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UNIT 2
Organizational Environment; Internal and External environment; Indian corporate structure and environment; how to go green; spreading the
concept in organization; Environmental and sustainability issues for the production of high-tech components and materials, life cycle analysis of
materials, sustainable production and its role in corporate social responsibility (CSR) and Corporate environmental responsibility (CER).
HIGH TECH COMPONENTS:
The products which are manufactured by using the updated
technology will be considered as high tech components. There is no
specific definition for this high technology it will changes with
respect to time. In the present economy the products incorporated
with computer electronics will be considered as high tech products.
Some of the high tech industries include:
 Aerospace
 Automotive
 Artificial Intelligence
 Biotechnology
 Bioinformatics
 Computer Engineering
 Information Technology
 Nanotechnology
 Nuclear Physics
 Photonics
 Robotics
 Semiconductors
 Telecommunications
Impact of high-tech components on environment:
In today's society many of the people are working longer hours and
utilizing more technology in their everyday life. As a result of these
longer hours and increased use of technology, more energy is being
consumed. (Hayden and Shandra 575) The impact that this is having
on the environment is substantial in both negative and positive ways.
It is hard to deny the benefits modern technology has produced for
the world, in industry and in everyday life. With more and more
technological breakthroughs, there have been many positive
ecological impacts. However, it is also hard to deny that there are
considerable negative impacts as well.
The negative impact of technology on environment include:
i. Energy Consumption: With almost all of the world's
businesses using computer technology to operate, the energy
consumption of the industrial world is constantly on the
increase. In many of the industries the employees use to
work more than 40 hours in a week, as a result the industries
are consuming more energy than reserved. Many offices run
their computer systems on a mainframe server. This server is
usually running 24 hours a day and is rarely shut down. To
keep these servers from overheating, fans are installed within
the hard drives. With the combined energy of the fans and
the operation of the servers, the amount of energy being
consumed is huge and results in a very high thermal count.
According to the International Energy Agency or,
IEA, around 4% of the world's energy consumption in 2008
was due to the mass use of information communications
technologies. This figure is predicted to rise to an incredible
40% by the time the year 2030 arrives.
ii. Growth of new industries: The increased value for the high
technological products attracting many of the countries to
start new industries, which ultimately creating pollution, and
disturbing the ecology.
iii.
LIFE CYCLE ANALYSIS OF MATERIALS:
Consecutive and interlinked stages of a product or service
system, from the extraction of natural resources to the final disposal.
Life cycle analysis (LCA) is the systematic approach of looking
at a product’s complete life cycle, from raw materials to final
disposal of the product.
Life cycle analysis examines the environmental impacts of a product
by considering the major stages of a product’s life, which are:
• Raw material acquisition, which includes material harvesting and
transportation to manufacturing sites;
• Processing, which involves materials processing and transportation
to production sites.
•Manufacturing, which includes product manufacture and assembly,
packaging, and transportation to final distribution;
•Product life, which includes energy and emissions during normal
product life, required maintenance, and product reuse (refurbishing,
material reuse); and
• Waste management/end of life, which includes recycling, landfills,
liquid waste, gas emissions, etc.
Needfor Life Cycle Analysis:
 Identify opportunities environmental impact and waste
reduction
 Prepare to capitalize on regulatory changes
 Improve product/corporate image
 Develop metrics and enable comparison across the company
and among suppliers and partners
 Help to secure market and competitive positions
 Answer customer’s requests for environmental and social
information
 Identify cost savings
Process of LCA:
 Raw material: All process and distribution steps required to
produce the raw material
 Manufacturing: All process and distribution steps from
bringing the raw material to the client until the finished
product leaves the factory site
 Distribution: All steps involved with moving the product
from the factory site to the end consumer
 Use: All steps from end consumer purchasing goods through
to disposal
 Disposal/ Post use: For product going to landfill - all steps
from consumer disposing of product to reaching its final
state of decomposition.
 For recycled product - all steps from consumer disposing of
product to reaching the recycler
Phases of LCA:
 Raw material: All process and distribution steps required to
produce the raw material.
 Manufacturing: All process and distribution steps from
bringing the raw material to the client until the finished
product leaves the factory site.
 Distribution: All steps involved with moving the product
from the factory site to the end consumer.
 Use: All steps from end consumer purchasing goods through
to disposal.
 Disposal/ Post use: For product going to landfill - all steps
from consumer disposing of product to reaching its final
state of decomposition.
 For recycled product - all steps from consumer disposing of
product to reaching the recycler.
SUSTAINABLE PRODUCTION:
Sustainable Production is the creation of goods and services using
processes and systems that are:
 Non-polluting
 Conserving of energy and natural resources
 Economically viable
 Safe and healthful for workers, communities, and consumers
 Socially and creatively rewarding for all working people.
Sustainable production should meet:
Economically sustainability, Social sustainability and environmental
sustainability. These can be measured through:
 Quality Management (ISO 9000) → Economically
sustainable.
 Prevention Management (OHSAS 18000) → Socially
sustainable.
 Environmental Management (ISO 14000) → Sustainable
with the environment.
Principles of Sustainable Production:
 Products and packaging are designed to be safe and
ecologically sound throughout their life cycle.
 Services are organized to satisfy real human needs and
promote equity and fairness.
 Wastes and ecologically incompatible byproducts are
reduced, eliminated or recycled
 Chemical substances or physical agents and conditions that
present hazards to human health or the environment are
eliminated.
 Energy and materials are conserved, and the forms of energy
and materials used are most appropriate for the desired ends.
 Work places and technologies are designed to minimize or
eliminate chemical, ergonomic and physical hazards.
 Work is organized to conserve and enhance the efficiency
and creativity of employees.
 The security and well-being of all employees is a priority, as
is the continuous development of their talents and capacities.
 The communities around workplaces are respected and
enhanced economically, socially, culturally and physically.
 The long-term economic viability of the enterprise or
institution is enhanced.
CORPORATE ENVIRONMENTAL RESPONSIBILITIES:
Encompasses corporate practices ranging from natural resource
management and use to waste generation and disposal, recycling, the
marketing of environmentally friendly products, and pollution
prevention and control.
CER is the philosophy and the culture of the company - they
put a lot of effort into considering the effect on the environment.
Irrespective of whether a company is polluting or non
polluting, protection of environment should be the concern of every
socially responsible organisation. Each company must take steps to
make sustainable use of resources, establish a healthy and safe
working environment, maintain ecological balance, take proactive
steps to minimise waste generation and preserve environment.
Key drivers of CER:
 cost savings
 government legislation or threat of legislation
 market advantage
 protection or enhancement of reputation and brands
 avoiding risk, or responding to accident or environmental
threat
 a ‘champion’ within the organization
 pressure from shareholders
 pressure from consumers
 pressure from non-government organization
 societal expectation
Environmental Legislation:
There are specific environmental rules covering a wide range of
businesses - from construction and electronics to textiles and
chemicals manufacture.
There is a range of environmental rules that a business may have
to follow:
 Comply with legislation regarding emissions into the air.
 Store waste safely and securely, make sure it is treated
appropriately, ensure it is collected by an authorised
organisation (such as your local authority or a licensed
private waste contractor) and complete a waste transfer note
or consignment note when waste is handed over.
 Manage the business waste for recycling by separating paper,
card, plastic, metals and glass prior to collection. The food
businesses need to separate food waste for recycling.
 Ensure not to cause a statutory nuisance which could affect
someone's health or annoy neighbours. This covers things
like producing noise, smoke, fumes, gases, dust, odour, light
pollution or accumulating rubbish.
 Get permission from the water company before
releasing trade effluent such as waste chemicals, detergents,
cooling or cleaning water to enter the sewerage system.
 Register with the National Packaging Waste Database, or
join an approved compliance scheme when the business
handle more than 50 tonnes of packaging and have a
turnover of more than £2 million. Provide evidence that the
business recovering and recycling a set amount of packaging
waste.
 Make sure to comply with restrictions on the storage and use
of hazardous substances. Ensure that any hazardous waste a
business produces is correctly classified and described, and
is either disposed of or recovered at an appropriately
authorised facility.
 Notify the relevant enforcing authority and take steps to
prevent the damage if the business activities pose an
imminent threat to the environment. If the business activities
cause actual environmental damage, must take remedial
action to repair the damage.
 The manufacture, use, import or recover from waste
materials any chemicals, you may have to comply with
the Registration, Evaluation and Authorisation of Chemicals
(REACH) Regulations. Businesses manufacturing,
recovering or importing any chemicals over 1 tonne per year
must ensure those chemicals have been pre-registered or
registered in full.
 The manufacturers of electrical and electronic equipment
you must comply with the Restriction of the Use of Certain
Hazardous Substances in Electrical and Electronic
Equipment Regulations 2008 (RoHS). Under RoHS,
manufacturers are prevented from placing products on the
market with more than a certain amount of hazardous
substances such as lead, mercury and cadmium.
Hazardous Substances Covered By Environmental Legislation:
Specific environmental rules cover potentially dangerous
substances. Every business needs to think about the risks to people
or the environment posed by chemicals or substances classified as
hazardous to health under the Chemicals (Hazard Information and
Packaging for Supply) Regulations (CHIP). Hazardous substances
are tightly regulated. They include:
 animal by-products
 chemicals
 oil
 ozone-depleting substances (ODS)
 pesticides and biocides
 radioactive materials
 hazardous substances in electrical and electronic equipment
 solvents
Environmental Responsibilities of A Business:
 Manufacturing only products that pose no risk to the
environment when they are used as intended by customers
and consumers.
 Supplying information on the correct storage, use and
disposal of the products.
 Conserving natural resources by using raw materials and
energy responsibly.
 Using environmentally-friendly technology in research and
production. By doing so, increase safety in the workplace
and protect the communities and the environment.
 Avoiding and reducing waste; using recycling and
environmentally-friendly disposal systems.
 Reducing risks to soil, air and water to the greatest extent
possible.
 Preparing for potential dangerous situations in order to
protect both public and the environment.

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Unit 2

  • 1. UNIT 2 Organizational Environment; Internal and External environment; Indian corporate structure and environment; how to go green; spreading the concept in organization; Environmental and sustainability issues for the production of high-tech components and materials, life cycle analysis of materials, sustainable production and its role in corporate social responsibility (CSR) and Corporate environmental responsibility (CER). HIGH TECH COMPONENTS: The products which are manufactured by using the updated technology will be considered as high tech components. There is no specific definition for this high technology it will changes with respect to time. In the present economy the products incorporated with computer electronics will be considered as high tech products. Some of the high tech industries include:  Aerospace  Automotive  Artificial Intelligence  Biotechnology  Bioinformatics  Computer Engineering  Information Technology  Nanotechnology  Nuclear Physics  Photonics  Robotics  Semiconductors  Telecommunications Impact of high-tech components on environment: In today's society many of the people are working longer hours and utilizing more technology in their everyday life. As a result of these longer hours and increased use of technology, more energy is being consumed. (Hayden and Shandra 575) The impact that this is having on the environment is substantial in both negative and positive ways. It is hard to deny the benefits modern technology has produced for the world, in industry and in everyday life. With more and more technological breakthroughs, there have been many positive
  • 2. ecological impacts. However, it is also hard to deny that there are considerable negative impacts as well. The negative impact of technology on environment include: i. Energy Consumption: With almost all of the world's businesses using computer technology to operate, the energy consumption of the industrial world is constantly on the increase. In many of the industries the employees use to work more than 40 hours in a week, as a result the industries are consuming more energy than reserved. Many offices run their computer systems on a mainframe server. This server is usually running 24 hours a day and is rarely shut down. To keep these servers from overheating, fans are installed within the hard drives. With the combined energy of the fans and the operation of the servers, the amount of energy being consumed is huge and results in a very high thermal count. According to the International Energy Agency or, IEA, around 4% of the world's energy consumption in 2008 was due to the mass use of information communications technologies. This figure is predicted to rise to an incredible 40% by the time the year 2030 arrives. ii. Growth of new industries: The increased value for the high technological products attracting many of the countries to start new industries, which ultimately creating pollution, and disturbing the ecology. iii. LIFE CYCLE ANALYSIS OF MATERIALS: Consecutive and interlinked stages of a product or service system, from the extraction of natural resources to the final disposal. Life cycle analysis (LCA) is the systematic approach of looking at a product’s complete life cycle, from raw materials to final disposal of the product. Life cycle analysis examines the environmental impacts of a product by considering the major stages of a product’s life, which are: • Raw material acquisition, which includes material harvesting and transportation to manufacturing sites; • Processing, which involves materials processing and transportation to production sites. •Manufacturing, which includes product manufacture and assembly, packaging, and transportation to final distribution;
  • 3. •Product life, which includes energy and emissions during normal product life, required maintenance, and product reuse (refurbishing, material reuse); and • Waste management/end of life, which includes recycling, landfills, liquid waste, gas emissions, etc. Needfor Life Cycle Analysis:  Identify opportunities environmental impact and waste reduction  Prepare to capitalize on regulatory changes  Improve product/corporate image  Develop metrics and enable comparison across the company and among suppliers and partners  Help to secure market and competitive positions  Answer customer’s requests for environmental and social information  Identify cost savings Process of LCA:  Raw material: All process and distribution steps required to produce the raw material  Manufacturing: All process and distribution steps from bringing the raw material to the client until the finished product leaves the factory site  Distribution: All steps involved with moving the product from the factory site to the end consumer  Use: All steps from end consumer purchasing goods through to disposal  Disposal/ Post use: For product going to landfill - all steps from consumer disposing of product to reaching its final state of decomposition.  For recycled product - all steps from consumer disposing of product to reaching the recycler Phases of LCA:  Raw material: All process and distribution steps required to produce the raw material.  Manufacturing: All process and distribution steps from bringing the raw material to the client until the finished product leaves the factory site.  Distribution: All steps involved with moving the product from the factory site to the end consumer.  Use: All steps from end consumer purchasing goods through to disposal.  Disposal/ Post use: For product going to landfill - all steps from consumer disposing of product to reaching its final state of decomposition.
  • 4.  For recycled product - all steps from consumer disposing of product to reaching the recycler. SUSTAINABLE PRODUCTION: Sustainable Production is the creation of goods and services using processes and systems that are:  Non-polluting  Conserving of energy and natural resources  Economically viable  Safe and healthful for workers, communities, and consumers  Socially and creatively rewarding for all working people. Sustainable production should meet: Economically sustainability, Social sustainability and environmental sustainability. These can be measured through:  Quality Management (ISO 9000) → Economically sustainable.  Prevention Management (OHSAS 18000) → Socially sustainable.  Environmental Management (ISO 14000) → Sustainable with the environment. Principles of Sustainable Production:  Products and packaging are designed to be safe and ecologically sound throughout their life cycle.  Services are organized to satisfy real human needs and promote equity and fairness.  Wastes and ecologically incompatible byproducts are reduced, eliminated or recycled  Chemical substances or physical agents and conditions that present hazards to human health or the environment are eliminated.  Energy and materials are conserved, and the forms of energy and materials used are most appropriate for the desired ends.  Work places and technologies are designed to minimize or eliminate chemical, ergonomic and physical hazards.  Work is organized to conserve and enhance the efficiency and creativity of employees.  The security and well-being of all employees is a priority, as is the continuous development of their talents and capacities.  The communities around workplaces are respected and enhanced economically, socially, culturally and physically.  The long-term economic viability of the enterprise or institution is enhanced. CORPORATE ENVIRONMENTAL RESPONSIBILITIES: Encompasses corporate practices ranging from natural resource management and use to waste generation and disposal, recycling, the
  • 5. marketing of environmentally friendly products, and pollution prevention and control. CER is the philosophy and the culture of the company - they put a lot of effort into considering the effect on the environment. Irrespective of whether a company is polluting or non polluting, protection of environment should be the concern of every socially responsible organisation. Each company must take steps to make sustainable use of resources, establish a healthy and safe working environment, maintain ecological balance, take proactive steps to minimise waste generation and preserve environment. Key drivers of CER:  cost savings  government legislation or threat of legislation  market advantage  protection or enhancement of reputation and brands  avoiding risk, or responding to accident or environmental threat  a ‘champion’ within the organization  pressure from shareholders  pressure from consumers  pressure from non-government organization  societal expectation Environmental Legislation: There are specific environmental rules covering a wide range of businesses - from construction and electronics to textiles and chemicals manufacture. There is a range of environmental rules that a business may have to follow:  Comply with legislation regarding emissions into the air.  Store waste safely and securely, make sure it is treated appropriately, ensure it is collected by an authorised organisation (such as your local authority or a licensed private waste contractor) and complete a waste transfer note or consignment note when waste is handed over.  Manage the business waste for recycling by separating paper, card, plastic, metals and glass prior to collection. The food businesses need to separate food waste for recycling.  Ensure not to cause a statutory nuisance which could affect someone's health or annoy neighbours. This covers things like producing noise, smoke, fumes, gases, dust, odour, light pollution or accumulating rubbish.  Get permission from the water company before releasing trade effluent such as waste chemicals, detergents, cooling or cleaning water to enter the sewerage system.
  • 6.  Register with the National Packaging Waste Database, or join an approved compliance scheme when the business handle more than 50 tonnes of packaging and have a turnover of more than £2 million. Provide evidence that the business recovering and recycling a set amount of packaging waste.  Make sure to comply with restrictions on the storage and use of hazardous substances. Ensure that any hazardous waste a business produces is correctly classified and described, and is either disposed of or recovered at an appropriately authorised facility.  Notify the relevant enforcing authority and take steps to prevent the damage if the business activities pose an imminent threat to the environment. If the business activities cause actual environmental damage, must take remedial action to repair the damage.  The manufacture, use, import or recover from waste materials any chemicals, you may have to comply with the Registration, Evaluation and Authorisation of Chemicals (REACH) Regulations. Businesses manufacturing, recovering or importing any chemicals over 1 tonne per year must ensure those chemicals have been pre-registered or registered in full.  The manufacturers of electrical and electronic equipment you must comply with the Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment Regulations 2008 (RoHS). Under RoHS, manufacturers are prevented from placing products on the market with more than a certain amount of hazardous substances such as lead, mercury and cadmium. Hazardous Substances Covered By Environmental Legislation: Specific environmental rules cover potentially dangerous substances. Every business needs to think about the risks to people or the environment posed by chemicals or substances classified as hazardous to health under the Chemicals (Hazard Information and Packaging for Supply) Regulations (CHIP). Hazardous substances are tightly regulated. They include:  animal by-products  chemicals  oil  ozone-depleting substances (ODS)  pesticides and biocides  radioactive materials
  • 7.  hazardous substances in electrical and electronic equipment  solvents Environmental Responsibilities of A Business:  Manufacturing only products that pose no risk to the environment when they are used as intended by customers and consumers.  Supplying information on the correct storage, use and disposal of the products.  Conserving natural resources by using raw materials and energy responsibly.  Using environmentally-friendly technology in research and production. By doing so, increase safety in the workplace and protect the communities and the environment.  Avoiding and reducing waste; using recycling and environmentally-friendly disposal systems.  Reducing risks to soil, air and water to the greatest extent possible.  Preparing for potential dangerous situations in order to protect both public and the environment.