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    Complete paper arbaaz & suhail Complete paper arbaaz & suhail Document Transcript

    • Title of Paper:Sustainable development in India: Governance, Ethics and CorporateSocial Responsibility.Author`s Name:Arbaaz khan, Student MBA 2nd semester, Al-Barkaat Institute ofManagement Studies, Aligarh.Suhail khan, Student MBA 2nd semester, Al-Barkaat Institute ofManagement Studies, Aligarh.Official Address:Al-Barkaat Institute of Management, Post CDF, Anoopshahr Road,Aligarh-202122Phone: +919897707221, +919837254094E-mail ID:arbaaz.abims@gmail.com, suhail.abims@gmail.com . 1
    • ABSTRACT: SUSTAINABLE DEVELOPMENT IN INDIA Governance, Ethics and Corporate Social Responsibility. Arbaaz Khan & Suhail KhanSustainable development is commonly defined as “development that meets the needs of thepresent without compromising the ability of future generations to meet their own needs”(United Nations Department of Economic and Social Affairs, Division for SustainableDevelopment, Web site).As India is one of the most developing country of the world and the growth rate of populationis very high, the need is to handle resources carefully. The more the population will increasemore will be the rate of consumption and the utilization of natural resources of the country.As a result the natural resources will soon be depleted. The environment should be seen as anasset for the human beings and the natural resources should be used in such a way that it canbe made available to our future generations.Industries play a major role in catering the needs of the people in India which again uses thenatural resources available. The goods they produce for the society should be delivered insuch a way that it should be more ethical and social cost of the production should beminimised. It has to be noted that the production should be done in such a manner that itshould be profitable for the society as well as for the organization in light of future.Sustainable development concerns a wide range of interrelated issues which have to be takencare of. But,In this paper we will discuss about sustainable development of the country throughgovernance, ethics and corporate social responsibility. How the above problem can be solvedand how sustainable development can be achieved. Sustainable Development in India With Special Reference To Industrial 2
    • Sector“Our biggest challenge in this new century is to take an idea that seems abstract-sustainable development- and turn it into a reality for all the world’s people”(Kofi Annan, Former UN Secretary General)IntroductionThe word sustainability is derived from the Latin sustinere (tenere, to hold; sus, up).Dictionaries provide more than ten meanings for sustain, the main ones being to “maintain","support", or "endure”. However, since the 1980s sustainability has been used more in thesense of human sustainability on planet Earth and this has resulted in the most widely quoteddefinition of sustainability and sustainable developmentDevelopment means developing or being developed or a stage of growth or advancement orthing that has developed; new event or circumstance etc. (latest developments) or full-grownstate or developed land; group of buildings (Oxford Dictionary).According to the Direct Government website UK “Sustainable development means a betterquality of life now and for generations to come. It means not using up resources faster thanthe planet can replenish, or re-stock them and joining up economic, social and environmentalgoals. It also influences decision making within organisations, and therefore can go towardsforming principles and business ‘values’ - for example, providing information to the public inan open and accessible way and involving people and communities who are affected by thosedecisions. Or in openly reporting how they run their business and the care they take about thelocal environment and the people that work for them. These principles can also apply togovernment policies – for example, in planning regulations for green buildings andtechnologies. It is also about being clear and responsible about the use of scientific, and other,evidence – for example, about levels of pollution or carbon emissions.The underlying driver of direct human impacts on the environment is humanconsumption. This impact is reduced by not only consuming less but by also making the fullcycle of production, use and disposal more sustainable. Consumption of goods and servicescan be analysed and managed at all scales through the chain of consumption, starting with theeffects of individual lifestyle choices and spending patterns, through to the resource demandsof specific goods and services, the impacts of economic sectors, through national economiesto the global economy. Analysis of consumption patterns relates resource use to theenvironmental, social and economic impacts at the scale or context under investigation. Theideas of embodied resource use (the total resources needed to produce a product orservice), resource intensity, and productivity are important tools for understanding the 3
    • impacts of consumption. Key resource categories relating to human needsare food, energy, materials and water.Time and again, it is stressed that the available natural resources are not harnessed to itsoptimum for the national development in India (Swaminathan, 2002). Energy is of primeimportance for the national growth. Of all the energy sources, hydel energy ranks next tosolar energy in environmental friendly option. Himachal Pradesh is the state which has largepotential for the production of hydel energy which till today stands untapped. The field ofsustainable development can be conceptually divided into four general dimensions: social,economic, environmental and institutionalAs per a report by UN Environment Program (UNEP), ‘Global Trends in Sustainable EnergyInvestment 2010’, released on July 2010, India was ranked eighth in the world in terms ofinvestment in sustainable energy. The report further stated that India invested around US$ 2.7billion in sustainable energy in 2009.In India is expected to begin the greening of its national income accounting, makingdepletion in natural resources wealth a key component in its measurement of gross domesticproduct (GDP).Major AchievementsIndia has been ranked ninth in the tree planting roll of honour in 2009 in a campaign to planta billion trees, which was launched by the United Nations Environment Programme (UNEP)in November 2006.The Secretary of the Ministry of Environment and Forests, Mr. Vijay Sharma, announced thatIndia has joined the United Nations Environment Programmes Plant for the Planet: BillionTree Campaign (BTC) by planting two billion trees since 2007.The number of carbon credits issued for emission reduction projects in India is set to tripleover the next year to 246 million by December 2012 from 72 million in November 2009,according to a CRISIL Research study.This will cement Indias second position in the global carbon credits market (technicallycalled Certified Emission Reduction units or CERs). The growth in CER issuance will bedriven by capacity additions in the renewable energy sector and by the eligibility of morerenewable energy projects to issue CERs. Consequently, the share of renewable energyprojects in Indian CERs will increase to 31 per cent.TERI – The Energy and Resources Institute says Mainstream forms of renewable energy are 1. Wind power 2. Hydropower 4
    • 3. Solar energy 4. Biomass 5. Biofuel 6. Geothermal energyFor sustainable development there have been several issues that have to look deeply. Some ofthem are discussed below.Business EthicsThis area of business ethics usually deals with the duties of a company to ensure that productsand production processes do not cause harm. Some of the more acute dilemmas in this areaarise out of the fact that there is usually a degree of danger in any product or productionprocess and it is difficult to define a degree of permissibility, or the degree of permissibilitymay depend on the changing state of preventative technologies or changing social perceptionsof acceptable risk.Ethics in business is necessary because business can become unethical, and there are plentyof evidences today on unethical corporate practices. Even Adam Smith opined that "Peopleof the same trade seldom meet together, even for merriment and diversion, but theconversation ends in a conspiracy against the public, or in some contrivance to raise prices."Firms and corporations operate in the social and natural environment. By virtue of existing insuch environments, business is duty bound to be accountable to the natural and socialenvironment in which it survives. One of the conditions that brought business ethics to theforefront is the demise of small scale, high trust and face-to-face enterprises, and emergenceof huge multinational corporate structures capable of drastically affecting everyday lives ofthe masses.Unethical business in India became a recognized phenomenon during the Second World War.An academic / generalistic / legal concern with the ethics has become visible only during thenineties. Corruption of the poor & corruption of the rich needs to be distinguished especiallyin the context of globalization. The danger of attributing unethical practices to the systemfailure is recognized. It is also important to bring to beat on intellectual property rights themore fundamental principle of natural property rights. Consciousness ethics will more crucialthen just intellectual ethics.Until the year 1992, ethics in business was hardly a topic of concerted engagement at anylevel- except in two or three business schools in the country. It was only the two billion dollarstock exchange Fiasco in 1992 which threw up ethics issue at the macro level. Since theninvestigative journalism has been playing a key role in highlighting corrupt fraudulentpractices with in the “business-politics-criminals” (BPC) triangle.The cumulative ethical depression began to break loose as an ethical cyclone with economicliberalization adopted by India in 1991. But now companies are offering more eco-friendly 5
    • alternatives for their customers. Recycled products for example, are one of the most popularalternatives that can benefit the environment. These benefits include sustainable forestry,clean air, energy efficiency, water conservation, and a healthy office. One example is the E-commerce business and office supply company Shoplet which offers a web tool that allowsyou to replace similar items in your shopping cart with greener products.The concept of green marketing is at glance in the present scenario in India.According to the American Marketing Association, green marketing is the marketing ofproducts that are presumed to be environmentally safe. Thus green marketing incorporates abroad range of activities, including product modification, changes to the production process,packaging changes, as well as modifying advertising.What is ethical?It is still a big question yet to be asked to the industrial organizations that what ethics are tothem. 1. Defective, addictive and inherently dangerous products and services (e.g. tobacco, alcohol, weapons, motor vehicles, chemical manufacturing, bungee jumping). 2. Ethical relations between the company and the environment: pollution, environmental ethics, carbon emissions trading 3. Ethical problems arising out of new technologies: genetically modified food, mobile phone radiation and health. 4. Product testing ethics: animal rights and animal testing, use of economically disadvantaged groups (such as students) as test objects.Some of the above business practices are very common in the general business environment.These types of issues should be taken care off. Thus the question arises if the Indiangovernment does not consider these practices ethical than why government does not takeneccesary measures to shut these practices down or to lower down the rate of these practices.Coca-Cola Continues Unethical and Dishonest Practices in India- A CaseShut Down Kala Dera Bottling PlantIndia Resource CenterSeptember 12, 2008San Francisco: It is said that those who dont learn from the mistakes of the past are destinedto repeat them.The manner in which the Coca-Cola Company has decided to deal with another community-led campaign in India - in the village of Kala Dera in the state of Rajasthan - is indicative ofthe arrogance and impunity of the company that has landed it in trouble before and Coca-Cola in India is in for a rude awakening, again. 6
    • Kala Dera - Thirsting from Coca-ColaKala Dera is a large village outside the city of Jaipur where agriculture is the primary sourceof livelihood. Coca-Cola started its bottling operations in Kala Dera in 2000, and within ayear, the community started to notice a rapid decline in groundwater levels.For farmers, loss of groundwater translateddirectly into loss of income. For women, itmeant having to walk an additional 5 to 6kilometre just to fetch water to meet the basicdaily needs of the family. For many children in Kala Dera, it meant leaving schools toprovide a much needed helping hand doing household chores since the women had additionalburdens.The community in Kala Dera organized itself to challenge the Coca-Cola Company forthe worsening water conditions - through extraction and pollution - and demanded theclosure of the Coca-Cola bottling plant.Stop Using Groundwater in Kala DeraSome of the most disturbing findings in the assessment concerned Coca-Colas bottlingplant in Kala Dera wereConfirming that Coca-Colas bottling plant in Kala Dera operated in an "overexploited"groundwater area and the Coca-Colas bottling plant had "significant impacts", the assessmentnoted that "the plants operations in this area would continue to be one of the contributors to aworsening water situation and a source of stress to the communities around."The assessment made four recommendations with regard to the Coca-Cola bottling plant inKala Dera, making it clear that Coca-Cola could no longer utilize the overexploitedgroundwater resource in Kala Dera:The company, in usual fashion, denied any wrongdoing, blaming "outsiders" for theincreasing local community opposition.Forced Assessment Validates Community ConcernsOne of the successful campaigns was at the prestigious University of Michigan in the US,which, after a sustained student-led campaign in which the India Resource Center representedthe India issues, placed the Coca-Cola Company on probation on January 1, 2006. Theuniversity also mandated that Coca-Cola agree to an independent assessment of its operationsin India if it ever wanted to do business with the university.The assessment, paid for by Coca-Cola and conducted by The Energy and Resources Institute(TERI), only looked at six bottling plants in India and was released in January 2008. 7
    • The assessment was a scathing indictment of Coca-Colas operations in India.Validating the concerns of the communities campaigning against Coca-Cola, the assessmentnoted that Coca-Cola approached its operations in India from a "business continuity"perspective that ignored the impacts on the community. Some recommendations that weregiven by TERI were: 1. Transport water from the nearest aquifer that may not be stressed 2. Store water from low-stress seasons 3. Relocate the plant to a water-surplus area 4. Shut down this facilityThe community in Kala Dera, needless to say, welcomed the recommendations.Unfortunately, they still wait for Coca-Cola to make good on the recommendations made bythe assessment that Coca-Cola itself paid for.Even the TERI assessment, which looked at Coca-Colas CSR initiatives in Kala Dera, notesthat "all the recharge shafts that were randomly visited were found to be in dilapidatedconditions."That is one of the examples of present conditions of ethics in industrialization in India. Thathow these MNC`S are ruining the environment for their sole purpose. These types oforganization are the major reasons of depletion of natural resources in India.On the other handReliance is known for its excellence and massive scale of operations in whatever it venturesin. Its Refinery at Jamnagar is the largest grass root refinery in the World. In this 7500 acreRefinery complex where only barren land existed a few years ago one can now find an oasisin the form of massive greenery of more than 32 lakh plants of more than 200 species. Withinlast 6-7 years there has been a total transformation of the barren waste land into lush greencountryside. Late Legendary Shri Dhirubhai Ambani believed that if the standard of living ofthe rural masses is to be improved we must improve our agriculture. He had firm convictionthat agriculture has tremendous potential to generate employment. He was therefore thinkingof investing in agriculture in such a way that it can generate wealth for the nation, createemployment and bring smiles to the millions of our rural men and women. At the same timehe was very careful not to deprive any farmers of their cultivable lands. He therefore came tothe idea of developing waste lands which are in millions of acres in India into horticultureand plantations. Reliance has planted more than 100,000 mango trees in the green belt ofRefinery complex from 1998 to 2004 in fond memory of Late Shri Dhirubhai Ambani whowas a great lover of mangoes and befittingly named it as Dhirubhai Ambani LakhibagAmrayee which is testimony to his vision and dream.Environmental damage inevitably threatens the welfare of human beings as we as plants andanimals. Threats to the environment come from two sources pollution and resource depletion. 8
    • Conservation of the natural resources is necessary as it is the right of future generations to usethese resources.“We cannot have an ecological movement designed to prevent violence against nature,unless of non-violence becomes central to the ethics of human culture.”Mahatma GandhiGovernanceGovernance is the activity of governing. It relates to decisions that define expectations, grantpower, or verify performance. It consists either of a separate process or of a specific part ofmanagement or leadership processes. Sometimes people set up a government to administerthese processes and systems.In the case of a business or of a non-profit organization, governance relates to consistentmanagement, cohesive policies, guidance, processes and decision-rights for a given area ofresponsibility.The latest literacy levels indicate that we still have over 350 Million illiterates in India. Thisnumber is larger than the total population of any other country in the world except China.Illiteracy causes many ills and it generates its own problems.Corporate governanceCorporate governance consists of the set of processes, customs, policies, laws and institutionsaffecting the way people direct administer or control corporation. Corporate governance alsoincludes the relationships among the many players involved (the stakeholders) and thecorporate goals. The principal players include the shareholders, management, and the boardof directors. Other stakeholders include employees, suppliers, customers, banks and otherlenders, regulators, the environment and the community at large.“Corporate Governance is concerned with holding the balance between economic and socialgoals and between individual and communal goals. The corporate governance framework isthere to encourage the efficient use of resources and equally to require accountability for thestewardship of those resources. The aim is to align as nearly as possible the interests ofindividuals, corporations and society.”Report of SEBI committee (India) on Corporate Governance defines “Corporate governanceas the acceptance by management of the inalienable rights of shareholders as the true ownersof the corporation and of their own role as trustees on behalf of the shareholders. It is aboutcommitment to values, about ethical business conduct and about making a distinctionbetween personal & corporate funds in the management of a company.” The definition isdrawn from the Gandhian principle of trusteeship and the Directive Principles of the IndianConstitution. Corporate Governance is viewed as business ethics and a moral duty. 9
    • The issue is particularly important for developing countries since it is central to financial andeconomic development. With the legacy of the English legal system, India has one of the bestCorporate Governance laws but poor implementation together with socialistic policies of theperform Era has affected corporate governance.Investor like mutual funds has limited impact of performance in India. Ownership by othergroups like directors, foreigners and lending institutions, on the other hand, appear toimprove performance. In post-liberalization India, foreign ownership helps performance onlyif the foreigners constitute the majority shareholders.In India, enforcement of corporate laws remains the soft underbelly of the legal and corporategovernance system. The World Bank’s Reports on the Observance of Standards and Codes(ROSC) publishes a country-by-country analysis of the observance of OECD’s CorporateGovernance codes. In its 2004 report on India, the ROSC found that while India observed orlargely observed most of the principles, it could do better in certain areas. The contribution ofnominee directors from financial institutions to monitoring and supervising management isone such area. Improvements are also necessary in the enforcement of certain laws andregulations like those pertaining to stock listing in major exchanges and insider trading aswell as in dealing with violations of the Companies Act – the backbone of corporategovernance system in India.Amongst boards that senior managers know their job and have the best interests of companiesthey manage at heart.A National Foundation for Corporate Governance (NFCG) has been established by theMinistry of Corporate Affairs. This is a partnership with the Confederation of Indian Industry(CII), the Institute of Company Secretaries of India (ICSI) and the Institute of CharteredAccountants of India (ICAI). The purpose of the National Foundation for CorporateGovernance is to promote better corporate governance practices and raise the standard ofcorporate governance in India towards achieving stability and growth.Many Indian companies operate in a family-owned culture. There has been an implicitassumption sometimes resulted in boards performing well or until there is a refraining fromasking the difficult questions to senior managers when the company has been crisis. Thefamily members may or may not be able to govern the organization as a trained professionalcan do. This is the main drawback of these types of organization which lacks the interest ofthe society or sustainable development of the society.What is good corporate governance? 10
    • Good corporate governance is characterized by a firm commitment and adoption of ethicalpractices by an organization across its entire value chain and in all of its dealings with a widegroup of stakeholders encompassing employees, customers, vendors, regulators andshareholders (including the minority shareholders), in both good and bad times. To achievethis, certain checks and practices need to be whole-heartedly embraced.Clause 49 of the listing agreement with stock exchanges provides the code of Corporategovernance prescribed by SEBI for listed Indian companies. With the Introduction of clause49, compliance with its requirements is mandatory for such Companies.Management Discussion and Analysis (MD&A), which highlights the structure,Developments, opportunities, threats, concerns, etc. of the company is becoming an importantsection of the annual report.Increasingly, boards are being made responsible for sustainability of the companies theygovern. The need to ensure a high degree of sustainability in earnings, values, human andother resources and the environment in which the companies operate is gaining importance inIndia. So governance can be a great factor to sustainable development and proper governancecan lead to development of the organization as well as sustainable development of India.The positive effect of corporate governance on different stakeholders ultimately is astrengthened economy, and hence good corporate governance is a tool for sustainabledevelopment.Social ResponsibilityIn the development of corporate ethics, we have reached a stage where the question of thesocial responsibility of business to the community can no longer be scoffed at or takenlightly. In the environment of modern economic development, the corporate sector no longerfunctions in isolation. If the plea of the companies that they are performing a social purposein the development of the country is to be accepted, it can only be judged by the test of socialresponsiveness shown to the needs of the community by the companies. The company mustbehave and function as a responsible member of society, like any other individual. It cannotshun moral values, nor can it ignore actual compulsions. The real need is for some focus ofaccountability on the part of the management which is not limited to shareholders alone. Inmodern times, the objectives of business have to be the proper utilization of resources for thebenefit of others. A profit is still a necessary part of the total picture but it is not the primarypurpose. This implies that the claims of various interests will have to be balanced not on thenarrow ground of what is best for the shareholders alone but from the point of view of what isbest for the community at large. The company must accept its obligation to be sociallyresponsible and to work for the larger benefit of the community. (Courtesy: Government ofIndia, Report of high powered Expert Committee on Companies and MRTPA Acts (SacharCommittee), 1978. 11
    • The history of social and environmental concern about business is as old as trade andbusiness itself but there are no legal obligations and no laws which state that it is mandatoryfor an organization to be socially responsible.In Ancient Mesopotamia around 1700 BC, King Hammurabi introduced a code in whichbuilders, innkeepers or farmers were put to death if their negligence caused the deaths ofothers, or major inconvenience to local citizens.Business depends on society for the needed inputs like money, men, skills, sustenance andencouragement and has definite responsibilities for the society so it is obligatory for businessenterprises to make decision and should follow the line of action which are desirable in termsof the objectives and value of society.Corporate Social Responsibility in IndiaCorporate Social Responsibility (CSR) is a concept through which organizations consider theinterests of society by taking responsibility for the impact their activities have on customers,suppliers, employees, communities and the environment. This responsibility goes beyondcompliance with regulations and is about organizations voluntarily taking further steps toimprove the quality of life for employees as well as for the local community and society atlarge.Experts in the area of corporate social responsibility (CSR) have argued that CSR is not justphilanthropy by companies. It should involve the right combination of enhancing long-termshareholder value and protecting the interests of various other stakeholders (such asemployees, creditors, consumers and the society in general).The world business council for sustainable development has described Corporate SocialResponsibility as the business contribution to sustainable development.Ford as an Initiator of Corporate Social Responsibility says“We endeavor to become a leading contributor to a more sustainable world“Affect change, provide for those in need, and improve quality of life.”“The ford motor company fund supports many local and national programs to affect change,provide for those in need, and improve quality of life.”But various companies think over it and find it as a corner side stone which lead to the pathof success and helps them in achieving the long term benefits good words of mouth and alsothe relaxation and awards from government.Vodafone promises to come up with the new technology that will minimize the carbon monooxide up to 50% by 2020. Examples such as:  TATA TEA “jaago re” For Vote Appeal, corruption, bribery and  McDonalds’ “going green” for planting trees 12
    •  ITC collecting money from every product and spreading education free of cost to the rural and remote area children are the proof of growing CSR practices in India."ONGC is continuously and consciously involved and focused towards corporate socialresponsibility in all decisions and activities undertaken in the organization. ONGC iscommitted to allocate 0.75% of net profit of the year towards socio-economic developmentprogrammes." - Dr. Madhav Mehra, President, World Council for Corporate Governance, inMay 2006.According to N R Narayana Murthy, chairman and chief executive officer of Infosystechnologies, corporate social responsibility is to create maximum shareholder value workingunder the circumstances where it is fair to all its stakeholder-workers, consumers, thecommunity, government and environment. He points out that by living In harmony with thecommunity and environment around us and not cheating our workers, we might not getanything in the short run, but in the long term it means greater profits and shareholder`svalue.Since its inception, the Tata iron and steel company (TISCO) has been a shining example ofsocial responsibility. The committee appointed to conduct the social audit if TISCO observedif its report: “At a time when Max Weber, the great German socialist, was advocating histheory of transforming a traditional society into a modern one through industrialization andmodern management, little did he know that in the jungles of Bihar an Indian visionary hadalready planned the establishment of the first steel city (not a mere factory) in Asia. Before hepassed away, Jamsed Ji Tata in a letter to his son Dorab instructed him: “be sure to lay outwide streets planted with shady trees, every other one of a quick growing variety. Be surethere is plenty of space for lawns and gardens. Reserve large areas of football, hokey andparks. Earmark areas for Hindu temples, mohammedan mosques and Christian churches”.No wonder Jamshedpur emerged as beautiful and a well developed city.1970 witnessed a landmark development when Articles of Associations of the companywas amended to incorporate the social and moral responsibilities of the company to theconsumers, employees, shareholders, society and the local people. A decade later the board ofdirectors of TISCO appointed a social audit committee to go in to the question of whether andto what extent the company had fulfilled social obligations laid down in the articles. Thisresulted in the first social audit ever undertaken by any company, public or private, in India,at a time it was not popular anywhere in the world. The report of the committee was aglowing tribute to TISCO`s endeavors in the discharge of its social obligations to thesegments of the society.In 2000, TISCO won National Corporate Governance award, instituted by the union financeministry and sponsored by the Unit Trust of India (UTI).For DLF, Corporate Social Responsibility is not just an add on; rather our business and socialcommitment are mutually reinforcing and neither will be sustainable without the other. Wehave a continuing social responsibility towards the people of the area in which we operate 13
    • more so towards the less fortunate. It has been our constant endeavor to create sustainableeconomies and transform stagnant lives into active partnerships through synergized proactivehandholding in areas of infrastructure, education, training, health and environment. We havemade a public commitment to carry on these trusted relationships.Pepsico. CommitmentAs one of the world’s leading food and beverage companies we believe it is our responsibilityto provide affordable, accessible and nutritionally sound food and beverages to ourconsumers in developing countries. As part of a coordinated, global private sector coalition,our five key global commitments over the next five years willInnovate product composition and availability to provide healthier product options thataddress both excess and deficient consumption of specific nutrients and calories. Clearly,micronutrient deficiencies are a pressing need in developing nations and could be addressedin part through functional foods.Provide clear nutrition information to consumers, including consumers in regions wherenutrition information is not required.Globalize individual company and regional measures to ensure responsible marketing andadvertising of foods and non-alcoholic beverages to children, bringing increasing proportionsof the industry into the fold.Target individual company communications and forge public-private partnerships tocultivate awareness and adoption of healthier lifestyles worldwide.Commit our time, expertise and resources to support public-private partnerships toaccomplish the objectives of the WHO Strategy.Further Pepsi Co. also initiated some ideas for social responsibilityReplenishing WaterIn 2009, through our various initiatives of replenishing water we were able to give back to thecommunity more than consumed in our manufacturing processes.Waste to WealthQuality organic manure and recyclable waste is recycled. PepsiCo India’s unique Waste toWealth initiatives to convert bio-degradable waste into highPartnership With FarmersPepsico. India continues to strengthen it’s partnerships with Farmers across the country toboost their productivity and income.With growing globalization, Corporate Social Responsibility (CSR) had been increasing inimportance as it helped organizations to improve their relationships with local communities,increase brand value, and build a good corporate image for themselves. Also, the socio- 14
    • economic developmental activities undertaken by companies increased the purchasing powerof the community, leading to an expansion in their market size. After all it is said that: “Responsible business is good business.”ConclusionSustainable development is not mere responsibility of any individual or industry orgovernment. It is the responsibility of all the above stated groups to perform a combinedeffort for the development in any country.The current position of Sustainable Development India is not very strong. Government andcompanies like Pepsi Co., TISCO, Infosys, ONGC, Ford, DLF and many more are takingmany initiatives and are being responsible to the society are taking effort to save our naturalresources but on the other hand company like Coca cola which is a leader of Indian soft drinkmarket is not being ethical to the society and is responsible of resource depletion in 6 regionsof the country.Reliance Industries Ltd is one of the most important example which had performed suchtremendous efforts for the Sustainable Development of India like Jamnagar project.This is very rare that any of the above stated groups are performing their duties to the extentof their expectations like Reliance Industries Ltd. and TISCO who have ever been a landmarkin performing Corporate Social Responsibility and discharging their duties ethically.Indian government has taken many initiatives for sustainable development of the country likethe ban on use of plastic for packaging in many regions and green mission that will belaunched in 2012 in Mysore but again,A major question arises after the policies are formed thatAre these policies being implemented in the country?There is list of companies that are planning to minimize the risk of resource depletion in Indiaand the world and these organizations has been realizing the bottom-line benefits ofincorporating sustainability into their DNA. It’s beneficial for attraction and retention andit’s the right thing to do.We need more of them for Sustainable Development in India. REFERENCES 1. 2011, Business Ethics http://en.wikipedia.org/wiki/Business_ethics#Corporate_ethics_policies 15
    • 2. 2011, Renewable Energy Commercialization http://en.wikipedia.org/wiki/Renewable_energy_commercialization3. 2011, Sustainable Energy http://en.wikipedia.org/wiki/sustainable_energy4. 2011, Green Marketing http://en.wikipedia.org/wiki/Green_marketing#Phillips.27s_.22Marathon.22_CFL_lightbulb5. S.K Chakraborty, 1997, Business Ethics In India http://www.springerlink.com/content/m464j0206h324842/6. Mr. Amit Shrivastava, 2008, India Resource Center http://www.indiaresource.org/campaigns/coke/2008/kaladeraunethical.html7. 2011, Sustainable Development http://en.wikipedia.org/wiki/Sustainable_development8. Mr. Sunderial Bahuguna, 2009, Sustainable Development, Learning And Perspective In India http://envfor.nic.in/divisions/ic/wssd/doc4/consul_book_persp.pdf9. 2011, Sustainability http://en.wikipedia.org/wiki/Sustainability#Environmental_dimension10. 2011, Governance http://en.wikipedia.org/wiki/Governance11. 2011, Corporate Governance http://en.wikipedia.org/wiki/Governance#Corporate_governance12. Advisory Group On Corporate Governance, 2011, Corporate Governance In India “Current Status And Recommendations” http://rbidocs.rbi.org.in/rdocs/PublicationReport/Pdfs/20024.pdf13. Audit Committee Institute, 2008, The State Of Corporate Governance In India https://www.in.kpmg.com/SecureData/aci/Files/CG%20Survey%20Report.pdf14. Mr. K.P Singh (Chairman DLF Ltd., 2009, CSR Initiatives http://www.dlf.in/dlf/wcm/connect/ dlf_common/DLF_SITE/HOME/TOP+LINK/CSR15. Mr. V. Umakanth, 2009, CSR In India Some Theory http://indiacorplaw.blogspot.com/2009/04/csr-in-india-some-theory-and-practice.html16. Mr. Parimal Nathuan, 2006, Reliance Mangoes From Jamnagar http://parimalnathwani.com/ images/from-desk/ril/rel_mangoes.pdf17. Mr. Buckminster Fuller, 2007, Portal: Sustainable Development http://en.wikipedia.org/wiki/ Portal:Sustainable_development/Selected_quote#Quotes_list 16
    • 18. Mr. Dipankar Day, 2005, Energy And Sustainable Development In India http://envfor.nic.in/divisions/ic/wssd/doc4/consul_book_persp.pdf19. 2009, Indian Council For Sustainable Development http://www.helio-international.org/reports/pdfs/India-EN.pdf20. 2011, Forest And Development Debate http://www.icsusdev.org/activities.htm21. http://www.indiaenvironmentportal.org.in/taxonomy/term/974322. business environment seventh revised edition, 2007, author Francis Cherunilam23. business ethics (concepts and cases) fifth edition, 2006, author :Manuel g. Velasquez 17