UNIT 1

ENVIRONMENTAL IMPACT ASSESSMENT (EIA)

STRATEGIC ENVIRONMENT
LIFE CYCLE ASSESSMENT
ROLE OF BUSINESS IN ENVIRONMENT & SOCIAL DEGRADATION
 UNION CARBIDE

https://www.youtube.com/watch?v=FHJs3TwgsU https://www.youtube.com/watch?v=IwPSDMUtN
Q mk
 Bhopal-A prayer for Rain
https://youtu.be/9Bv6AsQ4sAU

QUESTIONS
• SHOULD UNION CARBIDE BE MADE RESPONSIBLE FOR LIVES LOST?
• WHAT IS THE ROLE OF BUSINESS IN ENVIRONMENTAL CONSERVATION?
• WHAT MEASURES CAN THE GOVERNMENT TAKE TO PROTECT THE
STAKEHOLDER?

• WEEKLY WORKSHOP: A PRACTICE CASE STUDY ON CLASSROOM

 Joshimath, which is also known as Jyotirmath, is a sacred place in the state of Uttarakhand. It is the winter seat
of Lord Badri and is highly revered due to the fact that Adi Shankaracharya established one of the four 'Maths'
here in the 8th century.
https://www.youtube.com/watch?v=oEkLUWdrt-
8
Town sinks 5.4cm each Day (ISRO Report)
9cm in mere 7months (Hindustan News Report)
 PAUSE & THINK

• CAN WE HAVE UNLIMITED DEVELOPMENT?

• WHO IS RESPONSIBLE FOR SINKING OF JOSHIMATH?
• CAUSES OF SINKING LAND STRUCTURE?
• WHAT ADAPTIVE MEASURES CAN BE TAKEN?
Please answer…
What are Dams?
Why are Dams build?
Where are Dams build?
How are Dams Build?
Who builds the Dam?
 A dam is a barrier that prevents the drain of water and results in the creation of a reservoir. Mainly, Dams are
constructed to produce electricity by utilizing water. This form of electricity is known as hydroelectricity.

One of the best places for building a dam is a narrow part of a deep river valley; the valley sides can then act as natural
walls. The primary function of the dam's structure is to fill the gap in the natural reservoir line left by the stream
channel.

Disadvantages of building a dam:

Benefits of Dams:
It affects the aquatic life surrounding the dam and water
•Dams are useful to provide enough water for domestic body as the dam alters the course of the water body which
and city use. in turn affects its habitat.
•For the irrigation process,
•For many companies, Dams, especially those built on the rivers block the river courses and
increase the sedimentation behind the dam.
•Hydroelectric power production,
•Control the flow of the river, Dams might induce earthquakes and the collapse of the
•Helpful during the floods, huge structure suddenly leads to flash floods and causes
•Also, it is a low-cost form of transportation huge economic loss.
•Dams reservoirs are utilized for boating, fishing, and also
When dams are built, people living in that place are evacuated and
offer livelihood to many. shifted to another place. This is an ethical concern and also causes an
economic threat to the people displaced.
DISPLACEMENT BY
DAMS
• ACCORDING TO WORLD
COMMISSION OF DAMS(WCD)
REPORT
 E S G

• Aquatic • Rehabilitation • Monopoly

Habitat • Unemployme • Red Tapism
• Ecosystems nt • Lack
• Pressure on • Displacement accountability
Land forms • Disruption of • Bureaucratic
• Deforestation social life approach
/ natural Cycle
tamper
 NATURAL RESOURCE MANAGEMENT (NRM)
• NRM refers to the sustainable utilization of major natural resources, such as land, water, air, minerals,
forests, fisheries, and wild flora and fauna. Together, these resources provide the ecosystem services that
provide better quality to human life. Natural resources provide fundamental life support, in the form of
both consumptive and public-good services. Ecological processes maintain soil productivity, nutrient
recycling, the cleansing of air and water, and climatic cycles.
• Natural resource management agencies are some of our most complex governmental institutions because
they incorporate the complexities of ecosystems, the socioeconomic and political (e.g., license-sale and
legislative-funding) pressures altering both those ecosystems and their management institutions, the
group dynamics of the agencies themselves, missions and underlying legal requirements, and ethical
differences regarding how humans should relate to nature (Leopold, 1949; Hughes, 1997; Cohn, 2005;
Sullivan et al., 2006; Lackey, 2007).
 WHY DOES ASSAM GET FLOODED EVERY
YEAR?
Reasons Effects Measures
• Increasing construction • Internal displacement of land • Wetlands and local water bodies should
activities along the riverside • Disappearing Villages be revived
• River bank erosion • Loss of Farmland • improve the drainage system, exit for
• Eroded Brahmaputra river • Loss of Natural habitat excess water and prevent waterlogging
• Encroachment of river banks • Livelihood affected • entail clearing human encroachments in
• Deforestation for fuel • Flash Floods the Brahmaputra flood
• Hill cutting for construction • credible information is made available
• Destruction of wetlands so that preparedness
• construction of embankments to prevent
the annual disaster

• HTTPS://WWW.THEHINDU.COM/NEWS/NATIONAL/OTHER-STATES/ASSAM-FLOOD-
DEVASTATION-MONSOON-BRAHMAPUTRA-REASON-CAUSE/ARTICLE65549836.ECE
 NEXT BHOPAL AWAITS- PORUS LABS
• CAUSES
• Ineffective management • MEASURES THAT COULD HAVE
BEEN TAKEN
• Lack of SOP on floor
• Material Safety Data Sheet (MSDS)
• Unclear Accountability • Clear instruction on the use of material with
• Information failure appropriate direction and signage

• Fraudulent practices • Access to emergency services

• Disaster management training
• No training to handle and use material
• Regular assessment /Audits
• No public awareness or caution
• Public training to act during a crisis
• Other emergency resources and services not available
• Clear communication on the cause and effect
to stakeholders about the company and its
activities

DownToEarth (2022), Beyond the Abyss how global warming affects the oceans.1-15July, Pg 52.
DOWNTOEARTH.IN.ORG
 CASE EXAMPLE
A major example of the environmental harm caused by human activity Sociologists McCarthy and King (2009) cite several other
was the British Petroleum (BP) oil spill that began in April 2010 when an environmental accidents that stemmed from reckless decision making
oil rig leased by BP exploded in the Gulf of Mexico and eventually and natural disasters in which human decisions accelerated the harm
released almost 5 million barrels of oil (about 200 million gallons) into the that occurred. One accident occurred in Bhopal, India, in 1984, when a
ocean. Congressional investigators later concluded that BP had made a Union Carbide pesticide plant leaked forty tons of deadly gas. Between
series of decisions that “increased the danger of a catastrophic well,” 3,000 and 16,000 people died immediately and another half million
including a decision to save money by using an inferior casing for the well suffered permanent illnesses or injuries. A contributing factor for the
that made an explosion more likely. A news report paraphrased the leak was Union Carbide’s decision to save money by violating safety
investigators as concluding that “some of the decisions appeared to violate standards in the construction and management of the plant.
industry guidelines and were made despite warnings from BP’s own
employees and outside contractors” (Fountain, 2010, p. A1).

Source : https://courses.lumenlearning.com/suny-socialproblems/chapter/15-3-the-environment/
 EVOLUTION & HISTORY OF EIA
• EIA IS TERMED AS ONE OF THE BEST POLICY INNOVATIONS IN THE 1900S.
THE MAIN AIM OF EIA IS TO CONSERVE THE ENVIRONMENT AND
BRING OUT THE BEST COMBINATION OF ECONOMIC AND
ENVIRONMENTAL COSTS AND BENEFITS.

• THE BIRTH OF EIA IS DATED BACK TO THE 1970S. IN 1969, THE USA HAD
BROUGHT ITS FIRST NATIONAL ENVIRONMENT POLICY ACT (NEPA) 1969.

• THE EIA WAS INITIALLY PRACTISED BY DEVELOPED NATIONS BUT

SLOWLY IT WAS ALSO INTRODUCED IN DEVELOPING NATIONS INCLUDING
INDIA.

• COLUMBIA AND THE PHILIPPINES ARE THE EARLIEST EXAMPLES OF

DEVELOPING NATIONS WHO INTRODUCED EIA IN THEIR POLICIES.
COLUMBIA BROUGHT IT IN 1974 WHILE THE PHILIPPINES IN 1978.

• WORLDWIDE, EIA IS NOW PRACTISED IN MORE THAN 100 COUNTRIES. BY

THE MID-1990S, SOME 110 COUNTRIES APPLIED EIA AS A MAJOR
ENVIRONMENTAL POLICY.

• IN 1989, EIA WAS ADOPTED AS THE MAJOR DEVELOPMENT PROJECT BY

THE WORLD BANK.
 EIA
• ENVIRONMENTAL IMPACT ASSESSMENT (EIA),
• Estimation of the ‘impact’ any project, program, or policy may have on the surrounding ‘environment,’
during or after its implementation of a project.
• It is considered an effective tool to ensure sustainable developmental planning and minimize any
irreversible or prolonged damage to the environment.
• While the aim of conducting such assessments remains uniform globally, the methods and practices
might differ due to different environmental legislations prevailing in other parts of the world.
• It is a process of evaluating the likely environmental impacts of a proposed project or development,
taking into account inter-related socio-economic, cultural, and human-health impacts, both beneficial
and adverse. EIA is a tool used to assess the positive and negative environmental, economic, and social
impacts of a project. This is used to predict the environmental impacts of a project in the pre-planning
stage itself so that decisions can be taken to reduce the adverse impacts.
• Defines EIA is “the process of identifying, predicting, evaluating and mitigating the biophysical, social, and
other relevant effects of development proposals prior to major decisions being taken and commitments
made.”

• The entire EIA procedure can be attributed as the outcome of the 1992 Rio declaration, which emphasized the
need for direct public participation in the decision-making process pertaining to environmental issues.

• The origin of EIA can be traced to the highly recognized and well-established ‘precautionary principle of
environmental jurisprudence in India as well as around the world. Since any harm done to the environment is
mainly irreversible, it is always better to minimize it rather than remedy it. All environment-based legislations
aim to balance sustainable development and environmental protection and recognize the importance of such
large-scale projects.

• OBJECTIVES OF ENVIRONMENTAL IMPACT ASSESSMENT

• Identifying, predicting, and evaluating economic, environmental, and social impacts of development activities.
• Providing information on the environmental consequences for decision making.
• Promoting environmentally sound and suitable development by identifying appropriate alternatives and mitigation
measures.
 EVOLUTION OF EIA
• Pre-1970s: introduction of some pollution control regulations
• Early 1970s: initial EIA development, focus on the biophysical
environment (e.G., Air, water, flora, fauna, climate)
• 1970: US NEPA called for:
• » Environmental review of all government actions
• » Public input into project formulation
• » Informed decision making
• » This process became known as EIA
• 1970s to 1980s: expanded scope for EIA beyond just biophysical to include integrated assessment
of social, health, and economic issues
• Mid to late 1980s: cumulative effects increasingly examined in support of policy and planning
• Mid 1990s: towards sustainability (Eg., Strategic environmental assessment, biodiversity)
• Over the last 30 years the EIA process has become increasingly more holistic; assessments have
broadened to consider all aspects of proposed projects and activities
• Assessments routinely examine:
• » Biophysical
• » Social
• » Health
• » Economic
• » Risk and uncertainty
 EIA CORE VALUES

• SUSTAINABILITY( PLANNING): The EIA process will provide

necessary environmental safeguards
• INTEGRITY (RELEVANCE): The EIA process will conform with
established standards; underlying science is credible and decisions are
justified
• UTILITY ( SIGNIFICANCE) : The EIA process will provide balanced,
accurate information for decision making
 EIA GUIDING PRINCIPLES
• PARTICIPATION: Appropriate and timely access by all interested parties
• TRANSPARENCY: All decisions should be open and accessible
• CERTAINTY: Process and timing agreed in advance and followed by all
• ACCOUNTABILITY: Decision makers and project proponents are responsible for their
actions
• CREDIBILITY: Assessments are professional and objective
• COST-EFFECTIVENESS: Environmental protection is achieved at the least cost
• FLEXIBILITY: Process is adaptive and responsive
• PRACTICALITY: Information and outputs are usable in decision making and planning
 APPLICABILITY IN INDIA

• EIA had started in India in 1976-77 when the Planning Commission directed the
Department of Science & Technology to assess the river valley projects from the
point of view of the environment. It was later extended for all those projects that
required approval from the Public Investment Board.

• The Union Ministry of Environment and Forests (MEF), Government of India,

under the Environmental (Protection) Act 1986, promulgated an EIA notification
making Environmental Clearance (EC) mandatory for expansion or modernisation
of any activity or for setting up new projects. This decision was taken on January
27, 1994.

• EIA was first introduced in 1994 with regard to the various river valley projects all
over the country and later expanded to include various other developmental
procedures in its scope. EIA is now mandatory for over 30 classes of projects.

• The environmental protection rules, 1986 warrant for the imposition of certain
restrictions on the construction/ expansion/ modernization of specific projects
without prior approval from the central, state, or union territory level
environmental impact assessment authority (EIAA) constituted under the
environment protection act, 1986.
 THE EIA PROCESS
EIA INVOLVES THE STEPS MENTIONED BELOW. HOWEVER, THE EIA PROCESS IS CYCLICAL WITH INTERACTION
BETWEEN THE VARIOUS STEPS.

• Screening: the project plan is screened for scale of investment, location and type of development and if
the project needs statutory clearance.
• Scoping: the project’s potential impacts, zone of impacts, mitigation possibilities and need for
monitoring.
• Collection of baseline data: baseline data is the environmental status of study area.
• Impact prediction: positive and negative, reversible and irreversible and temporary and permanent
impacts need to be predicted which presupposes a good understanding of the project by the assessment
agency.
• Mitigation measures and EIA report: the EIA report should include the actions and steps for
preventing, minimizing or by passing the impacts or else the level of compensation for probable
environmental damage or loss.
 • Public hearing: on completion of the EIA report, public and environmental groups living close to project
site may be informed and consulted.

• Decision making: impact assessment authority along with the experts consult the project-in-charge along
with consultant to take the final decision, keeping in mind eia and emp (environment management plan).

• Monitoring and implementation of environmental management plan: the various phases of

implementation of the project are monitored.

• Assessment of alternatives, delineation of mitigation measures and environmental impact assessment

report: for every project, possible alternatives should be identified, and environmental attributes compared.
Alternatives should cover both project location and process technologies.

• Once alternatives have been reviewed, a mitigation plan should be drawn up for the selected option and is
supplemented with an environmental management plan (EMP) to guide the proponent towards environmental
improvements.

• Risk assessment: inventory analysis and hazard probability and index also form part of EIA procedures.

https://www.youtube.com/watch?v=Uxh3MxOvD
 Stakeholders in Process
•Those who propose the project
•The environmental consultant who prepare EIA on
behalf of project proponent
•Pollution Control Board (State or National)
•Public has the right to express their opinion
•The Impact Assessment Agency
•Regional centre of the Ministry of Environment, Forest
and Climate Change (MoEFCC)
 CATEGORY OF EIA PROJECTS

• Category A: A proposed project is classified as category A if it is likely to have significant

adverse environmental impacts that are sensitive, diverse, or unprecedented. These impacts may
affect an area broader than the sites or facilities subject to physical works.
• Category B projects undergoes screening process and they are classified into two types. Category
B1, projects (mandatorily requires EIA). Category B2 projects (do not require EIA).
• Category C - projects or undertakings not falling under category A or B which are intended to
directly enhance the quality of the environment or directly address existing environmental
problems.

List of EIA projects

 TYPES OF EIA
• PROJECT-LEVEL EIA: Narrow-perspective; examine potential environmental
impacts of a single project or activity
• CUMULATIVE EFFECTS ASSESSMENT (CEA): Broadens assessment to
examine potential impacts of multiple projects from the viewpoint of valued
environmental components (VECS)
• STRATEGIC ENVIRONMENTAL ASSESSMENT (SEA): Widest focus
involving systematic evaluation of potential impacts of policies, plans and
programs (PPP)
 ALL PROJECTS THAT REQUIRE CLEARANCE • Asbestos and asbestos products,
FROM CENTRAL GOVERNMENT CAN BE • Hydrocyanic acid and its derivatives,
BROADLY CATEGORIZED INTO THE • Primary metallurgical industries (such as production of iron and steel,
• aluminium, copper, zinc, lead, and ferro-alloys),
FOLLOWING: • Chlor-alkali industry,
• Integrated paint complex including manufacture of resins and basic raw
• Individual projects that need require clearance from central government, materials required in the manufacture of paints,
• Nuclear power and related projects, • Viscose staple fibre (biodegradable fibre similar to cotton) and filament yarn,
• Storage batteries integrated with manufacture of oxides of lead and lead
• River valley projects including hydel power, major irrigation and flood antimony alloy,
control, • All tourism projects between 200m-500 metres of High Water Line and at
locations with an elevation of more than 1000 metres with investment of more
• Ports, harbours, airports (except minor ports and harbours),
than Rs. 5 crores,
• Petroleum refineries including crude and product pipelines, • Thermal power plants,
• Mining projects (with lease more than 5 hectares),
• Chemical fertilizers and pesticides, • Highway projects except projects relating to improvement work provided
it does not pass through ecologically sensitive areas such as National Parks,
• Petrochemical complexes and petrochemical intermediates and
Sanctuaries, Tiger Reserves, Reserve Forests,
production of basic plastics,
• Tarred roads in the Himalayas and forest areas,
• Bulk drugs and pharmaceuticals, • Distilleries,
• Raw skins and hide,
• Exploration for oil and gas and their production, transportation and • Pulp, paper and newsprint, dyes,
storage, • Cement,
• Synthetic rubber, • Electroplating,
• Meta aminophenol, etc.
NMIA-NEW MUMBAI INTERNATIONAL
AIRPORT
IMPACT OF NMIA
MUMBAI COASTAL ROAD
EIA 2020
 LIMITATIONS OF
ADVANTAGES OF EIA EIA
• By using EIA both environmental and economic benefits can be achieved, • Time-consuming
such as: • Little public participation in actual implementation
• Reduced cost and time of project implementation and design, • Sometimes too focused on the scientific analysis
• Avoided treatment/clean-up costs and impacts of laws and regulations. • Compliance monitoring after EIA is seldom carried out
• Lays base for environmentally sound projects; • Impact assessment processes are in place and applied
• Greater awareness of environmental legislation; in many countries, yet biodiversity is often inadequately
• Protection of environment addressed.
• Optimum utilization of resources(balance between development and
• There is a growing recognition of the need to better
environmental protection) reflect biodiversity considerations in environmental
• Informs decision makers impact assessments and strategic environmental
assessments.
• EIA reports are a critical component of India's environmental decision-making
process.
• It acts as a detailed study of the potential impacts of proposed projects. CHALLENGES OF EIA
• It helps in predicting environmental impacts at an early stage in project • Delayed decision making & time consuming
planning and design. • Limited resources and technical knowledge
• Based on these reports, the environment ministry or other relevant regulatory • Stakeholders active participation
bodies may or may not grant approval to a project. • Lack of environmental data and climate forecast
• Ethical challenges and the human factor
• The EIA reports are also important to define measures that the project
• Bureaucratic approach and multi party involvement
could take in order to contain or offset project impacts.
• Creating awareness for the use of EIA.
• EIA-based approvals for most projects also involve the process of • Ensuring there are well-defined regulations and
conducting public hearings, so that who are likely to be affected can be legislation concerning the conduction of EIAs.
taken on board before approving the project. • Monitoring and enforcement of EIA legislation.
• EIA links environment with development. The goal is to ensure
environmentally safe and sustainable development. Summary EIA:
https://www.youtube.com/watch?v=RWtT0EfhNsE
STRATEGIC ENVIRONMENTAL ASSESSMENT
• Strategic environment assessment (SEA) refers to
systematic analysis of the environmental effects of
development policies, plans, programmes and other
proposed strategic actions. This process extends the aims
and principles of EIA upstream in the decision-making
process, beyond the project level and when major
alternatives are still open.

• SEA represents a proactive approach to integrating

environmental considerations into the higher levels of
decision-making.

• EIA has certain shortcomings as a tool for minimising

environmental effects of development proposals. It takes
place relatively late at the downstream end of the decision
making process, after major alternatives and directions
have been chosen.
ROLE OF BUSINESS IN ENVIRONMENT
DEGRADATION
• Do you know where
your stuffs come from?

Who makes it?

What is it made up of?
When do you demand?
How does it reach you?
Where does it go after
you consume?
LIFE CYCLE ASSESSMENT
 LCA (LIFE CYCLE ASSESSMENT)
• Today, the impact of products and services on the environment has become a key element of decision-making
processes.
• Instead of considering only fragments of environmental impacts such as those resulting from production, use
or disposal, societies of the future will have to consider a product’s life cycle as a whole.
• Against this background, ‘life cycle thinking’ has become a central pillar in environmental policies and
sustainable business decision-making.

How is it different from EIA ?

LCA is an analytical tool specifically designed to assess the environmental impacts relating to the whole
production chain of a good, whereas EIA is a procedure that has to support decision making with
regard to environmental aspects of a much broader range of activities.
 Life cycle assessments consist of four
components:
• 1. Goal and scope definition : The goal of an LCA will clearly define the intended application, the
reasons for carrying out the study and the intended audience. [ISO, 1998] ; The scope of an LCA
must consider and describe the following items: The functions of the product system; in case of
comparative studies, the systems; The functional unit. The functions (performance characteristics) of
the product shall be clearly specified. The functional unit quantifies these functions. Thus, the
necessary amount of product to fulfil the function can be measured. [ISO, 1998]
• 2. Inventory analysis - the inventory analysis is the LCA phase that involves the compilation and
quantification of inputs and outputs for a given product system throughout its life cycle or for single
processes. The inventory analysis includes data collection and the compilation of the data in a life
cycle inventory (LCI) table.

• 3. Impact assessment - the life cycle impact assessment (LCIA) identifies and evaluates the amount
and significance of the potential environmental impacts arising from the LCI. The inputs outputs are
first assigned to impact categories and their potential impacts quantified according to characterization
factors.

• 4. Interpretation :The aim of the interpretation phase is to reach conclusions and recommendations
within the defined goal and scope of the study. Results from the LCI and LCIA are combined together
and reported in order to give a complete and unbiased account of the study. [ISO, 2000b]

Source: https://dantes.info/Tools&Methods/Environmentalassessment/enviro_asse_lca_example.html
 Life Cycle Assessment systems
► Cradle to Grave: includes the material and energy production
chain and all processes from the raw material extraction
through the production, transportation and use phase up to the
product’s end of life treatment.
► Cradle to Gate: includes all processes from the raw material
extraction through the production phase (gate of the factory);
used to determine the environmental impact of the production
of a product.
► Gate to Grave: includes the processes from the use and
end-of-life phases (everything post production); used to
determine the environmental impacts of a product once it
leaves the factory.
► Gate to Gate: includes the processes from the production
phase only; used to determine the environmental impacts of a
single production step or process.
LIFE CYCLE ASSESSMENT
 WHAT IS SOCIAL DEGRADATION ?
• The degradation of society as a process of destruction of the individual, society and the state.

WHAT CAUSES SOCIAL DEGRADATION?

Causes include overpopulation, pollution, deforestation, global warming, unsustainable agricultural and fishing
practices, overconsumption, mal- distribution of wealth, unfair treatment to human population, social injustice,
Business monopoly, the Third World debt crisis, and militarization and wars.

Consequences include increased poverty, overcrowding, famine, weather extremes, species loss, acute and
chronic medical illnesses, war and human rights abuses, quality of life and an increasingly unstable global
situation, chaos and disaster.

Action: The sustainable business’s social impact would include business practices and policies related to
working conditions, diversity in hiring, opportunities for advancement for women and minorities, lack of
discrimination, and the provision of affordable health care and other necessary benefits. In addition, social
impact includes wages, breaks, adherence to employment laws, safety, training, and numerous other specific
labor practices. Finally, social impact includes the impact on the local public and social services sector as a
result of the business’s activities.
 HUMAN CAPITAL DEGRADATION

• BUSINESS IMPACT HUMAN

CAPITAL : THE CASE OF
FOXCONN
• Is it right to hold Apple responsible
for the working conditions in
Foxconn?
• What do you suggest Apple should
do to improve the condition of
employees at Foxccon?
• Is this Human capital Degradation?
How??
THE SOCIAL DILEMMA
• Should IT company's be accountable
for the data they collect and use?
• Does social presence influence
community leaving? How ?
• Is this resulting in social degradation?
• Suggest Measures to reduce to impact
of social media on Society at large.
 BINGO SOCIAL DILEMMA
• With a group in-person
• Download the game card on your phone, where you can use your phone’s markup or photo editing app to
play. Alternatively, download the card on your computer, print it, and use a marker.

• Circle your confessions, leaving the center tile blank for now.
• Show your card to the group and select one tile to share a personal
experience around.

• As a group discuss
• Does social Networking Co’s presence influence community living? How
?
• As a stakeholder, should the social networking company’s be accountable
social degradation?
• Do you think social Media has the power to curb social Degradation?
• How you might take action to reduce the negative effects of these
technologies on your life & your loved one’s?
Source: https://www.thesocialdilemma.com/start-a-conversation/
 Organisations are consciously investing in social capital to empower the marginalised
SOCIAL CAPITAL sections of the society and engage with the community in meaningful ways, which, in
turn, helps build customer loyalty.

• The social capital of a nation is the sum of social stability

and the well-being (perceived or real) of the entire
population. Social capital generates social cohesion and a
certain level of consensus, which in turn delivers a stable
environment for the economy, and prevents natural
resources from being over-exploited.

• In addition to local historical and cultural influences, the

social consensus in society is affected by several factors:
health care systems and their universal
availability/affordability (measuring physical health);
income and asset equality, which are correlated to crime
levels; demographic structure (to assess the future
generational balance within a society); freedom of
expression and freedom from fear; and the absence of
violent conflicts. Only in these circumstances can the
economy flourish, generate value, jobs and income for
the population
 102 India 42.4

https://solability.com/the-global-sustainable-competitiveness-index/the-index/social-capital
 • TOMS shoes is an example of a company making a commitment to
POSITIVE maximize its social impact. In 2006, blake mycoskie founded TOMS

SOCIAL shoes with the singular mission of improving the lives of children by
providing shoes to those in need. Shoes are produced in Argentina and
IMPACT china following fair labor practices while creating minimal
environmental impact. Factories are monitored by TOMS and
third-party independent auditors. TOMS shoes are sold online and in
retail locations around the world with the promise that for each
pair purchased, TOMS will donate a second pair to a child in need
in Argentina, south Africa, and other locations around the world.
The public is invited to participate in “shoe drops” around the world
and to experience firsthand the social contribution of TOMS shoes.

Source:
https://yaleglobalhealthreview.com/2016/07/08/toms-impact-and-effectiveness-of-buy-one-give-one-model/#:~:text=
The%20niche%20the%20company%20occupies,donated%20to%20communities%20in%20need.
https://www.tatasteel.com/investors/integrated-report-2018-19/s
ocial-and-relationship-capital.html
GODREJ INDIA CULTURAL LAB
 WHAT CAN COMPANIES DO TO INCREASE
THEIR SOCIAL IMPACT ?
A sustainable business should consider the social impact of its business operations on employees, those employed throughout the supply chain, and on the community. So how can a business begin to maximize its social
impact? Here are some practices that will help create positive social impact:

• Follow UN global compact: review the 10 principles of the united nations global compact and abide by them, whether or not the business becomes a
signatory.
• Conduct & Buy fair trade: seek out opportunities to purchase fair trade products for your business. Fair trade products ensure that those who produced the
product in developing countries were paid a fair wage under humane working conditions. You can purchase fair trade clothing, handicrafts, coffee, cocoa,
sugar, tea, bananas, honey, cotton, wine, fresh fruit, flowers, and other products.
• Integrate Company policies and practices to sustainable goals : consider the social impact of your company’s policies and practices on employees
(such as health care coverage, educational opportunities, and worklife balance).
• Philanthropy: evaluate the impact of your corporate giving programs. Find opportunities that are strategically related to your core business, and focus your
philanthropy in those areas, benefiting both the community and the business.
• Supply chain linked to Value Chain: understand the conditions under which the products and supplies you purchase were produced; work with suppliers to
achieve transparency throughout the supply chain; check the web sites of any of the numerous watchdog organizations (e.G., Corpwatch, sweatshop watch,
international labor rights forum) to find world regions, specific companies, and industries known for human rights abuses that could be occurring within your
supply chain.
• Labor: first, make sure your business follows policies and practices that are fair to its labor force; a good place to start is SA8000 and the international labour
standards; review and understand the standards, whether or not your business seeks certification; support freedom of association, collective bargaining, and
nondiscrimination in your own place of business as well as with suppliers; in purchasing, avoid products that were produced using forced and child labor. See
green America's 9 cool ways to avoid sweatshops, http://www.Coopamerica.Org/programs/sweatshops/whatyoucando/9coolways.Cfm; look for certifications
from fair trade federation, fair labor association, social accountability international, rugmark, verite, worker rights consortium, or others that have
independently evaluated labor conditions.
 An experiment in India shows how much companies have to gain by investing in
their employees
by achyuta adhvaryu, lavanya garg, namrata kala, and anant nyshadham

• For many low-wage garment workers in India, even basic education and training can make the difference between a life of dignity or a life
of extreme poverty and degradation. Common sense would suggest that managers of such low-wage workers — who focus relentlessly on
keeping costs down — would have no incentive to provide such training or personal and career development. But our research suggests a
better way to manage low-wage workers in developing economies: investing in these workers is good for society and the bottom line. In
july 2013, we implemented a randomized controlled trial in five factory units in bangalore operated by shahi exports, pvt. Ltd., India’s
biggest garment export firm. The trial covered 2,703 workers who initially expressed interest in the program and involved the application of
the personal advancement and career enhancement (P.A.CE) training program — a life skills course for female garment workers designed
by gap, inc. P.A.C.E teaches communication, time management, decision making, problem solving, and financial literacy are taught
through weekly group sessions in the workplace. But that’s not all. On the business side, trained workers were more productive by 7
percentage points post-training, and the average complexity of the sewing operations to which they were assigned rose considerably.
Moreover, more workers were retained during the program (3 percentage points higher retention during the program), as P.A.C.E. Training
was akin to an in-kind transfer from the firm to the workers. After 9 months, we calculated the net rate of return to the company’s
investment in P.A.C.E. Training for workers at nearly 250%. The high return to the program can be explained by the fact that the low
cumulative costs flat-lined after program completion, while the benefits (mostly accruing due to productivity increases) continued to rise.

Source:
https://hbr.org/2017/07/an-experiment-in-india-shows-how-much-companies-have-to-gain-by-investing-in-thei
r-employees
 ENVIRONMENTAL AND SOCIAL
DEGRADATION AS THE ENGINE OF ECONOMIC
GROWTH
• Abstract
• In this paper, a commonly owned resource (an environmental or social asset) and a private good are substitutes in
consumption. The households can buy the private good on the market, while the resource is available for free. The resource is
renewable, but its ability to regenerate declines with the level of aggregate production: each single firm producing the private
good has only a negligible impact on the resource, but the impact caused by the entire population of firms is considerable. In
the face of a decrease in the stock of the resource, households are induced to increase their participation in market activities in
order to raise their income and buy more private goods. Hence, each household contributes to a further increase in aggregate
production, thus causing additional damage to the resource's ability to regenerate and feeding the growth process. Given the
presence of negative externalities, multiple equilibrium paths are possible. In this situation, social conventions may guide
individuals to coordinate expectations and behavior toward a particular steady state: one can speculate that the dominance of
cultural values favorable to a lifestyle based on a mix of high consumption and hard work leads the economy to converge on a
pareto-inferior steady-state.

Stefano Bartolini, Luigi Bonatti,

Environmental and social degradation as the engine of economic growth, Ecological Economics, Volume 43, Issue 1, 2002, Pages 1-16,
ISSN 0921-8009, https://doi.org/10.1016/S0921-8009(02)00176-3.
(https://www.sciencedirect.com/science/article/pii/S0921800902001763)