MANAGEMENT lll

SVKM'S NMIMS SCHOOL OF LAW NAVI MUMBAI

ENVIRONMENTAL MANAGEMENT PRACTICES AND

SUSTAINABILITY OF MULTINATIONAL COMPANIES IN
INDIA

SUBMITTED BY: MRUNMAYI PHIRKE

SUBJECT: MANAGEMENT lll
SAP ID & ROLL NO: 81022019491 | A124
SUBMITTED TO: DR. KESHAB NANDY

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ACKNOWLEDGEMENT

In the first place, I would like to express my heartfelt gratitude to the almighty God, who has
always acted as a constant companion for me. Moving ahead, I am utterly grateful to my
parents as well, who have always been there for me through my thick and thin.

Secondly, I would like to express my gratitude to the Dean of my college, Dr. Saurabh
Chaturvedi and my Business Environment Professor, Dr. Keshab Nandy, as they have always
been there for me, whenever required! Apart from that, they have acted as a beacon light for
me and have thus enlightened me through their knowledge and experience. Adding to that, I
am grateful to the administration faculty members as they introduced the concept of research
paper to us and even simplified it for us.

Finally, I am thankful to my other subject teachers and all of my friends who have kept me on
my toes and made sure that I unleash my entire potential and perform effectively and
efficiently. The completion of this research paper couldn’t have been possible without the
valuable contributions of the above mentioned people.

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DECLARATION

I, Mrunmayi Phirke, 1st year student of BBALLB, hereby solemnly declare that my research
work on the topic 'Environmental Management Practices and Sustainability of
Multinationals in India’ is completely based on my own work that I have carried out under
the guidance of my subject professor Dr. Keshab Nandy.

I, in my complete knowledge, assure the originality of my work and simultaneously certify

the following:

 The work contained in the document has been done under the general supervision of
the subject teacher.
 The work or a copy of the work hasn’t been submitted to any other university or
organisation.
 All the provided guidelines have been followed for the completion of this document.
 Finally, in case of the usage of secondary sources, the due credit has been provided to
the particular author and the same has been mentioned in references.

MRUNMAYI PHIRKE
SAP ID: 81022019491

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TABLE OF CONTENTS

S. NO. CONTENT PAGE

1 Abstract 5

2 Introduction 5

3 Research Objectives 6

4 Research Methodology 7

5 Literature Review 7

6 Research Analysis 8

7 Findings & Suggestions 9

8 Conclusion 10

9 Bibliography 11

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A CRITICAL STUDY ON GENERATIONAL DIFFERENCES IN THE

ORGANIZATION

Mrunmayi Phirke
SVKM’s NMIMS School of Law, Navi Mumbai
mailto:mrunmayi.phirke491@nmims.edu.in

ABSTRACT
This study investigates the effects of environmental management practices on the
sustainability of multinational companies in India. The specific objectives were to ascertain
the effects of total quality management on economic sustainability and to determine the
effects of technology option on environmental sustainability. Data were collected from
secondary sources, from journal publication, book, unpublished article and thesis,
newspapers, and organizations websites. Based on the literature review, the study found out
that quality management practices positively affected economic sustainability, and that green
technologies positively affected social-environmental sustainability. Therefore, it was
concluded that the sustainability of the multinational companies and business environment
depends on environmental management practices. The study, therefore, recommended that
government should empower the institutions and agencies at all levels responsible for
enforcement of environmental laws and that government should compel multinational
organizations to adopt green technologies in their operations.

Keywords: Environmental Management Practices, Environmental Management System

Quality Management, Sustainability, Green Technology.

INTRODUCTION
On Multinational corporations (MNCs) over the years have been a source of controversy
across the world. A typical multinational company (MNC) usually functions with a
headquarter that is based in one country, while other facilities are positioned in other
countries. Most of the MNC are encouraged by the low wage rates and other environmental
factors. They enter host nations in different ways and with different strategies such as

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exporting licensing or foreign direct investment which are critical steps. The idea of MNCs
investing in foreign land is not to better the lives of the host country but to exploit in order to
develop the home country with the sole objective of maximization of profit at the lowest
reasonable cost. Gilpin (1987) states that the motives of multinational corporations are to
secure the least costly production of goods for world markets. This objective might be
achieved through obtaining the most effective and efficient area for creation, production or
acquiring tax assessment concession from the host government. In attaining this feat, MNCs
is expected to make contributions to the growth of the host community. For example, in
Nigeria, the MNCs transfer technologies, capital, culture of entrepreneurship and increase
both investment levels and income of the country; the MNCs improve their immediate
environment; generate employment, etc. They stimulate domestic production, enhance
efficiency and effectiveness of the production process; they encourage positive responses
from local operators (Ezie et al., 2013).
Bergmiller et al., (2009) believes that environment administration practices (green practices)
are these exercises that are enshrine in enhancing environmental performance, which includes
improving proficiency, shortening reaction time, cutting down energy consumption, reducing
waste and toxic material usage, improving resource utilization, and reducing production
costs; all these bring about competitive benefits, business opportunities, and organizational
sustainability. Stanwick (1998) and Hart et al., (1996) opine that environmental management
practices could improve, not only ecological, but also the economic performance of a
company. They stated that companies who have implemented sound ecological management
practices over time always achieve good corporate performance, especially in innovation.
However, for the purpose of this study, environmental management practices will be
considered as waste management, environmental management system, quality management
practices, product re-design, technological option, environmental audit, and green image.
However, Jiehui et al (2015) asserts that there are three motivational reasons that help
organizations to implement environmental management practices.

RESEARCH OBJECTIVES
Every task is conducted with the intention of achieving a specific goal. Similarly, this
research paper also has been prepared keeping certain objectives in mind. They can be
summed up as follows:

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 To determine the effects of environmental management practices on the sustainability

of multinational companies.
 To ascertain the effects of total quality management on economic sustainability.
 To determine the effects of technology option on environmental sustainability.

RESEARCH METHODOLOGY
Today we are amidst unprecedented times of the pandemic of Covid-19 and this has
undoubtedly hindered and restricted the research work but despite all this, I have tried to
surmount the obstacles and collect data from secondary sources.
This paper adopted an empirical survey essay method which made use of the secondary
method of data collection that involved the sorting and analyzing of past related study gotten
from published journal, thesis, unpublished journal, books newspaper and online textbooks.

LITERATURE REVIEW
 Kelly & Florence (2014) examined environmental management and sustainable
development. The specific objectives of the study were to investigate the relationship
between commitments by Federal Government to environmental management policies
and sustainable development, and to assess the relationship between true development
agenda and sustainable development. The study recommended that agenda that is
environmental, socially and economically benign and synthetic and integrated
environmental management principles and practices that are in tandem with
sustainable development should be made and implemented.
 Rosemarie (2016) carried out a study to establish the effect of quality management
practices on the performance of manufacturing firms in Kenya. The specific
objectives were: to establish the impact of continuous improvement on firm
performance; to assess the influence of customer-focus on firm performance and to
assess the extent to which the operating environment moderates the relationship
between quality management practices and performance.
 Augus (2000) said that implementing total quality management could improve the
company’s customer satisfaction. Ingram & Chung (1997) explained that total quality
management practices could increase customer satisfaction in the healthcare industry.
 Kwazo, Muhammad, T afida, & Mohammed (2014) investigated Environmental
Impact of Technologies and found out that technologies have affected society and its

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surroundings including the environment in some ways. He recommended that there is

need to promote environmentally sound practices globally by strictly adhering to a
green environment and there is a need for the implementation of environmental-wide
green procurements strategies concerning technologies acquisition, use, and disposal.
 Some studies have been carried out by industry, organizations, and researchers
exploring the idea of ICT contribution to solving environmental problems.
 Ghanshyam (2015) suggested that green technologies encompass various aspects of
technology which help us reduce the human impact on the environment and create
ways of sustainable development.
 Abhijeet and Rahul (2014) examined green technology for sustainable urban life.
They stated that human civilization uses technology for supporting day to day
activities of urban life. New technologies are more efficient and environmentally
friendly due to increased awareness of energy management. They found out that the
adoption of technology is limited and has adverse effects on the environment and
human civilization. They concluded that application of new technologies which are
environmental friendly for supporting day to day activities of an urban lifestyle is a
prerequisite for sustainability.

RESEARCH ANALYSIS
Operations of the multinational firm based on sustainable development principles demand the
stimulation of action which can lead to a better management of the environmental aspect
related to adverse generated effect, optimization of the production processes to develop
sustainable production and consumption process. In doing this, the managerial implication is
that managers at all level should realize that environmental management practices cannot
only lead to external ecological improvement but can also lead to competitive organizational
advantages, image management and promote technological innovation called green
technology which can reduce internal and external pollution and create the first- mover
advantage and improve social, economic and environmental sustainability. Due to worsening
air quality, soil contamination, water pollution and other environmental issues, the
multinational company is faced with increasing pressure of ecological protection by society,
governments, and other stakeholders to implement ISO1401 document and other international
and local environmental law.

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However, many multinational companies do not know how to adopt environmental

management practices efficiently and implement it in line with international best practices.
This study suggests that, compared with passive and end-of-pipe treatment, proactive and
preventive ecological management practices could more efficiently promote technological
innovation performance. Since the costs of environmental management practices are high,
while the benefits are vast but can only be realized in the future. A thoughtless executive who
wants to minimize cost with a mindset of instant gratification will tend to postpone
investments in environmental management practices. In actuality, ecological management
practices such as the application of ecological management assessment tools (such as life-
cycle assessment, quality management, technological option green technology ecological
auditing, ISO14001), establishing ecological performance targets, publicly disclosing
environmental performance and training the staff on environmental protection could provide
huge gains through the first-mover advantage.
However, it was discovered in the findings that the importance of environmental management
practices in the business environment could not be overemphasized to national green
management, that total quality management positively affected economic sustainability , this
is in line with Nguyen (2018) who studied on the relationship between quality management
practices and sustainability performance, where he opined that there are four quality
management practices that have significant positive impact on sustainability performance: top
management support for quality management, design for quality, quality data and reporting,
and continuous improvement. In addition, Sadikoglu et al (2014), found out that TQM
positively and meaningfully affects the organizational learning and that organizational
learning has a significant effect on the organizational innovation, but TQM has no positive
and meaningful effect on the organizational innovation.
Lastly, it was established that green technologies positively affected social-environmental
sustainability which is in line with the studies of Sezen (2013) and Kucukoglu (2015) that the
green manufacturing applications have a significant positive impact on environmental
performance and also green innovation activities have significant effect on an organization
environmental performance and competitive advantage respectively.

FINDINGS AND SUGGESTIONS

1. Government should empower the institutions and agencies at all levels responsible for
enforcement of environmental laws.

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2. Government should compel multinational organizations to adopt green technologies

in its operations.
3. Workshops should be organized to sensitize the management of multinational
company on the need to adopt TQM.

CONCLUSION

This study sorts for the effects of environmental management practices on the sustainability
of multinational companies in south-south, Nigeria. However, environmental management
practices (green methods), as stated earlier, is an activity which is aimed at improving
environmental performance, including improving efficiency, shortening response time,
cutting down energy consumption, reducing waste and toxic material usage through the
implementation of the six-sigma quality management and application of quality control.
Hence, in line with the findings, the study concludes that the sustainability of the
multinational companies and its business environment largely depends on quality of
environmental management practices. This, however, does not rob this study of its
generalization. Hence, the frontier of this study could be expanded by investigating the
environmental Management Practices and the Sustainability of the service industry.

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