerits: i Stalling of project would lead to: - Investment loss - Loss to the company and its profits ii Sets a precedent for further projects in the country iii May harm company's image and profits iv Creates moral hazard as for short term pecuniary benefit, other groups may also stall the project

c Course of action to ethically deal with the issue: i Ensure compliance with latest regulations: - Compensation to P.A.F. as per the rules ii Seek guidance from National/state govt: - keep protect the company's investment - engage broad based, consultative, cooperative and inclusive solutions. iii Negotiate with farmers in a respectful and transparent manner that addresses their concerns while balancing interest of company as well.