Business and Society - Case Study Example

Business and the society The article reports on the stake of Byrraju Foundation that is facing sustainability dilemma following unethical conduct. Ramalinga Raju established the foundation in honor of his late father and with the goal of changing lives in rural areas. The foundation enjoyed strong support from donors until reports emerged of accounting fraud and Raju confessed to involvement. Lost funding have since threatened expansion of the foundation’s initiatives and sustainability of existing water projects that the foundation has been running.

Significant to lost funding is the lost contribution from Raju’s family as he faces trial and possible imprisonment. Clean water supply is however a significant problem, in India and globally, and has been the center of focus for such organizations as the United Nations with such goals as reducing the percentage of people who cannot access sustainable clean water supply to 50 percent by the year 2015. Threat to this sustainability is significant as initiated water projects stall amid locals’ inability to assume responsibility over the projects but clean water supply remains a health and economic necessity.

Commercial players have moved in to supply clean water in India while other socially responsible companies seek non-commercial solutions. Social responsibility that incorporate profit oriented and non-profit oriented objective promises a solution and tops Byrraju’s current considerations. The foundation’s SWEET water project begun in 2004 and charges consumers little fee that is used for operations and maintenance. Many of the target customers are however not willing to pay the price despite affordability and their concerns include taste of the project water and preference for other needs.

Establishing the water project requires collaboration between the community, contributing 75 percent of construction cost after application, and Byrraju foundation contributing through loaning. The community then runs the project put pays a percentage of revenues to the foundation for the advanced loan and maintenance. The current situation however challenges feasibility of the project prompting alternative measures that Hari is considering such as raising prices, selling the project, market expansion, grant application, and closure.