2. Environmental Management
“A Systematic approach to resource
utilization, whereby more of renewable
energy sources are replenished for
optimum utilization over non-renewable
resources in a sustainable manner, such
that one complies with the laws and legal
procedures as laid down by the state,
using an extensive Environmental
Management System (EMS) to achieve
this goal”
4. Environmental Degradation
• Population Explosion
• Poverty
• Unplanned urban land use
• Technological advancements
• Non-Biodegradable wastes
• Rapid industrialization
• Hazardous wastes / Bio-medical wastes
• Use & Throw concept
• NIMBY – Not In My Backyard
• Green Revolution
• Damn the DAMS projects
5. Some solutions to Environmental
Degradation
• Application of soft technology like biogas, wind energy,
solar cooker, CNG driven cars.
• Use of bio-degradable materials
• Solid waste management programmes
• Treatment of water effluents
• Afforestation in pollution zones
• Use of Green Labels
• ISO 14001 certification
• Water harvesting
• Environmental education in schools and colleges
• Environmental movements like Chipko and NBA
6. Sustainable Development
“is the development that meets the needs
of the present without compromising the
ability of future generations to meet their
own needs”
– World Commission on
Environment and
Development (WCED)
7. Owners
Employees
Physical environment
Board of directors
Culture
Competitors
International
dimension
Political-
legal
dimension
Technological
dimension
Sociocultural
dimension
Economic
dimension
Regulators Customers
Strategic
partners
Suppliers
Internal environment
Task environment
External
environmentMacro environment
Environments
in which the
business
operates
8. Employees Society
at Large
Allies
Competitors
Regulatory Agencies and
Influence Groups:
Governments
Unions
Professional Associations
Interest Groups
Customers
Suppliers of:
Capital
Raw Materials
Human Resources
Information
Organization
9.
10. Stakeholder theory
• The basic premise is that business organisations
have responsibility to various groups in society
(the internal and external stakeholders) and not
just the owners/ shareholders
• The responsibility includes a responsibility for
the natural environment
• Decisions should be taken in the wider interest
and not just the narrow shareholder interest
11. What characterizes these
stakeholders?
• They are vital to the survival and success
of the organization.
• Their relationship with the organization
enables them to be benefited by the
organizations’s actions and operations.
• This relationship also makes it possible for
the organization to harm them or to violate
their rights.
12. Stakeholders
• Primary stakeholders;
– Those most vital to the organisation.
– A group without whose continuing participation the company
cannot survive as a going concern. e.g. customers, suppliers.
• Secondary stakeholders:
Those without whose continuing participation the
company can still exist. e.g. the community.
• Active stakeholders
Seek to participate in the organisation’s activities. e.g.
managers, employees, pressure groups.
• Passive stakeholders
Do not normally seek to participate in an organisation’s
policy making. e.g. most shareholders, government, local
communities.
13.
14. Mendelow’s Matrix for Stakeholder
mapping
Observers
Informing/
empowering
Key players
Involving
Crowd
Ignoring
Bystanders
Encouraging
Power to Influence
Low
High
Level of
interest
High
Adapted from Mendelow (1991)
15. Prioritising actions based on impact and influence
Low
Impact on achieving our
vision
High
Low
Our ability to
influence
High
High impact &
High influence
Clear priorities
for action
High impact &
Low influence
Depends on other
people – can we
engage them?
Low impact &
Low influence
Why would we
do this?
High influence &
Low impact
Doing this because
“we can”?
16.
17. The Triple Bottom Line
• The Triple Bottom Line (TBL) is one
way to report on sustainable
business activity.
• TBL defines sustainability in terms of
three separate elements: economic,
environmental, and social
perspectives of operations.
18. Three Elements of the
Triple Bottom Line
• Economy – reflects activities related to shaping
demand for products and services, employee
compensation, community contributions, local
procurement policies, and other monetary issues
related to company activities.
• Society - reflects activities in shaping local,
national and international public policy, equality,
treatment of minorities, employee issues and
public concern. That is, organizational
citizenship.
• Environment – reflects the impact made
through processes, products or services that
affect the environment. These may include air,
water, land, natural resources, flora, fauna and
human health.
23. Some Indian Companies following
Triple Bottom Line
• Infosys – Infosys Foundation for funding
NGO’s related to Education and Primary
Healthcare in Rural India.
• TATA Group – TATA Business
Excellence Model (TBEM) initiatives
across group companies
• ITC Group - e-Choupal.com
• Hindustan Unilever Ltd – Project Shakti
for promoting rural women
entrepreneurship