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Challenges to Aes Social Responsibility Commitments

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Challenges to Aes Social Responsibility Commitments
Challenges to AES Social Responsibility Commitments

“Corporate social responsibility (CSR) can be defined as the assumption of rights and obligations due to the economic, political, and social activity performed by organizations” (Ángeles Gil Estallo, M., Giner de-la Fuente, F., & Gríful-Miquela, C., 2007). AES Corporation has profoundly experienced its rights and obligations with all of these activities in meeting their CSR commitment during development of Ib valley power project in Indian state of Orissa. This paper will critically examine several of the issues surrounding AES’s commitment to social responsibility. CSR commitment had become an increasing necessity in the current society and it is a key requirement in the AES project development. A plethora of techno-economic and environmental standards, CSR project selection issues, and trade-offs faced by AES affected its social responsibility commitments. These issues and trade-offs may lead to situations that may arise where AES may cancel the project because of social responsibility. From this discussion, the reader will understand intricacies of large infrastructure project development on local communities and the allied issues in achieving CSR commitment in developing countries.
Importance of Corporate Social Responsibility
Businesses are not created out of vacuum. They come in to existence and operate from the efforts of labor and use of natural resources from local communities. Industrial development without CSR commitment causes depletion of natural resources and adversely effects environment with pollution and global warming which affects future generations. Moreover, in some developed countries, there may be laws and regulations requiring businesses to comply with minimum CSR commitments and violation of these requirements can subject businesses to penalties.
Small businesses and large corporations contribute several billion$ from their CSR budgets for society and environmental needs that may


References: Ángeles Gil Estallo, M., Giner de-la Fuente, F., & Gríful-Miquela, C. (2007). The Importance of Corporate Social Responsibility and Its Limits. International Advances in Economic Research, 13(3), p.381. doi:10.1007/s11294-007-9095-x CARMA (Carbon Monitoring for Action). IB Valley OPGC Power plant CO2 emission data. Retrieved from http://carma.org/plant/detail/19004 Indian Express, July 11, 2008. Moratorium gone, IB Valley Get Green Signal. Retrieved from http://ibnlive.in.com/news/moratorium-gone-ib-valley-get-green-signal/165932-60.html Paine, L.S., Strimling, L.S., Nichols, III, C.A., Crawford, R.J. (2000, November). AES Global values. Harvard Business School. Pillai V. (February, 2004) OPGC progresses with Ib Valley Expansion project, Projects Monitor. Retrieved from http://www.projectsmonitor.com/detailnews.asp?newsid=15421
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