Environmental Management

Prof. Sandeep Hegde

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”

3P’s of Environmental Management

1. Prevention

2. Preservation

3. Protection

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

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

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)

Owners

Employees

Physical environment

Board of directors

Culture

Competitors

International

dimension

Political-

legal

dimension

Technological

dimension

Sociocultural

dimension

Economic

dimension

Regulators Customers

Strategic

partnersSuppliers

Internal environment

Task environment ExternalenvironmentMacro environment

Environments in which the business operates

Employees Societyat Large

Allies

Competitors

Regulatory Agencies andInfluence Groups:

GovernmentsUnionsProfessional AssociationsInterest Groups

Customers

Suppliers of:CapitalRaw MaterialsHuman ResourcesInformation

Organization

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

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.

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 stakeholdersSeek to participate in the organisation’s activities. e.g. managers, employees, pressure groups.

• Passive stakeholdersDo not normally seek to participate in an organisation’s policy making. e.g. most shareholders, government, local communities.

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)

Prioritising actions based on impact and influence

Low

Impact on achieving our vision

High

Low

Our ability to

influenceHigh

High impact & High influence

Clear prioritiesfor action

High impact & Low influence

Depends on otherpeople – can weengage them?

Low impact & Low influence

Why would wedo this?

High influence & Low impact

Doing this because “we can”?

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.

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.

Example of Triple Bottom Line Report

Example of Triple Bottom Line Report

Example of Triple Bottom Line Report

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