Corporate Environment Management Strategies


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Corporate Environment Management Strategies

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Corporate Environment Management Strategies

  1. 1. Corporate Environment Management Strategies Unit-II
  2. 2. Syllabus • Concept of strategic environmental management with examples, sustainable industrial development, triple bottom line concept, cleaner technologies, life cycle analysis, green marketing.
  3. 3. Environment Management Concept • In this new millennium organizations are rapidly changing their structures, systems, work processes and activities. This changing environment calls for enterprising managers to manage and respond to the changes in an appropriate manner. It is therefore, necessary for them to develop a clear focus and direction to facilitate decision making process.
  4. 4. Environment Management Concept
  5. 5. Environment Management Concept • The emerging trends that characterize this millennium are: • An era of information revolution, which has influenced the new economy. • The traditional supply chain are fast disappearing paving way to new virtual supply chain. This change calls for an entire revamping of the internal process. • The relationship among organizations, their customers, suppliers and manufacturers is also undergoing a drastic change.
  6. 6. Era of Information Revolution
  7. 7. Virtual supply chain
  8. 8. Environment Management Concept • Organization are becoming extended enterprises. The idea of extended enterprise with the focus on supply chain management will become the standard for assessing performance in future. • There is an increasing concern about the environment performance and reporting practices. There is also a move to towards looking at the environment performance as competitive advantage. There is an increase in demand from the stalk holders for environmentally responsible behavior across the globe.
  9. 9. Organization as extended enterprises
  10. 10. Environment Management Concept Environmental Problems and growing concern about them. It is no longer possible to ignore the needs of the society and quite appropriately management education must address new areas of interest. In light of this, issues concerning protection, conservation and management of the physical environment are to be addressed with a view to impart knowledge, increasing awareness and developing the required skills to solve environmental problems. This area of action affects almost all sectors and therefore, calls for action from people all over the world.
  11. 11. Environmental Problems and growing concern
  12. 12. Environment Management Concept • Every activity generates unavoidable environmental impact of some kind or the other, but the ability of people and societies to adapt themselves to and cope with the change is varied.
  13. 13. Environment Management Concept • People in developing countries particularly in the less developed countries, have less capacity to adapt to change and are more vulnerable to environmental threats and the global change. Therefore they need to bear a disproportionate burden of the impact of disasters, conflicts, drought, desertification and pollution.
  14. 14. Environment Management Concept
  15. 15. Environment Management Concept • Deterioration of environmental conditions is a major contributing factor to poor health and a reduced quality of life.
  16. 16. Environment Management Concept • The importance of prevention of the environment and respect for nature from underlying principles of various developing countries. • While environmental conservation may have been a part of cultural and religious heritage of many developing societies, consideration has generally been of most recent origin, certainly not more than two decades.
  17. 17. Environment Management Concept
  18. 18. Environment Management Concept • The essence of man’s attitude to nature in India is characterized by harmony. Lack of awareness of the laws and forces of nature that keep the ecological balance leads to improper behavioral patters which result in environmental problems.
  19. 19. Environment Management Concept • The element of sustainability implies enjoying the boundaries of nature without prevailing over it. As exploitation starts, we cease to utilize nature for our good, and for the benefit and the welfare of our fellow human being.
  20. 20. Environment Management Concept
  21. 21. Environment Management Concept • There are two basic reasons for our concern with environmental pollution • (i) Human health and welfare • (ii)Sustenance and survival of mankind, Environmental contamination and the impact on human life is already well known. • Only the coping mechanism have undergone changes due to increase in awareness and the tremendous pressure of population increase on the environmental resources.
  22. 22. Environment Management Concept • The ancient civilizations had imposed self restrictions to avoid different forms of pollution, by religious and other spiritual bondages, and not necessarily through legal measures.
  23. 23. Spiritual Bondages
  24. 24. Tradition of Sacred Groves
  25. 25. Tradition of Sacred Groves
  26. 26. Sustainable Industrial Development • The concept of sustainable development broadly means that the development initiatives be initiated in such a way that the future generations can enjoy the benefits of nature without any compromise. • The importance elements in the attempts to achieve sustainability have been on • Regulation • Consumer awareness • Companies solution of end of pipe problems • Companies green product development.
  27. 27. Sustainable Industrial Development
  28. 28. Sustainable Industrial Development • The concept of sustainable development facilitates good and sound economic growth, that can be maintained with minimum environmental impact. It provides a continuous monitoring emphasis as the approach itself calls for overall sustainable orientation.
  29. 29. Sustainable Industrial Development • The factors that can promote sustainable development are as follows • Population stabilization and health care • Integrated land use planning and watershed management, ensuring availability of adequate area for use as cropland, woodland, and grassland, for fuel, timber, and fodder.
  30. 30. Integrated land use planning
  31. 31. Sustainable Industrial Development • Revegitation marginal land and greening the uncultivated area. • Water pollution control in rivers • Air pollution control in industrial pockets • Use of non-polluting renewable energies. • Waste recycling and reuse. • Conservation of biological diversity • Human settlement without congestion • Slum improvement • Environmental education awareness.
  32. 32. Sustainable Industrial Development
  33. 33. Sustainable Industrial Development • To develop more sustainable societies, Industry, need to better understand how to respond to environmental, social and economic challenges and transform industrial behaviour. • Improving environmental performance without changing current products and processes, • Developing and introducing new technologies, and Changing the industrial system.
  34. 34. Triple bottom line Concept • In traditional business accounting, the "bottom line" refers to the sum of revenue minus expenses, which is either "loss" if negative, or "profit" if positive. • The term originated because profit is always shown as the very "bottom line" on a statement of revenue and expenses.
  35. 35. Triple bottom line Concept
  36. 36. Triple bottom line Concept • Over the last 50 years, environmentalists and social justice advocates have struggled to bring a broader definition of "bottom line" into public consciousness, by introducing full cost accounting. • For example, if a corporation shows a monetary profit, but their asbestos mine causes thousands of deaths from asbestosis, and their copper mine pollutes a river, and the government ends up spending taxpayer money on health care and river clean-up, how do we perform a full societal cost benefit analysis?
  37. 37. Triple bottom line Concept • The concept of a triple bottom line (abbreviated as TBL or 3BL) adds two more "bottom lines"; social and environmental concerns. • The three together are often paraphrased as "Profit, People, Planet", or referred to as "the three pillars"
  38. 38. Triple bottom line Concept
  39. 39. Triple bottom line Concept • With the ratification of the United Nations, TBL standard for urban and community accounting became the dominant approach to public sector full cost accounting.
  40. 40. Triple bottom line Concept • The triple bottom line is made up of "social equity, economic, and environmental" factors. • "People, planet and profit" succinctly describes the triple bottom lines and the goal of sustainability. The phrase, "people, planet, profit", was coined by John Elkington in 1995. • "People" pertains to fair and beneficial business practices toward labour and the community and region in which a corporation conducts its business. A TBL company conceives a reciprocal social structure in which the well-being of corporate, labour and other stakeholder interests are interdependent.
  41. 41. Triple bottom line Concept
  42. 42. Triple bottom line Concept • A triple bottom line enterprise seeks to benefit many constituencies, not exploit or endanger any group of them. The "upstreaming" of a portion of profit from the marketing of finished goods back to the original producer of raw materials, for example, a farmer in fair trade agricultural practice, is a common feature.
  43. 43. Triple bottom line Concept
  44. 44. Triple bottom line Concept • In concrete terms, a TBL business would not use child labour and monitor all contracted companies for child labour exploitation, would pay fair salaries to its workers, would maintain a safe work environment and tolerable working hours, and would not otherwise exploit a community or its labour force.
  45. 45. Triple bottom line Concept • A TBL business also typically seeks to "give back" by contributing to the strength and growth of its community with such things as health care and education. Quantifying this bottom line is relatively new, problematic and often subjective.
  46. 46. Triple bottom line Concept • "Planet” refers to sustainable environmental practices. A TBL company endeavours to benefit the natural order as much as possible or at the least do no harm and minimise environmental impact.
  47. 47. Triple bottom line Concept • A TBL endeavour reduces its ecological footprint by, among other things, carefully managing its consumption of energy and non-renewables and reducing manufacturing waste as well as rendering waste less toxic before disposing of it in a safe and legal manner.
  48. 48. Triple bottom line Concept • "Cradle to Grave" is uppermost in the thoughts of TBL manufacturing businesses, which typically conduct a life cycle assessment of products to determine what the true environmental cost is from the growth and harvesting of raw materials to manufacture to distribution to eventual disposal by the end user. • A triple bottom line company does not produce harmful or destructive products such as weapons, toxic chemicals or batteries containing dangerous heavy metals, for example.
  49. 49. Life Cycle Assessment
  50. 50. Triple bottom line Concept • Currently, the cost of disposing of nondegradable or toxic products is borne financially by governments and environmentally by the residents near the disposal site and elsewhere. In TBL thinking, an enterprise which produces and markets a product which will create a waste problem should not be given a free ride by society. It would be more equitable for the business which manufactures and sells a problematic product to bear part of the cost of its ultimate disposal.
  51. 51. Triple bottom line Concept • Ecologically destructive practices, such as overfishing or other endangering depletions of resources are avoided by TBL companies. • Often environmental sustainability is the more profitable course for a business in the long run. Arguments that it costs more to be environmentally sound are often specious when the course of the business is analyzed over a period of time. • Generally, sustainability reporting metrics are better quantified and standardized for environmental issues than for social ones.
  52. 52. Environmental Sustainability
  53. 53. Triple bottom line Concept • "Profit" is the economic value created by the organization after deducting the cost of all inputs, including the cost of the capital tied up. It therefore differs from traditional accounting definitions of profit. • In the original concept, within a sustainability framework, the "profit" aspect needs to be seen as the real economic benefit enjoyed by the host society.
  54. 54. Triple bottom line Concept • It is the real economic impact the organization has on its economic environment. This is often confused to be limited to the internal profit made by a company or organization (which nevertheless remains an essential starting point for the computation). Therefore, an original TBL approach cannot be interpreted as simply traditional corporate accounting profit plus social and environmental impacts unless the "profits" of other entities are included as a social benefit.
  55. 55. Clean Technology Clean Technology • Includes recycling, renewable energy (wind power, solar power, biomass, hydropower, bio-fuels ), • Information technology, green transportation, electric motors, green chemistry, lighting, Grey-water, and many other appliances that are now more energy efficient.
  56. 56. Clean Technology
  57. 57. Clean Technology • It is a means to create electricity and fuels, with a smaller environmental footprint and minimise pollution. • Environmental finance is a method by which new clean technology projects that has proven that they are "additional" or "beyond business as usual" can obtain financing through the generation of carbon credits.
  58. 58. Clean Technology • While there is no standard definition of “Clean Technology" it has been described by Clean Edge, a clean technology research firm, as "a diverse range of products, services, and processes that harness renewable materials and energy sources, dramatically reduce the use of natural resources, and cut or eliminate emissions and wastes."
  59. 59. Clean Technology
  60. 60. Clean Technology • It notes that “Clean Technologies are competitive with, if not superior to, their conventional counterparts. Many also offer significant additional benefits, notably their ability to improve the lives of those in both developed and developing countries”.
  61. 61. Clean Technology
  62. 62. Clean Technology • Investments in clean technology have grown considerably since coming into the spotlight around 2000. • Overall, investment in clean-energy and energy-efficiency industries rose 60 percent from 2006 to 2007. By 2018 it is forecast that the three main clean technology sectors, solar photo-voltaics, wind power, and biofuels, will have revenues of $325.1bn
  63. 63. Life-Cycle Assessment • Life-Cycle Assessment (LCA, also known as life-cycle analysis, eco-balance, and cradle-to-grave analysis) is a technique to assess environmental impacts associated with all the stages of a product's life fromcradle-to-grave (i.e. from raw material extraction through materials processing, manufacture, distribution, use, repair and maintenance, and disposal or recycling).
  64. 64. Life Cycle Assessment
  65. 65. Life-Cycle Assessment • LCAs can help avoid a narrow outlook on environmental concerns by: • Compiling an inventory of relevant energy and material inputs and environmental releases; • Evaluating the potential impacts associated with identified inputs and releases; • Interpreting the results to help make a more informed decision
  66. 66. Life-Cycle Assessment
  67. 67. Life-Cycle Assessment • The goal of LCA is to compare the full range of environmental effects assignable to products and services in order to improve processes, support policy and provide a sound basis for informed decisions.
  68. 68. Life-Cycle Assessment
  69. 69. Life-Cycle Assessment • Life Cycle Assessment is carried out in four distinct phases. The phases are often interdependent in that the results of one phase will inform how other phases are completed.
  70. 70. Life-Cycle Assessment
  71. 71. Goal and Scope • An LCA starts with an explicit statement of the goal and scope of the study, which sets out the context of the study and explains how and to whom the results are to be communicated. • the functional unit, which defines what precisely is being studied and quantifies the service delivered by the product system, providing a reference to which the inputs and outputs can be related.
  72. 72. Life Cycle Inventory • Life Cycle Inventory (LCI) analysis involves creating an inventory of flows from and to nature for a product system. Inventory flows include inputs of water, energy, and raw materials, and releases to air, land, and water.
  73. 73. Life Cycle Impact Assessment • Inventory analysis is followed by impact assessment. This phase of LCA is aimed at evaluating the significance of potential environmental impacts based on the LCI flow results.
  74. 74. Life Cycle Impact Assessment Interpretation • The results from the inventory analysis and impact assessment are summarized during the interpretation phase. The outcome of the interpretation phase is a set of conclusions and recommendations for the study.
  75. 75. Life-Cycle Assessment
  76. 76. Green Marketing • Green marketing is the marketing of products that are presumed to be environmentally safe. Thus green marketing incorporates a broad range of activities, including product modification, changes to the production process, packaging changes, as well as modifying advertising.
  77. 77. Green Marketing
  78. 78. Green Marketing • Green, Environmental and eco-marketing are part of the new marketing approaches which do not just refocus, adjust or enhance existing marketing thinking and practice, but seek to challenge those approaches and provide a substantially different perspective.
  79. 79. Green Marketing
  80. 80. Green Marketing • A model green marketing mix contains four "P's": • Product: A producer should offer ecological products which not only must not contaminate the environment but should protect it and even liquidate existing environmental damages. • Price: Prices for such products may be a little higher than conventional alternatives. But target groups are willing to pay extra for green products.
  81. 81. Green Marketing • Place: A distribution logistics is of crucial importance; main focus is on ecological packaging. Marketing local and seasonal products e.g. vegetables from regional farms is more easy to be marketed “green” than products imported.
  82. 82. Green Marketing • Promotion: A communication with the market should put stress on environmental aspects, for example that the company possesses or is a ISO 14000 certified. This may be publicized to improve a firm’s image. • Furthermore, the fact that a company spends expenditures on environmental protection should be advertised.
  83. 83. References Environmental Management Bala Krishnamoorthy- PHI publication Wikipedia- The online free Encyclopedia
  84. 84. Thanks …