2012

Corporate social responsibility and the

Environment – a movement towards
sustainable development

Prerna Tarika Diwaker

Economic Policy Seminar
Paper
4/5/2012
Prerna Tarika Diwaker

Economic Policy Seminar Paper

Due: 05/03/2012

Corporate social responsibility and the Environment – a movement towards Sustainable

development

Introduction
Corporate social responsibility in one of the most frequently discussed topics in the boardrooms
of today‘s business age. Many people in today‘s world are on loggerheads with each other in
determining if corporate social responsibility actually helps a business in the long run or if it just
distracts the business enterprise from its goal of making increasing profits and generating returns
for its stakeholders. However, what is most commonly spoken about is the issue of Sustainable
development and how companies of this age are thinking of giving back to the environment
through different initiatives. It is this very topic that I plan to touch upon specifically and bring to
light that in the realm of Sustainable Environmental Development, corporate social responsibility
is needed.

My paper plans on defining corporate social responsibility, briefly talking about its goal and the
history behind how the term came to be known. I initially draw attention to the scenario in India
and throw light upon prominent Indian companies which have initiated sustainable development
projects in various rural and urban parts of the country, but will be talking about these projects a
little more in detail towards the end of the paper. Giving an insight to two different views of the
corporate social responsibility issue I throw light onto Milton Friedman and Newell- Hampson
Jones‘ contradicting views on the issue. I also bring about awareness of a tragic accident which
resulted in the loss of many lives – The Bhopal Gas Tragedy that took place in Bhopal, Madhya
Pradesh in 1984. Delving into the shocking facts of this tragedy I would like to bring to light that
had there been some form of corporate social responsibility, the city of Bhopal would not have
had to that tragedy. Finally, I refer to the Holy Bible to view its take on the issue of corporate
social responsibility and conclude my paper.

What is corporate social responsibility?

The online Business Dictionary defines corporate social responsibility as,

―A company‘s sense of responsibility towards the community and environment (both ecological
and social) in which it operates. Companies express citizenship (1) through
their waste and pollution reduction processes, (2) by contributing educational and
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Economic Policy Seminar Paper

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social programs, and (3) by earning adequate returns on the employed resources. See
also corporate citizenship 1 .‖

The goal of corporate social responsibility is to embrace responsibility for the company's actions
and encourage a positive impact through its activities on the environment, consumers,
employees, communities, stakeholders and all other members of the public sphere who may also
be considered as stakeholders.

The term "corporate social responsibility" came into common use in the late 1960s and early
1970s after many multinational corporations formed the term stakeholder, meaning those on
whom an organization's activities have an impact. It was used to describe corporate owners
beyond shareholders as a result of an influential book by R. Edward Freeman, Strategic
management: a stakeholder approach in 1984. People argue that corporations make more long
term profits by operating with a perspective, while critics argue that corporate social
responsibility deviates from the economic role of businesses. Other people differing from this
train of thought argue that corporate social responsibility is merely window-dressing, or an
attempt to pre-empt the role of governments as a watchdog over powerful multinational
corporations. This very fact of whether corporate social responsibility is actually beneficial to a
firm in the long run is what I want to explore in my paper in addition to how corporate
enterprises contribute to environment protection and sustainable development.

In today‘s day and age, many companies are taking interest to foster corporate social
responsibility initiatives for their communities and public. This trend is fiercely travelling to all
corners of the world and many countries are hopping on to the sustainable bandwagon.
According CNN Money‘s list of the top 10 most admired companies in the World in Social
Responsibility, North-American companies of Whole Foods Market, Walt Disney Company and
NextEra Energy feature on the top of the list at #6, #1 & #10 2 ! However, the house that Mickey
built is the only US-based company in the top 5. Some of the Walt Disney Company‘s
more interesting initiatives include running Disneyland trains on biodiesel made with cooking oil
from the resort's hotels, establishing a worldwide conservation fund and instituting a "green
standard" for all employees and cast members.
Like I said earlier I have spoken about three organizations well known for their contribution in
the field of environmentally sustainable development (namely the TATA‘s, HUL and the
NDTV- TOYOTA campaign) further in my paper in detail. However, amongst these three
fabulous examples of sustainable development undertaken in India, The NDTV-TOYOTA
Greenathon is most mentionable as this was the first initiative to spearhead the Sustainable
corporate social responsibility movement in India. This was the very beginning of how

1
Corporate social responsibility. (n.d.) In Business Dictionary Online. Retrieved from
3

http://www.businessdictionary.com/definition/corporate-social-responsibility.html
Page

2
CNN Money Online. (2011). World’s ost ad ired co pa ies – Best in Social Responsibility. Retrieved from
http://money.cnn.com/magazines/fortune/mostadmired/2011/best_worst/best4.htm
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Economic Policy Seminar Paper

Due: 05/03/2012

companies is India began to realize the need to "give back" to the environment and since then,
there have been many other initiatives for sustainable development 3 .

How do business enterprises approach corporate social responsibility?

A common approach of corporate social responsibility is philanthropy. This includes monetary

donations and aid given to local organizations and impoverished communities in developing
countries. Some organizations do not like this approach as it does not help build on the skills of
the local people, whereas community-based development generally leads to more sustainable
development. Another approach is garnering increasing corporate responsibility interest. This is
called Creating Shared Value, or CSV.
The shared value model is based on the idea that corporate success and social welfare are
interdependent. The principle of shared value involves
creating economic value in a way that also creates value for
society by addressing its needs and challenges. A business
needs a healthy, educated workforce, sustainable resources
and adept government to compete effectively. Porter says
―shared value is not social responsibility, philanthropy, or
even sustainability, but a new way to achieve economic
success. It is not on the margin of what companies do but at
the center 4 .‖ The concept of shared value recognizes the
societal needs, not just conventional economic needs, and
defines markets. It also recognizes the issue that social
harms or weaknesses frequently create internal costs for
firms—such as wasted energy or raw materials, costly
accidents, and the need for remedial training to compensate
for inadequacies in education. And addressing societal harms and constraints does not
necessarily raise costs for firms, because they can innovate through using new technologies,
operating methods, and management approaches—and as a result, increase their productivity and
expand their markets. The concept of shared value resets the boundaries of capitalism. By better
attribution of a companies‘ success with societal improvement, it opens up many ways to serve
new needs, gain efficiency, create differentiation, and expand markets.

Is it viable for the long-term stability of a firm?

In his article in The New York Times, Milton Friedman speaks critically about Corporate social
responsibility initiatives undertaken by business firms by stating that the only responsibility of a
corporate executive house is to conduct the business in accordance with their desires, which

3
Just Means Online. (2011). The 10 most socially responsible countries in the wo rld. Retrieved from
4

http://www.justmeans.com/-10-Most-Socially-Responsible-Companies-in-World/46571.html
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4
Porter, Michael. (2011) Creating Share Value: Rethinking Capitalism. Harvard Business Publishing.
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generally will be to make as much money as possible while conforming to the basic rules of the
society, both those embodied in law and those embodied in ethical custom. Individual persons
may have social responsibilities to conform to and it is their personal right. But, the
responsibility that corporate houses have towards their business and society is to serve as an
agent of the stockholders of the company and meet their desires.
According to Friedman, ―the difficulty of exercising ‗social responsibility‘ illustrates, of course,
the great virtue of private competitive enterprise–it forces people to be responsible for their own
actions and makes it difficult for them to ‗exploit‘ other people for either selfish or unselfish
purposes 5 ‖. They can do good–but only at their own expense. In his opinion, in a free society, it
is hard for ‗evil‘ people to do ‗evil‘, especially since one man's good is another's evil.
However, Newell Hampson-Jones differs from Friedman in thought as he firmly believes that
―an effective corporate social responsibility policy, coupled with efficient marketing and
business strategies can help a business to generate larger profits whilst also benefitting society at
a large 6 ‖. He feels that Friedman understands corporate social responsibility too narrowly,
focused purely on the business and its role in a free market. He feels this is outdated for the
contemporary culture prevalent today. Hampson-Jones feels that Friedman only sees the business
in a factual manner, sidelining the fact that the public view the company as a whole
representative and deem one man‘s mistake as a social judgment against the whole company.

Basing his argument while referring to footwear mogul Nike‘s case, Hampson-Jones points out
how the decision of a single individual to adopt an unethical method to increase profits cost the
company its reputation and boycotting of its products. Quoting jobber in his study, Hampson-
Jones brings light to the understanding that the key issues relating to corporate social
responsibility dimensions are not all exclusively marketing related (although marketing practices
can drastically affect outcomes), they are even production-related, procurement related and also
human resources issues.

Dimensions Key Issues Marketing Response

Physical Environment Combating global warming Sustainable marketing
Pollution control
Conservation of energy and
other scarce resources
Use of environmentally
friendly ingredients and
components
Recycling and non-wasteful

5
Friedman, Milton. (1970) The Social Responsibility of Business is to in crease profits. The New York Times
Company.
5

6
Hampson-Jones, Newell. Against Milton Friedman: An Argument for Co rporate social responsibility. Retrieved
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from http://grenoble-em.academia.edu/nhj/Papers/399974/ISO_26000_-
_A_Case_for_Social_Responsibility_Against_Milton_Friedman
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Economic Policy Seminar Paper

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packaging
Social (community Support for local community Societal marketing
involvement) Support for wider community Cause-related marketing
consumer Product safety Societal marketing
Avoidance of price fixing
Honesty in communications
Respecting privacy
Supply chain Fair trading Fair trade marketing
Standard setting for
suppliers(e.g. Human rights,
labor standards and
environmental responsibility)
Employee relations Fair pay Internal marketing
Equal opportunities
Training and motivation
Information provision(e.g. on
career paths, recruitment
policies and training
opportunities)

Table 1: Dimensions of corporate social responsibility (Jobber, 2006, p. 204)

Drawing attention to Jobber‘s Dimensions of corporate social responsibility in his book

Principles and Practices of Marketing, 5 th Edition, I would like to reiterate and show as to how
Hampson-Jones considered important marketing to play an important role while making
corporate social responsibility strategies profitable. However, in his book, Jobber considered
marketing to be the only answer.
These two contradicting approaches to corporate social responsibility make us look at both side
of the issue and let us to gauge the pros and cons of the scenario. This personal evaluation helps
every firm to analyze its functioning and operations and devise a suitable corporate social
responsibility strategy in order to reduce its contribution to the increasing carbon footprint and
pollution levels.

Environmentally Sustainable Corporate social responsibility and its importance

The need for corporate social responsibility in the realm of sustainable development is very
essential in today‘s global scenario owing to the depleting ice caps, increasing carbon emissions
and pollution levels in the environment. Firms delving into sustainable corporate social
responsibility can enjoy great environmental benefits like greater material recyclability, better
product durability and functionality, greater use of renewable resources and Integration of
6
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environmental management tools into business plans(including life-cycle assessment and

Prerna Tarika Diwaker

Economic Policy Seminar Paper

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costing, environmental management standards, and eco- labeling) 7 . Since we live in an

increasingly complex world, the reality of our current scenario, combined with the financial
downturn of the global economy and the issues facing our planet and communities, means
business as usual is not enough. To make a meaningful difference, companies must inspire and
innovate to help preserve the natural resources for the generations to come. Many leading
business giants have spoken on the increasing need to involve environmentally sustainable
business practices into their operations. Chairman and CEO of Kimberly-Clark Corporation,
Tom Falk says –

―Sustainable business practices are woven into the fabric of our Global Business Plan. We
challenge ourselves every day to look for ways to sustain the resources we enjoy today for
generations to come. That‘s why Kimberly-Clark is focused on setting and achieving
sustainability performance metrics for our brands and facilities. And through our resource
stewardship, we are demonstrating to our stakeholders that sustainability isn‘t just the right thing
to do, it‘s also good business. 8 ‖

This illustrates the expanding belief that corporate

social responsibility has become vitally important
for a company‘s business, and that transparent
reporting is one of the prices of doing business
today.

Some cases of environmentally sustainable

corporate social responsibility practiced in India

 The NDTV-TOYOTA Greenathon

Launched in April 2008, the NDTV- Toyota Green

campaign was India‘s first ever-nationwide campaign to save the environment. It aimed at
creating awareness about environmental issues by involving the people of our country to make a
difference. The campaign was supported by India‘s Minister for Environment, Jairam Ramesh.

As part of this environment campaign, NDTV organized India‘s first Telethon in 2009 – THE
GREENATHON, a fund-raising event to support TERI‘s initiative – Lighting a Billion Lives
which aims at providing solar power to villages without electricity.

The Greenathon, a 24 hour live telethon for the environment simulcast across the NDTV
network, is a combination of musical extravaganza, live chats with celebrities, simultaneous
7
Corporate social responsibility. (n.d.) In BSD Global Online. International Institute for sustainable development.
Retrieved from http://www.iisd.org/business/issues/sr.aspx
8
Smith, T. (2010) Verbatim: How Businesses View Sustainability & corporate so cial responsibility Reporting.
7

Retrieved from http://business-ethics.com/2010/07/27/4298-in-their-own-words-how-businesses-view-

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sustainability-and-corporate social responsibility-reporting/

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green activities across India, reports on environment and green pledges by celebrities, politicians
and the common man.

In Year 1, they were able to successfully raise funds to light up 56 villages and in Greenathon 2,
the event resulted in 115 villages being provided with solar power. The second edition of the
campaign helped generate over 3 crores ($600,000 USD) of funds to change lives in villages
across the country through TERI's Lighting a Billion Lives initiative.

Taking the example of the village of Manawas in Rajasthan, India; a village once steeped in
darkness after sundown; villagers say that solar power has transformed their lives. Their incomes
have gone up as they can now continue working late into the night without worrying about the
cost of kerosene. Greenathon has raised Rs 4.3 crores ($860,000 USD) in donations so far and
this has helped 50,000 people across rural India. One of the big impacts of this initiative has been
on education as the solar powered lamps enable children to study after sunset- something which
was considered a distant dream for the children and families earlier.

(Facts and figures retrieved from http://green.ndtv.com/Default.aspx)

 Hindustan Unilever Ltd – Agricultural Waste Initiative

In India, agricultural waste such as groundnut shells, bagasse (from sugarcane), saw-dust,
Coconut shells, cashew nut kernels etc. does not have any primary use as a product & is
treated as a waste by most FMCG companies. However, it contains a fair amount of
calorific value (ability to burn & impart heat) which can be used as fuel for burning
boilers. Thus, it can substitute non renewable fossil fuel. HUL hit upon this idea and now
uses such agro-waste as fuel in boilers in some of its factories.

The exercise of using agro-waste as fuel was taken up in HUL in the year 2006-2007. It was first
implemented in our factory located at Chiplun, Ratnagiri district, Maharashtra in September
2007. Pondicherry plant followed with a boiler conversion in March 2008. Both the boilers are
using biomass as fuel for generation of steam.

In December 2008, our Chiplun factory extended the use of bagasse fuel for its thermic fluid
heater for heating thermic fluid which is used as heating medium in distillation for
manufacturing of Distilled Fatty Acid (DFA).

The reduction per annum in CO2 emissions for Chiplun

factory was 11,000 tonnes and for the Pondicherry factory
it was 10,000 tonnes. (The calculation is based on the
premise that 3 tonnes of CO2 is emitted for every ton of
Furnace Oil used. This conversion was approved by the
Pollution Control Board of respective factory locations)
and finally approved by Ministry of Environment and
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Forests as CDM project in their letter dated 17 th October 2008.

Various benefits were enjoyed out of this initiative of the Unilever group –

o The project of switching over to Biomass as fuel and replacing Furnace oil is listed as
CDM project with Ministry of Environment and Forests. The carbon emission reduction
to the tune of 9000 to 10000 tons per annum resulted in getting CER (Carbon Emission
Reduction, One CER per ton) certificates from the international regulatory authority
UNFCCC. The project was forecasted to earn approx. 27,000 CER‘s per year for next 10
years. (1 CER = reduction in 1 ton of Co2 emitted).
o Most of the agro-waste was procured through local suppliers in the nearby villages who
converted them into Briquettes. Bagasse briquettes are sourced from Karad, Kolhapur,
Latur, & Satara, while coconut shells are sourced from
Mangalore & cashew nut paste from Goa. Thus,
providing employment opportunities for the local
population besides enhancing the earning potential for the
local farmers to help raise their living standard
(Facts and figures retrieved from
http://www.hul.co.in/sustainability/casestudies/environment
/Agriwaste/default.aspx)

 TATA Group – The Mithapur Project

The green cover at Malara, Mithapur was a unique project

undertaken by the TATA group of companies. Soda ash was the
prime product at the Tata Chemicals‘ Mithapur plant and other
chemicals produced there were salt, caustic soda, chlorine,
hydrochloric acid, bromine, bromides and cement. Since soda
ash is produced by the Solvay process using limestone and salt as raw material, during the
process, huge amounts of solids are produced per tonne of soda ash in ammonia recovery and
brine purification operations. The waste stream was highly alkaline and chloride rich, and had
suspended solids. These solids are treated in industrial sedimentation basins where they settled
and the clear liquor diluted and discharged were as per the norms prescribed. Due to
sedimentation, over a period of time, the basins filled up and they are abandoned. These
overburdens are generally a typical feature of Solvay soda ash production units across the world
and during the scorching Indian summer, the top surface dryness led to dust pollution. Many
European Solvay soda ash process units had to be closed since these units are not able to operate
as per the stringent norms of those countries.

Sustainable development issues, as well as emerging stringent pollution control norms,

encouraged Tata Chemicals to take on the challenge of finding a resolution to this environmental
9

issue. To add to the problem, houses were built without planning permission around the
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designated no-housing-allowed waste storage areas at Malara. The whirling clouds of dust
Prerna Tarika Diwaker

Economic Policy Seminar Paper

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became a health hazard for the new residents and now, more than ever, a community was also
endangered and it became a problem howling for a solution.

With the help of a technological tie up with The Energy Research Institute (TERI), New Delhi, it
became possible to reclaim the alkaline and chloride rich sediments by planting the appropriate
green cover on a pilot scale. The TERI scientists along with the TATA group had developed a
way to grow plants on fly ash heap. They created a consortium of microbes that supplied
nourishment to the plant. The bacteria were then attached to the plants in the fly ash through
mycorrhizal technology. The team proceeded to monitor the growth. In the first three months on
2.5 acres, the results were starkly disappointing. The second time around, it was mildly
successful, since they were able to ground the sediments without any soil support. Finally, in the
next attempt, most of the plants survived and the Malara Green Cap project was a success. From
that day on the fruits of their labor were clearly visible: vegetable patches of tomatoes and
chillies and the salvadora persica (called pilu), all semi- saline candidates that can tolerate salt.
The TATA‘s have now expanded the method to about 22 acres, providing oxygen and a green
cover, where there were whirlwinds of ash.

The green cover is now there for all to see and believe the wonders of corporate responsibility
and Science & Technology.

(Facts and figures retrieved from http://www.tata.com/article.aspx?artid=PFiEOzZ9InA=)

A Tragic accident: The Bhopal Gas Tragedy– result of absence of corporate social
responsibility?

THE TRAGEDY

In the early hours of a dreadful Monday, Dec. 3, 1984, a toxic cloud of methyl isocyanate
(MIC) gas enveloped the hundreds of shanties and huts surrounding a pesticide plant in Bhopal,
India. Later, as the deadly cloud slowly drifted in the cool night air through streets in
surrounding sections, sleeping residents awoke, coughing, choking, and rubbing painfully
stinging and watering eyes. By the time the gas cleared at dawn, many were dead or injured
gravely. Although it was not known at the time, the gas was formed when a disgruntled pla nt
employee, apparently bent on spoiling a batch of methyl isocyanate, added water to a storage
tank. The water caused a reaction that built up heat and pressure in the tank, quickly
transforming the chemical compound into a lethal gas that escaped into the cool night air. The
plant was operated by Union Carbide India Limited (UCIL), just over 50 percent of which was
owned by Union Carbide Corporation.

Ironically, the plant at Bhopal had its origin in a humane goal: supplying pesticides to protect
Indian agricultural production. The pesticides made at Bhopal were for the Indian market and
10

contributed to the nation's ability to transform its agricultural sector into a modern activity
capable of feeding one of the world's most heavily populated regions.
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Factors leading to the magnitude of the gas leak included:

 Storing MIC in large tanks and filling beyond recommended levels 9

 Poor maintenance after the plant ceased MIC production at the end of 1984
 Failure of several safety systems (due to poor maintenance)

 Safety systems being switched off to save money—including the MIC tank refrigeration
system which could have mitigated the disaster severity

The problem was made worse by the mushrooming of slums in the vicinity of the plant, non-
existent catastrophe plans, and shortcomings in health care and socio-economic rehabilitation9 .
Plant management deficiencies were also identified – lack of skilled operators, reduction of
safety management, insufficient maintenance, and inadequate emergency action plans 9 .
Apathetic working conditions, serious communication problems and management gaps between
Union Carbide and its Indian operation, lack of supervision, tactics to cut costs of maintenance,
nonexistence of equipment and safety measures added to the cause of this tragedy 10 . What is
more shocking is that, despite prior warnings like when in January 1981, there was a phosgene
leak; a worker was splashed with phosgene. In panic he ripped off his mask, thus inhaling a large
amount of phosgene gas; he died 72 hours later9 . At that time none of the workers had been
ordered to wear protective masks on a mandatory basis whenever within premises and even on
the fateful day of December 3rd 1983, there was an absence of such basic protective measures.
RESPONSE

After the leakage, Union carbide responded by providing Economic rehabilitation, Occupational
rehabilitation, Environmental rehabilitation, Habitat rehabilitation and Health rehabilitation.
Some of the measures that they initiated were –

Economic rehabilitation:
 After the incident, no one under the age of 18 was registered. The number of children
exposed to the gases was at least 200,000. Immediate relief was decided two days after
the tragedy. Relief measures commenced in 1985 when food was distributed for a short
period and ration cards were distributed. Widow pension of the rate of Rs 200/per month
(later Rs 750) was provided9 .

9
Eckerman, Ingrid (2006). The Bhopal Disaster 1984 – working conditions and the role of the trade unions. Asian
Pacific Newsletter on occupational health and safety. (PDF)
11

10
Chouhan, T. R & others. (1994, 2004). Bhopal: the Inside Story—Carbide Workers Speak Out on the World's
Page

Worst Industrial Disaster. US: The Apex Press. India: Other India Press.
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 33 of the 50 planned work-sheds for gas victims started. All except one was closed down
by 1992. 1986, the MP government invested in the Special Industrial Area Bhopal. 152 of
the planned 200 work-sheds were built. In 2000, 16 were partially functioning. It was
estimated that 50,000 persons need alternative jobs, and that less than 100 gas victims
have found regular employment under the government's scheme. One-time ex-gratia
payment of Rs 1,500 to families with monthly income Rs 500 or less was decided 9 .

 From 1990 interim relief of Rs 200 was paid to everyone in the family who was born
before the disaster. The final compensation (including interim relief) for personal injury
was for the majority Rs 25,000 (US$ 830). For death claim, the average sum paid out was
Rs 62,000 (US$ 2,058). Effects of interim relief were more children sent to school, more
money spent on treatment, more money spent on food, improvement of housing
conditions9 .

Health care rehabilitation:

 In the immediate aftermath of the disaster, the health care system became tremendously
overloaded. Within weeks, the State Government established a number of hospitals,
clinics and mobile units in the gas-affected area. Radical health groups set up JSK (the
People's Health Centre) that was working a few years from 1985.Since the leak, a very
large number of private practitioners have opened in Bhopal. In the severely affected
areas, nearly 70 percent do not appear to be professionally qualified 9 .
 The Government of India has focused primarily on increasing the hospital-based services
for gas victims. Several hospitals have been built after the disaster. In 1994, there were
approximately 1.25 beds per 1,000, compared to the recommendation from the World
Bank of 1.0 bed per 1,000 in developing countries9 .
Economic rehabilitation:

 When the factory was closed in 1985–1986, pipes, drums and tanks were sold. The MIC
and the Sevin plants are still there, as are storages of different residues. Isolation material
is falling down and spreading. The area around the plant was used as a dumping area for
hazardous chemicals. In 1982 tube wells in the vicinity of the UCC factory had to be
abandoned. Several other studies have shown polluted soil and groundwater in the area.
Reported polluting compounds include naphthol, naphthalene, Sevin, tarry
residue, mercury, toxic organ chlorines, volatile organ chlorine
compounds, chromium, copper, nickel, lead, hexachloroethane, hexachlorobutadiene, and
the pesticide HCH9 .
12

LESSONS LEARNT
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Economic Policy Seminar Paper

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The impact of Bhopal went well beyond Union Carbide. It changed views and practices among
the entire U.S. chemical industry. It provided impetus to the development and enactment of
federal laws requiring companies to notify government and the public about toxic substances
they make or use11 . The EPA's Federal Superfund Reauthorization, spurred by the Bhopal
tragedy, helped bring about a network of local emergency planning councils, in which corporate
specialists work with their neighboring communities to safely deal with unthinkable
environmental disasters11 .

The Chemical Manufacturers Association has established Community Action Emergency

Response (CAER), a program to prevent or respond to industrial emergencies. Responsible Care
is an industry initiative designed to establish basic standards for safe, healthy, and
environmentally sound operations11 . It is being established in some 22 countries around the
world. Union Carbide has been an active participant in these and other programs 11 . Had there
been a steady sense of corporate social responsibility towards the employees and the society in
1984; along with adequate safety-precautionary measures and adequate training for the
employees; the fateful Bhopal Gas Tragedy could have been avoided.

Trajectory for change: Biblical guidance on corporate social responsibility

With reference to Chapter 6: A vision of Sustainable living of Chr istianity, Climate change and
Sustainable living, I think that the ‗eight principles of sustainable living‘ hold good with their
applications in the Corporate World today. This has also been interestingly linked with biblical
references and guidance. I strongly feel that these principles can be translated and enforced into
daily corporate life. As stated by Spencer, White & Vroblesky, ―Corporate Social Responsibility
is now taken seriously12 ‖. We thus see that organizations are actually concerned about the
welfare of the earth. The organization‘s many initiatives at helping conserve the earth‘s
exhaustible and non-renewable resources have helped them boost their brand image and gather
public support. The increased use of public transport also suggests that people are aware of the
fact that the country is trying to cut back its dependence on oil and resolves to figure out an
alternative source of energy. It is evident that more and more people dream of a cleaner, greener
and healthier America.

The Principles mentioned in the chapter teach us to shape our social vision, maintain
environmental sustainability and economic stability. However, they could also be applicable in
the corporate world. The theme of the significance of god‘s creations and our responsibility
towards protecting them is evident in today‘s corporate scenario. It is our duty as managers to
create a culture which fosters the welfare and progressive development of the workforce. It must
not be an obligation but come naturally imbibed in one (The Creation story, Genesis chapter
1:3).

The reflection of the close bond between society, environment and humans must be further
13

nurtured. Corporate Social Responsibility undertaken by various organizations to cut back on

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11
Browning, J. B. Union Carbide: Disaster at Bhopal. (1993). Union Carbide Corporation
12
Spencer, White & Vroblesky. (2009). Christianity, Climate Change and Sustainable Living.
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Economic Policy Seminar Paper

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their carbon footprint, foster development of under-developed areas and also seek to uplift the
failing economy. This Christian principle echoes how we humans should undertake the
responsibility placed upon our shoulders as a joy and not a burden. We should love our neighbor
a metaphor for God‘s other creations as much as we love the God himself. (The Creation story,
chapters 34:40)
In business concerns today, there is an increasing trend which fosters the development and
uplifting of the marginalized sections of society. Despite handicaps, managers recruit these
people with physical disabilities provided they deserve the job. And what‘s more, these
companies even have separate provisions like Ramps, Disabled ESS (employee‘s social security)
Schemes, Transportation provisions etc for them. It is thus noticeable that organizations are
following our Christian principles of pursuing justice for the vulnerable and marginalized.
(James 1:26 – 27)

As individuals equally responsible for the well being of the environment, Business enterprises
should work united towards drafting policies proposing the reduction level in the emissions,
reducing the carbon footprint the environment, cutting back on waste etc. This way they will do
justice to the principal of offering equitable access to land and natural resources. (Acts 2 44-47)
Responding to the needs of the society is one thing. But; whole- hearted and genuine response to
the urgent pleas of the hour is what should be expected from our Business Organizations. As
stewards of the lord, we have been placed in this eternal and evergreen Garden of Eden (the
world) to serve it and take care of the Lord‘s other creations. The service, like stated earlier,
should be genuine and not be looked upon as a burden. Being shadows of the Lord himself we
have been bestowed with the intellectual and physical power to conceptualize and restructure the
debris of destruction and thus, bring about a new beginning. Business Empires should respond
with seriousness and with hope – as the final principal states- to foster development, mitigate
unemployment and propagate development of its people… of its country… of its world! (Isaiah
29-13)

Thereby the principles of the vision of sustainability helps a Business Enterprise confirm to its
religious, moral and social obligations in today‘s multi- cultural, global economy. The principles
and guidance from the Bible help us by advising us on the right way to approach the issue of
sustainable development.

Conclusion
In conclusion, I would like to say that indeed more and more companies in today‘s business
scenario are adopting the method of climbing the green ladder to success. With the development
in science and technology, many companies are innovating new ways to cut back on their waste
that they accumulate in their process and even those that they accumulate on the face of the
earth. So, I would like take a brave chance and conclude on a happy note by stating that Green
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corporate social responsibility is here for the better. It has made its mark in the economy and in
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the minds of the consumers and that impression is irreplaceable!

Prerna Tarika Diwaker

Economic Policy Seminar Paper

Due: 05/03/2012

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Prerna Tarika Diwaker

Economic Policy Seminar Paper

Due: 05/03/2012

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Photographic courtesy - Google Images

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TED case 223 (1997)

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