CU-MBA-SEM-I-Business, Society and Law

Table 14.3: Culture Structure and Technology Dimension System Renewal: In industrialised countries like Netherlands, system optimisation and system improvement are well covered by existing policies and policy instruments. The challenge is to initiate a process of systems renewal. The future generations concept implies the necessity to achieve systems renewal within 20 to 50 years. But the development of system renewal takes several decades to move from concept to market. Initiating processes of systems renewal will entail several questions and dilemmas such as: 1. How to handle the uncertainties involved in long term trends and risks? 2. What new roles and forms of co-operation between market, science and technology, government and NGO’s will be demanded and how will they bring the specific strengths, weaknesses and responsibilities of these groups into account? 3. How to involve interested actors and stake holders? 4. How to bridge the drive of competition and the necessity of co-operation? Today, all aspects of sustainability — physical, economic and social are at stake. Integration of different domains of knowledge (disciplines, sectors, institutions) proves to be essential challenge to obtain viable results and well supported development processes. Sustainability is basically the ability to provide for the needs of the current generation using available resources without causing future generations any problem with providing for their own needs. The concept doesn’t only apply to the environment, which is considered the most pressing pillar of sustainability today, but also to other aspects, including the people and the economy. This is an important part of PEST Analysis and ESG analysis. (Reference: Corporate Finance Institute.com) 14.5 PILLARS OF SUSTAINABILITY The Three Pillars of Sustainability The three pillars of sustainability are planet or environment, social or people, and profit or economics. Fig 14.3: pillars of Sustainability 351 CU IDOL SELF LEARNING MATERIAL (SLM)

People Planet Profit Pillars of Sustainability 1. Planet Let us first discuss the first pillar, which is the planet, and use agriculture as an example. Imagine a piece of land that has been farmed for palm oil for decades. Ideally, farmers should take breaks in between harvests because the land’s quality will be compromised if it is overused. If overused, it will take several years before the land can be useful again, which means future generations won’t be able to use it for a while. 2. People People sustainability, on another note, includes giving priority to the welfare of a given set of workers of a company. Let’s say, for example, Target gives bi-annual skills training to its workers that they can use in the future. The skills that they acquire can be useful to the operations of Target in the future. Also, it may include providing workers with more flexible working hours and a more conducive working environment. Doing so makes the workforce happier, which will eventually lead to a more productive company. 3. Profit As for the economy, which is referred to as profit, sustainability means using a particular set of resources in a responsible way that will allow them to be used on a long-term basis. Furthermore, it means making money and growing the company without negatively impacting the other two pillars, people and planet or environment. For example, a diesel power plant operates 24 hours a day in a city using diesel engines that emit black smoke and produce a very distracting sound. Though it is making profits because of its non-stop operations, the smoke it emits surely pollutes the air, while the noise can cause long-term disorders to the residents. Sustainability should mean balancing the profit and its impact on the surroundings. 352 CU IDOL SELF LEARNING MATERIAL (SLM)

The great thing about sustainability is that if the people and the planet are taken care of, profits will also be achieved. Five Domains of Sustainability Fig 14.4: Sustainable Communities The diagram above illustrates how sustainable communities are achieved, and it involves the overlapping of different domains, including the three pillars of sustainability, namely, planet (environmental), people (socio-cultural), and profit (economic). If one is missing, then a sustainable community will not be achieved. For example, a community already has a contented set of residents because they have almost everything they need within reach, such as work opportunities, parks, and groceries, but don’t have stable communication lines for internet connection and landline and cellular phone access. The technological domain here is missing. Therefore, the community is not sustainable because, without communication lines, there will be no interaction or opportunity for growth and collaboration with other communities. 353 CU IDOL SELF LEARNING MATERIAL (SLM)

In another example, consider the same community with a lot of job opportunities from booming companies, contented people or residents, and an impressive transportation system. However, the community lacks a public policy that will protect its residents from one of the booming companies that does not follow acceptable standards of waste disposal. Eventually, the community will be destroyed, and its resources will be depleted. Therefore, no community can be sustainable if one of the domains is missing. [Reference: www. Biologydiscussion.com] EXAMPLE OF ENVIRONMENT INITIATIVES BY INDIAN CORPORATES: Cummins India Ltd. Project Title: Creating Oxygen Hubs Due to rapid urbanization, Pune is among one of the polluted cities in India. As per 2013-14 reports City of Pune emits 46 lakh tonnes of carbon in one year. This directly affects level of oxygen in environment. Cummins decided to fight against this pollution and started spend CSR funds for “Creating Oxygen Hubs” i.e. (Converted Non-Forest land to Forest). Cummins partnered with various NGOs, communities, civic authorities, elected members and the defence department in the city to create oxygen hubs by creating forest. Century Plyboards India Ltd. Project Title: Animal welfare Under the in-animal welfare section, Century plyboards tried to serve helpless, shelter less, ill as well as handicapped cow in nearby areas. Company also wanted to bring awareness on cow-based agriculture, health and environment. Company established cow hostel in Kolkata and nearby area. Project Implementation by: Calcutta Pinjrapole Society; Gow Seva Sameetee Ghatwa; Friends of Vrindavan; Central Kolkata Prerna Foundation Amount spent: INR 0.39Cr Location: Kolkata and Vrindavan 354 CU IDOL SELF LEARNING MATERIAL (SLM)

14.6 SUMMARY As a result of the increase in the various forms of technology, there are many positive and negative ecological impacts on the planet. Through the rise in modern technology and increase in globalization, there is a high increase in energy consumption. This in turn has devastating effects on the planet's climate and air quality. However, without modern technology there would not be the capability to improve energy management systems or to develop environmentally friendly products such as bio-fuels. To make a progressive step towards reducing the amount of damage technology does to the environment, it is necessary to find ways to manage new technology responsibly so that it can continue to have positive ecological impacts. The goal of sustainable development is an outcome achieved through joint effort among several inter-related parameters and requiring coordination at both vertical and horizontal levels. There exists dynamic triangular relationship among three keys viz., Environmental, Economic and Social parameters. Parameters of Sustainable Development are – 1. Environmental Sustainability: Environmental sustainability relates with maintenance of carrying capacity of natural resource base and life support systems. 2. Economic Sustainability: Economic sustainability provides important energy source like a battery to secure environmental and social sustainability. 3. Social Sustainability: Social sustainability focuses on upgrading human environmental quality of life with fulfilment of basic needs and transforming man from most dangerous animal to most important creative resource. 4. Institutional Sustainability: Strict implementation and monitoring of relevant environmental policies, plans, laws, regulations and standards is indispensable to attain the goal of sustainable development. Improvements in eco-efficiency will require intensive interacting changes in culture (institutional), structure and technology. Approaches to improve eco-efficiency are Optimisation, Improvement and Redesign-Renewal: Pillars of sustainability – People, Planet and Profit and domains are economic, public policy, technological, socio-cultural and environmental. 355 CU IDOL SELF LEARNING MATERIAL (SLM)

14.7 KEYWORDS  Culture refers to justifying nature, conditions and volume of societal needs to be fulfilled (sufficiency).  Structure refers to the ability of the economic and institutional organisations to fulfil justified needs (effectiveness).  Technology provides the technical means to fulfil needs (efficiency).  Interwovenness - close or inseparable connection  Rebound effects - In conservation and energy economics, the rebound effect (or take-back effect) is the reduction in expected gains from new technologies that increase the efficiency of resource use, because of behavioural or other systemic responses 14.8 LEARNING ACTIVITY 1. Explain the principle of Sustainable Development. ___________________________________________________________________________ ________________________________________________________________________ 2. Discuss the role of different stake holders in the System Renewal ___________________________________________________________________________ _______________________________________________________________________ 14.9 UNIT END QUESTIONS A. Descriptive Questions Short Questions What is Environmental Technology? Discuss any 2 types of Environmental Technology with example. State the meaning of Sustainable Development What are the challenges involved in Sustainable Development? Why System Renewal is important? Long Questions 1. Explain the Ecological Implications of Technology. 2. Write a note on Environmental Technology and types. Also, state the reasons for Organization adopting Environmental Technology. 3. Discuss the parameters of Sustainable Development 356 CU IDOL SELF LEARNING MATERIAL (SLM)

4. Illustrate the Dimensions of Challenges. 5. How the pillars of Sustainable Development will help to change the dimension of economy? B. Multiple Choice Questions: 1. It involves changes in operational processes through quality management, maintenance, auditing, efficiency drives etc. a. System optimization b. System Renewal c. System Replacement d. System Modifications 2. In System improvement, expected effect on eco-efficiency from a factor of __________ a. 5 to 20 b. upto 1.5 c. 5 to 50 d. 1.5 up to 5. 3. Which pillar indicatessustainability means using a particular set of resources in a responsible way that will allow them to be used on a long-term basis? a. Place b. Profit c. People d. Planet 4. Identify the domain of sustainability. a. Planet b. Product c. Technological d. Organizational Policy 5. What will be the system improvement in cultural dimension? 357 CU IDOL SELF LEARNING MATERIAL (SLM)

a. Discipline b. Ambitious c. Carefulness d. Niche policies Answers 1 - a; 2 - d; 3 –b; 4 – c; 5 – b. 14.10 SUGGESTED READING Text Books:  Francis Cherunilam , Business and Environment, Text and Cases, [Himalaya Publishing House],  C. Fernando, Business Environment Kindle Edition, Pearson  K.Aswathappa, Essentials Of Business Environment, Himalaya Publishing House  SHAIKH SALEEM, BUSINESS ENVIRONMENT, Pearson  Ian Worthington, Chris Britton, The Business Environment, Financial Times/ Prentice Hall. Reference Books:  MISHRA AND PURI, Indian Economy, Himalaya Publishing House, New Delhi  Business Environment Raj Aggarwal Excel Books, Delhi  Strategic Planning for Corporate Ramaswamy V McMillan, New Delhi.  Struan Simpson (Author), Jacqueline Carless (Author), Business, Pollution and Regulation, CRC Press 358 CU IDOL SELF LEARNING MATERIAL (SLM)