Harvard Case - GAIL 'Saksham' Program: Remoulding the Future
"GAIL 'Saksham' Program: Remoulding the Future" Harvard business case study is written by Vishal Gupta, Rama Mohana Turaga, Shweta Mittal. It deals with the challenges in the field of Business Ethics. The case study is 19 page(s) long and it was first published on : Jul 28, 2017
At Fern Fort University, we recommend that GAIL adopt a comprehensive and strategic approach to its 'Saksham' program, integrating it with a robust framework of corporate social responsibility, ethical leadership, and stakeholder theory. This framework will ensure the program's long-term sustainability, ethical impact, and alignment with GAIL's core values.
2. Background
GAIL (Gas Authority of India Limited) is a state-owned natural gas company facing increasing pressure to address its social and environmental impact. The 'Saksham' program aims to empower local communities through skill development and entrepreneurship initiatives. However, the case study highlights challenges in program implementation, including a lack of transparency, potential conflicts of interest, and concerns about the program's long-term sustainability.
The main protagonists in this case study are:
- GAIL Management: Responsible for overseeing the 'Saksham' program and ensuring its successful implementation.
- Local Communities: The intended beneficiaries of the program, who rely on GAIL for economic opportunities and sustainable development.
- NGOs and Civil Society: Play a crucial role in monitoring the program's impact and advocating for the rights of local communities.
3. Analysis of the Case Study
This case study can be analyzed through the lens of stakeholder theory, which emphasizes the importance of considering the interests of all stakeholders involved in a business decision. In this case, GAIL needs to balance the interests of its shareholders, employees, customers, local communities, and the environment.
Key issues:
- Transparency and Accountability: The lack of transparency in the program's implementation raises concerns about potential misuse of funds and lack of accountability.
- Conflicts of Interest: The involvement of GAIL employees in program implementation raises concerns about potential conflicts of interest, particularly in the selection of beneficiaries and the allocation of resources.
- Sustainability: The program's long-term sustainability is questionable, as it relies heavily on GAIL's financial support.
- Ethical Considerations: The program's design and implementation must adhere to ethical principles, including fair trade, labor rights, and environmental stewardship.
4. Recommendations
- Establish a Clear and Transparent Framework: Develop a comprehensive framework for the 'Saksham' program, outlining program objectives, target beneficiaries, implementation procedures, monitoring mechanisms, and reporting requirements. This framework should be publicly available and subject to regular review and evaluation.
- Promote Ethical Leadership: Implement a robust code of conduct for all GAIL employees involved in the program, emphasizing ethical decision-making, anti-corruption, and conflict of interest management.
- Foster Stakeholder Engagement: Establish a transparent and participatory process for stakeholder engagement, involving local communities, NGOs, and other relevant stakeholders in program design, implementation, and monitoring.
- Ensure Sustainability: Develop a long-term sustainability plan for the program, exploring alternative funding sources, building local capacity, and promoting self-sufficiency among beneficiaries.
- Integrate Sustainability Practices: Integrate green business practices and environmental stewardship into the program's operations, ensuring that the program's activities are environmentally responsible and contribute to sustainable development.
- Conduct Regular Audits and Evaluations: Conduct independent audits and evaluations of the program to assess its effectiveness, impact, and compliance with ethical and legal standards.
- Promote Diversity and Inclusion: Ensure that the program benefits all segments of the local communities, promoting diversity and inclusion in program participation and leadership.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The recommendations align with GAIL's mission of promoting sustainable development and contributing to the well-being of local communities.
- External Customers and Internal Clients: The recommendations consider the needs and expectations of GAIL's external customers (local communities) and internal clients (employees).
- Competitors: The recommendations help GAIL establish a competitive advantage by demonstrating its commitment to corporate social responsibility and ethical business practices.
- Attractiveness: The recommendations are expected to enhance the program's effectiveness, impact, and sustainability, leading to positive social and environmental outcomes.
6. Conclusion
GAIL's 'Saksham' program has the potential to be a powerful force for positive change in local communities. By adopting a comprehensive and strategic approach that prioritizes transparency, ethical leadership, and stakeholder engagement, GAIL can transform the program into a model for responsible and sustainable corporate social responsibility.
7. Discussion
Alternative approaches to program implementation include:
- Outsourcing program management to external NGOs: This approach could leverage the expertise and experience of NGOs in community development, but it raises concerns about accountability and transparency.
- Focusing solely on skill development without entrepreneurship initiatives: This approach might be easier to implement but could limit the program's impact on economic empowerment.
Key assumptions underlying the recommendations include:
- GAIL's commitment to ethical business practices and corporate social responsibility.
- The willingness of local communities to participate in the program and contribute to its success.
- The availability of resources and expertise to implement the recommendations effectively.
8. Next Steps
- Form a dedicated task force: This task force should be responsible for developing a comprehensive implementation plan for the recommendations.
- Conduct stakeholder consultations: Engage with local communities, NGOs, and other relevant stakeholders to gather feedback and ensure their involvement in the program's design and implementation.
- Develop a communication strategy: Communicate the program's objectives, implementation plans, and progress to all stakeholders.
- Implement the recommendations: Begin implementing the recommendations in a phased manner, starting with the most critical aspects of the program.
- Monitor and evaluate progress: Regularly monitor and evaluate the program's progress and make adjustments as necessary.
By taking these steps, GAIL can ensure that the 'Saksham' program achieves its full potential and becomes a model for responsible and sustainable corporate social responsibility.
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Case Description
'Saksham', a corporate social responsibility (CSR) initiative of one of the largest public sector companies in India, the Gas Authority of India Limited (GAIL), provides specific training in skills required for plastic industry to low-income communities potentially affected by GAIL's business operations. Unlike a typical GAIL CSR programme, which directly targets communities affected by GAIL's operations, the Saksham programme serves the needs of one of GAIL's main customers - the small and medium scale plastic industry. Although the programme is a huge success and has completed three batches, all the students of which were placed in plastic manufacturing companies, Shamasundara, Zonal General Manager of GAIL is still not sure about the future of the programme. He wondered what should be the metrics to evaluate whether a programme can be classified as a CSR initiative by a firm.
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