(17E00302) GREEN BUSINESS MANAGEMENT

Objective: The objective of the course is to impart students in understanding of

green business, its advantages, issues and opportunities and to provide
knowledge over the strategies for building eco-business.

1. Introduction to Green Management: The Concept of Green Management;

Evolution; nature, scope, importance and types; Developing a theory; Green
Management in India; Relevance in twenty first century.
2. Organizational Environment; Indian Corporate Structure and Environment;
How to go green; spreading the concept in organization; Environmental and
sustainability issues for the production of high-tech components and materials,
Life Cycle Analysis of materials, sustainable production and its role in
corporate environmental responsibility (CER).
3. Approaches from Ecological Economics; Indicators of sustainability; Eco-
system services and their sustainable use; Bio-diversity; Indian perspective;
Alternate theories
4. Environmental Reporting and ISO 14001; Climate change business and
ISO 14064; Green financing; Financial initiative by UNEP; Green energy
management; Green product management
5. Green Techniques and Methods; Green tax incentives and rebates (to green
projects and companies); Green project management in action; Business
redesign; Eco-commerce models
Text Books:
 Green Management and Green Technologies: Exploring the Causal
Relationship by Jazmin SeijasNogarida , ZEW Publications.
 The Green Energy Management Book by Leo A. Meyer, LAMA books

References:
 Green Marketing and Management: A global Perspective by John F.
Whaik, Qbase Technologies.
 Green Project Management by Richard Maltzman And David Shiden,
CRC Press Books.
 Green and World by Andrew S. Winston, Yale Press B

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 UNIT-1
INTRODUCTION TO GREEN MANAGEMENT

THE CONCEPT OF GREEN MANAGEMENT

Green Management is an initiative aiming at continuously improving the
foundation of environmental management, such as the development of
personnel responsibilities for environmental activities, management systems and
conservation of biodiversity. Green Management is the assurance to a healthy
future generation. Everyone has to give its contribution to achieve a GREEN
system and it should start with multiple awareness programs.

MEANING
Green Business is a business that has no negative impact on the global/local
environment, community, society, or economy.
A green Business strives to meet the triple bottom line, which indicates to
conserve “People, Planet & profit.”

“Green Business” is also known as “Sustainable business" which means to

maintain the natural resources on earth forever. Green Business adopts

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principles, policies and practices that improve the quality of life for their
customers, employees and environment.
There are a limited amount of resources on earth which are exploited everyday
to produce houses, cars, computers etc. We must act responsibly so that the
resources on the planet will be able to support many generations to come.

A sustainable business is a business that “meets the needs of the present (world)
without compromising the ability of future generations to meet their own
needs”. A Sustainable business must meet customer needs while, at the same
time, treating the environment well.

For example, plastic introduced in the early 1990’s and is a mass production
item today & occupies a lot of space on earth. Plastic takes millions of years to
decompose. So, use of plastic is unsustainable consumption.

In general, business is described as green if it matches the following four

criteria:

1. It incorporates principles of sustainability into each of its business

decisions.
2. It supplies environmentally friendly products or services that replace
demand for non green products and/or services.
3. It is greener than traditional competition.
4. It has made an enduring commitment to environmental principles in its
business operations

The “vision” of Green Management system is to decrease global warming,

increase ground water level, to make green world and to conserve the
humanity.

DEFINITION: According to Brown and Ratledge, "Green Management is

defined as an establishment that produces green output."

Green management is not a concept describing new business management style.

Green management describes the construction of businesses. In other words,
business management styles focus on the planning, recruiting, controlling,
utilization of competent and talented employees to produce profits on behalf of

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the green business. The reliance on expertise, quality of customer service, and
quality of the product service is no longer enough. Businesses nowadays are
downplaying the message of profit-hungry and communicating the message of
being environmentally conscious. In other words, businesses are expressing
through actions that not only being environmental friendly is necessary, but also
preserving the environment is paramount. It is a win-win situation where
businesses can grow and give back.

Hence, going green, in the long run, pays off through tax incentives and the
values of green management implementations. Green businesses adopt
principles, policies and practices that improve the quality of life for their
customers, employees and environment. The concept of green management
consists of three components: green building, green energy, and green waste.

The Common Characteristics of green companies are:

1. To minimize the use of plastic material.
2. Use recyclable packaging materials.
3. Recyclable papers
The Importance of green management is:
1. To reuse wastage of resources.
2. To reduce degradation of environment
3. To save the scarce resources for future generation.

EVOLUTION OF GREEN MANAGEMENT

The evolution of Green movement and green politics began in the late 1970’s,
when the first Green party was formed in Germany. The term ‘Green’ is the

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English translation of the German word ‘Grun’. Green politics advocated issues
pertaining to ecology, environment, feminism, conservation and peace. A part
from all this, the supporters of green politics were also concerned with civil
liberties, non-violence, and social justice. Hence, green politics came to be
known for ecological and environmental goals during the 1970’s. In 1980’s, the
“Green parties” were active in several countries. It is believed that “Green
politics” draws its inspirations from Gandhi, Rousseau & Thoreau.
(philosophers) . In 1972, the first green party named united Tasmania Group
formed in Australia. Later in UK’s Ecology party was established, the first
green party in Europe. In 1980’s & 1990’s, several other countries such as
Canada, Finland and the U.S. witnessed the formation & growth of green
parties.

In 1995, the international Organization for standardization defined new

standards in Geneva. In 1996, Publication of ISO 14000 introduced. In 2000,
First thoughts to improve ISO 14000 started. Then finally in 2004, New ISO
14001 standard was officially published.

The proponents of green politics support several issues, one of the most
important being “Green Economics”. Green Economics emphasizes on the
significance of the health of the environment along with the human well-
being. The supporters on green politics support economic policies that are less
harmful to the environment. They denounce subsidies to certain industries and
propose green-tax on these industries, thus forcing producers and consumers to
make eco-friendly choices.

NATURE OF GREEN MANAGEMENT

The Nature/Characteristics of Green Management are described as follows:

1. Nature-based Knowledge and Technology: It refers to gaining of nature
based knowledge and technology through various ways like growing organic
people’s food, harnessing their energy, constructing green things, conducting
green business, processing information and designing their sustainable
communities with new technology.

2. Products of services to products of consumption:

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 Products of service (Reusable/Recycle) are durable goods routinely leased
by the customer that are made of technical materials and are returned to the
manufacturer and re-processed into a new generation of products when they
are worn out. (The products are mostly non-toxic to human and
environmental health but toxic materials that are used will be kept within a
closed loop type system and not be able to escape into the environment.)
 Products of consumption (naturally decomposed on earth) are shorted
lived items made only of biodegradable materials. They are broken down by
the detritus organisms after the products lose their usefulness. (These are
also non-hazardous to human or environmental health).
 This principle requires that we manufacture only these two types of products
and necessitates the gradual but continual reductions of products of service
and their replacement with products of consumption as technological
advancements allow.
Finally there is no waste remain on earth.

3. Solar, Wind, Geothermal and Ocean energy: This characteristic advocates

employing only sustainable/renewable energy technology like solar, wind,
ocean and geothermal- that can meet human beings energy needs indefinitely
without negative effects for life on earth.

4. Local - Based Organizations and Economies: This characteristic includes

durable, beautiful and healthy communities with locally owned and operated
businesses and locally managed non-profit organizations, along with regional
corporations and shareholders working together in a dense web of partnerships
and collaborations.

5. Value production: The triple value production establishes three

simultaneous requirements of sustainable business activities as:
i. Financial benefits for the company.
ii. Natural world betterment.
iii. Social advantages for employees and members of the local community-
with each of these three components recognized as equal in status.

6. Continuous Improvement Process: (to intensify value production)

The continuous improvement in operational processes like monitoring,
analyzing, redesigning and implementing of green business in any

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 successful organizations occurs continuously for constant advancements
and upgrade in business activities.
According to the change in the conditions, new opportunities emerge
continuously.
SCOPE OF GREEN MANAGEMENT:

1. Green foods: Green Business ideas allow people to grow garden parks or
small seeded trays. Green foods are an extremely important part of a healthy
diet. There are numerous options to choose from and they can easily be
incorporated into meals.
2. Green consulting: An increasing number of individuals, families and
business are starting to look for ways to reduce the carbon footprint and
decrease their use of the earth's resources.
3. Green Vehicles: Green Vehicles are nothing but clean vehicles or eco
friendly vehicles or environmentally friendly vehicles which produce less
harmful impacts to the environment than the conventional one's which run on
Diesel or gasoline or some other.
i. Fuel Efficient Cars
ii. Alternative Fuel Vehicles
iii. Hybrid Electric Cars
iv. Electric Vehicles
5. Green appliances: The more efficient the appliance, the less energy it
will use. Lower energy use, means less pollution.

IMPORTANCE OF GREEN MANAGEMENT

1. Reduced Energy Use: Green Management often include measures to reduce

energy use by increasing the efficiency of the organization building envelope

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 by using renewable efficiency windows, doors, ceilings and floors.
2. Cost Saving: Companies that focus on reducing energy consumption not
only help the environment but also reduce their costs in the form of lower
energy bills. Smaller businesses can also benefit from reduced energy costs
by taking simple steps like switching off lights and fans when they are not
required for usage.

3. Healthier Workplace: Companies that promote a healthier workplace have

a decrease in the number of sick days used by employees. This benefits the
companies through increased productivity and less money paid out through
medical benefits.
4. Reduced Waste: Green Management also seeks to reduce waste of energy,
water and materials in many ways like; in construction phase to reduce the
amount of materials going to landfills; By collecting human waste at the source
and running it to a semi-centralized bio-gas with other biological waste, liquid
fertilizer can be produced.
5. Tax Credits: Tax Credits are available to companies that utilize
environmentally friendly business practices such as switching to renewable
energy source like solar power and using electric or hybrid automobiles and
trucks as fleet vehicles.
6. Decreased Productivity: If any organization adds green process, company can
see a slight decrease in worker productivity because green process like
recycling requires lot of human resources to segregate waste and it takes lot of time.
7. Improved Public Image: Anytime companies can add a green initiative to the
workplace. Companies can use the event to generate positive public relations.
They can also include green initiatives on product packaging, advertisements
and marketing materials to appeal to consumers who prefer green products.
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8. Increased Capital Outflows: Green conversions in business require initial
cash investments but finally this can increase the company’s earnings on
annual profits.
9. Increased Business Opportunities: Some Government agencies, Commercial
businesses and non-profit institutions mandate that only businesses that meet
specific green standards can bid on their contracts. Not all standards are
government mandated with the office of the management and budget directing
federal agencies to look for companies that meet voluntarily rather than
Government standards when possible.
10.Green businesses are socially and environmentally responsible: Green
companies adopt principles and practices that protect people and the planet.
They challenge themselves to bring the goals of social and economic justice,
environmental sustainability, as well as community health and development,
into all of their activities-from production and supply chain management to
employee relations and customer service.
11.Green businesses care for their workers:
Green businesses ensure they don’t use child labor. Everyone who works
directly for them or their suppliers earns a living wage and works in healthy
conditions. They create jobs that empower workers and honor their humanity.
They also serve as models in the transformation of our society that is socially
and environmentally sustainable.
12.Green businesses protect their customers and clients:
Green businesses ensure that they use the safest ingredients, to keep their
customers and clients and their families healthy. They also provide green living
alternatives to improve quality of life, with products and services that help in
areas like affordable housing, sustainable agriculture, education, clean energy
and efficiency, fair trade, healthy air, clean water, and more. They follow the
green strategy -reduce, reuse and recycle, which sets as a good example.
13.Green businesses improve their communities: Green businesses improve
their communities by controlling the pollution, by creating healthy
environmental conditions, bring respect and dignity to their employees and the
wider neighborhood.

TYPES OF GREEN MANAGEMENT

1. Green Supply Chain Management (GSCM): It can be defined as

integrating environmental thinking into supply-chain management, including
product design, material sourcing and selection, manufacturing processes,
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delivery of the final product as well as end-of-life (management of the product
after its useful life).This concept gains popularity because the customers are
concerned with environment improvement which encourages the supplier to
make environment friendly product.
Companies which adopted Green Supply Chain Management are British
Telecom, Nike, Toyota and so on.

2. Green Marketing: It refers to the process of selling products and/or services

based on their environmental benefits. Such a product or service may be
environmentally friendly in itself or produced in an environmental friendly way,
such as: Being manufactured in a sustainable fashion.
Green Marketing incorporates a broad range of activities including product
modification, changes in production and packaging.
E.g., Bank of America reduced Paper usage by 32%
3. Green Production: It is a business strategy that focuses on profitability
through environmentally friendly operating processes. With this type of
production we could reduce all the harmful pollution to the environment and
also reduce the cost from their starting step to finished product.
Companies that follow Green Production are: IKEA - Using Solar & Wind
Energy, Nike - Using recycled aluminum frames and underground energy
storage
4. Green Research and Development: With only proper Research and
Development the customer can provide a suitable product.

Eg., Volkswagen Creating cars which follows environmental and safety

standards to reduce carbon emissions.
5. Green Criminology: It is a branch of criminology that involves the study of
harms and crimes against the environment broadly conceived, including the
study of environmental law and policy, the study of corporate crimes against the
environment and environmental justice from a criminologist perspective.
Criminology is referred to the study of Crime and Criminals whereas Green is
related to environment issues.
Some of the Green Crimes are Deforestation, Animal Trafficking, Cutting of
Shark fins for trading.
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6. Green Human Resource Management:
The term Human Resource refers to the contribution of Human resource
policies and practices towards the broader corporate environmental agendas of
protection, prevention and conservation of natural resources.
Benefits of green HRM:
 Improve the health of workforce.(for example: car sharing, public transport
etc.,)
 By creating Motivation to employees.
 It Create competitive advantage.
 The Green HRM may also help the employers, manufacturers in building
brand image and reputation.
 Organizations have huge growth opportunities by being green and creating a
new friendly environment which helps in enormous operational savings by
reducing their carbon footprint.
 Helps in achieving higher employee job satisfaction and commitment which
leads to higher productivity and sustainability.
 Create a culture of having concern for the wellbeing and health of fellow
workers.
 Improvement in the retention rate of the employee.
 Improved public image.
 Promote employee morale.
 Reduction in the environmental impact of the company.
 Reduction of utility costs significantly. Even small businesses can
significantly reduce their utility costs by using technologies that are energy-
efficient and less wasteful.
 Rebates and Tax Benefits. Going green is easier with the assistance of
governments, local municipalities, Water supply authority, and electric
companies that offer tax incentives and rebates.
 Reduction of environmental damage by Encouraging employees, through
training to find ways to reduce the use of environmentally damaging
materials.

DEVELOPING A THEORY
In the 1960’s there was public recognition of the global environmental crisis
arising from the “tragedy of the commons”, which is the idea that as self-
interested individuals/humans will overuse shared resources such as land, fresh
water, fish etc.,. In the 1970’s the first United Nations conference on the subject
was held. In the 1980’s “green political parties” and “public policies” had
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 emerged. This coincided with a demand for a green theory to help explain &
understand these political issues. By the 1990’s international relations has come
to recognize the importance of natural environment. By the end of twentieth
century, a growing body of green IR theory had emerged that called into
question some of the basic assumptions, units of study, frameworks of analysis,
and implicit values of the discipline of IR (International relations).

THE EMERGENCE OF GREEN THEORY:

 Environmental degradation caused by human activity has a long & complex
history. However, until the period of European global expansion and the
industrial revolution, environmental degradation generally remained uneven
& relatively “localized”.
 The ‘modern ecological crisis’ emerged only in the latter half of the
twentieth century.
 The United Nations environment program’s millennium ecosystem
assessment, completed in March 2005, found that approximately 60% of the
ecosystem services that support life on earth are being degraded or used
unsustainably.

Green political theory has two branches

Normative branch Political Economy branch

i. Normative branch is concerned with questions of Justice, Rights,

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 Democracy, Citizenship, the state, and the environment.
ii. Political Economy Branch is concerned with understanding the
relationship between the state, the economy & the environment.

 The background challenge in green theory is to fit between people & their
environment which brings up the topic of positive and a negative theory
which has been arise as Healthy & Unhealthy, have seemed to replace the
theology of good & evil.
 Public health with prevention & health promotion are more consistent with
green theory too.
 Green theory does not always distinguish public space from private space.
As for political ideologies and green theory, Timothy O’ Riordan (1990) in
“Major Projects and the Environment” in Geographical Journal, indicates
there to be “dry greens” (perhaps conservative and market centered). This, of
course, may be an oversimplification. Dry Green may be the least
appreciated environmentalists and might not even be given that title.
However, a very good economic treatment is given in “The Plundered
Planet” by Paul collier (2010), Collier may put the plight of the bottom
billion (poorest and worst off people) on the planet above environmentalism.
 He believes protecting the viability of the planet and the bottom billion are
equal to the top billion. How that works out is challenging. If the planet does
need a billion less people, then there is no agreed upon way of choosing.
 Market solution would include rising food prices and only those with ability
to pay survive. Each culture, religion, and academic discipline has developed
and produced different solutions to be “Who survies?” conundrum.

GREEN MANAGEMENT IN INDIA:-INITIATIVES

TOWARDS GREEN MANAGEMENT
The companies themselves are now more aware about the ways in which
their factories often affect the ecosystem and have taken a greener path to
success. With India making rapid progress in the field of industrialization,
concerns have also been made by various sections of environmentalists
regarding the repercussions on the environment.
Here are the top ten green companies in India, showing the sustainability
path to others.
TOP 10 GREEN COMPANIES OF INDIA:
1. LG
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 2. HCL(Hindustan Computers Limited)
3. Haier
4. Samsung
5. Tata Consultancy Services (TCS)
6. Oil and Natural Gas Company (ONGC)
7. IndusInd Bank
8. ITC Limited
9. Wipro
10.MRF Tyres

1. LG: LG India has been a pioneer is making electronic gadgets that are eco-
friendly. Recently, it has launched a LED E60 and E90 series monitor for the
Indian market. Its USP is that it consumes 40% less energy than
conventional LED monitors. Also, they hardly used halogen or mercury,
trying to keep down the use of hazardous materials in their products.

2. HCL (Hindustan Computers Limited): HCL is another brand that is trying

to introduce eco- friendly products in the market and it has recently launched
the HCL ME 40 notebooks. These notebooks do not use any polyvinyl
chloride (PVC) material or other harmful chemicals and the Bureau of
Energy Efficiency already given it a five star rating.

3. Haier: Eco branding is a part of Haier’s new green initiative and they have
launched the Eco Life Series. They have semi automatic and automatic
refrigerators and washing machines, split and window air conditioners and a
lot more.

4. Samsung: Samsung India has always had a roaring range of LED TV

screens and now they have come up with eco- friendly LED backlight. They
use 40% less electricity have also no harmful chemicals like mercury and
lead.

5. Tata Consultancy Services: TCS has a globally recognized Sustainability

practice and has already topped the Newsweek’s top World’s Greenest
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 Company title. It also has a global green score of 80.4% and this has mainly
happened due their initiative of creating technology for agricultural and
community benefits.

6. Oil and Natural Gas Company: ONGC, India’s largest oil producer is all
set to change the way with the invention of green crematoriums that would
serve as a perfect replacement for the funeral pyres that emit so much smoke
and uses up excess oxygen.

7. IndusInd Bank: One of the first banks in India to discourage the use of
paper for the counterfoils in ATMs, and sending electronic messages, it has
contributed a lot towards saving paper and reducing deforestation.

8. ITC Limited: ITC has adopted a Low Carbon Growth Path and a Cleaner
Environment Approach and has already introduced ozone treated elemental
chlorine free bleaching technology that has improved the lives of millions
worldwide.
9. Wipro: Wipro, has not only helped in the creation of technology that helps
in saving energy and preventing wastes, but its corporate headquarters in
Pune is the most eco friendly building in this sector all over India.

10.F Tyres: MRF has launched the ZSLK series and this is all about creating
eco- friendly tubeless tyres made from unique silica- based rubber and also
offers extra fuel efficiency to those who drive their vehicles.

SOME OF THE ECO FRIENDLY PRODUCTS USED IN INDIA ARE:

 Cotton Shopping Bags
 Rechargeable Batteries
 Reusable Papers/Books
 Reusable Water Bottles
 Solar Powered Outdoors speakers
 Solar Phone Charges
 Eco Friendly Umbrella
 Led Bulbs
 Eco Friendly Chair
 Bio degradable pots
 Bamboo Desktop Dry erase board

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Although there is a lot of ground still to be covered, here have a look at
some of the success stories.
ACC CEMENTING THE FUTURE
Cement major ACC is a good case in point when it comes to green
building initiatives. Step into its Mumbai headquarters near Churchgate
and you will be hard-pressed to believe the building spread across 68,000
sq ft is 75 years old.
In 2009, the building received the LEED gold certification and 5-star
energy efficiency status from the Bureau of Energy Efficiency.

Another 50-year-old ACC building, the La Residency in Thane, and the Central
Control Room building inside its new Chandrapur cement plant received platinum
certification from the Indian Green Building Council. A fourth green building is under
construction in ACC's upcoming project in Jamul, Chhattisgarh.
According to ACC officials, the company has reduced its specific carbon
footprint by more than 33 per cent since 1990, and as per its Low Carbon
Technology Roadmap, this will further reduce by 20 per cent by 2040.

1.9 RELEVANCE OF GREEN MANAGEMENT IN TWENTY

FIRST CENTURY (OR) PRESENT STATUS OF GREEN
MANAGEMENT
Preparing new business leaders to adapt to green management will meet the
growing demand for –
1. Managers
2. Entrepreneurs
3. Leaders &
4. Professionals
Who are skilled at planning for the long term.
Already most of the business schools scramble to integrate sustainably studies
throughout their MBA curriculum to aware the students.
Most of the business worldwide is switching on to adopting green
philosophy in management function.

SOME REASON OR FORCES FOR DRIVING SUCH MOVEMENTS

ARE:
1. Corporate Social Responsibility: It is a management concept whereby
companies integrate social and environmental concerns in their business
operations and interactions with their stakeholders.

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2. International Standard Norm: The International Organization for
Standardization (ISO) is a specialized International agency for standardization
and at present comprises the national standard bodies of all 91 countries. It
facilitates International trade of goods and services. It obtains competitiveness
by obtaining required quantity in a cost effective way. It also promotes a single
third party assessment of quality standard.

3. Statutory Law: It is the law that's written by a legislative body. It's a law
that a government deliberately creates through elected legislators and an official
legislative process. Statutory Law is the term used to define written laws usually
enacted by legislative bodies.
4. Growth and Opportunity: With the sustainable practices there were a lot of
growth and opportunities which supports a strong economy, fiscal
accountability, competitive tax rates and domestic energy plan.
5. Competition: One of the major forces that strive to adopt green
management into their corporate structure was face overwhelming competition
and desires to maintain their competitive position in the market. Green practices
helps to maintain better brand and to create better image in the eye of the
society.
6. Improved Public Image: The perception people have of your business
when they hear your company's name; a business image is composed of an
infinite variety of facts, events, personal history, advertising and goals that work
together to make an impression on the public. The public image can be
improved by:

 Define your Brand

 Building an amazing website
 Value your employees and establish a healthy company culture
 Recycle, Reduce, Reuse
 expressing your company values
 Building trust and authenticity between your clients and your brand
 Focusing on creating high quality products or services.
7. Increases profit in the organization: A profitable organization is one that
generates more money than it expends. Profitable organizations are businesses
that use a variety of tactics to make a profit. Business may use different
managerial skills and leadership approaches to increase employee motivation
and satisfaction which has been shown to increase worker productivity
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calculating rate of investment will help business determine whether they are
generating a profit.
8. Better Employee Retention Rate: Employee retention refers to the various
policies and practices which let the employees stick to an organization for a
longer period of time. Every organization invests time and money to groom a
new joinee, make him a corporate ready material and bring him at par with the

existing employees. The organization is completely at loss when the employees

leave their job once they are fully trained. Employee retention takes into
account the various measures taken so that an individual stays in an
organization for the maximum period of time.
9. Stimulates Innovation: Innovation is the process of taking a creative idea
and turning it into a useful product, service, or method of operation. When
managers talk about changing organization to make it more creative, they
usually means that they want to stimulate innovation. As the leader you have
to be willing to go out and take some risks to inspire self confidence and
stimulate innovation from your team. Green Innovation can be used to achieve
CSR goals but can also take place without the existence of CSR Innovation.
Management is controlling and making decisions about Innovation process.

THE TOP EIGHT CHANGES IN COMPANIES DURING 21st

CENTURY:
1. Companies now see that sustainability can be a catalyst for innovation and
profit.
2. Companies’ success is dependent on their understanding of societal changes
and building sustainability-related solutions into their core business model.
3. Mainstream investors recognize that sustainability issues are no longer fringe
issues but are central to a business’s success.
4. Companies made compulsory to maintain environmental reporting.
Environmental reporting is the communication
of environmental performance information by an organisation to its
stakeholders.
5. Risk management must include societal/environmental changes that are
likely to impact or could possibly destroy their company, not just focus on
legal liabilities.
6. The intense focus on operational efficiency of companies to reduce waste.
7. Companies were focusing to hire excellent technical skills persons who were
able to decide the futuristic decisions of the company
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8. Innovation is happening rapidly, and the internet speeds up. It also
significantly changes the way information is exchanged and the ways
companies must respond to stakeholders.

ENTERING INTO THE NEW CENTURY

Few companies have fully integrated into their decision making regarding
sustainability processes to have a positive impact on environment. Sustainability
must shift from the drawbacks like risk management, environmental reporting,
and efficiency exercise to its rightful place as a main driver of innovation.

Sustainability focused innovation will enable companies to survive and thrive in

the complex decades to come. Example: Nike, Amazon, and IKEA are beating
the market by following the sustainability practices.

Don’t be stuck in the last century with outdated practices. Societal changes,
including changes in technology and business models, are creating opportunities
for businesses that develop breakthroughs. Putting concern for dramatic societal
changes and sustainability at the core of your innovation and corporate strategy
is critical. Move to the new century. That’s how every organization will
succeed.

TECHNICAL WORDS --GBM

 The “vision” of Green Management system is to decrease global
warming, protect the glacier (snow/ice) layer, increase ground water
level, to make green world and conserve the humanity.
 Develop Alternate energy resources.
 Develop automotive technologies.
 Develop waste disposal technologies.
 No negative impact on local or global environment, community, society,
or economy.
 Control carbon footprint emission (measured in terms of amount of green
house gases).
 Environment & Human right policies.
 Principles of sustainability / Green business profit.
 Three-legged stool-people, planet, profit.
 Atmosphere CO2 levels.
 Clean energy (solar, wind, geothermal etc.,)

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 Reduction of Greenhouse gases.

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 Less waste production.
 Non-hazardous to human & environmental health.
 Healthy communities.
 Going paperless.
 Electronic Goods.
 Renewable domestic energy.
 Eco friendly or environmental friendly products.
 Non toxic Packaging
 Training employee on green management.
 Healthy workers, Health air, clean water.
 Reduce, Reuse & Recycle, Repurchasing, Substitution of Materials.
 Improve Quality or life.
 Think globally & at totally.
 Green Theory.
 Vision-Global warming, present show /ice glacier) loyal, ground water
level, to make green world & conserve the humanity.
 Green tax, Green loans.
 The use of resources on earth.
 Environmental law & policy.
 Green Packaging
 Green Movement related to protection of environment & serves the
planet earth from future disasters
 Green supply chain Management –Green Extraction + Green
Manufacturing +Green Transportation +Green Use +Green Disposal.

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 UNIT-2
ORGANIZATIONAL ENVIRONMENT
INTRODUCTION TO ORGANIZATIONAL ENVIRONMENT

Organizational environment may be considered as a set of factors (Internal

and external factors) that influence the functioning & effectiveness of an
organization. Interacting & transacting with the environment is the basic need
of every business organization. Thus, there is a mutual interdependence between
organization & environment. The nature of organizational environment is ever
changing and unstable. The future of any organization is dependent and
determined by the relevant risks and opportunities. The risks and opportunities
are those factors which lie beyond the control of an organizations management
system. The customers, competitors, stakeholders, brokers, business trends,
policies, government activities, social and economic factors and technological
advancements are all the components of an organization which combine to form
the organizational environment.

DEFINITION:

According to Andrews, “The organizational Environment is the environment

of a company as the pattern of all external influences that affect its life and
development.”

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 According to W.F. Glueck and Lawrence R.Jauch, “The environment
includes factors outside the firm, which can lead to opportunities or threats to
the firm. Although there are many factors, the most important of these factors
are socio-economic, technological, supplier, competitors and government.”

FACTORS/COMPONENTSOFORGANISATIONAL
ENVIRONMENT:

1. Internal factors (environment) --within the organization; can be

controlled by organization and

2. External factors (environment)--outside of the organization; cannot be

controlled by organization
Components of Organizational Environment

Internal External
External environment
Internal environment
environment
Environment

1. Financial resources Micro/operating & Macro/general

environment environment
2. Physical and human resources

3. Objectives of business
1. Suppliers
4. Managerial policies
2. Customer
1. Economic
5. Morale and commitment
3. Market
of human 2. Political
intermediaries
6. Work environment 3. Socio-Cultural
4. Competitors
7. Brand and corporate image 4. Technological
5. Public
8. Labor management relationship 5. Natural

9. Technological and 6. Demographic

R&D capabilities

10. Promoters’ Vision

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NATURE OF ORGANISATIONAL ENVIRONMENT:

1. Environment is Inseparable from Organization:

 No organization can function without its environment –legal, political,

social, culture and economic environment.
 There is a mutual relationship between the organization and environment.
 Therefore, the success and failure of organization is influenced by the
changes in the environment.
 The enterprise/organization comprises of an interactive process which
collects the inputs like raw materials, capital, manpower, energy, etc., from
the environment, converts them into finished goods and returns them back
to the environment.

2. Environment is Dynamic:

 The environmental factors undergo changes according to the tastes and

preference of the customer, amendments made in the government policies,
up-gradation in technology, etc. All these factors affect the organization in
their decision-making process.
 Hence, the ability of adapting the changes and implementing them into
action leads to success and growth of the organization.

3. Organization Lacks Control over Environment: (We can influence

internal environmental factors but not external factors)

 Organizational environment keeps on changing continuously.

 Organization can influence the internal environment but not the external
environment.

4. Internal and External factors:

 There are internal and external factors which influence the organizational
environment.
 The factors such as organizational objectives, policies, staff members,
etc., combine to form the internal environment.
 The external environment comprises of micro and macro factors. The
micro factors involve consumers, competitors, suppliers, society, etc.
Macro factors include economic, legal, political, cultural, technological
and other external factors.

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5. Environment is complex and unstable in nature:

 There are several difficult situations in organizational environment which

the enterprise must be aware of and must make the best use of them.
 In comparison with the traditional form, the modern organization is much
more complex and unstable in nature.
 The scope and size of modern organization is as wider as its environment.
 The changes like increasing government interference and social awareness
unfavorably affects the organization.

6. Environment is Multifaceted: (positives and negative outcomes at a time to

people i.e., it may be opportunity to some and threat to others)

 There is always a positive and negative outcome to the changes made in

the environment.
 Different people perceive differently upon the changes.

7. Opportunities and Obstacles:

 The organizational environment is flexible in nature.

 Therefore, the business may act as an opportunity or an obstacle to
organization depending on the situation.
 Opportunity provides scope for expansion whereas obstacle curbs(stops or
decreases) growth of the organization.

8. Long Lasting Impact:

 Business can be affected by the environment either positively or

negatively.
 This can bring in a long lasting impact on the conduct of organizational
activities.
 Therefore, marketers undergo business analysis and diagnosis to identify
the strength and opportunities and formulate strategies and policies to
avoid risks and threats of the environment.

10. Uncertainty:

 There is always a possibility of frequent changes in the organizational

environment.
 These changes are highly uncertain.
 Thus, it becomes difficult for the business to forecast its future events.

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  The business must constantly keep a check on the environmental changes
in order to improve not just the present as well as its future performance.

IMPORTANCE OF ORGANISATIONAL ENVIRONMENT

The importance of organizational environment can be understood with the help

of following points:

IMPORTANCE OF ORGANISATION ENVIRONMENT

First Mover Advantage

Early Warning Signal

Customer Focus

Strategy Formulation

Change Agent
Continuous Learning

Directing Growth

Image Building

1. First Mover Advantage: The study of business environment helps an

enterprise to grab the early opportunities in the market. This allows the
enterprise to stay ahead from their competitors. For example, Maruti Udyog
took the first mover advantage and became the first manufacture of small
cars by identifying the need of middle class people, keeping in mind the
increasing rates of petrol.
2. Early Warning Signal: Environmental awareness helps the business
enterprise to take cautions steps to reduce the threats and issues. It acts as an
early warning signal to the business enterprise against upcoming threats.
3. Customer Focus: Business environment facilitates the company to cater the
changing tastes and preferences of the customers. For example, Hindustan
Unilever introduced shampoo in small sachets for lower class segment,
recognizing the interests of customers. This resulted in high sales volume
and customer loyalty.

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4. Strategy Formulation: The environmental analysis provides relevant
information regarding the business environment. The strategies utilize this
information in formulating market strategies and future plans. For example,
the study of business environment enabled ITC to recognize wide scope in
travel and tourism. This encouraged ITC to open new hotels in India and
abroad as well.
5. Change Agent: To survive in the market, business enterprises need to adapt
necessary changes occurring due to various environmental factors. Business
environment helps the managers to determine the nature and direction of
these changes by using different measures of environmental analysis.
Therefore, there is an organizational need to encourage staff participation in
decision making process to make prompt and correct decision.
6. Continuous Learning: Business executives need to be aware of the
environmental changes. This helps the executives to understand the
environment and apply the appropriate changes in an efficient manner.
Environment analysis is used to guide managers and executives in dealing
with the business challengers easily.
7. Directing Growth: The study of environment directs the company to
expand its boundaries for stating new ventures. This enhances growth and
development of business firms.
8. Image Building: Environmental understanding by the management builds
company’s positive image in the minds of the people. They feel that the
company is sensitive and responsive to their needs and problems. For
example, Big Bazaar responds to the changing customer needs and
environmental factors by selling goods and services at reasonable prices.

CHALLENGES OF ORGANISATIONAL ENVIRONMENT:

Organization environment is dynamic in nature. It varies continually. The

company should be ready to face internal and external market challenges. These
challenges can be

Challenges of Organizational Environment

Customer’s Need and

Economic and Demand
Market Conditions

Competitors
New Opportunities or Threats

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27
1. Economic and Market Conditions: There are various external factors
which adversely affect the business environment. The economic factors
such as government policies, economic system, economic structures,
business cycles, factor endowment, etc. helps to analyze the existing
market conditions and make reasonable changes. By doing this, business
firms can achieve maximum production at minimum cost.

2. Customer’s Need and Demand: Customer is the king of the market. The
first and foremost motive of the company is the satisfaction of its customers.
Traditionally, product-selling approach was used to create demand and
become a successful salesperson. But now days, salesperson have to identify
the demand, target the potential customers and sell the products which
satisfy the needs and wants of the customer.

3. Competitors: Competitors act as a motivator to all business firms. The

success and growth of a firm depends on the desirability to obtain high
targets with respect to its competitors to secure huge market share. The
company should focus on the choice of customers and provide the same
quality and quantity they want. The products offered by the firm should
always be better and reasonable from its competitors. Other than the choice
of a product, its promotion is also important. The promotion of a product
should be influential and attractive. The company can also offer festive
discounts and schemes in order to hike sales.

4. New Opportunities or Threats: Business firms come across various

opportunities and threats on a daily basis. This led the firms to discover and
grab new markets in order to increase their sales volume and profit margins.
Firms must take advantage of these opportunities because opportunities do
not wait for any strategy and plan formulation.

INDIAN CORPORATE STRUCTURE AND ENVIRONMENT

Corporate structure or organizational structure refers to how a business is
organized to accomplish its objectives. The Corporate structure of a business

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is important because it determines the ownership, control, and authority of the
organization. In a corporation, these characteristics are represented by three
groups: Shareholders, directors, and officers. Ownership belongs to the
shareholders; control is exercised by the board of directors on behalf of the
shareholders, while authority over the day-to –day operations is vested in the
officers.

ownership Control Authority

Share holders Directors Officers

Business has two relationships with natural environment. First, the environment
is the source of resources as raw material and secondly, it can cause damage to
the environment in the process of production. Industries can be seen as the
destroyer of the natural environment, as they bring economic prosperity but they
even increase the social cost. Therefore, the position is not very simple. Due to
the environmentalists and awareness about the degradation and the bad effects,
the businessmen cannot just escape from their responsibility. A Normal
Corporate Structure consists of various departments include marketing, finance,
operations, human resource and IT that contribute to the companies over all
mission and goals.

The Indian Business Environment has altered radically since 1991 with the
changes in the world. While befitting from decontrol and deregulation has now
begun to feel the effect of these changes, those most affected are the promoters
who are today threatened by the possibility of hostile takeovers. At the same
time, financial institutions, which have a significant stake in many companies,
have started demanding for better corporate governance.

It is a well known fact that the way to growth is either through Greenfield
expansions leading to Organic growth in one's own unit or Brownfield
expansions leading to inorganic growth.

Green field Organic growth

Brown field Inorganic growth

Since the world is moving at a rapid pace and corporate are in a hurry to expand
restructuring is the name of the game all over the globe. Indian companies too

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have learnt that this faster mechanism of intensification. Restructuring through
amalgamation and acquisitions if suitably chosen and implemented can permit
an organization to leaping into a novel orbit of markets, customers, products and
technologies almost overnight. Changes in the business environment ensuring
from liberalization and globalization have contributed to dynamism in the
Indian Economy. The new environment poses challenges to the methods of
operations practiced under the controlled economy.

Conceptual scaffold for corporate restructuring and reorganization

consists of the following:
a) Management of Assets
b) Construing new ownership relationships
c) Reorganizing financial claims
d) Corporate strategies
e) Powerful Competition is another key element for giving rise to corporate
restructuring.
f) Increase pressure on margins have necessitated higher of business, ensuring
mergers and acquisitions has led to demergers of non-profitable businesses.
g) All round resource optimization in active businesses to reorganize
functioning profit and to stay fit in competition.

1. MERGER: Merger is said to occur when two or more companies are

united into one company where one survives and the other lose its corporate.
The survivor attains the assets as well as liabilities of the merger company of
companies. Merger is also the synthesis of two or more existing companies.
2. ACQUISITION: An acquisition takes place when one company purchases
another company or a part of it. The company completely buys out another
company and the former company remains.
3. DEMERGER: A business strategy in which a single business is broken
into components either to operate on their own to be sold or to be dissolved. A
demerger allows a large company to split off its various brands to invite or
prevent an acquisition to raise capital by selling off components that are no
longer part of the business' care product line or to create separate legal entities
to handle different operations.
4. RESTRUCTURING: A Considerable alteration made to the debt operations
or arrangement of a company. This kind of business actions is usually made
when there are significance troubles in a organization which are causing some
form of financial damage and putting the overall business in danger, the hope is

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that through restructuring an organization can reduce financial harm and
improve the business.

ENVIRONMENTAL ISSUES RELATED TO INDIAN CORPORTIONS:

Environmental issues related to Indian corporations
Sustainable Development of
Waste
Raw Materials

Emissions
Environmental Regulations

Permit Requirements

1. Waste:

Businesses that manufacture products create waste at some point in the

manufacturing process. So business must decide how best to dispense waste.
Many organizations implement recycling programmes; others sell waste to other
manufacturers who use it in their own manufacturing processes as raw material.
Either way, the effect is additional cost to the business in man hours,
procedures, equipment and handling all specific to moving the waste products
out of the business manufacturing process and facilities.

2. Sustainable Development of Raw materials: (measures to replace the raw

material )

All manufacturers use natural raw materials to manufacture new goods, so

measures (like planting of trees, usage of renewable resources) should be taken
to replace the natural resources. Again, these measures will require some
amount and man power to spend.

3. Emissions:

Manufacturing processes often generate chemical-filled smoke and/ or water

emissions, ash and particles and chemicals that seep into ground water through
run-off. Environmental protection laws require business to protect the

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environment from exposure to these emissions. Remedial process include
placing screens of specified gauges over smoke stacks, filtration of waste water
and lining of retention ponds with clay and poly liners.All these measures are
costly and decreases profit margins.

4. Environmental Regulations:

Regulating business activities is the one way for government agencies to protect
the environment. Business must certain standards that help to reduce any
adverse effects a company’s activities have on the environment. As a result,
natural environmental factors, such as clean water and clean air, dictate how
companies conduct their day-to-day operations.

5. Permit Requirements:

Companies involved in activities that impact their surrounding environment

typically have to file for operating permits through a local, state or federal
government agency. Business permit requirements enable government
agencies to regulate and keep track of business activities. These permits serve
different purposes, some of which include setting minimal standards for any air
emissions, dictating certain procedures for handling waste and hazardous
materials and regulating how a company’s day-to-day operations interact with
nearby water supplies. In effect, natural environmental factors determine the
types of operations a company can engage in within a particular locale or
region.

NEED FOR ENVIRONMENTAL STUDIES FOR INDIAN

CORPORATIONS:

‘Environmental studies’ is the interdisciplinary study of how humans interact

with their environment. This field examines all aspects of the natural
environments, politics. Ecology, etc., and how they all work together.

‘Environmental studies’ involves scientific study of the environmental system

and the status of its inherent or induced changes on organisms. In addition to
study of physical and biological characters of environment, it also describes the
social and cultural factors and the impact of man on environment.

Green entrepreneurs gain numerous advantages in their markets. Below are a

few of the ways in which environmental awareness and action contribute to
business management success:

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1. Green building--lower overhead costs: Green buildings, as many know,
have less negative impact on the environment than standard buildings. Their
construction minimizes on-site grading, saves natural resources by using
alternative building materials, and recycles construction waste rather than
sending truck after truck to landfills. A majority of a green building’s
interior spaces have natural lighting and outdoor views, while highly
efficient HVAC (heating, ventilating, and air-conditioning) systems and low-
VOC (volatile organic compound) materials like paint, flooring, and
furniture create a superior indoor air quality.

2. Energy certificates can diminish the power businesses use:

 When business green their buildings, they can avoid a significant portion of
their electricity, gas and water usage.
 For the natural resources, they must employ, they can offset the
environmental impact with renewable energy certificates.
 For example, a business could offset power used by its servers with wind-
power certificates.
 These let entrepreneurs not only balance out their environmental impact,
but also present a more compelling case to customers, investors and others
about their dedication to environmental responsibility.

3. Composting and recycling can reduce the cost of waste removal:

 Composting and recycling can help a business significantly divert its solid
waste.
 Achieving noticeable results requires businesses to work towards building
an internal culture of sustainability.
 With employees on board for daily composting and recycling, companies
gain a sense of cohesion and purpose among their teams that positively
impacts other collaborative efforts.

4. Environmental action helps businesses celebrate their customers :

A simple action like planting a tree in honor of every
new customer presents only a modest cost and can help an organization
increase loyalty and repeat business. Paperless processes are faster, easier
and cheaper.

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5. Paperless Processes are Faster, Easier and Cheaper:
a) Time Saved
b) Better Access
c) Saved Space
d) Stronger Security
e) Less Money
f) Eco-Friendly

HOW TO GO GREEN
A “green” business strives to have a positive impact on the environment and
community. It develops and practices business strategies that go beyond
regulation and demonstrate commitment to a healthy and sustainable future. A
green business adopts principles, policies, and practices that improve the quality
of life for its customers and employees.

Green business is practically everywhere around us, for example, magazine

covers from time to vanity fair are focusing on going green, movies such as “
An inconvenient Truth” are hitting Hollywood. Companies such as wal-mart
and general electric are transforming their business practices into green ones.

DIFFERENT WAYS TO MAKE BUSINESS GREENER

Several different ways to make a business greener are as follow:

1. Save Power and Energy: Replace the normal bulbs and tubes with compact
Fluorescent Bulbs (CFL), Light –Emitting Diode Bulbs (LED), and
Leadership in Energy Environmental Design (LEED) and install automatic
technology to turn-off lights.
2. Use Paperless Technology (Go Digital): Try to use e-mail, e-recruitment, e-
billing, e-filing, etc., so that one can reduce the use of paper. For example,
use of hand dryers instead of paper towel.
3. Avoid Transport: Try to reduce the use of non-renewable resources
(petroleum) by adopting videoconferencing and teleconferencing.
4. Save Water: Save water by checking regularly sinks, toilets and faucets for
leakage. Use rain water harvesting with helps in reducing the use of ground
water.
5. Biodegradable Products: Use biodegradable products such as jute bags,
biodegradable plastic bags instead of using normal plastic bags.
6. Implement Green Policies: By implementing the green policies one can
 reuse, reduce and recycle the products and also follows up time to time by
implementing the green practices properly or not.
7. Motivate The Staff Members: Encourage and motivate the staff members
to take active part regarding green management practices in organizations.
8. Switch lights off: One of the simplest ways to reduce energy consumption is
to switch lights off when you leave a room. If it’s sunny outside open up the
blinds and make the most of natural light instead.
9. Reuse before recycle: Before you go for recycling think about can you re-
use items.
10.Get sharing: Does everyone in the office or service need their own stapler,
hole punch, scissors, etc., Of course not! Save money and unnecessary
manufacture by using less in the first place. Rather than buying new
stationery, see if you can get refills instead.
11.Switch computers off when not in use:
Both in services and offices make sure computers are switched off when you’re
not using them rather than just leaving them on standby – you’d be amazed how
much energy this saves.
12. Save water:
Only use as much water as you need, saving both water and the energy.

Bring your own lunch:

Bringing lunches to work in reusable containers is probably the greenest (and
healthiest) way to eat at work. Buying lunches everyday almost inevitably ends
up with a miniature mountain of packaging waste and is way more expensive
than making your own too.

SPREADING THE GREEN CONCEPT IN ORGANISATION

Sustainable business, or a green business, is an enterprise that has minimal
negative impact, or potentially a positive effect, on the global or local
environment, community, society, or economy—a business that strives to meet
the triple bottom line.

A shift is taking place. Organizations across the globe were awakening about
the importance of green business practices. The green business practices can
provide competitive advantages while simultaneously producing world benefit.
As larger organizations begin integrating green practices into their strategic
agendas, tens of thousands of supply chain organizations will need to adjust
how they do business. Many organizations, with a desire to “go green”, lacks
the know-how to materialise desired change without external help.
The business sector is increasingly called upon to be one of the key drivers of
the green movement. Without the help of business, governments and non-profit
organizations, it is not possible to create a healthy planet and society. Business
leaders are increasingly recognizing the important of their involvement.

By “Green Organizational development” people are referring to

organizational development work that focuses on organizations seeking to
change core practices so that they benefit society and environment while also
adding value to the organization. Implicit in the term Green organizational
development is sustainability form the environmental side, meaning nature,
preservation and societal good; and the businesses value side, meaning
reputation, stock prices, and viability.

Effective Green organizational development requires trust, learning,

empowerment, buy-in, and relational capacity. The organizational development
approach to organization change seems aligned with these requirements. If
green business is to be aligned with the goals of organizations, and every

organization has its own unique goals, then Green Organizational development
approaches must be unique to every organization as well. Organizational
development already focuses on customized approaches to change and is well
suited to be of service.

PROPOSITIONS FOR SPREADING GREEN PRACTICES:

Description of area where green business concept is being practiced is given

below:

1. Value Chain: Typically companies have approach the value chain and more
often the supply chain from a purely cost-cutting and logistics efficiency
approach. However, when a “green lens” is used, there is enormous potential
for the value chain to collaborate and produce goods that are of value to the
consumer and the earth, Green Electric has invested $1 billion in this area,
working with the value chain through cutting-edge technology.

2. Energy Efficiency: DuPont has saved $3 billion from reducing carbon

emissions, showing how a chemicals company can go from being harmful to
the environment to one that is increasingly becoming a green company. The
solutions that lead to energy efficiently rarely come from expert consultants
 alone because they lack covert knowledge of the client system. On the other
hand, the client system may have difficulty creating solutions alone due to
employees getting struck in silos, daily routines, and not thinking on a
systems level about potential solutions. Therein lays the opportunity for
green organizational development.

3. Product Design: Numerous examples exist in bottom-of-the pyramid

approaches where a new product is needed that serves the needs of those in
poverty while also generating profit. For example, the Jaipur Foot was
developed as a response to the lack of prosthetics in India due to cost. The
new prosthetic that was developed costs hundreds of times less, can be
produced in 30 minutes with far fewer resources, creates job opportunities
for villagers producing them, looks more like a leg than competing products,
and has much better mobility, allowing a level of mobilization that cannot be
attained with the typical prosthetic from the west.

4. Employees: Organizational development practitioners (employees) have

often focused on vision-building processes for companies. When combined
with green practices, there is potential for Green organizational development
initiatives to increase employee engagement. For example, a division at
parker-Hannifin found ways to shift its products so that it addresses what it
identified as the top 10 problems in society. It is no surprise that the division
had the most empowered employees in the company.

PRODUCTION OF HIGH-TECH COMPONENTS AND

MATERIALS IN ORGANISATIONS:
High technology, often abbreviated to high tech is technology that is at the
cutting edge –the most advanced technology available. Now-a-days high tech
Products were considered as the most advanced computer electronics.
However, there is no specific class of technology that is high tech – the
definition shifts and evolves over time. Even the small companies benefits a lot
in terms of sales volume, financial issues etc.,

Different environmental threats are posed to our environment due to these high-
tech productions. A suitable and universal solution is required to deal with such
problem at global level.

TECHNOLOGIES AND SECTORS RELEVANT TO HIGH-TECH

PRODCUTION

Different technologies used for the production of high-tech materials are as

follows:

a. Computer technologies (e.g., CAD, CAE, CAM),

b. High performance Computing (HPC) for modeling, simulation and
analysis,
c. Rapid prototyping (additive manufacturing),
d. High precision technologies,
e. Information technologies(IT),
f. Advanced robotics and other intelligent production systems,
g. Control systems to monitor processes,
h. Thin-film deposition technology, and
i. Responsive material and coating technology.

INDUSTRIAL SECTORS FOCUSING ON PRODUCING HIGH- TECH

COMPONENTS AND MATERIALS INCLUDE:

1. Aerospace: It is the human effort in science, engineering and business to fly

in the atmosphere of Earth (aeronautics) and surrounding space
(astronautics). Aerospace organizations perform research, design, and
manufacture, operate, or maintain aircraft and/or spacecraft. Aerospace
activity is very diverse, with a multiple of commercial, industrial and
military applications.(multi works)
2. Automotive: The automotive industry is a wide range of companies and
organizations involved in the design, development, manufacturing,
marketing, and selling of motor vehicles.
3. Artificial Intelligence: Artificial Intelligence (AI) is the intelligence
exhibited by machines or software. It is also the name of the academic field
of study which studies how to create computers and computer software that
are capable of intelligent behavior.
4. Computer Engineering: It is a discipline that integrates several fields of
electrical engineering and computer science required to develop computer
hardware and software.
5. Information Technology: The technology involving the development,
maintenance, and use of computer systems, software, and networks for the
 processing and distribution of data. IT is the application of computers and
telecommunications equipment to store, retrieve, transmit and manipulate
data, often in the context of a business or other enterprise.
6. Nanotechnology: The manipulation of materials on an atomic or
molecular scale especially to build microscopic devices (such as
robots).An area of science that deals with developing and producing extreme
ly small tools and machines by controlling the arrangement of separate atom
s. Nanotechnology is the engineering of functional systems at the molecular
scale. This covers both current work and concepts that are more advanced. In
its original sense, nanotechnology refers to the projected ability to construct
items from the bottom up, using techniques and tools being developed today
to make complete, high performance products.
7. Robotic Technology: It is the branch of mechanical engineering, electrical
engineering and computer science that deals with the design, construction,
operation, and application of robots, as well as computer systems for their

control, sensory feedback, and information processing.These technologies

deal with automated machines that can take the place of humans in
dangerous environments or manufacturing processes, or resemble humans in
appearance, behavior, or cognition.

ENVIRONMENTAL AND SUSTAINABILITY ISSUES FOR THE

PRODUCTION OF HIGH-TECH COMPONENTS AND MATERIALS:

The different environmental issues are as follows:

1. Pollution: Air, water, heat and noise pollution can all be caused by
producing and using high-technology materials and components. Pollution of
the environment is one of the most serious ecological crisis to which we are
subjected today. The three basic amenities for living organisms are air, land/
soil and water. In the past, these amenities were pure, Undisturbed,
uncontaminated and basically most sustainable for living organisms. But
today, the situation is just reversed , because progress in science and
technology is also leading to pollution of environment and serious ecological
imbalance which in the long-run, may prove disastrous for mankind.
Environmental pollution is the result of urban industrial technological
revolution and speedy exploitation of every bit of natural resource.

2. Consuming Resources: Non-renewable resources, including precious

 metals like gold, are used to make technology. Many others, such as coal, are
consumed to generate the electricity to use technology. Even some
renewable resources, like trees and water, are becoming contaminated or are
used up faster than they can renew themselves because of production of
high-technology materials and components.

3. E-Waste: E-waste or electronic waste is created when an electronic product

is discarded after the end of its useful life. The rapid expansion of technology
and the consumption driven society results in the creation of a very large
amount of e-waste in every minute. E-waste contains over 1,000 different
substances and chemicals, many of which are toxic and are likely to create
serious problems for the environment and human health if not handled
properly. E-waste contains many toxics such as heavy metals, including lead,
cadmium, mercury, polychlorinated Biphenyls (PCBs), Poly Vinyl Chloride
(PVC), etc., in some components. Lead exerts toxic effects on various

systems in the body such as the central (organic affective syndrome) and
peripheral nervous systems, the haemopoietic system (anaemia), the
genitourinary system (capable of causing damage to all parts of nephron) and
the reproductive systems (male and female).

4. Health hazards – improper e-waste disposal effects: Improper handling of

e-waste is detrimental to the environment and mankind. Since this waste is
nothing but a combination of plastics and toxic chemicals, these get released
into the environment. Pollutants such as dioxins and furans from polyvinyl
chloride, lead, beryllium, cadmium, mercury, etc. get into our environment
and cause the following health hazards:
 Reproductive issues
 Developmental problems
 Damage to the immune system
 Interference with regulatory hormones
 Damage to the nervous system
 Kidney damage
 May lead to lung cancer
 Chronic beryllium disease
 Skin ailments
 Cadmium accumulations on liver and kidney
  Asthmatic bronchitis
 DNA damage
 Muscle weakness
 Endocrine system disruption

Exposure to harmful chemicals present in e-waste can lead to severe health

hazards that are at times fatal. These toxins enter our body through inhalation,
skin absorption, or ingestion. After that, humans run the risk of developing any
of the above-mentioned conditions.

LIFE CYCLE ANALYSIS OF MATERIALS

Life cycle analysis (LCA, also known as life cycle assessment (or) life cycle
calculation (or) eco balance) is a technique to assess environmental impacts
associated with all the stages of a product’s life from raw material extraction
through materials processing, manufacture, distribution, use, repair and
maintenance and disposal or recycling.

Developing a product can be very complex. Raw materials come from many
different sources, and obtaining each one of those materials involves a different
series of inputs, outputs and processes, each of which has impacts on the
environment.

To identify the total environmental impact of a product it is necessary to do a

life cycle analysis.

Life cycle analysis refers to a framework for the appraisal of alternative

products, production processes, or infrastructure investments, which focuses
particular attention on the challenges associated with defining the boundaries of
the industrial, or policy systems under scrutiny. Rather than looking at positive
effects or broader social and economic issues, lifecycle analysis usually restricts
attention to the negative environmental or health impacts.
 A number of procedures have been developed for systematically tracking the
magnitude of the impacts associated with the full resources chains and facility
“lifecycles” associated with the products or processes under scrutiny.

OBJECTIVES OF LIFE CYCLE ANALYSIS OF MATERIALS:

Some basic objectives of life cycle analysis are:

 To minimize the magnitude of pollution.

 To conserve non-renewable resources.
 To conserve ecological systems.
 To develop and utilize cleaner technologies.
 To maximize recycling of materials and waste.
 To apply the most appropriate pollution prevention techniques.

PROCESS OF LIFE CYCLE ANALYSIS OF MATERIALS:

 Life cycle Assessment is carried out in four distinct phases as illustrated in

the figure below. The phases are often interdependent,in that the results of
one phase will inform how other phases are completed. It presents the four
basis stages of conducting an LCA:
 Lifecycle Assessment is carried –out in four distinct phases as illustrated in
the figure 2.1 below:
 The phases are often interdependent in that the results of one phase will
inform how other phases are completed. It presents the four basic stages of
conducting an LCA:

PHASE-1. Goal and scope:

An LCA starts with an explicit statement of the goal and scope of the study,
which sets out of the study and explains how and to whom the results are to be
communicated. The goal and scope document therefore includes technical
details that guide subsequent work:

 The functional unit.

 Any assumptions and limitations.
 The system boundaries.
 The allocation methods.
 The impact categories.

PHASE-2. Life cycle inventory:

Life cycle inventory (LCI) analysis involves creating an inventory of flows

from nature for a product system. Inventory flows include inputs of water,
energy and raw materials, and release to air, land, and water. The flow model is
typically illustrated with a flow chart that includes the activities that are going
to be assessed in the relevant supply chain and gives a clear picture of the
technical system boundaries.

Inventory flows can number in the hundreds depending on the system boundary.
 Some of the LCI methods are

 Process LCA
 Economic input output LCA
 Hybrid Approach

PHASE-3. Life cycle impact assessment:

Inventory analysis is followed by impact assessment. This phase of LCA is

aimed at evaluating the significance of potential environmental impacts based
on the LCI flow results. Classical Life Cycle Impact Assessment (LCIA)
consists of the following mandatory elements:

a) Selection of impact categories, category indicators, and characterization

models.
b) Life cycle impacts can also be categorized under the several phases of the
development, production, use, and disposal of a product.
c) First impacts include extraction of raw materials, manufacturing
(conversion of raw materials into a product.

PHASE-4. Interpretation:
Life cycle interpretation is a systematic technique to identify, quantify, check and
evaluate information from the results of the life cycle inventory and / or the life
cycle impact assessment.

According to ISO14040:2006, the interpretation should include:

a) Identification of significant issues based on the results of the LCI and

LCIA phase of an LCA
b) Evaluation of the study considering completeness, sensitivity and
consistency checks; and
c) Conclusions, limitations and recommendations.

A Key purpose of performing life cycle interpretation is to determine the level

of confidence in the final results and communicate them in a fair, complete, and
accurate manner.

APPLICATION/USES OF LIFECYCLE ANALYSIS OF MATERIALS:

Lifecycle assessment should calculate both direct and indirect environmental

impacts, such as given below:

1. Used in calculating direct and indirect environmental impacts from the

products and processes in the growth, harvesting, processing and transport of
raw materials.
2. Direct energy, water, fuel consumption as well as energy and heat loss
calculated through energy balancing. Emissions such as direct release of
gases and particulars as well as calculation of embodied emissions using
mass balancing and carbon equivalence.
3. Used in calculating of energy consumption and emissions of various
methods of disposal – burning versus landfill versus composting versus
reuse.
4. Find opportunities for process and product improvement.
5. Compare and analyze several processes based on their environmental
impacts.
6. Quantitatively justify a change in a process or product.

SUSTAINABLE PRODUCTION AND ITS ROLE IN

CORPORATE ENVIRONMENTAL RESPONSIBILITY(C.E.R):
Sustainable Production is the creation of goods and services using processes
and system that are:
 a) Non – Polluting, Conserving of energy and natural resources
b) Economically viable
c) Safe and healthful for workers, communities and consumers.

Sustainable Production describes the design, development, production and

supply of goods & services in a manner that works within the finite limits of the
planetary systems people rely upon.

PRINCIPLES OF SUSTAINABLE PRODUCTION:

1. Products and Services:

In light of increasing pressures to adopt a more sustainable approach to product

design and manufacture, the requirement to develop sustainable products is one
of the key challenges facing industry in the 21st century. Hence, the concept of
developing sustainable products as well as services is evolving as a key element
of Cleaner Production. Sustainable product development initiatives (mainly
through eco-design) have been evolving for some time to support companies
develop more sustainable products.

a) These should be Safe and ecologically sound throughout their life cycle.
b) As appropriate, designed to be durable, repairable readily recycled,
compostable or easily biodegradable.
c) Produced and packaged using the minimal amount of material and energy
possible.

2. Processes are Designed and Operated such that:

a) Waste and ecologically incompatible by products are reduced eliminated or

recycled on site.

b) Chemical substances or physical agents and conditions that present

hazards to human health or the environment are eliminated;
c) Energy and materials are conserved, and the forms of energy and
materials used are most appropriate for the desired ends;

d) Work spaces are designed to minimize or eliminate chemical,

ergonomic and physical hazard.

3. Workers are Valued and:

a) Their work is organized to conserve and enhance their efficiency

and creativity;
 b) Their security and well-being is a priority;
c) They are encouraged and helped to continuously develop of their
talents and capacities;
d) Their input to and participation in the decision making process is
openly accepted.

WAYS OF SUSTAINABLE PRODUCTION:

Products are made from Sustainable materials while waste is reduced through
re-manufacturing, reuse and recycling.

1. Process Modeling and Material Assessment: Pursing Clean Production and

the Manufacturing of green products are very beneficial to the environment.
Thus establishing an assessment model for manufacturing process in terms of
environmental impact is necessary for quantitative evaluation of product design.

2. Chemical Process and Recycling: The Primary objective for the process
engineering in this field is, to develop tools for process simulations that can
reduce time for development of processes and equipment from years to months.
Another aim deals with the investigation of possible pyro chemicals recycling
routes for both manufacturing waste as well as the end of life product.

3. Energy audit:

An energy audit is an inspection, survey and analysis of energy flows for energy
conservation in building, processor system to reduce the amount of energy input
into the system without negatively affecting the output

a) Analysis of Energy usage

b) Identification of Energy project
4. Renewable Energy: Renewable energy is energy that is collected from
renewable resources which are naturally replenished on a human timescale such
as sunlight, wind, rain, tides, waves and geo thermal, heat. Renewable energy
often provides energy in four important areas: electricity generation, air and
water heating/cooling, transportation and rural energy services.

5. Waste Reduction: Waste reduction also known as source reduction is the

practice of using less material and energy to minimize waste generation and
preserve natural resources. Waste reduction is broader in scope than recycling
and incorporates ways to prevent materials from ending up as waste reduction
includes reusing products such as plastic and glass containers. Waste reduction
also means economic savings. Fewer materials and less energy is used when
waste reduction practices are applied.

STEPS OF SUSTAINABLE PRODUCTION:

1. Map your impact 4. Assess operation

and set priorities of your facility

2. Select useful 5. Evaluate your products

performance indicators

3. Measure the 6. Understand

inputs used in measured results
production
1. Map Your Impact and Set Priorities:

In Step1, we focus on where you are starting and where you want to end up. The
aim of this first step is to establish a general understanding of your positive and
negative environmental impact by mapping your activities and determining
which ones affect your performance the most.

2. Select Useful Performance Indicators: Identify indicators that are important

for your business and what data should be collected to help drive continuous
improvement. Some companies will benefit from adding more indicators
overtime, while other companies may also want to use a handful of the
indicators provided.

3. Measure the Inputs Used in Production: Identify how materials and

components used into your production process influence environmental
performance. The first set of indicators related to the raw materials and
intermediate products used in your production processes to make your products.
Take a closer look at the impact that material inputs can have on your
environmental performance.

4. Assess Operations of Your Facility: Consider the impact and efficiency of

the operations in your facility (e.g., energy intensity, green house gas
generation, emissions to air and water) transform a variety of inputs (step 3) into
end products for delivery and sale and manufacturing functions and design of
your facility and the related back office functions.

5. Evaluate Measured Results: Evaluate measured results or evaluate your

products, identify factors such as energy consumption in use, recyclability and
use of hazardous substances that help determine how sustainable your end
products. These are the items or goods that you deliver to market and that in
their own right will have a range of environmental qualities and impact arising
from their composition and use.

6. Understand Measured Results: Read and interpret your indicators and

understand trends in your performance. The next step is to understand the
performance. The next step is to understand the different ways to review and
 analyze the information generated by the indicators to identify options for
improving the performance of your facility.

7. Take Action to Improve Performance: Choose opportunities to improve

your performance and create action plans to implement them. By reviewed the
data you can take decisions for improving performance. Now you need to make
your decisions happen by setting clear targets and creating a tangible action
plan.

The seven steps are not necessarily a one way journey. We recommend that you
apply them for a cyclical management process. It will help you measure and
understand your environment impact as well as improve your performance
on an ongoing basis.

CORPORATE ENVIRONMENTAL RESPONSIBILITY

Corporate Environmental Responsibility (CER) refers to a company's duties to
abstain from damaging natural environments. The term derives from corporate
social responsibility (CSR). CSR is how companies manage their business
processes to produce an overall positive impact on society. It covers
sustainability, social impact and ethics. CSR is the continuing commitment
by business to behave ethically and contribute to economic development
while improving the quality of life of the workforce and their families as
well as of the local community and society. The duty that a company has
to operate in a way
that protects the environment.Many institutional investors evaluate a
company's environmental responsibility before investing in its stock.

The environmental aspect of CSR has been debated over the past few decades,
as stakeholders increasingly require organizations to become more
environmentally aware and socially responsible. In the traditional business
model, environmental protection was considered only in relation to the "public
interest". The public sector has been focused on the development of regulations
and the imposition of sanctions as a means to facilitating environmental
protection. Recently, the private sector has adopted the approach of co-
responsibility towards the prevention and alleviation of environmental damage.
The sectors and their roles have been changing, with the private sector
 becoming more active in the protection of the environment. Many governments,
corporations, and big companies are now providing strategies for environmental
protection and economic growth. The World Commission on
Environment published the Brundtland Report in 1987 to address sustainable
development. Since then, managers, scholars, and business owners have tried to
determine why and how big corporations should incorporate environmental
aspects into their own policies. In recent years, an increasing number of
companies have pledged to protect natural environments. Here are different
perceptions of CSR between government, the private sector, non-governmental
organizations (NGOs) and society in general, and thus, the concept has no
single definition.
NOTE: CSR =Corporate Social Responsibility

MAIN ELEMENTS:

These cover the environmental implications of a company's operations:

 Eliminate waste and emissions

 Maximize the efficient use of resources and productivity
 Minimize activities that might impair the enjoyment of resources by future
generations.

DRIVERS AND CHALLENGES

 Among the main drivers for CER are government policies and
regulations. Many states provide their own legislation, regulations and
policies, which are important in creating a positive environmental attitude
within companies. Subsidies, tariffs and taxes play a vital role in the
implementation of these policies.
 Another significant factor is the competitive environment among
companies generated by media, public, shareholder and NGO awareness,
which are also major drivers of CER.
 Challenges include the cost of regulation and difficulties in predicting
economic gains, which could become problematic for a company's
management. Additionally, new technologies are frequently too
expensive for a lot of companies.
 Another challenge is the lack of harmonization of regulations among
different states—often there is a mosaic of propositions, leading to
 unclear strategies for environmental behavior, especially in multinational
corporations.

BENEFITS OF CORPORATE ENVIRONMENTAL

RESPONSIBILITY

 Corporate social responsibility can prove to be more profitable for

companies and to extend it survivability in markets because of greater
awareness on this topic, in both social and business markets.
 Customers have responded with overall satisfaction and loyalty when
companies have a better CSR, especially in countries like Spain and Brazil.
 Culture has an impact on the CSR ratings and studies, as well as human
values across different nations. It can also be found under sustainable
development. This area is concerned with not only protecting the
environment but maintaining economical growth.
 The idea of corporate environmental responsibility (CER) is for humans to
be more aware of the environmental impact and counteract their
pollution/carbon footprint on the natural resources. One of the main
factors is to reduce carbon footprint and carbon emission is to balance
between economic growth and reducing waste and cleaner environments.

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