CU-MBA-SEM-IV-Entrepreneurship Development

CLCSS offers an up-front capital subsidy of 15% for eligible businesses. However, there is a cap to the maximum amount that can be availed as a subsidy under the scheme, which is set at ₹ 15 lakhs. Sole proprietorships, partnership firms, co-operative, private and public limited companies come under the ambit of this business loan scheme. Udyogini UDVOGINI, meaning women empowerment, is a scheme that has been initiated for empowering Indian women. The scheme has been introduced under the Government of India by the Women Development Corporation. The funding under this scheme is granted in order to support women in meeting their capital requirements for starting a business. The maximum loan that can be granted under this scheme is Rs. 15, 00,000. For a woman entrepreneur to be eligible to apply for this scheme the woman must be between the age of 18 years to 55years and the annual income of the family of the woman must not be above Rs. 15, 00,000. There is no limit of income for women who are physically challenged or widowed. There is no processing fee or collateral that is required for availing loan under this scheme. Women who apply for this loan will have to provide passport-sized photographs, birth certificate, Below Poverty Line Card, Asdhar Card, Caste Certificate, passbook or bank account, ration card and certification of income to avail of the loan. There are about 88 categories of businesses that are mentioned for which loans can be availed by eligible women. An Alternative: Quick Business Loans from Lending kart While all these schemes display the commitment of the past and present Indian governments to develop the nation’s economy, there is much that needs to be done to make the schemes effective. For example, the refinancing and subsidy model used by the government takes away the ‘quick’ factor from unsecured business loans touted by the schemes. Since these loans are essentially funded by government-sponsored banks, the turnaround time is in weeks or even months, which is detrimental for a small business owner looking for quick business finance. Even the most ambitious of all these schemes, the 59 Minutes Loan for MSMEs, takes up to 2 weeks in reality. On the other hand, MSME finance by non-banking financial companies like Lending kart is approved and disbursed within 72 hours. This is done by combining business analytics and 151 CU IDOL SELF LEARNING MATERIAL (SLM)

online technologies for loan approval and disbursal instead of relying on paperwork and age- old processing techniques. For instance, Lending kart offers business loans online through its website or mobile app. Simply log in to apply for a business loan, get a same-day approval, accept the quote and upload your documents digitally for verification. The entire process hardly takes 10-minutes of your time and the verification is completed within 3 working days by Lending kart. So, you have the funds ready for use within a quarter of the time it takes a government scheme to disburse a loan. Government Loan Schemes for Startup in India India is home to a large number of startups and micro industries. In the past few years, the growth of unicorns has been exponential. However, it is a challenge to get necessary financing when the business is just in the early stages. Also, the MSME sector in India has limited access to formal lending for business. With the rise in the number of small businesses across India, the Government of India decided to roll out a government loan for startups. These loan schemes provide financing and further promote MSMEs and startups. Here are some of the most notable government schemes that offer financing for startups and MSMEs in India. Things to Note When Applying for a Start-up Business Loan 1. Prepare a detailed business plan that you want to fund using the loan amount. 2. Summarise the potential growth and financial returns expected with the venture. 3. Submit a clear plan on how you will raise funds to repay the loan. 4. What is the Eligibility Criteria for Availing a Start-up Business Loan? 5. To avail a start-up business loan, you must meet the following eligibility criteria: 6. Must be an Indian citizen. 7. Must be self-employed. 8. Age must be between 25-65 years. 9. Must have a minimum business vintage of 3 years. 10. What Documents are required to avail a Start-up Business Loan? Documents to furnish when applying for a start-up business loan. 1. Aadhaar card/passport/driving license 152 2. PAN card 3. Bank statement of the last three months CU IDOL SELF LEARNING MATERIAL (SLM)

4. Any kind of business proof like certificate of business existence, tax filings from the previous financial year, profit and loss statements from the last 3 years, etc. National Bank for Agriculture and Rural Development (NABARD) NABARD is a development bank whose primary focus is the rural sector of India. It is one of the most critical financial institutions in the country. NABARD is responsible for the development of small scale industries, cottage industries, and any other such rural projects... The National Bank for Agriculture and Rural Development was established on 12th July 1982, with an initial capital of 100 crores. Other than meeting financial requirements of the rural sector, NABARD also provides for social innovations and projects, by partnering with various organizations for many innovative projects and innovative schemes for water and soil conservation. Credit Guarantee Scheme (CGS) New and existing MSMEs that are in manufacturing or service activities, excluding retail trade, agriculture, self-help groups (SHGs), training institutions, etc. can apply for CGS. The Credit Guarantee Scheme (CGS) was launched by the government to strengthen the credit delivery system and to facilitate financing to the MSME sector. The lending institutions that offer this scheme mainly include public, private sector banks, foreign banks, along with regional rural banks, the SBI and its associate banks. This MSME scheme for entrepreneurs comes with several benefits, including term loans and working capital loan facility up to Rs. 100 Lakhs per borrowing unit. Pradhan Mantri Mudra Yojana (PMMY) The Micro Units Development and Refinance Agency (MUDRA) was launched in 2015; this scheme is headed by the, and it aims at offering loans to all kinds of manufacturing, trading, and service sector activities. PMMY provides loans under three categories – Shishu, Kishor, and Tarun loan. Anyone, from artisans to shopkeepers to machine operators can avail a Mudra Loan. MUDRA loan scheme offers incentives through these interventions: Shishu: Loans up to Rs. 50,000 Kishor: Loans above Rs. 50,000 and up to Rs. 5 Lakhs Tarun: Loans above Rs. 5 Lakhs and up to Rs. 10 Lakhs 153 CU IDOL SELF LEARNING MATERIAL (SLM)

The MUDRA Scheme can be availed by artisans, shopkeepers, vegetable vendors, machine operators, repair shops, etc. Standup Scheme Businesses that fall under the trading, manufacturing, or service industry can apply for the standup scheme. For non-individual enterprises, at least 51% of the shareholding needs to be held by an SC/ST or a woman entrepreneur. The applicant should have a good credit history and not have default payments with any bank or financial institution. This Stand up India scheme facilitates bank loans between Rs 10 Lakh and Rs 1 Cr to at least one SC or ST individual and at least one woman borrower per branch to build their business. Coir Udyami Yojana The Coir Udyami Yojana is aimed at supporting the establishment of coir units. Banks will offer finance capital expenditure in the form of a term loan to meet the working capital requirements. The bank can also fund projects in the way of composite loans consisting of Capex and working capital. All coir processing MSME startups registered under the Coir Industry (Registration) Rules, 2008 are eligible for this scheme. Banks will Finance projects that cost up to Rs 10 Lakh one cycle of working capital, which should not exceed 25% of the total project cost. This amount should be exclusive of the Rs 10 Lakh limit, and the credit amount will be 55% of the total project cost after deducting 40% margin money and the owner’s contribution of 5% from beneficiaries. Bank Credit Facilitation Scheme The National Small Industries Corporation (NSIC) is targeted at fulfilling the credit requirements of the MSME units. The NSIC scheme has partnered with various banks to provide loans to the MSME units. The loan repayment tenure of the scheme ranges between 5 years and 7 years; it can be extended up to 11 years. The loan repayment tenure varies depending on the income generated from the startup and generally extends from 5 to 7 years. However, in exceptional cases, it can extend up to 11 years. Market Development Assistance Scheme for MSME A Market Development Assistance Scheme is currently operated by the Ministry of Commerce to encourage exporters (including MSME exporters) to access and develop overseas markets. The scheme offers to fund for participation in international fairs, study tours abroad, trade delegations, publicity, etc. The Market Development Assistance Scheme 154 CU IDOL SELF LEARNING MATERIAL (SLM)

offers funds for participation by manufacturing SMEs in International Trade Fairs/ Exhibitions under the MSME India stall. Funding for sector-specific market studies by Industry Associations/ Export Promotion Councils/ Federation of Indian Export Organisation. Also, another option to get instant business financing is by applying for a business loan at Finserv MARKETS and quickly gets loans of up to Rs. 30 Lakhs without any collateral. Whether you’re planning on getting a business started or are looking to upgrade your SME business with the latest technology. One can get a business loan tailored to your requirements on Finserv MARKETS. The online business loan application process is quite convenient with flexible loan repayment tenures. The business loan disbursal process takes less than 3 minutes along with access to exclusive offers on loans. Fig 6.1 Sustainable Entrepreneurship 6.6 SUMMARY There is no set funding path for entrepreneurial startups. The path depends on two factors: What the startup needs (funding requirements) and the potential return on investment. 155 CU IDOL SELF LEARNING MATERIAL (SLM)

 Funding requirements of the start-up: May vary wildly, depending on the type of company, product, product development costs, and expected time until break-even  Funding sources: The preferred investment size, industry sector, expected ROI, and the total they have available Many small businesses and service businesses never need outside funding since they are able to generate revenue right away. Other startups need significant funding to develop a product and to grow fast—to dominate a market. For the former, bootstrap or self-funding may be enough to sustain the operations until revenues can support the company. For the high growth (usually high-tech) ventures, they will need significant external investment—in the millions, tens of millions or even hundreds of millions of dollars. For these companies. The funding path is usually pre-seed/seed funding to prove the idea or market; then successive Series A, B, C investments to fully launch the product, market, and expand and grow the company 6.7 KEYWORDS  Bottom-up estimation - Assigning costs to the individual elements of the project plan, such as tasks, milestones, or phases, and putting the bucks together  Parametric estimation - Taking specific cost variables and data points from other projects to figure out the ultimate project cost.  Farsighted predictions – It is a premature estimate if it’s made a long time in advance, let’s say to predict the budget three years ahead.  Analogous estimation – Relying on data from previous similar projects to forecast the cost  Parametric estimation – Taking specific cost variables and data points from other projects to figure out the ultimate project cost  Cost Estimation – It is the practice of predicting the final total cost is the fundamental part of project cost management (a discipline used by project managers since 1950 to manage costs). 156 CU IDOL SELF LEARNING MATERIAL (SLM)

6.8 LEARNING ACTIVITY 1. Define Cost Estimation ___________________________________________________________________________ ___________________________________________________________________________ 2. State the principles project cost estimation ___________________________________________________________________________ ___________________________________________________________________________ 6.9 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. Define Parametric estimation 2. Explain what is Equity Financing 3. Enumerate Angel investor 4. Describe briefly about venture Dent 5. What do you understand by CGTMSE Loans? Long Questions 1. Explain the various sources of funding for start-ups 2. Describe the financial analysis 3. What are the various project estimation cost? 4. Describe about the reasons for inaccurate project cost estimation 5. Explain loans from financial institution B. Multiple Choice Questions 1. The source of finance that is provided by the Owners is called a. Capital b. Overdraft c. Fixed capital d. Credit capital 2. What is the most likely source of finance for buying a new IT system? 157 CU IDOL SELF LEARNING MATERIAL (SLM)

a. Mortgage b. Overdraft c. Factoring d. A bank loan 3. Profit is important to businesses because: a. it improves businesses, cash balances b. it can be used to measure business size c. it is a measure of businesses, success d. businesses need to pay taxes to the government 4. Payment made for the use of borrowed money is called as a. Financial Institution b. Creditors c. Interest d. Secured 5. Banks provide which of the following EXCEPT a. debit cards b. loans c. check writing services d. government subsidies Answers 1-a, 2-d, 3-c, 4-c, 5-d 6.10 REFERENCES References book  Aswathappa, K. (2002). Human Resource Management. New Delhi: Tata McGraw- Hill.  Dessler, G. (2012). Human Resource Management. New Delhi: Prentice-Hall of India. 158 CU IDOL SELF LEARNING MATERIAL (SLM)

 Rao, V.S.P. (2002). Human Resource Management: Text and cases. New Delhi: Excel Books.  Decenzo, A. & Robbins P Stephen. (2012). Personnel/Human Resource Management. New Delhi: Prentice-Hall of India.  Ivancevich, M John. (2014). Human Resource Management. New Delhi: Tata McGraw-Hill. Textbook references  Mamoria, C.B. (2002). Personnel Management. Mumbai: Himalaya Publishing House.  Dipak Kumar Bhattacharyya, Human Resource Management, Excel Books.  French, W.L. (1990), Human Resource Management, 4th ed., Houghton Miffin, Boston.  H.J. Bernardin, Human Resource Management, Tata McGraw Hill, New Delhi, 2004. Website  http://www.slideshare.net/sreenath.s/evolution-of-hrm  www.articlesbase.com/training-articles/evolution-of-human-resource- management- 1294285.html  http://www.oppapers.com/subjects/different-kinds-of-approaches-to-hrm- page1.html 159 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT - 7: SUSTAINABILITY AND GROWTH STRUCTURE 7.0 Learning Objectives 7.1 Introduction 7.2 Definition and Characteristics of Sustainability 7.3 Role of Selling Plan 7.4 Scope and Importance of Vendor Management 7.5 Branding and Advertising, 7.6 Summary 7.7 Keywords 7.8 Learning Activity 7.9 Unit End Questions 7.10 References 7.0 LEARNING OBJECTIVES After studying this unit, you will be able to:  Describe nature of Entrepreneurship Development  Identify scope of Entrepreneurship Development  State the need and importance of Entrepreneurship Development  List the functions of Entrepreneurship Development 7.1 INTRODUCTION Sustainable growth doesn't have to take a long time to happen, however. Some factors have an almost immediate impact on the growth of the company. Thirteen entrepreneurs from Forbes Business Development Council explore the elements that will ensure sustainable business growth with a specific focus on the factors that start working almost immediately. Many companies are actively integrating sustainability principles into their businesses, according to a recent McKinsey survey,1 and they are doing so by pursuing goals that go far beyond earlier concern for reputation management—for example, saving energy, developing green products, and retaining and motivating employees, all of which help companies capture 160 CU IDOL SELF LEARNING MATERIAL (SLM)

value through growth and return on capital. In our sixth survey of executives on how their companies understand and manage issues related to sustainability, 2 this year’s results show that, since last year, larger shares of executives say sustainability programs make a positive contribution to their companies’ short- and long-term value. 7.2 SCOPE OF SUSTAINABILITY Sustainable growth is among the biggest challenges any business leader faces, but it isn’t a new problem. Sustainable business growth is the maximum growth rate achievable via utilization of existing cash flow without increases in leverage or debt. ... The sustainable growth rate is the ceiling or the maximum that sales can grow without exhausting cash flow and requiring new financing sources People living in remote villages could barely read or write and never had a formal education, yet they successfully managed a farming and sharecropping business, overseeing a network of farmers, merchants, and seasonal workers, all while keeping a household in order. To do that, they needed to create long-term value from the work they directed without exhausting the finite resources at their disposal. Even though circumstances are very different for modern entrepreneurs, the fundamentals of sustainable growth remain the same. Here are seven of them. 1. Authentic Purpose Every company needs to pin down “why we do what we do.” That’s the company’s North Star, guiding every aspect from recruitment to customer management to product development and sales. A strong purpose drives growth and profitability. For instance, an investment in the Stengel 50 (a list of the world’s 50 highest-performing companies) over the past 10 years would have been 400% more profitable than an investment in the S&P 500. In order to achieve sustainable success, companies must repeatedly re-examine their sense of purpose and make sure the organization serves it well. An authentic and inspiring purpose allows for:  A constant, consistent sense of focus 161 CU IDOL SELF LEARNING MATERIAL (SLM)

 A strong emotional engagement both within the company and with its customers and partners  Continuous, pragmatic innovation Sales and marketing experts often talk about “unique selling propositions,” or “USP,” which Entrepreneur defines as the “factor or consideration presented by a seller as the reason that one product or service is different from and better than that of the competition.” A company’s authentic purpose gives rise to its USP. When a business has a clear vision, it’s easier to create products and services of value. Revlon founder Charles Revson, for instance, always used to say that he sold hope, not makeup. 2. A Powerful Brand The surest road to product failure is to try to be all things to all people. If anyone wants to create a scalable business, one has to understand how crucial it is to build brand equity and emotional connections with customers. It’s those attachments that link customers to your products and will keep them returning to you. Building a brand is about developing and sustaining those relationships over time. Here are some basic rules to connect, shape, influence, and lead with your products and brands: A. Choose your target audience. The surest road to product failure is to try to be all things to all people. B. Connect with the public. Make your audience feel an emotional attachment to your brand that’s grounded in confidence in your products. C. Inspire your customers. A simple, inspirational message is far more influential than one that tries to highlight too many product features, functions, or ideas. D. No marketing plan can rescue a brand identity that isn’t fully formed. Don’t have much marketing budget to speak of? Create compelling content for publisher and social media sites to start generating awareness among target customer bases, and build up. 3. Partnership And Collaboration Doing everything you can be tempting in the beginning when funds are few and ambitions high. While there’s nothing wrong with a hands-on approach, taking on more than you can handle, especially in areas where you lack experience, can be damaging. In the era of the 162 CU IDOL SELF LEARNING MATERIAL (SLM)

global freelance economy, it isn’t difficult to find talented expertise, but you have to know where to find it. There are now dozens of websites and online marketplaces that provide specialized resources from design, development, and sales to finance, legal services, and banking. The best part is that you can try small projects at low investments. The trick is knowing exactly what you want done and putting resources toward accomplishing tangible goals. 4. Customer Retention “The Rebuilders” will explore opportunities to reshape business, community, and culture, post-pandemic. As Emmet and Mark Murphy write in their book leading on the Edge of Chaos, acquiring new customers can cost an organization around five times more than retaining current ones. In fact, a 2% increase in customer retention can have the same effect as decreasing a company’s costs by 10%. To put it another way, reducing customer defection rates by just 5% could increase profitability by 25% to 130%, depending on the industry. According to the U.S. Chamber of Commerce and the U.S. Small Business Administration: The average business in the U.S. loses around 50% of its customer base every five years. Companies are four times more likely to do business with an existing customer than a new customer. The likelihood of selling to an existing customer is 60-70%, whereas it’s just 5-20% for a new customer. Successful retention starts with the initial contact a business makes with a customer, and continues throughout the lifetime of the relationship. Bain Capital has even estimated that for certain industries, a 10% increase in customer retention is roughly equivalent to a 30% increase in a company’s value. 5. Community A business ecosystem is an economic community of organizations and individuals that interact in countless ways. These ecosystems encourage companies to evolve their capabilities competitively. Sometimes an ecosystem can sprout up around a product, like the range of cases, headphones, and other paraphernalia for mobile devices. Similarly, ecosystem thinking has become a 163 CU IDOL SELF LEARNING MATERIAL (SLM)

cornerstone of web publishing–a broad swath of unpaid contributors create content for popular outlets in exchange for growing their own readerships and developing personal brands. Ecosystems are crucial to sustainable growth because they provide the structure that urrounds and support the businesses within them. They spread “stakeholder ship” out from the business and into society, like it did for my grandmother with her farming community. 6. Repeatable Sales Creating a unique product and brand isn’t enough. It takes repeatable sales processes to create a scalable business. It’s one thing to sign up a few customers; it’s another thing to design and implement sales processes that can be successfully deployed again and again at ever greater scale. Customers get the right products in the right place at the right time. A repeatable sales model builds the platform to scale. But it can take a lot of experimentation and intensive research before you hit on one that’s truly sustainable. 7. Flexible, Adaptive Leadership To continue growing, entrepreneurs, managers, and business owners must become the leader the business needs for each particular stage of growth. And since a company’s needs change at each stage, its leaders need to keep evolving at the right pace. That requires introspection, self-awareness, and a keen sense of strategy–both in the short and long term. I believe that an adaptive, flexible leadership style comes from being mindful. Our individual, interpersonal, and working lives are all interconnected. By being mindful, we understand those relationships and how best to utilize them to create, innovate, and lead. The most sustainable way to create value is to continually invest in companies capabilities. And that allows us to arrange the lives organizations in a way that leads to long-term value creation. Indeed, the most sustainable way to create value is to continually invest in the capabilities, both as individuals and as organizations. Why all businesses should embrace sustainability Sustainability is becoming more important for all companies, across all industries. 62% of executives consider a sustainability strategy necessary to be competitive today, and another 22% think it will be in the future. 164 CU IDOL SELF LEARNING MATERIAL (SLM)

Sustainability is a business approach to creating long-term value by taking into consideration how a given organization operates in the ecological, social and economic environment. Sustainability is built on the assumption that developing such strategies fosters company longevity. As the expectations on corporate responsibility increase, and as transparency becomes more prevalent, companies are recognizing the need to act on sustainability. Professional communications and good intentions are no longer enough. The following industry leaders illustrate what sustainability initiatives look like:  Nike and Adidas have both stepped up seriously. Nike has focused on reducing waste and minimizing its footprint, whereas Adidas has created a greener supply chain and targeted specific issues like dyeing and eliminating plastic bags.  Unilever and Nestlé have both taken on major commitments; Unilever notably on organic palm oil and its overall waste and resource footprint, and Nestlé in areas such as product life cycle, climate, water efficiency and waste.  Walmart, IKEA and H&M have moved toward more sustainable retailing, largely by leading collaboration across their supply chains to reduce waste, increase resource productivity and optimize material usage. It also has taken steps to address local labour conditions with suppliers from emerging markets.  Pepsi and Coca-Cola have both developed ambitious agendas, such as increasing focus on water stewardship and setting targets on water replenishment.  In biopharma, Biogen and Novo Nordisk have both worked toward energy efficiency, waste reduction, and other ecological measures. They have also focused on social impact via partner initiatives in the areas of health and safety.  In financial services we see how banks like ANZ and Westpac in Australia both advance local communities with good sustainability practices and by embedding sustainability in their business processes and culture.  Car manufacturers like BMW and Toyota have made strides on energy efficiency and pollution reduction, not to mention Tesla as an outsider really challenging the industry’s overall footprint. These firms have all made strong commitments to sustainability, in large part through transparency and addressing material issues. They are embarking on a more sustainable journey, and all firms should follow suit over the next decade. 165 CU IDOL SELF LEARNING MATERIAL (SLM)

Two gaps to beware of In order to address sustainability appropriately companies need to bridge two critical gaps: “The knowing – doing gap”: A study that I participated in by BCG/MIT finds that whereas 90% of executives find sustainability to be important, only 60% of companies incorporate sustainability in their strategy, and merely 25% have sustainability incorporated in their business model. “The compliance – competitive advantage gap”: More companies are seeing sustainability as an area of competitive advantage, but it is still a minority – only 24%. However, all companies need to be compliant. Management should address these topics separately – not mesh them together. Compliance is holistic, a “must do”. For competitive advantage, only a few material issues count. Companies that stand out in the area of sustainability address both gaps. They have evolved from knowing to doing and from compliance to competitive advantage. They also know the risk of getting this wrong. For instance promising and not delivering, or addressing material issues without being solid on compliance. Some practical recommendations Just like with overall strategy there is no “one right solution” on sustainability. The best solution depends on the ambitions and stakes at each company. Here are a few useful actions for all management teams to improve sustainability practices. 1. Align strategy and sustainability: Management needs to make sure that the strategy of the company and the sustainability efforts are aligned. Often we see divergence, which of course makes the sustainability efforts fragile, lacking real commitment and prioritization. There are many good examples. Take Unilever’s “Sustainable Living” which has the ambition to decouple growth and output as well as reduce its resource footprint by focusing on waste reduction, resource efficiency, sustainability innovation and ecological sourcing (like in organic palm oil). Similarly, Toyota is well known for innovation in hybrid engines, but less so for reducing their dependence of rare earth minerals. These minerals were required for hybrid and electric engines. But by developing alternative motor technologies Toyota reduced its import dependence and operational risk, and in doing so reduced its financial risks in case of price increases. 2. Compliance first, then competitive advantage: First and foremost companies need to address compliance, which often relates to regulations in waste management, pollution 166 CU IDOL SELF LEARNING MATERIAL (SLM)

and energy efficiency as well as human rights and labour responsibility. Compliance is also an issue that concerns investors. Recent BCG/MIT data shows that investors increasingly shy away from compliance risks. A full 44% of investors say that they divest from companies with poor sustainability performance. 3. Reactive to proactive: Many of today’s leading companies in sustainability, like Nike, Coca-Cola, Telenor, IKEA, Siemens and Nestlé have stepped up largely as a consequence of a crisis. For example, Nike faced boycotts and public anger for abusive labor practices in places like Indonesia throughout the 90s, but turned the tide around. In 2005, it became a pioneer in establishing transparency by publishing a complete list of the factories it contracts with and a detailed 108-page report revealing conditions and pay in its factories. It also acknowledged widespread issues, particularly in its south Asian factories. By recognizing the impact of sustainability in a crisis these companies have all developed more proactive sustainability strategies. 4. Quantify, including the business case: All companies struggle with quantifying the return on their sustainability investments. With regards to compliance this is a straight forward issue. With regards to areas of competitive advantage, however, companies need to link sustainability to a business case. But the ones that actually do form a relatively small group. 5. Transparency is a pre-condition for assessing and improving sustainability practices. The company cannot judge without transparency, simple as that. Transparency builds on the idea that an open environment in the company as well as with the community will improve performance. The only way for companies to accomplish transparency is through open communications with all key stakeholders built on high levels of information disclosure, clarity, and accuracy – as well as openness to recognizing faults and improving practices. 6. Engage the Board: A full 86% of respondents in a recent survey by MIT/BCG agree that boards should play an active and strong role in sustainability. But, only 42% report that their boards are substantially engaged. Boards are often critical in collaborations with key stakeholders such as NGOs, governments and international Organizations. 7. Engage your ecosystem: We see that collaboration is critical for efficient sustainability practices, in particular in solving crises and in shaping broader solutions. The MIT/BCG data shows that 67% of executives see sustainability as an area where collaboration is necessary to succeed. 167 CU IDOL SELF LEARNING MATERIAL (SLM)

8. Engage the organization broadly: One example of engagement is Salesforce.com which through their “1/1/1” philanthropy program contributes to each employee’s personal ability to engage with environmental organizations and initiatives that support local communities. Another good example is Nespresso, responding to the debate over the sustainability of its capsules, the company has embedded sustainability into the DNA of every part of its business. Nespresso’s very purpose is linked to the so called “Positive Cup” campaign. Sustainability is considered during every decision made at Nespresso. The company seems sincere about reducing its impact and is even looking at its aluminium sourcing. 7.3 SELLING PLAN The marketing plan details the strategy that a company will use to market its products to customers. The plan identifies the target market, the value proposition of the brand or the product, the campaigns to be initiated, and the metrics to be used to assess the effectiveness of marketing initiatives. Definition: The written document that describes your advertising and marketing efforts for the coming year; it includes a statement of the marketing situation, a discussion of target markets and company positioning and a description of the marketing mix you intend to use to reach your marketing goals A company needs a marketing plan just as it needs a business plan. Five-part marketing plan that works as hard as you do: Section 1: Situation Analysis This introductory section contains an overview of your situation as it exists today and will provide a useful benchmark as you adapt and refine your plan in the coming months. Begin with a short description of your current product or service offering, the marketing advantages and challenges you face, and a look at the threats posed by your competitors. Describe any outside forces that will affect your business in the coming year--this can be anything from diminished traffic levels due to construction if you're a retailer or a change in law that could affect a new product introduction if you're an inventor, for example. Section 2: Target Audience All that's needed here is a simple, bulleted description of your target audiences. If the company marketing to consumers, write a target-audience profile based on demographics, 168 CU IDOL SELF LEARNING MATERIAL (SLM)

including age, gender and any other important characteristics. B2B marketers should list your target audiences by category (such as lawyers, doctors, shopping malls) and include any qualifying criteria for each. Section 3: Goals List the company's marketing goals for the coming year. The key is to make the goals realistic and measurable so that the company can easily evaluate their performance. \"Increase sales of peripherals\" is an example of an ineffective goal. The Company can be in a much better position to gauge your marketing progress with a goal such as, \"Increase sales of peripherals 10 percent in the first quarter, 15 percent in the second quarter, 15 percent in the third quarter and 10 percent in fourth quarter.\" Section 4: Strategies and Tactics the Company needs to give an overview of their marketing strategies and list each of the corresponding tactics that they will employ to execute them. Here's an example: A client of mine markets videotape and equipment. One of her goals is to increase sales to large ministries in three states by 20 percent. The company developed a strategy that includes making a special offer each month to this prospect group, and one of tactics is to use monthly e-mails to market to an in-house list. The tactics of company should include all the actionable steps that they have plan to take for advertising, public relations, direct mail, trade shows and special promotions. They can use a paper calendar to schedule the tactics or use a contact manager or spreadsheet program--what matters most is that they need to stick to their schedule and follow through. A plan on paper is only useful if it's put into action. Section 5: Budget Breakdown This section of the plan includes a brief breakdown of the costs associated with each of the tactics. So the company will include the costs to participate in the shows and prepare a booth and marketing materials. If the company fined the tactics selected are too costly, they can go back and make revisions before they arrive at a final budget. 7.4 VENDOR MANAGEMENT What is vendor management? 169 CU IDOL SELF LEARNING MATERIAL (SLM)

Vendor management is a term that describes the processes organizations use to manage their suppliers, who are also known as vendors. Vendor management includes activities such as selecting vendors, negotiating contracts, controlling costs, reducing vendor-related risks and ensuring service delivery. The vendors used by a company will vary considerably depending on the nature of the organization, and could include companies as diverse as seafood suppliers, IT vendors, cleaners and marketing consultants. Vendors can also range in size from sole traders to large organizations. Why is vendor management important? Vendor management is important for a number of reasons. For one thing, vendor management plays a key role when it comes to selecting the right vendor for a particular business need. In addition, companies can use vendor management to achieve business goals, such as harnessing opportunities for cost savings, as well as taking steps to speed up the onboarding process. Vendors also need to be managed effectively in order to reduce the risk of supply chain disruption and ensure the goods and services provided are delivered on time and to the expected standard. Beyond this, an effective vendor management process can help companies build stronger relationships with their vendors which may, in turn, lead to opportunities to negotiate better rates. Vendor management benefits  Improve vendor selection  Harness cost savings  Speed up vendor on boarding  Reduce the risk of supply chain disruption  Strengthen supplier relationships  Negotiate better rates Vendor management process The vendor management process includes a number of different activities, such as: 1. Selecting vendors. The vendor selection process includes researching and sourcing suitable vendors and seeking quotes via requests for quotation (RFQs) and requests for proposal (RFPs), as well as shortlisting and selecting vendors. While price will 170 CU IDOL SELF LEARNING MATERIAL (SLM)

inevitably be a consideration during the selection process, companies will also need to evaluate other factors when deciding which vendors to appoint for a particular contract, such as a vendor’s reputation, capacity and track record, as well as the vendor’s ability to communicate effectively. 2. Contract negotiation. It’s important to get the contract right at the outset and to ensure the terms agreed benefit both parties. Negotiating a contract can take time, and the process will include defining the goods or services that will be included, the start and end dates of the arrangements and all essential terms and conditions. Attention may also need to be paid to areas such as confidentiality and non-compete clauses. 3. Vendor on boarding. This will involve gathering the documentation and information needed to set the vendor up as an approved supplier to the company and ensure that the vendor can be paid for the goods or services they provide. As well as essential contact and payment information, the on boarding process may also include information such as relevant licenses held by the vendor, as well as tax forms and insurance details. 4. Monitoring vendor performance. As part of the vendor management process, companies will monitor and evaluate the performance of their vendors. This may include evaluating their performance against key performance indicators (KPIs) such as quality and volume of goods or delivery dates. 5. Monitoring and managing risk. Vendors should be monitored for risks that could impact the company, such as the risk of compliance breaches, lawsuits, data security issues and loss of intellectual property. Companies will also need to monitor the risk that a vendor’s actions or a failure to provide goods and services as agreed may result in disruption to the company’s operations. Why vendor management is important for your business Vendor management is crucial for the success of your business. To help you understand exactly why, we’ve outlined seven reasons why vendor management should be a top priority for your organization: 1. Mitigate risks To effectively reduce supplier risks, whether in terms of operations, unforeseen cost implications, or regulatory compliance, The Company needs increased visibility. Vendor management can track suppliers and provide the data needed to identify 171 CU IDOL SELF LEARNING MATERIAL (SLM)

supplier risks so the company can take the necessary steps to mitigate them, or choose an alternative vendor. The company can easily verify supplier information, such as qualifications and certifications, track performance, and even look into the supplier’s financials to get a broader picture of their risk level in order to protect your organization. 2. Optimize performance The company have a supplier active in vendor management system, who can track and measure performance against the contract to ensure that the company is meeting the needs and complying with the requirements. This will enable to ensure optimal performance. The data received from tracking performance can signal challenges before they become problems and identify areas that may need improvements. 3. Reduce costs When the company has increased visibility, there can be invisible costs that can be control in order to save on costs. Additionally, having strong relationships with the suppliers, due to effective procedures and processes thanks to vendor management, can help you to negotiate better rates and have access to discounts and incentives that can increase your profit margin. 4. Create loyal relationships Good vendors are hard to come by. If you’re working with excellent suppliers, you should be doing everything you can to strengthen your relationships with them in order to build loyalty. With effective supplier management, you can ensure efficiencies that lead to smooth processes, which can help you build the loyalty you need to keep your great suppliers as part of your supply chain for the long term. 5. Increase administrative efficiencies The vendor management program can significantly drive administrative efficiencies. As a central hub for vendor master data and record keeping, this program can cut down on duplication of data, loss of contracts and other information, administrative labor costs, and errors. Having one central place for all of your vendor data can help you manage your relationships with heightened efficiency, which your suppliers will appreciate. 6. Increase on boarding speed 172 CU IDOL SELF LEARNING MATERIAL (SLM)

The time and resources it takes to onboard new vendors can slow down your productivity and cost you money. But with supplier management, it’s a breeze to obtain all relevant vendor information, such as bank details, capability information, regulatory data, and capacity details and input it into the system in a fast and error- free way for approval. The quicker you can onboard your vendors, the quicker you can move through the procurement process and receive your goods or services so you can put them to use. 7. Protect your brand The company’s brand holds a lot of value. It should not be tarnished due to the actions of an unprofessional or unethical vendor. A supplier management program can provide with the required information, such as a supplier’s social and environmental standards, to reduce your risk of a serious incident stemming from a vendor’s actions. Tips for Vendor Management Success  Vendor management allows you to build a relationship with your suppliers and service providers that will strengthen both businesses.  Vendor management is not negotiating the lowest price possible but constantly working with your vendors to come to agreements that will mutually benefit both companies. 1. Share Information and Priorities The key to succeeding in vendor management is to share information and priorities with your vendors. That does not mean that you throw open the accounting books and give them user IDs and passwords to your systems. Appropriate vendor management practices provide only the necessary information at the right time to allow a vendor to serve your needs better. It may include limited forecast information, new product launches, changes in design and expansion or relocation changes. 2. Balance Commitment and Competition One of the goals of vendor management is to gain the commitment of your vendors to assist and support the operations of your business. On the other hand, the vendor is expecting a certain level of commitment from you. It does not mean that you should blindly accept the prices they provide. Always get competitive bids. 3. Allow Key Vendors to Help You Strategize 173 CU IDOL SELF LEARNING MATERIAL (SLM)

If a vendor supplies a key part or service to your operation, invite that vendor to strategic meetings that involve the product they work with. Remember, you brought in the vendor because they could make the product or service better and/or cheaper than you could. They are the experts in that area, and you can tap into that expertise to gain a competitive edge. 4. Build Partnerships for the Long Term Vendor management prioritizes long-term relationships over short-term gains and marginal cost savings. Constantly changing vendors to save a penny here or there will cost more money in the long run and will impact quality. Other benefits of a long-term relationship include trust, preferential treatment and access to insider or expert knowledge. 5. Seek to Understand Your Vendor's Business Too The vendor is in business to make money too. If you are constantly leaning on them to cut costs, quality will suffer, or they will go out of business. Part of vendor management is to contribute knowledge or resources that may help the vendor better serve you. Asking questions of your vendors will help you understand their side of the business and build a better relationship between the two of you. 6. Negotiate to a Win-Win Agreement Good vendor management dictates that negotiations are completed in good faith. Look for negotiation points that can help both sides accomplish their goals. A strong-arm negotiation tactic will only work for so long before one party walks away from the deal. 7. Come Together on Value Vendor management is more than getting the lowest price. Most often the lowest price also brings the lowest quality. Vendor management will focus quality for the money that is paid. In other words: value! You should be willing to pay more to receive better quality. If the vendor is serious about the quality they deliver, they won't have a problem specifying the quality details in the contract. 7.5 BRANDING AND ADVERTISING What Is Branding and Why Is It Important for Your Business? Cambridge Dictionary defines branding as “the act of giving a company a particular design or symbol in order to advertise its products and services.” Not so long ago, this was a pretty accurate description of branding – at least, what the general consensus was at the time. 174 CU IDOL SELF LEARNING MATERIAL (SLM)

Branding was (and still is) misunderstood by being reduced to its aesthetic component: visual identity. For many, whether specialists or not, branding is still just about the visual identity – name, logo, design, packaging, etc. Even more so, while the concept of branding and its understanding have evolved enormously over the years, the same old vision of branding is being preached, even by high-level marketers. “Brands are essentially patterns of familiarity, meaning, fondness, and reassurance that exist in the minds of people.”— Tom Goodwin Branding is important because not only is it what makes a memorable impression on consumers but it allows your customers and clients to know what to expect from your company. It is a way of distinguishing yourself from the competitors and clarifying what it is you offer that makes you the better choice. Your brand is built to be a true representation of who you are as a business, and how you wish to be perceived. There are many areas that are used to develop a brand including advertising, customer service, social responsibility, reputation, and visuals. All of these elements (and many more) work together to create one unique and (hopefully) attention-grabbing profile. What is branding? Branding is the perpetual process of identifying, creating, and managing the cumulative assets and actions that shape the perception of a brand in stakeholders’ minds. Concept of Branding: 1. Perpetual process Branding is a perpetual process because it never stops. People, markets, and businesses are constantly changing and the brand must evolve in order to keep pace. 2. Identify, create, and manage There is a structured process to branding, one where one must first identify who/what they want to be to for the stakeholders, create a brand strategy to position accordingly, and then constantly manage everything that influences the positioning. 3. Cumulative assets and actions The positioning must be translated into assets (e.g., visual identity, content, products, and ads) and actions (e.g., services, customer support, human relations, and experiences) that project it into stakeholders’ minds, slowly building up that perception. 175 CU IDOL SELF LEARNING MATERIAL (SLM)

4. Perception of a brand Also known as reputation. This is the association that an individual (customer or not) has in their mind regarding your brand. This perception is the result of the branding process (or lack thereof). 5. Stakeholders Clients are not the only ones that build a perception of the brand in their minds. Stakeholders include possible clients, existing customers, employees, shareholders, and business partners. Each one builds up their own perception and interacts with the brand accordingly. Why is branding important? Branding is absolutely critical to a business because of the overall impact it makes on the company. Branding can change how people perceive the brand, it can drive new business, and increase brand value – but it can also do the opposite if done wrongly or not at all. “A good definition of brand strategy is the considered intent for the positive role a company wants to play in the lives of the people it serves and the communities around it.” — Neil Parker Branding increases business value Branding is important when trying to generate future business and a strongly established brand can increase a business’ value by giving the company more leverage in the industry. This makes it a more appealing investment opportunity because of its firmly established place in the marketplace. The result of the branding process is the brand, which incorporates the reputation and value that comes with it. A strong reputation means a strong brand which, in turn, translates into value. That value can mean influence, price premium, or mindshare. The brand is a business asset that also holds monetary value in itself and must have a place of its own on a business’ balance sheet because it increases the overall worth of the company. Although this is a controversial topic and a difficult task for many companies, giving financial weight to the brand is as important as branding itself – this is called ‘brand valuation’. Our ‘Brands in the Boardroom’ series makes an excellent point for the business side of branding. Branding generates new customers 176 CU IDOL SELF LEARNING MATERIAL (SLM)

A good brand will have no trouble drumming up referral business. Strong branding generally means there is a positive impression of the company amongst consumers, and they are likely to do business with you because of the familiarity and assumed dependability of using a name they can trust. Once a brand has been well-established, word of mouth will be the company’s best and most effective advertising technique. Just like with the reputation of a person, the reputation of a brand precedes it. Once a certain perception of the brand has been established in the market, an uncontrollable chain of propagation begins. Word of mouth will pass the perception on and further reinforce or tarnish the reputation of that brand. If the reputation is positive, potential new customers may come into contact with the brand, having an already-positive association in their mind that makes them more likely to make a purchase from this brand than from the competition. Improves employee pride and satisfaction When an employee works for a strongly branded company and truly stands behind the brand, they will be more satisfied with their job and have a higher degree of pride in the work that they do. Working for a brand that is reputable and held in high regard amongst the public makes working for that company more enjoyable and fulfilling. Employees that have a good association with the brand will perpetuate that perception further down the line to the clients and partners they interact with. This can also translate into better leadership, more involvement, and better products and services. Creates trust within the marketplace A brand’s reputation ultimately boils down to the amount of trust that clients can have in it. The more you trust a brand, the better your perception of it, the stronger its reputation and, thus, the brand itself. Branding searches for the right way to earn and maintain a certain level of trust between the company and its stakeholders. This is done by establishing a realistic and attainable promise that positions the brand in a certain way in the market and then delivering on that promise. Simply enough, if the promise is being delivered upon, trust builds up in stakeholders’ minds. In highly crowded markets, trust is especially important because it can make the difference between intent (considering buying) and action (making the purchase). Branding in practice 177 CU IDOL SELF LEARNING MATERIAL (SLM)

It’s an ever-evolving subject spanning many areas of expertise: business management, marketing, advertising, design, psychology, and others. Branding also has different layers, each one with its own meaning and structure. It is not the same as marketing but there are many common grounds between the two, which is why we cannot acknowledge or deny that branding and marketing are somehow subordinate one to the other. They are interdependent and their primary goal is to serve the business. 7.6 SUMMARY  Sustainability is a major challenge, one that matters beyond individual companies. But reassuringly a number of large companies are developing forward-thinking sustainability policies. It is really becoming clear that sustainability is a megatrend that simply isn’t going away!  Reputation builds up whether the business does something about it or not. The result can be a good or bad reputation. Understanding and using branding only means that the company can take the reins and try to control what that reputation looks like. This is why it is recommended to consider branding from the very beginning of your business.  Contrary to popular belief, branding is not an “expensive marketing tactic that only big brands use”. On the contrary – branding has a lot to do with common sense and is heavily influenced by the market you’re in and the level you want to play at. Branding involves a consistent mix of different competencies and activities, so its cost can wildly differ from case to case. High-level consultants and flawless implementation will, of course, be more expensive than anything below it. Likewise, branding an international, multi-product business will be much more challenging and resource- heavy than a local business, for example. There is no one-size-fits-all approach. 7.7 KEYWORD  Brand Identity - Brand identity is the visible elements of a brand, such as color, design, and logo that identify and distinguish the brand in consumers' minds. Brand identity is distinct from brand image...  Brands - Brands are intangible, which means you can't actually touch or see them. As such, they help shape people's perceptions of companies, their products, or individuals 178 CU IDOL SELF LEARNING MATERIAL (SLM)

 Ecopreneurship- Ecopreneurship is entrepreneurship where a major, or perhaps the main, focus of the business is to operate sustainably or to help the environment, such as through recycling or fighting climate change 7.8 LEARNING ACTIVITY 1. Define Sustainability ___________________________________________________________________________ ___________________________________________________________________________ 2. State the selling plan ___________________________________________________________________________ ___________________________________________________________________________ 7.9 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. Define Sustainability and growth 2. Identify and discuss the role selling plan 3. Elaborate about the nature of vendor management 4. What is the importance of business growth? 5. What is branding and advertising? Long Questions 1. Importance of sustainability and growth to Entrepreneurship 2. Types of Selling Plan 3. Importance of vendor management 4. Importance of Advertising to entrepreneurship 5. Role of business growth to Entrepreneurship. B. Multiple Choice Questions 1. Internal growth is also known as a. Merger b. Sales maximisation c. Organic growth d. Inorganic growth 179 CU IDOL SELF LEARNING MATERIAL (SLM)

2. An example of Organic growth is a. Merger b. Launching new products c. Acquisition d. Takeover 3. Nike buying a materials producer would be a form of... a. Vertical Forward Integration b. Horizontal Integration c. Vertical Backward Integration d. Diversification 4. A mark or design placed on a product to identify it is... a. brand b. brand position c. brand loyalty d. benefit 5. What is used to protect a good so it cannot be copied? a. Service mark b. Trademark c. Brand mark d. Logo Answers 1-c, 2-b, 3-c. 4-a, 5-b 7.10 REFERENCES References book  Poornima M. Charantimathv (2006) “Entrepreneurship Development and Small Business Enterprises,” Dorling Kindersley (India) Pvt. Ltd, New Delhi.  Sanjay, Anshuja Tiwari (2007) Entrepreneurship Development in India”, sarup & Sons publications, New Delhi.  Ramachandran (2009) Entrepreneurship DevelopmTata McGraw –Hill Education Pvt.Ltd. New Delhi. 180 CU IDOL SELF LEARNING MATERIAL (SLM)

 Pawan Kumar Sharma (1991) “Development banks and entrepreneurship promotion in India”, Mittal publications, New Delhi.  C.P. Yadav (2000) ‘Encyclopaedia of Entrepreneurship Development, Anmol Publications, New Delhi. Textbook references  “Entrepreneurial Development and Small Business Management” by Dr P T Vijayashree & M  “Entrepreneurial Development” by Desai Website  http://eagri.org/eagri50/ARM402/index.html  http://pioneerinstitute.net/activities/6188-entrepreneurship-development-cell.htm  https://www.srecwarangal.ac.in/centre-for-enterprenurship.php  https://fredericodeigah.wordpress.com/2012/10/12/introduction-to-entrepreneurship- development/  http://ncert.nic.in/ncerts/l/lebs213.pdf 181 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT - 8: SUSTAINABILITY AND GROWTH STRUCTURE 8.0 Learning Objectives 8.1 Introduction to Social effects of Business 8.2 Business and its Eco friendliness 8.3 Summary 8.4 Keywords 8.5 Learning Activity 8.6 Unit End Questions 8.7 References 8.0 LEARNING OBJECTIVES After studying this unit, you will be able to:  Identify scope of business on environment  State the social effect of business  List the Challenges faced by business in maintaining Eco friendliness 8.1 INTRODUCTIONTO SOCIAL EFFECT OF BUSINESS Why You Should Look Into Going Green From retailers to manufacturers, from financial to high tech corporations, most any company can now reap the plentiful financial rewards of taking their business in an eco-friendly direction. Your company can benefit from tax breaks, government subsidies, savings from eco-friendly practices, and increased popularity and demand through your standing as a green company. So, whether you offer insurance or technology services, or you run a restaurant or dry cleaning business, eco-friendly business practices are a cost-effective, smart and responsible business goal. Increased Demand for Eco-Friendly Goods Translates Into More Profits Consumers are increasingly demanding natural products and social responsibility from vendors and suppliers through sustainability and green practices. More importantly, many are willing to pay more for these values and demands. The Nielsen global online survey this year 182 CU IDOL SELF LEARNING MATERIAL (SLM)

identified 66 percent of its worldwide study respondents with this commitment to eco- friendly products, services and businesses. The following green factors were cited in the top eight deciding factors:  Goods made from natural, fresh, organic ingredients  Environmentally friendly brand  A brand recognized for its social value  Environmentally friendly packaging  Ads that spotlight association of environmental and social benefits with the brand 8.2 BUSINESS AND ITS ECO FRIENDLINESS The benefits of an environmentally friendly business Running an environmentally friendly business helps the business to reduce its impact on the environment and preserves natural resources. Business can help the environment in many ways. For example, it can: 1. Use products that reduce your reliance on natural resources (e.g. rainwater tanks, solar hot water systems) 2. Use products that are made from recycled material (e.g. office supplies made from recycled plastic, furniture made from recycled rubber) 3. Making business environmentally friendly not only benefits the environment but can also save money. 4. Recycling reduces costs 5. Avoiding, reducing, reusing and recycling can lower costs. For example, a few simple changes to how to deal with paper can involve staff in environmentally friendly processes while saving money: 6. Avoid using materials unnecessarily 7. Reduce paper needs by asking staff to print double-sided 8. Reuse by encouraging staff to use scrap paper for message-taking instead of purchasing message pads 9. Recycle by shredding excess paper – one could recycle this commercially or invite staff to take it home for their compost or mulch heaps. Good practice can attract new customers 183 CU IDOL SELF LEARNING MATERIAL (SLM)

 Promoting environmentally friendly methods can set business apart from competitors and attract new customers who want to buy products and services from an environmentally friendly business.  Focusing more on your environmental impacts can also help to attract and retain staff. Improves sustainability Reducing the environmental impact of your business will improve the sustainability of your business. If you are less dependent on natural resources than your competitors and have ways to deal with rising costs due to climate change, your business will have a greater chance of long-term success. The Importance of Environmental Awareness When Running a Business Sustainability is an increasingly important issue for many people, especially in the business world. Climate change continues to affect our lives as well as the fate of all other species around the planet. For business owners, leaders, and administrators, sustainable business practices are becoming imperatives. According to NASA, it’s more than 95% likely that human activity is causing the planet to get warmer. Human industry is a big part of the climate change picture because of its reliance on land, resources, fossil fuels, and non-stop production and consumption. Making businesses more sustainable starts with being aware of the issue at hand and understanding just how important it is to make changes — both for the business and the planet. The intent of this resource is to help business owners, administrators, and leaders make their organizations more environmentally aware. Here, you’ll find a working definition of sustainability in business, an explanation of its importance, identification of the key players, a discussion of benefits and challenges, as well as information on how to improve sustainability in business. Sustainability in Business: What Does It Mean?  Business sustainability is the practice of operating a business without impacting the environment negatively.  A green business functions in the best interests of the local and global environment, meaning it supports the community and economy dependent on a healthy planet.  An environmentally aware business considers more than just profits — it considers its impact on society and the environment. 184 CU IDOL SELF LEARNING MATERIAL (SLM)

 Such a business is sustainable because it contributes to the health of the structure within which it operates, thereby helping construct an environment in which the business can thrive.  A sustainable business adheres to the triple bottom line, a term coined in 1994 by John Elkington, the founder of a British consultancy called SustainAbility.  The three components of the triple bottom line are profits, people, and the planet. A sustainable business earns profits by being socially responsible and protecting our use of the planet’s resources. Who Can Improve Business Sustainability? Every individual can take steps to live and work more sustainably, but when it comes to improving sustainability in business, there are some people who are in a unique position to effect change. Business Owners and Organizational Leaders  Effecting change throughout an organization takes organisational leadership training and skills to make effective top-down decisions.  Business owners and leaders who possess organizational skills have the savoir faire to make strategic sustainability decisions that benefit the business, its employees, its customers, and the planet.  Leaders are perhaps the most important link in the chain. Owners and executives have the intellectual acumen to identify the most effective sustainability strategy and initiatives, as well as the power to change policy and spur innovation. Business Administrators, Managers, and Supervisors  Administrators, managers, and supervisors have unique insights into the day-to-day operations of a business.  The future of business administration requires preparation to solve complex problems via unique perspectives, and the combination of skill and expertise to think of creative sustainability solutions. Admins, managers, and supervisors can provide valuable insights; because of their more hands-on role, they have a different perspective and understanding of how to improve business sustainability. Human Resource Professionals 185 CU IDOL SELF LEARNING MATERIAL (SLM)

 In a survey of 148 CEOs from the world’s largest and highest-profile companies, every respondent said human resources practice are essential to building and maintaining sustainable businesses.  The HR department at your organization can play an important role in the development, creation, and implementation of company-wide sustainability policies.  They can help ingrain these policies into the company culture and create a lasting shift in your business.  It’s important to create a company culture that reflects your values and makes employees comfortable enough to share their ideas, including those regarding sustainability.  The HR team can act as a cultural ambassador, helping employees and new recruits feel recognized and valued as key drivers in efforts toward sustainability. Employees  Sustainability initiatives don’t always have to come from the top down; employees may provide valuable contributions too. For example, according to the Stanford Social Innovation Review, employees at a Unilever tea factory in England saved the company €47,500 and reduced the waste of 9.3 tons of paper by suggesting the company change the size of paper tea bags.  Because these employees were working with the product directly, they knew exactly what could be improved.  Encourage employees to speak up and share their thoughts about how your business can become more sustainable.  The results could contribute to both sustainability and profitability. Moreover, the Stanford Social Innovation Review reports that this can improve “employee retention, productivity, and overall engagement.” The Benefits of Sustainability in Business Sustainability in business isn’t just good for the environment or society at large — it’s also good for the business itself. Here are just a few of the many benefits of operating a more sustainable business: 1. Reduces Business Costs 186 CU IDOL SELF LEARNING MATERIAL (SLM)

“Greening” the business takes an initial investment, but, over time, this will save money by prioritizing sustainability. A 2011 McKinsey survey on the business of sustainability found that 33% of businesses were integrating sustainable practices to improve operational efficiency and cut costs — resulting in a 19% increase from the previous year. Over the course of 10 years, clients of the managed service provider Elytus saved over $11 million Organisation can reduce business costs by going green. For instance, using more efficient lighting or creatively reusing existing materials will save money. Although it takes an upfront investment, converting to solar energy pays off: the average commercial property owner will save about $500 per month on electricity, which equals savings of $587,377 over the life of the solar power system. Most businesses pay off the cost of panels in five to seven years. The federal government even offers tax credits rebates and savings for going green. Ultimately, the more sustainable your business becomes, the less you’ll spend on energy and materials. 2. Improves Business’ Reputation Reputation management in business is about establishing a good image by aligning messages with actions. Among the most reputable companies for corporate social responsibility, Lego comes in at No. 3 because of its decision to make Legos from plant-based sources. After it made the announcement, Lego immediately followed through with products produced from leaves and sugarcane. The Danish toy company plans to use sustainable materials for all of its core products and packaging by 2030. As a result, the company’s reputation has skyrocketed. Sustainability is considered as a plus, and companies with green values are eager to showcase them because of that fact. Going green shows the world you care about more than just making money. This can be used for advantage when marketing business and developing brand identity. Provides Competitive Advantage S&P 500 companies with sustainability baked into their strategy perform better than those that don’t: they see an 18% hiher ROI because they’re managing and planning for climate change. According to Jeffrey Hollender, professor of sustainability at NYU Stern, “You will perform better financially by doing things like having a great sustainability program.” Researchers from Harvard Business Review agree: “We’ve been studying the sustainability initiatives of 30 large corporations for some time. Our research shows that 187 CU IDOL SELF LEARNING MATERIAL (SLM)

sustainability is a mother lode of organizational and technological innovations that yield both bottom-line and top-line returns.” Increases Bottom Line You can earn more money and boost your bottom line by making your business more sustainable. Reduced business costs, more innovative strategies, an improved reputation, and more new customers who value sustainability all work to increase the amount of money sustainable businesses earn. Challenges to Improving Sustainability in Business Though sustainability has many positive impacts on business, it can also be challenging to actually implement these changes. Here are some of the biggest barriers that business, particularly small ones, face when trying to become more sustainable: 1. Lack of Resources Some businesses don’t think they have the needed resources — namely, time and money — to properly and effectively implement sustainability strategies. However, you don’t have to become a green business all at once. Solar panels, a LEED certification for your building, and sustainably sourced materials are not the only measures a business can pursue. You can start small and make affordable changes, which is much better than doing nothing at all (see “How to Make Your Business More Sustainable” below for some examples). Later, as you continue to cut costs, you’ll be able to afford more extensive changes. 2. Unengaged Personnel Whether it’s with upper management or your employees, it can be difficult to actually implement the sustainability initiatives when other people in your organization don’t support them, take them seriously, or care. Do your best to ask for everyone’s input when creating initiatives. There’s a good chance some employees and managers will have their own ideas and issues. Consider creating incentives — such as office parties and awards — and adding gamification to the experience. Some unengaged staff needs their ideas to be recognized, considered, and implemented if they’re viable, while others need external motivation to participate. 3. Inability to Assess Success 188 CU IDOL SELF LEARNING MATERIAL (SLM)

It’s impossible to know if the efforts are worthwhile if one can’t accurately measure the outcome. Instead of worrying about what other businesses are doing, take strides to do what makes sense for the organization. What can you do to measure sustainability? 4. Lack of Focus or Plan A nebulous, unfocused plan to go green can easily overwhelm your business as you try to make a profit at the same time. Try to narrow focus to one or two key issues that you care most about or think would have the biggest impact on, then branch out from there. Plan should include an assessment of how sustainable initiatives can cut costs in the long run and increase profits, if possible. If can’t find a profitable strategy, focus on the cost-cutting aspect. Turn around and sink savings into investments and campaigns that will turn a profit. How to Make Your Business More Sustainable Becoming more sustainable in an effective way may not be easy at first, but the challenge is well worth the reward. Successful entrepreneurs, owners, and leaders look at problems as opportunities. Now opportunity to embrace sustainability and implement innovative strategies in the process. Some creative business planning can help you determine specific and unique strategies that will work for your business. Here are a few tips to get you started. 1. Start Recycling at Work Recycling is benefecial: it keeps trash out of the landfill and the incinerator, and it creates 757,000 jobs annually. If workplace doesn’t already do so, start recycling. If workplace is already recycling, take a moment to read up on the recycling laws in your area to make sure you’re doing it correctly. It’s easy for everyone to get lazy and put items in the trash bin when they’re at work. Provide ample recycling bins in the workplace, make sure they’re labeled for the types of items that go in them, and if your city has a composting program, take advantage of it. 2. Encourage Green Commuting The daily commute is a daily drain on the environment: each day, people waste 2.9 billion gallons of gas stuck in traffic, and each person forfeits $710 in productivity per year. Green commuting could have a huge impact on the environment by cutting down on daily emissions — encourage employees to do so when possible. Biking, carpooling, and taking the bus are all forms of green commuting that can help your employees contribute to sustainability both 189 CU IDOL SELF LEARNING MATERIAL (SLM)

in and out of the workplace. Also, there are inexpensive scooters and electric bikes for those employees who live too far away to ride regular bike. 3. Offer Remote Work Options Remote work is technically another type of green commute, as it keeps drivers and cars off of the roads. Some positions do not allow for remote work, but if the work can be done outside of the office, allow people to take advantage of it.Remote workers are the same impact on the environment as planting a forest of trees: they eliminate 3.6 billion tons of greenhouse gases caused by commuting annually. Working remotely also helps people avoid health risks associated with commuting. 4. Go Digital Despite the rise of digital technology, many organizations still use more paper than necessary. Computers, smartphones, and other devices are integrated into the workplace; use them to their fullest extent and avoid using paper whenever possible. 5. Create a Sustainability Committee Selecting a team of volunteers who are responsible for sustainability initiatives in the workplace can do wonders for your efforts. It creates accountability — there are people specifically responsible for this, and they can take care to follow up with others and bolster a culture of sustainability in the workplace. Moreover, a committee will keep the ideas flowing. Task them with talking to other employees about challenges and ideas, and give them the power to make decisions. The Advantages and Disadvantages of Starting an Eco-friendly Business Considering the current environmental scenario across the globe, running a business in an eco-friendly manner has become very important. Nowadays, we hear a lot about eco-friendly ventures. Before beginning the transformation process, a business owner must evaluate the advantages and disadvantages of an eco-friendly business model. Advantages of starting an environment-friendly business 1. Increased revenue Many customers are beginning to realise the benefits of eco-friendly living. So, transforming your business from top to bottom can attract more clients. This will increase the revenue. 70- 75% of customers within the age bracket of 15-20 years said they would pay more for 190 CU IDOL SELF LEARNING MATERIAL (SLM)

products and services offered by environment-friendly companies. Some government firms and non-profit institutions also prefer giving contracts to companies that run in an eco- friendly manner. ESG funds are gaining more popularity. These funds support the companies that are going green. 2. Tax incentives The government of many countries offer incentives such as tax credits to companies that run in an eco-friendly manner. Several grants and tax incentives are available to green companies and entrepreneurs who aspire to start a business in an eco-friendly way. The government has set some regulations and conditions that have to be met by the companies for getting such incentives. New businesses and start-ups can also receive these grants if they follow the criteria from the beginning. It also helps in making the process of getting a business license hassle-free. 3. Good PR Going green puts your brand a step ahead because the company’s image improves in the eyes of potential customers. If you decide to implement an eco-friendly business model, you should advertise it as much as possible. You can do it on social media platforms. It will help in establishing good relationships with your customers. Happy customers can recommend your products to their relatives or friends. This will increase brand awareness. 4. Conservation of natural resources The primary goal of an eco-friendly business model is to protect the planet. By going green, business owners can save natural resources such as water and fossil fuels. Going green also helps in reducing air pollution, water pollution and soil pollution. Business owners can also save money by using alternative means of travelling and alternative energy sources like solar energy. Harmful activities, such as deforestation and mining, can be reduced. One of the advantages of running a sustainable or green business is that it helps in slowing down climate change. All these factors ensure that our planet is left in good shape for our future generations. 5. Employee health Going green attracts employees with a similar mind-set. A green business model also helps in maintaining the health of your employees. Business owners can start to provide healthy and 191 CU IDOL SELF LEARNING MATERIAL (SLM)

organic food in the cafeteria. They can also use organic cleaning products which are plant- based and do not contain toxic chemicals. It ensures that the business owners are not putting their employees’ health at risk. It results in a decrease in the number of sick leaves and an increase in productivity. Disadvantages of starting an environment-friendly business 1. Takes more time Implementing a green business model may not be a quick and smooth transition for a company and its employees. It takes time, and the employees need to be patient. For instance, gathering biodegradable wastes and non-biodegradable wastes in separate containers can be a laborious and time-consuming process. But, once the employees get habituated, it becomes easier. Thus, one should constantly check whether the guidelines are correctly followed until each employee gets used to the process. 2. Substantial initial expenses Instalment of new and eco-friendly devices requires a substantial initial investment. Considering the current scenario of the economy across the globe, recovering from these initial costs may take two or three years. Hence, this decision should not be taken overnight. Also, business owners should plan their budget well in advance. The audits and certification process for going green also demand considerable investment. Although these initial costs may seem very high, these changes are known to save expenses in the long run. 3. Data risks After implementing environment-friendly business practices, the first shift that most companies make is going paperless. They run their business with the help of digital platforms. But everybody knows that data leaks have become a significant issue these days. Personal data of the employees and confidential information of the company can fall into the wrong hands. Owners may face difficulties in digitalising the existing process. Computer viruses and system crashes can give rise to severe problems. Due to these reasons, many companies still prefer the traditional methods of documentation. 4. Complex business model 192 CU IDOL SELF LEARNING MATERIAL (SLM)

Every business model aims to increase revenue. Focusing on other issues and implementing changes for going eco-friendly can be very tiresome. Maintaining the profits and staying ahead of the competition while doing so can be difficult. 5. Finding new suppliers can be hard It is one of the significant disadvantages of implementing an environment-friendly business model. Not all vendors and suppliers have the same mindset. Thus, companies need to find suppliers who are aware of the environmental issues. Suppliers who provide eco-friendly products or resources can charge more money. So, business owners need to find suppliers who can provide those products at affordable rates. It requires a lot of dedication and hard work. 6. Consumer backlash Sometimes, you may fail to follow certain regulations unintentionally. If the consumers realise it, you may face difficulties even if the allegations are not valid. You may lose your customers. It can result in substantial financial losses. Hence, business owners need to be very careful while changing their business policies. They must ensure that those policies are properly implemented. Conclusion Business owners should analyse all the advantages and disadvantages of going green before making the shift. After deciding to go eco-friendly, planning the steps and finances well in advance is essential. There will be many obstacles and difficulties. But one needs to be determined, patient and persistent. If you face difficulties, you can consult with advisors who can help you achieve your business goals. 8.3 SUMMARY Business benefits from the popularity of a green reputation  Green companies and brands are typically more appealing to clients, customers and employees, and this appeal is growing steadily. A company can increase sales to new customers who prefer to purchase from green businesses. The Nielson global online survey mentioned earlier supports this conclusion, as do numerous others studies and surveys that track consumer trends. With workers and consumers alike recognizing and placing increasing value on environmentally friendly products and companies, it 193 CU IDOL SELF LEARNING MATERIAL (SLM)

makes good business sense for every organization to explore this option. In fact, if you’re committed to green business practices, it makes sense to apply for green certification, also known as sustainability certification. Earn the certification seal will help your green marketing and promote your achievements to your employees and customers. Increased savings from the use of organic and natural materials and smart energy use  Eco-friendly business measures naturally lead to savings. Practices such as energy conservation, recycling, use of water-saving devices, energy-efficient equipment, solar power and reduced waste help keep costs down, and have proven time and again to be far more efficient and cost-effective than traditional energy use. Government subsidy benefits  Tax breaks are not the only government advantages offered to green businesses.  There are a number of grants, subsidies and financing programs available as well for the company or entrepreneur who seeks to be eco-friendlier.  The Environmental Protection Agency provides grants for qualified programs that are related to environmentally responsible approaches for a variety of business operations.  The Small Business Administration (SBA) offers financing solutions to business organizations that support green solutions in new construction, retrofitting existing structures and the advancement of green technologies.  These are but a few of the many government subsidies available to companies that effect environmentally friendly practices and solutions Sustainable Entrepreneurship and Corporate Reputation Sustainable businesses must contribute to the sustainability of the planet and endure over a long period. If the goal of the business is to last for years, it must be able to create value for itself and its environment. Sustainable value can be described thus because the model is aimed at stable multidimensional development .Hart and Milstein identified four types of drivers related to responsibility and sustainability: internal, external, today, and tomorrow. Internal drivers refer to the negative effects that strictly commercial entrepreneurship can have on the environment: waste, water, ground, and air pollution, consumption of non-renewable energy and resources, and so forth. External drivers refer to the birth of a global approach that involves different 194 CU IDOL SELF LEARNING MATERIAL (SLM)

stakeholders in the development of the firm’s products or services, thereby improving the firm’s corporate reputation. New ICTs thus contribute to greater transparency and accountability. Drivers that relate to today include clean technologies that enable the development of new competencies to rejuvenate declining industries. Finally, drivers related to tomorrow provide an eminently social vision focused on promoting justice, equality, and growth. Fig 8.1 creating sustainable value. 8.4 KEYWORDS  Sustainable Packaging- sustainable packaging is assumed to be equivalent to sustainably sourced materials or with enabled recovery such as recyclable or compostable materials 195 CU IDOL SELF LEARNING MATERIAL (SLM)

 Corporate Social Responsibility – Corporate social responsibility (CSR) refers to the contribution of organisations to wider societal goals through ethical practices, and it is now a global phenomenon. The idea of CSR originated in the United States, and was first mentioned in the 1930s  Hash tag reduction: It is to process a hash tag reduction and remove micro- communities; it was first necessary to detect communities.  Supply Chain Management– supply chain management, the management of the flow of goods and services, between businesses and locations, and includes the movement and storage of raw materials, of work-in-process inventory, and of finished goods as well as end to end order fulfillment from point of origin to point of consumption.  Retailing – Retailing, the selling of merchandise and certain services to consumers. It ordinarily involves the selling of individual units or small lots to large numbers of customers by a business set up for that specific purpose.  Social Sustainability- social sustainability issues include resolving racisms and discrimination issues in schools, workplaces, social communities and create a diverse community. Equal opportunity for basic health is also a social sustainability issue. Human health and well-being is an important factor in social sustainability. 8.5 LEARNING ACTIVITY 1. Define Eco friendliness ___________________________________________________________________________ ___________________________________________________________________________ 2. State the principles of green business ___________________________________________________________________________ ___________________________________________________________________________ 8.6 UNIT END QUESTIONS A. Descriptive Questions 196 Short Questions 1. Define social sustainability? CU IDOL SELF LEARNING MATERIAL (SLM)

2. Explain what green business? 197 3. Describe briefly about corporate social responsibility? 4. What do you understand by supply chain management? 5. What is a Hash tag reduction? Long Questions 1. What is a green business? Explain the various types. 2. Describe the evolution of green business. 3. What are the components of corporate social responsibilities? 4. Describe about the history of social sustainability. 5. Explain Eco friendliness in business B. Multiple Choice Questions 1. Who coined the term \"Green Revolution\"? a. Muhammad Ali Jinnah b. Mahatma Gandhi c. William Gaud d. Norman Borlaug 2. Why do we need to “go green”? a. We need to save money. b. We need to save the Earth. c. We need to earn more money. d. We need to protect our school 3. What is 4Rs? a. Report b. Reason c. Reduce d. Return 4. How do we “go green”? a. Turn up the air-con b. Play music loudly CU IDOL SELF LEARNING MATERIAL (SLM)

c. Leave the tap on d. Reduce using plastic 5. An organization must behave as a good citizen. This is an example of the responsibility towards: a. Owners b. workers c. Society d. Government Answers 1-c, 2-b, 3-c, 4-d, 5-c 8.7 REFERENCES References book  Nature-friendly\". Webster's New Millennium Dictionary of English, Preview Edition (v 0.9.7). Lexico Publishing Group, LLC.  ^ Motavalli, Jim (2011-02-12). \"A History of Green washing: How Dirty Towels Impacted the Green Movement\". AOL.  ^ \"Grønvaskere invaderer børsen\" [Greenwashers invade the market]. EPN.dk (in Danish). Jyllands-Posten. 2008-06-21. Archived from the original on 2008-07-05. Retrieved 2012-12-22.  ^ Greenwashing Fact Sheet. March 22, 2001. Retrieved November 14, 2009. from corpwatch.org  ^ \"Eco friendly production key to achieving sdgs\".  ^ United Nations (2017) Resolution adopted by the General Assembly on 6 July 2017, Work of the Statistical Commission pertaining to the 2030 Agenda for Sustainable Development (A/RES/71/313) Website  http://www.slideshare.net/sreenath.s/evolution-of-hrm 198 CU IDOL SELF LEARNING MATERIAL (SLM)

 www.articlesbase.com/training-articles/evolution-of-human-resource- management- 1294285.html  http://www.oppapers.com/subjects/different-kinds-of-approaches-to-hrm- page1.html 199 CU IDOL SELF LEARNING MATERIAL (SLM)