SUSTAINABILITY OF BUSINESS IN THE CONTEXT OF ENVIRONMENTAL MANAGEMENT

SUSTAINABILITY OF BUSINESS IN THE CONTEXT OF ENVIRONMENTAL MANAGEMENT

Kamlesh Pritwani

The unending process of globalization and liberalization of market and economy has expanded opportunities and prompted the introduction of new ideas of leadership and management. The proliferation of business strategies in globalized world necessitates the need for expanding socio-environmental concerns of business. Sustainability of Business in the Context of Environmental Management studies the newly emerged concept of ‘sustainable business’ in view of the growing Indian economy. It explores the current corporate social responsibility practices adopted with special reference to environmental management in Indian companies.

The book compares the legal, fi nancial, economic, industrial, and social behavioural aspects. Out of these aspects, industrial aspect in view of ‘environmental management’ is discussed in detail. It also explores the forces driving the changing relationship between business and society and corporate leadership reacting to environmental challenges. Finally, the book restates the concept of increasing profi tability through societal development.

Kamlesh Pritwani

SUSTAINABILITY OF BUSINESS IN THE CONTEXT OF

ENVIRONMENTAL MANAGEMENT

The Energy and Resources Institute

Kamlesh Pritwani

© The Energy and Resources Institute, 2016

ISBN 978-81-7993-301-5

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher.

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Suggested citation

Pritwani, Kamlesh. 2016. Sustainability of Business in the Context of Environmental Management. New Delhi: TERI

Published byThe Energy and Resources Institute (TERI)TERI Press Darbari Seth Block IHC Complex, Lodhi RoadNew Delhi – 110 003

Printed in India

Tel. 2468 2100 or 4150 4900Fax 2468 2144 or 2468 2145 India +91 • Delhi (0) 11E-mail teripress@teri.res.inWeb www.teriin.org

1Preface

India has improved its ranking in industrial growth. This industrial success is attributed to sustainability of businesses, leading technologies, diverse product portfolios, strong consumer base and proper environmental management practices. Indian culture and ethos of ‘responsible business’ demonstrate the sense of moral responsibility and create long-term value to different business stakeholders for enabling sustainable business practices. Indian companies have to redefine their values and primary objectives of business for customer satisfaction and green production for contributing to the well-being of society and striving for ‘sustainable development’. The year 2010 was the ‘Green Business Year’, focusing on the carbon emission reduction, renewable energy and green production in order to respond towards societal expectations. In 2011, the UN celebrated the International Year of Forests. The UN declared 2012 as the International Year of Sustainable Energy for All, and 2013 was designated as the International Year of Water Cooperation. Although internal movement has been initiated in Indian companies to rethink about business sustainability and significant progress has been made for reduction of energy consumption and carbon emission by some leading Indian companies, lot of work remains to be done. Indian companies have to take initiatives to assure compliance with G3 GRI global guidelines for corporate reporting practices. Hence, corporate reporting plays a key role in the balanced growth of an organization’s economic, environmental, and social performance. It is high time that voices from Kyoto Protocol, Climate Pacts, CERES, ICGN, UNFCCC and UNEP programme are heard to save the planet and environment. Recently, 21st Session of Conference of Parties (COP21) to the UNFCCC hosted by France (from 30 November to 11 December 2015) gave message for keeping the global warming level below 2°C. Leading Indian NGOs, such as TERI, CSE, ISST, and Karmayog, are also doing commendable work in this direction. Indian Government has also taken initiatives through various national programmes.

vi Preface

Customers are conscious of the quality of product, but they do not query about the way the product is manufactured and the level of pollution generated during the production process. In the near future, the demand of green products will increase owing to the awareness of customers. Hence, business has to be accountable for mitigating pollution and safeguarding the customer rights. Incentives-based specific industrial pollution control mechanism needs to be developed for encouraging cost-effective cleaner technologies and waste minimization process. The unending process of globalization and liberalization of market and economy has expanded opportunities and prompted the introduction of new ideas of leadership and management. The proliferation of business strategies in globalized world necessitates the need for expanding socio-environmental concerns of business. India is the fastest growing major economy in the world. Yet, no study has examined the ‘operational role’ of Indian companies in view of CSR, sustainable business, and environmental management. It is high time to observe sustainability of Indian companies. Indian Companies Act, 2013 provides provisions for incurring expenditures on CSR, minimum 2% of average corporate net profits, which has made India the first country to mandate CSR. The newly emerged concept of ‘Sustainable Business’ has been studied in view of the growing Indian economy, with 7.6% GDP growth rate during 2015–16. As per IMF Outlook 2015, India ranks among the top 10 largest global economies. This book explores the current CSR practices adopted with special reference to environmental management in Indian companies. It is the socio-economic multidisciplinary empirical study covering different aspects of economics, management, commerce, sociology, science and technology, and so on. Business sustainability comprises numerous aspects. In this book, the aspect of environmental sustainability in view of CSR and its linkage with financial performance is dealt with. This study is a humble effort towards social justice, as remarkable economic growth is impossible without social justice. In this technologically competitive era, various Indian and foreign universities have also initiated environmental-related courses. Therefore, concerned students and teachers may also refer this book as a vital compendium. Further, the book will help researchers better understand the dimensions of different corporate environmental concerns. It will also throw light on the initiatives of the government regarding industrial concerns. This book will help determine the strategic path of sustained business growth, not only for Indian companies but also for businesses at the global level.

1Acknowledgements

I would like to extend my heartfelt gratitude to University Grants Commission, New Delhi, for supporting this advanced research study. I am grateful to all staff members of S G S G Government College, Nasirabad, Government College, Kherwara, and Savitri Girls College, Ajmer for giving me the moral support.

New innovative ideas and strong research aptitude of Dr Naveen Kumar Sharma had inspired me to present this work in this elegant shape.

Academic interactions with CPCB, SPCB officials, academicians Prof. Bhagirath Singh, Prof. K. C. Sodani, Prof. B. P. Saraswat, Prof. K. C. Sharma, Prof. Azhar Kazmi, Prof. Jagdish Prasad, Prof. P. K. Sharma, Prof. Karoonesh Saxena, Prof. N. M. Khandelwal, Prof. Manoj Kumar, Prof. K. R. Sharma, Prof. Manju Singh, Dr Rashmi Saxena, Dr A. K. Raina, Dr R. K. Motwani, Dr D. C. Sharma, R. K. Goyal enlightened my thought process. I am highly thankful to higher authorities of industries mainly Dr N. J. Singh (DSCL, Kota), Mr Vivek Bhatia (CFCL, Kota), Mr R. S. Choyal (Choyal Industries) and Mr R. K. Singhvi (Shree Cement, Beawer) for providing industrial advice for this research work.

My special thanks are to UGC Ex Secretary Prof. N. Kazmi and Prof. R. K. Chauhan, UGC Staff members Shyam Bahadur, Shyam Singh and L. N. Sahu for esteemed support for this research work.

I would like to thank the libraries of TERI, CSE, ISST, Rajasthan University, MDS University, Punjab University, IDS, IIM Ahmedabad for providing study material support to make this study more informative and comprehensive. My special appreciation is due to Dinesh Prajapati, Shalimar Corner. I am thankful to TERI Press, New Delhi. I must acknowledge my family members, especially my husband and children for their unconditional support. Finally, this research work is dedicated to my mother (late) Shanta Devi, father (late) Tuljaram Asnani, mother-in-law (late) Kaushalya Devi and father-in-Law (late) Vasudev Pritwani.

1Status of Forest Resources:World and India Contents

Preface vAcknowledgements vii

1. Introduction 1Prologue 1

Growing Indian Economy 5

Market Economy 9

Moving Towards Green Economy 10

India’s Industrial Growth at a Glance 13

Role of Government 16

India: Environmental Facts 19

Global Environmental Initiatives 21

Global Sustainable Business Initiatives 24

Role of International Agencies in Environmental Management 27

Conclusion 29

2. Literature Review 31 Concept of Efficient Market: A Move Towards

Sustainable Business 31

Original View of Research Study 48

Ultimate View 49

Recent Research Highlights of Different Agencies onCSR and Environment 50

3. Research Methodology 63 Introduction 63

Research Design 64

Research Questions 66

Objectives 67

Hypotheses 67

Sustainability of Business in theContext of Environmental Management

Publisher : TERI Press ISBN : 9788179933015 Author : Kamlesh Pritwani

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