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Bayer CropScience in India (A): Against Child Labor Case Solution & Answer

This Case is about CROSS-CULTURAL MANAGEMENT, EMERGING MARKETS, LEADERSHIP, SOCIAL RESPONSIBILITY, STRATEGY

PUBLICATION DATE: January 26, 2011 PRODUCT #: 910M61-PDF-ENG

The case investigates worth-driven strategy formulation and execution by bringing to the fore issues of ethics, responsible leadership, societal intitiatives in the international as well as emergent markets – local tensions in corporate social responsibility. It analyzes that Bayer CropScience had addressed the problem of child labour in rural India between 2002 and 2008 in its cotton seed supply chain. Bayer had been running in India for more than a century.

In December 2002, the Bayer Group completed the acquisition of India-based Aventis CropScience. Bayer CropScience discovered about prevalence and the incidence of the child labour in its recently acquired India-based cotton seed businesses a couple of months post acquisition, in April 2003. The Aventis acquisition had brought onboard a well known Indian business, Proagro, which had businesses in the cotton seed production and advertising – a fresh section of the supply chain for Bayer.

Child labour was prevalent in cotton seed production – a conventional practice taken for granted by several hundred Indian firms but in addition by Indian farmers subsequently accounting for around 90 per cent of the market share. The (A) case focuses on Bayer’s choice whether, when and the best way to start a self-run application which will require direct responsibility for monitoring and eradicating child labour in rural India.

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