E-LESSON-10

IDOL Institute of Distance and Online Learning ENHANCE YOUR QUALIFICATION, ADVANCE YOUR CAREER.

M.B.A 2 All right are reserved with CU-IDOL BUSINESS ENVIRONMENT AND REGULATORY FRAMEWORK Course Code: MBA605 Semester: First SLM UNITS : 10 E- LESSON NO : 7 www.cuidol.in Unit-7 (MBA605)

BUSINESS ENVIRONMENT AND 33 REGULATORY FRAMEWORK OBJECTIVES INTRODUCTION Student will be able to : The survival and success of a business firm depends on its innate strength and its Understand the relationship between economic adaptability to the environment growth and pollution. Get an idea of the levels and problems of pollution Understand the relationship between economic growth and pollution. Understand the important measures of pollution control in India. Gain knowledge about the various governmental regulation impacting Business Examine the impact of environmental regulations Environment. on business www.cuidol.in Unit-7 (MBA605) INSTIATlUl TrEigOhFt DarISeTrAeNsCeErvAeNdDwOitNhLCINUE-ILDEOALRNING

TOPICS TO BE COVERED 4 > Natural Environment. > Causes of pollution. > Changing role of government > Impact of Environmental Regulations on Business www.cuidol.in Unit-7 (MBA605) All right are reserved with CU-IDOL

NATURAL ENVIRONMENT 5 ❖ Natural environment which includes geographical and ecological factors such as minerals and oil reserves, water and forest resources, weather and climatic conditions, port facilities are all highly significant for various business activities. ❖ National Green Tribunal Act, 2010, construing the right to healthy environment as a part of the right to life under article 21 of the Constitution. Article 21 of the Indian Constitution reads as follows: “No person shall be deprived of his life or personal liberty except according to a procedure established by law.” www.cuidol.in Unit-7 (MBA605) All right are reserved with CU-IDOL

Economic Development and Pollution 6 ❖ Economic development is the growth of the standard of living of a nations people from a low-income (poor) economy to a high-income (rich) economy. When the local quality of life is improved, there is more economic development. When social scientists study economic development, they look at a lot of things. ❖ Pollution is “any direct or indirect alteration of the physical, thermal, biological or radioactive properties of any part of the environment by discharging, emitting, or depositing wastes or substances so as to affect any beneficial use adversely, to cause a condition which is hazardous to public health, safety or welfare, or the animals, birds, wildlife, fish or aquatic life, or to plants.” www.cuidol.in Unit-7 (MBA605) All right are reserved with CU-IDOL

Association between economic growth and 7 environmental problems ❖ Globalization has caused unscrupulous exploitation of natural resources and using ecologically unfriendly technologies and operations, makes the problem more serious. ❖ Urbanization which is almost a concomitant of population growth, economic growth and globalization too causes environmental damage. ❖ Economic growth and ecological problems are so closely related that it has been said that “the affluent society is becoming an effluent society. ❖ Population explosion and modern technology have been upsetting the ecological balance www.cuidol.in Unit-7 (MBA605) All right are reserved with CU-IDOL

Population Growth and Pollution 8 ❖ The world has been experiencing population explosion. During 1950-2011, developing countries accounted for 90 per cent of the growth in world population. World population is projected to increase from about 7.6 billion in 2017 to 9 billion by 2050. ❖ 150 million people in India are still below the poverty line and millions will add to this rank in future. ❖ It is leading to :- ✓ Water Pollution due to domestic sewage. ✓ To feed the increasing population, there has been an intensification and expansion of agriculture which have been causing very serious pollution ,particularly of soil and water. ✓ Expansion of agriculture is an important reason for deforestation and several other ecological problems. Unit-7 (MBA605) All right are reserved with CU-IDOL www.cuidol.in

Industrialization 9 ➢ The fast industrialization has-been making water, air, land and noise pollutions increasingly serious. ➢ Air pollution caused due to emissions from vehicular, industrial and domestic activities. ➢ Water contamination from industrial areas is compounded usually due to the high concentration of ➢ industries over a small area. ➢ heavy metal contamination from thermal power, tannery and mining activities has occurred in several locations www.cuidol.in Unit-7 (MBA605) All right are reserved with CU-IDOL

Agriculture 10 ❖ Agricultural activities and practices cause serious ecological problems due to large-scale destruction of forests; soil erosion; use of fertilizers, pesticides, insecticides etc. ❖ Land and water pollution due to agriculture are becoming increasingly serious. ❖ Construction of dams and irrigation practices have serious ecological impacts. www.cuidol.in Unit-7 (MBA605) All right are reserved with CU-IDOL

Agriculture ❖ Fertilizers, pesticides, insecticides, herbicides and weed killers are usually washed away from the fields into wate1r1 sources by rain and irrigation waters. ❖ The agricultural intensification and extensification has increase in cropping and irrigation intensity and the imbalanced use of chemical fertilizers, pesticides and insecticides leading to land degradation, overexploitation of underground water resources and increased use of chemical fertilizers, leading to eutrophication and water pollution. www.cuidol.in Unit-7 (MBA605) All right are reserved with CU-IDOL

Transportation 12 ❖ Use of fossil fuels by transportation and other activities is a major source of air pollution like carbon monoxide, sulfur dioxide, nitrogen oxides, hydrocarbons. ❖ Transportation is a major source of noise pollution too. According to some estimates, vehicle emissions are responsible for about 70 per cent of the country’s air pollution. www.cuidol.in Unit-7 (MBA605) All right are reserved with CU-IDOL

Urbanisation ❖ Indiscriminate urbanisation, by its very nature, is an important source1 3 of water, air, land and noise pollution. ❖ Water pollution caused by municipal sewage is serious problem across the world. ❖ In developing countries because of the pitiable state of waste management. ❖ Indian cities do not have adequate modern water supply and sewage treatment facilities. ❖ All major rivers are heavily polluted by the sewage discharged from cities and towns. www.cuidol.in Unit-7 (MBA605) All right are reserved with CU-IDOL

Mining and Quarrying 14 ❖ Mining and quarrying leads to water pollution, land pollution, upsets the ecology with acid wastes, silt and other contaminants. ❖ Severe ecological damage is an inevitable by-product of mining. ❖ Mining activity often leads to environmental problems like land degradation, particularly in open-cast mining and land subsidence in underground mining. ❖ Open-cast mining in areas with forest cover causes deforestation. ❖ Pollution, due to mining reached alarming proportions, because of over-exploitation and mismanagement of natural resources www.cuidol.in Unit-7 (MBA605) All right are reserved with CU-IDOL

Households 15 ❖ Households are an important source of waste production. A significant share of the urban pollution is the contribution of households. ❖ Widespread use of plastics and other biologically non-degradable materials by households and organisations of all types is a serious environmental problem. ❖ A Ministry of Environment and Forests’ publication points out that the household sector is the second largest consumer of energy in India after the industrial sector. ❖ A considerable amount of air pollution results from burning of fossil fuel. ❖ Use of solid fuel (wood, animal dung, crop residue/grasses, coal, and charcoal) exposes people to high levels of toxic air pollutants, which result in serious health consequences like TB , acute respiratory infections, chronic obstructive pulmonary disease, asthma, lung cancer, ischaemic heart disease and blindness www.cuidol.in Unit-7 (MBA605) All right are reserved with CU-IDOL

Increasing Pollution Levels ❖ “Unable to improve its air quality, protect its biodiversity, and cut its greenhouse gas emissions, India... 1 6 stands today at the bottom of the Global Environment Performance Index (EPI) rankings. In 2016, the country had ranked 141 out of 180 countries. ❖ In 2018, according to the... State of India’s Environment (SoE) 2018 in Figures, it has slipped to the ❖ 177th position.” SoE 2019 points out that India scored 5.75 out of 100 in air quality. www.cuidol.in Unit-7 (MBA605) All right are reserved with CU-IDOL

Soil Erosion and Pollution 17 ❖ The indiscriminate use of agrochemicals, such as fertilizers and pesticides, is often responsible for land degradation. ❖ Soil texture, infiltration and permeability characteristics are affected adversely to a considerable extent due to excessive grazing, fire and mismanagement of land under cultivation. It is estimated that one-sixth of the world’s soil has already been degraded by water and wind erosion. ❖ According to the statistics cited in SERI 2009, in India, approximately 45 per cent of the total geographical area is affected by serious soil erosion through ravines and gullies, shifting cultivation, cultivated wastelands, sandy areas, deserts and waterlogging. Unit-7 (MBA605) All right are reserved with CU-IDOL www.cuidol.in

Industrial Pollution 18 ❖ The gravity of the industrial pollution has been severely aggravating. ❖ It is reported that there was a 56 per cent increase in the number of hazardous waste generating industries between 2009 and 2016-17. ❖ At the same time, most of these industries are not properly maintaining their waste inventory, as mandated by the law. ❖ According to SoE, between 2011 and 2018, there was a substantial increase (136 per cent) in the number of grossly polluting industries and they are causing severe water pollution. www.cuidol.in Unit-7 (MBA605) All right are reserved with CU-IDOL

Air Pollution 19 All right are reserved with CU-IDOL ❖ Fine particles or microscopic dust from coal or wood fires and unfiltered diesel engines are rated as one of the most lethal forms of air pollution caused by industry, transport, household heating, cooking and ageing coal or oil-fired power stations. ❖ SERI 2009 observed that, according to reports, India’s urban air quality ranked amongst the world’s worst. ❖ The State of India’s Environment Report 2019 (SoE 2019) brought out by the Centre for Science and Environment, New Delhi, states that air pollution is responsible for 12.5 per cent of all deaths in India. www.cuidol.in Unit-7 (MBA605)

Sanitation 20 All right are reserved with CU-IDOL ❖ SoE 2019 points out that, although 72.1 million individual household toilets in rural India have been constructed under the Swachh Bharat. ❖ In 2017-18, states have used just 1.3 per cent of the funds for carrying out IEC (Information, ❖ Education and Communication) activities to raise awareness in rural areas. ❖ The situation in urban areas is worse, according to CSE’s water and sanitation experts, with close to a million households waiting for over six months for toilets to be constructed. www.cuidol.in Unit-7 (MBA605)

Urbanisation 21 ❖ SoE 2019 observes that by 2050, India is projected to add 416 million urban dwellers to the world’s urban population and will be home to about 58 per cent of the total global population. ❖ Most urban cities have a sizeable population living in slums, which are unfit for habitation. ❖ India has 2,613 towns with slums. Of them, 57 per cent are in Tamil Nadu, Madhya Pradesh,Uttar Pradesh, Karnataka and Maharashtra. www.cuidol.in Unit-7 (MBA605) All right are reserved with CU-IDOL

Climate Change 22 ❖ The rural population, in particular, depends on climate sensitive sectors (agriculture, forests and fisheries) and natural resources for their subsistence and livelihoods. ❖ Climate change is likely to impact all the natural ecosystems as well as socio-economic systems. ❖ According to SoE 2019, there has been a 22 per cent increase in India’s greenhouse gas (GHG) emissions between 2010 and 2014 www.cuidol.in Unit-7 (MBA605) All right are reserved with CU-IDOL

Water Pollution ❖ SERI 2009 pointed out that water pollution is a serious problem in 23 India as almost 70 per cent of its surface water resources and a growing percentage of its groundwater reserves are contaminated by biological, toxic, organic and inorganic pollutants. ❖ Rapidly depleting groundwater table, the country faces another major problem on the water front — groundwater contamination — a problem which has affected as many as 19 states. ❖ All of India’s fourteen major river systems are heavily polluted, mostly from the enormous quantities of untreated sewage discharged into them each year. www.cuidol.in Unit-7 (MBA605) All right are reserved with CU-IDOL

Acid Rain 24 All right are reserved with CU-IDOL ❖ Acid rain is the direct consequence of air pollution caused by gaseous emissions (carbon monoxide, Sulphur dioxide and nitrogen oxides) from industrial sources, burning of fuels (thermal plants, chimneys of brick-kilns or sugar mills.) and vehicular emissions. ❖ The most important effects of acid rain are damage to freshwater aquatic life, vegetation and damage to buildings and material. www.cuidol.in Unit-7 (MBA605)

Noise Pollution 25 ❖ Noise has been recognized as a pollutant. The Central Pollution Control Board (CPCB) notified the ambient noise standards, in 1987 under section 20 of the Air (Prevention and Control of Pollution) Act, 1981. Surveys have shown that for residential areas, average noise level exceeds the day as well as night time limit for major cities. www.cuidol.in Unit-7 (MBA605) All right are reserved with CU-IDOL

Solid Waste 26 ❖ The Energy Research Institute (TERI) estimated that this could well touch 260 million tonnes per year by 2047. (Municipal solid waste is solid waste generated by households, commercial establishments and offices and does not include the industrial or agricultural waste). ❖ Plastics and other biologically non-degradable substances are piling up dangerously in and around cities and other places. www.cuidol.in Unit-7 (MBA605) All right are reserved with CU-IDOL

E-Waste ❖ In India. India too, e-waste increase manifold and the problem is further increasing very fast. The unorganized 2 7 recycling sector which fails to practice eco-friendly. E-waste recycling methods release large amount of toxic chemicals. The toxic gases and the large volume of electronic waste adds to environmental pollution. www.cuidol.in Unit-7 (MBA605) All right are reserved with CU-IDOL

Health Problems 28 ❖ Air quality is deteriorating especially in metropolitan cities, mainly due to vehicular emissions. ❖ The toxicology of air pollution is very complex as there are different types of pollutants affecting the individual differently. ❖ SoE 2019 points out that the country shares the world’s largest absolute burden of at least 11 major neglected tropical diseases, which includes diseases like dengue. ❖ The SoE observes that India’s rural health infrastructure is ailing. There is a 35 per cent shortfall in the number of 24 × 7 public health centres. www.cuidol.in Unit-7 (MBA605) All right are reserved with CU-IDOL

Mining Pollution 29 ❖ Mining, apart from being an important source of water pollution, contributes significantly to land pollution as well, for it upsets the ecology with acid wastes, silt and other contaminants. ❖ Mining activity often leads to environmental problems like land degradation, particularly in open-cast mining and land subsidence in underground mining. Open-cast mining in areas with forest cover causes deforestation. www.cuidol.in Unit-7 (MBA605) All right are reserved with CU-IDOL

Pollution in Developing Countries 30 ❖ Use of obsolete production devices and processes in certain areas. ❖ Reluctance on the part of industrialists and other offenders to employ pollution control devices. ❖ Poor maintenance of automobiles. ❖ Overcrowding and congestion in urban areas. ❖ Lack of civic consciousness because of the absence of proper environmental education. www.cuidol.in Unit-7 (MBA605) All right are reserved with CU-IDOL

Pollution in Developing Countries 31 ❖ Absence of proper spatial and environmental planning in respect of the location of industries and power and irrigation projects, urban development and agricultural operations. ❖ Use of improper inputs like low quality fuel, which causes more pollution. ❖ Lack of effective legislative measures to control and prevent environmental destruction. ❖ Inefficiency in the administration of existing safeguards. www.cuidol.in Unit-7 (MBA605) All right are reserved with CU-IDOL

Changing Role of Government 32 ❖ Revisiting the Policy and Legislative Framework.- ❖ Ministry of Environment and Forest and Climate Change ❖ National Environment Policy. ❖ Measures for Protection of Environment.(Direct Regulation) Under direct regulation, the concerned authority passes laws and regulations specifying anyone or more of the following: 1. Maximum level of pollutants that may be legally discharged; 2. Types of pollutants that may be discharged; 3. The type of production process that may be employed; 4. The type and quality of inputs used; 5. The type of pollution control techniques or devices that should be employed. ❖ Subsidisation. ❖ Economic Incentives. www.cuidol.in Unit-7 (MBA605) All right are reserved with CU-IDOL

Long-term Measures 33 ➢ Control of Population. ➢ Development of New Technology. ➢ Relocation of Economic Activities. ➢ Decentralisation and Dispersal of Industrial Activities. ➢ Restructuring Tastes and Preferences. ➢ Legal Measures www.cuidol.in Unit-7 (MBA605) All right are reserved with CU-IDOL

The Water (Prevention and Control 34 of Pollution) Act, 1974 : ❖ A Central Pollution Control Board (CPCB) at Central Government level and State Pollution Control Boards ❖ (SPCB) at the State Government level were established. ❖ The responsibilities of the Central Board in promoting pollution abatement included coordinating activities of State Boards and resolving dispute among them, providing technical assistance, conducting investigations, opening laboratories for analysis of samples, establishing fees for different types of sample testing, researching issues and problems, training personnel, conducting media and public awareness campaigns, collecting and disseminating data on water pollution and working with State Boards to set standards. ❖ The State Boards undertake plant-level inspections and monitoring, and advise the Central Board of problems and trends at the local level www.cuidol.in Unit-7 (MBA605) All right are reserved with CU-IDOL

Air (Prevention and Control of Pollution) 35 Act, 1981 ❖ Under the provisions of this Act, which provides for the prevention and control of air pollution and preservation of air quality, the CPCB is authorized to develop national standards for quality of air and devise means to prevent, control and abate pollution. ❖ The State Pollution Control Board will advise the State Government with regard to the suitability of location for establishing any industry that is likely to cause pollution. ❖ The Central Pollution Control Board (CPCB) is the national apex body for assessment, monitoring and control of water and air pollution. ❖ The CPCB advises the Central Government in all matters concerning the prevention and control of air, water and noise pollution and provides technical services to the Ministry for implementing the provisions of the Environment (Protection) Act, 1986 www.cuidol.in Unit-7 (MBA605) All right are reserved with CU-IDOL

National Green Tribunal Act, 2010 36 and National Green Tribunal ❖ National Green Tribunal Act, 2010 is an Act of the Parliament of India which enables creation of a special tribunal to handle the expeditious disposal of the cases pertaining to environmental issues. ❖ The NGT is a specialized body equipped with the necessary expertise to handle environmental disputes involving multidisciplinary issues. www.cuidol.in Unit-7 (MBA605) All right are reserved with CU-IDOL

Impact of Environmental Regulations on 37 Business ❖ Business units will not be able to function in future unless they abide by environment protection norms. ❖ Firms shall strive to use technologies with no or least technology. ❖ Environmental Impact Assessment shall be an essential component of project evaluation. ❖ Companies have put in place a proper Environmental Audit System. ❖ To reduce the environmental impacts, firms shall adopt the 4Rs (Reduce, Reuse, Recycle and Regenerate). ❖ Companies with proper environment management are likely to enjoy some competitive advantage because it provides social acceptance, long-term efficiency and sustainability www.cuidol.in Unit-7 (MBA605) All right are reserved with CU-IDOL

MULTIPLE CHOICE QUESTIONS 1) Urban population of India is larger than the total population of? 38 A) All countries except China C) All countries except USA and China B) All countries except USA D) All countries except USA and China 2) The national body established in 2010 for effective and expeditious disposal of cases relating to environmental protection is A) Central Pollution Control Board C) National Green Tribunal B) Central Pollution Control Council D) National Pollution Control Court 3) According to the 2011 Census, the share of urban population in the total population of India was about: A )31 per cent C) 45 per cent B) 23 per cent D) 17 per cent 4) The nodal agency for overseeing the implementation of India’s environment related policies and programmes is A) Ministry of Environment and Forest and Climate Change C) Ministry of Environment and Natural Resource B) Ministry of Environment and Forest D) Ministry of Environment Answer:1 (a) , 2 (c), 3 (a), 4(a) www.cuidol.in Unit-7 (MBA605) All right are reserved with CU-IDOL

SUMMARY ❖ Pollution is the introduction of contaminants into the natural environment that cause adverse change. 39 Pollution can take the form of chemical substances or energy such as noise, heat or light. ❖ Acid rain is the direct consequence of air pollution caused by gaseous emissions (carbon monoxide, Sulphur dioxide and nitrogen oxides) from industrial sources, burning of fuels (thermal plants, chimneys of brick-kilns or sugar mills and vehicular emissions. ❖ National Green Tribunal Act, 2010 is an Act of the Parliament of India which enables creation of a special tribunal to handle the expeditious disposal of the cases pertaining to environmental issues. www.cuidol.in Unit-7 (MBA605) All right are reserved with CU-IDOL

FREQUENTLY ASKED QUESTIONS Q1. Define pollution. Why the problem pollution is very serious in developing countries 40 Ans. Pollution is the introduction of contaminants into the natural environment that cause adverse change. Pollution can take the form of chemical substances or energy such as noise, heat or light. Industrialization, Agriculture, Transportation, Urbanisation. For further detail refer to the SLM unit-10. Q2. Write a note on National Green Tribunal Act, 2010 and the National Green Tribunal. Ans: National Green Tribunal Act, 2010 is an Act of the Parliament of India which enables creation of a special tribunal to handle the expeditious disposal of the cases pertaining to environmental issues. For further detail refer to the SLM unit -10 www.cuidol.in Unit-7 (MBA605) All right are reserved with CU-IDOL

REFERENCES 41 ❖ Baumel, W.J.,A.S. Blinder and W.M.Scarth (1985), Economics:Principles and Policy, Academic Press Canada, Toronto, Chapters-26, 34, 38, 40 and 41. ❖ Planning Commission, (1997) Approach paper to the Ninth Five Year Plan, Government of India, New Delhi Chapter-1. ❖ Swamy, D.S. (1994), The Political Economy of Industrialization, Sage Publications, New Delhi, Introduction, Chapter-1, and Conclusion. ❖ Dasgupta, A and Sengupta, N.K. 1989 Government and Business, Vikas Pulishing House, New Delhi. ❖ Nadkarni, M.V., A.S. Seetharamu and Abdul Aziz, 1991, India – The Emerging Challlenges, Sage India. ❖ Krishna, Sumi, 1996, Environmental Politics, Sage India. www.cuidol.in Unit-7 (MBA605) All right are reserved with CU-IDOL

42 THANK YOU For queries Email: [email protected] www.cuidol.in Unit-7 (MBA605) All right are reserved with CU-IDOL