The Corporate Social Responsibility of TQLS Group in the Liangshan Prefecture (A), (B) & (C)

This case study describes Tieqilishi (TQLS) Group’s corporate social responsibility initiative in the Liangshan Yi Autonomous Prefecture in Sichuan, China.

Case A, set in 2016, describes the poverty-stricken Liangshan prefecture. Famous for ‘cliff villages’ (villages on top of high mountains accessible only via ladders on steep cliffs), Liangshan had the largest population of Yi ethnic people, who lived in the autonomous region governed by their own set of traditional customary laws. Inhabiting remote mountainous areas, the isolated Yi people were plagued by poverty, illiteracy, drug abuse and AIDS. Lei Wenyong, Chairman and Founder of TQLS, had to decide whether TQLS should participate in the poverty alleviation program at Liangshan. Headquartered in Chengdu, Sichuan, TQLS was a leading enterprise in China’s agriculture industry, specialising in animal husbandry and the production of animal feed and processed food. TQLS had a history of making charitable contributions to society in the past, but investing in Liangshan would require careful consideration.

Case B traces TQLS senior management’s decision to proceed with the development of a pig farming industry in Liangshan in 2016, and the many challenges they faced along the way, such as stringent environmental regulations, delays in obtaining government loans, poor transport infrastructure and manpower shortages.

Case C is set in 2017, and describes the short- and long-term measures undertaken by TQLS to overcome those challenges. The company’s CSR projects in Liangshan proceeded well, and were marked by the co-founding of the Liangshan Commercial Poverty Alleviation Institute with the local government, collaborations with universities, setting up of training centres and Yi Cultural Study Centres, and plans to build primary schools in the villages. In this final part of the case, Lei came to the realisation that a more effective poverty reduction approach could be achieved through collaboration with other companies.

This is a descriptive case study that guide learners to discuss the meaning and classification of CSR, and to gain an understanding on effective communication and balancing stakeholders’ needs. In addition, students will learn the implementation process of Strategic CSR, through an analysis of the bottlenecks faced by the company. Finally the case aims to raise the students’ awareness of CSR in the organisations where they work and understand the role of entrepreneurs in Strategic CSR.

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· The Case (SMU-19-0004A)

· The Case (SMU-19-0004B)

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· Teaching Note (SMU-19-0004TN)