2012

ENVIRONMENT & SUSTAINABILITY PROJECT REPORT

SUBMITTED TO: Ms. Rakhi Singh

SUBMITTED BY: Yogendra Singh PGP 20102431 IILM Gurgaon

THEME :"Sustainable development, in today's times, goes beyond environmental sustainability only. Good sustainable business practices, contrary to the popular belief, should be embedded into organisations' regular activities rather than taken up separately. In fact, increasingly the corporate sector is also recognising longer run profitability of such practices."
Q.1) .

Do you agree or disagree with the above statement. Justify with appropiate reasons ?
Yes, I definitely agree with the statement that is Companies proactively adopting sustainable business practices can improve their business bottomlines. In this case we can say that due to increasing ageing population every companies are focusing on the mass marketing and sustainable practices so that they can come closer to the customers mind. Because they are believe in mass marketing concept for acquiring end no. of customers. Many businesses are now looking to see how they can include this group in their target market by providing environmentally or socially superior products to their competitors. This can be seen in almost every industry. For example most banks have been through an advertising campaign in recent years showing how they contribute positively toward the environment or their local community. For that case only every companies provide new understanding and new insights towards changing customers behaviour as well. Now let us discuss Why Corporate Sustainability is enhancing the bottom line? Shareholder proposals focused on corporate sustainability continue to gain momentum and expectation of growing interest. The issues associated with sustainability have become increasingly relevant to boardroom discussions. Also referred to as environmental, social, and governance issues or corporate social responsibility, the associated topics run the programme from corporate reporting and response, to global climate change and business sustainability matters, to the handling of labor and community relations. Corporate sustainability is about good citizenship. Investors, boards of directors, and the public increasingly recognize that companies have obligations beyond purely working to maximize shareholder returns. They realize that sustainability initiatives create unique business value by building reputation, enhancing employee morale, and strengthening competitiveness. Issues associated with corporate sustainability have become critical to risk management and value creation, and, ultimately, to a companys overall business strategy. The concept of sustainable business, which seeks to combine environmental and social improvements with financial success, has moved in recent years from the margins to become more mainstream.

Although the recent economic crisis has resulted in significant legislative and regulatory reforms, stakeholders continue to call for corporate reforms related to the disclosure of a companys sustainability performance. Given their sheer size and sometimes large employee population, corporations potentially can have a large carbon footprint. Often, however, they have an equal ability to adopt operational policies that significantly reduce their impact on the environment and promote climate change reform. In addition to lessening their environmental impact, corporations can serve other positive societal roles. To that end, stakeholders are interested in understanding the efforts that companies are taking to ensure continued viability in areas such as vendor concerns and continuity, workplace safety, and employee retention initiatives. Company failure can present significant risks to shareholders, other companies, and the general public;learning about sustainability initiatives and performance can help stakeholders understand longer-term strategies that are vital to the future performance of the company. Similarly, stakeholders are pressing companies to adopt policies related to sexual orientation and other anti-bias hiring and retention practices. Such proposed policies typically call for companies to adopt measures to ensure nondiscriminatory hiring practices related to an individuals sexual orientation or gender identity. The above discussion of sustainability issues does not cover the full range of issues that are important to company stakeholders; the types of sustainability measures and reforms range as widely as the ways in which board of directors and companies can work to implement such policies. For example sustainable business practices of TATA Group, they feel that The world has witnessed rapid, unprecedented technological advances that have had a profound bearing on all aspects of the production of goods and services. The increased scale and reach of human activity have led to mounting pressure on not just the global commons (water, air, soil, etc), but also on local and global sinks (the ability of the biosphere to absorb waste and regulate climate). Essentially, sustainable development is built on three pillars: economic growth, ecological balance and social progress. A healthy economy is as essential in satisfying our material and non-material needs as preserving the natural foundations of life. Societys ability to enhance human wellbeing is, in the long run, intertwined with the choices made by individuals, companies, communities and governments on how to optimise the usage and transformation of their assets. In this context, development in the 21st century is a multidimensional concept that encompasses five perspectives:

Financial capital : Sound macroeconomic planning and prudent fiscal management. Physical capital : Infrastructure assets such as buildings, machines, roads, power plants and ports. Human capital : Good health and education to maintain labour markets. Social capital : People skills and abilities, as well as the institutions, relationships, and norms that shape the quality and quantity of a societys social interactions. Natural capital : Natural resources, both commercial and non-commercial, and ecological services which provide the requirements for life, including food, water, energy, fibres, waste assimilation, climate stabilisation and other life-support services.

Board and Company Practices

Sustainability practices at companies continue to rise in prominence, and the associated issues may be included in boardroom discussions more frequently in some industries than in others. These include industries in which companies have a direct impact on the environment, such as energy and resources as well as manufacturing companies. Regardless of industry, the board of directors can play a crucial role in a companys sustainability efforts by working proactively with stakeholders to identify potential areas for improvement and develop implementation plans. Some sustainability practices that companies are already engaging in include sustainability reporting in their public filings as well as on their websites. Other sustainability business practices include waste reduction, implementing increased use of renewable products, and other greening initiatives. As part of its strategy-setting process, the board may consider including a discussion around sustainability efforts and potential enhancements in this area. However, companies should consider adopting sustainability initiatives and policies that are clearly aligned with the overall corporate strategy. In instances where sustainability initiatives are adopted despite not clearly being related to the companys strategy, it may be helpful for the board of directors and the company to provide transparent discussion on why particular measures are being considered. Companies also should consider their disclosure practices with regard to sustainabilityefforts. In some cases, disclosure is required, if the associated issues are material to investors. For instance, in February 2010, the SEC issued guidance (Commission Guidance Regarding Disclosure Related to Climate Change) that requires companies to disclose certain items related to climate risks and opportunities if they are material to the company. However, even if not required, disclosure of a companys sustainability efforts may now be considered a leading practice. Although not mandated, such disclosures could enhance

transparency with shareholders and the public regarding efforts being undertaken by the company.
There are two main reasons why businesses adopt sustainable business practice:

1. Because the business owner believes it is a responsible and ethical thing to do: Every companies have some important duties and responsibilities which we have to follow. These are the boundary and limits in which companies are so much focused to attain sustainable business practices so that they can gain competitive advantage over the competitors. 2. Because there is a perceived business advantage. If there is a perceived business advantage then customers and working employees have more expectation from the company itself. Because its ultimately a matter of companys image. For this reason only companies set their strategy for sustainable business practices inside the business. 3. Shareholder Engagement. Shareholders are the partners of the company, if a company is looking for the long term profit then shareholder engagement and satisfaction is most required by the help of required facilities and commissions. On the basis of that shareholders are interested to do investment on the company for earning profit. Apart form these reasons we are able to identify some more reasons which proves why sustainable practices implementation is necessary.
Be more efficient and competitive Engage in responsible entrepreneurship Increase their financial return and reduce risk for shareholders Attract and retain employees Improve customer sales and loyalty Grow supplier commitment Strengthen community relations Contribute to environmental sustainability

Concluding Thoughts
Corporate sustainability is not a trend or fad, but rather a movement that is gaining interest at all levels, from shareholders, to corporations and their boards of directors, to the public. And, ultimately, corporate sustainability efforts may prove to be a matter of good business.
Q.2)Evaluate

the challenges that can arise in the process & suggest strategies that a practising manager should implement to overcome the identified challenges.
In general, sustainability means the capacity to endure. Now a days every companies are so much concentrated on sustainability processes. The big firms are strongly believed that customers are the king and todays market is the buyers market, they have proper control for buying the product. Thats why every companies are so much fond of making sustainable practices because of increasing trustworthiness and behavioural loyalty towords the product.

1. Sustainability is about being an environmental activist or about philanthropy and I cant afford to give away all the profit of my business
Some businesses have a misconception about what sustainability actually is, if they believe it is about being a staunch environmentalist who gets on their high horse and tells other people how they should live their life; then they are mistaken. . A focus on philanthropy leads to ineffective business programs that fail to achieve very dramatic benefits for the community or the company. The fact is that a company has far greater resources to tap for the sake of social good than its earnings before income tax.

2. The sustainable option is going to be more expensive than the alternatives

Some businesses hesitate to consider environmental policies because they assume sustainability is going to cost an arm and a leg and be way more expensive than other options. While this is true in some cases (renewable energy, for example, can sometimes be very pricey), there are plenty of examples where making responsible business decisions can cost little or nothing. In many cases, an initial cost increase is followed by a substantial and ongoing cost saving. The best initiatives to drive employee engagement and happiness don't cost a cent; they're just about treating people differently and same goes for customer service. Community involvement can often be costless as well. . Also, many initiatives can even create savings, such as a reduction in the overall energy and resources that you consume. This can cause you to reduce your expenses. Examples of this include going paperless, finding ways to reduce/ reuse/ recycle materials in operations and production, facilitating green commuting options for your workforce (car-sharing, public transport, telecommuting). Sustainability is ultimately about

making more efficient use of resources, and cutting waste not only for the good of the earth and society, but it is good business practice. So, if you are strategic about how you do it, your business can save money.

We are already doing as much as we can in our company, but it is not making a difference to sales
Although our customer can smell greenwash, do not overestimate how much time and energy they have to research and understand companys sustainable initiatives. Our customers are not stupid, but they also have lives and they don't have the time and energy to spend hours analyzing your carbon footprint and our products lifecycle. If we dont actively market and thoughtfully explain our companys legitimate initiatives, then no one is going to know about them.

Sustainability seems so complex and hard to measure, how can we hope to manage it.
It is true that sustainability not make any difference in the sales process because . many businesses, especially smaller companies, overestimate the cost and difficulty involved in measuring their performance. So it is difficult to measure for the proper measurement.

CONCLUSION:Thus we can say that, sustainable development, in today's times, goes beyond environmental sustainability only. Good sustainable business practices, contrary to the popular belief, should be embedded into organisations' regular activities rather than taken up separately. In fact, increasingly the corporate sector is also recognising longer run profitability of such practices.