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march-april 2008 issue 02

a specialized csr journal

cover story:
tbl and eco-efficiency

the feasibility of renewable


energy in pakistan

leapfrogging past green:


can blue be the next
green in pakistan?

footprints in the air:


air pollution prizes?

the people-centered
model of business

the pakistani perspective on


sustainability reporting

business intelligence:
EIU sustainability-
business survey

green business sense?

energy conservation:
collective conscience

csr talk: advancement-


poverty paradox

Eco-Efficiency – Key TBL Driver


A Publication of Asiatic Public Relations Network (Pvt.) Ltd.
contents
Editor-in-Chief
regulars Zohare Ali Shariff

Editorial Director
8 global briefs Khadeeja Balkhi
people - planet - profits Managing Editor
Rutaba Ahmed

28 csr talk Research, Distribution & Development


Raza Tahir
challenge of the 21st century: advancement-poverty paradox Faisal Siddiqi
Mehfooz Aleem
30 csr toolkit Creatives
PC-MoB Kamran Rauf
Shireen Lotia

Reprint
34 breather In line with our mission,
we encourage reproduction of
material, provided tbl and content
partners are given credit
39 social partnership Publisher
indus earth Asiatic Public Relations Network
(Private) Limited

46 book in focus Printed at


ethics incorporated Nikmat Printers, Karachi
Disclaimer
The views expressed in tbl are the
48 musings authors’ and not necessarily shared by
a second life tbl and/or APR
Declaration
From the office of
District Coordination Officer,
City District Government Karachi
features NO.DCO/DDO/LAW/CDGK/109/2007,
Karachi
Dated May 22, 2007

11 cover story
tbl and eco-efficiency

14 renewable energy
the feasibility of renewable energy in pakistan Subscription, advertising and
feedback at:
17 leapfrogging past green
can blue be the next green in pakistan? tbl: triple bottom-line

Address: A-7, Street 1,


19 footprints in the air Bath Island, Clifton,
air pollution prizes? Karachi, Pakistan.
Tel: (92-21)-5837674, 5823334
22 business intelligence Fax: (92-21)-5867103
EIU surveys sustainability impact on businesses E-mail: tbl@apr.com.pk
Web: www.triplebottomline.com.pk

36 sustainability reporting
the pakistani perspective on sustainability reporting
Subscribe to a full year of tbl
(6 issues) at the special rate of Rs.1,000 and
41 energy conservation save the cost of an issue.
collective conscience
If you wish to subscribe to tbl, or
unsubscribe, please write to us at
44 green perspectives tbl@apr.com.pk
green business sense?

2 www.triplebottomline.com.pk
welcome on board
The tbl Team is honoured to
introduce our editorial advisory
board. Comprised of diverse Ayesha Tammy Haq
leaders and practitioners, our goal Member

is that the board will steer our Corporate lawyer, legal and media consultant.
efforts to their highest potential. Concurrently a freelance journalist and host of a
weekly current affairs television programme. Based
in Karachi.

Anwar Rammal Habiba Hamid


Chairperson Member

Chairman of Asiatic Public Relations (Pvt.) Limited, Founder of Saracen Consulting, a corporate
Pakistan’s leading communications and PR agency, governance and responsibility consulting firm.
affiliated internationally with Hill & Knowlton. Also Currently articulating the Dubai Model of sustainable
Chairman of JWT, Pakistan. Based in Karachi. development. Based in Dubai.

Khadeeja Balkhi Abrar Hasan


Executive Member Founder Sponsor Member

Sustainability and CSR consultant and internationally Chief Executive of National Foods Limited,
experienced business and gender journalist. Based in Pakistan’s pioneering multi-category food company.
Karachi. Innovative businessman and industry leader. Based
in Karachi.

Khawar Masood Butt Vivian Lines


Founder Sponsor Member Member

Chairman and MD of English Biscuit Manufacturers President and Chief Operating Officer of Hill &
(Pvt.) Limited, Pakistan’s leading biscuit company. Knowlton’s Asia Pacific Region and concurrently
Entrepreneur and business visionary with a firm President and CEO Southern Asia. Based in
commitment to CSR. Based in Karachi. Singapore.

vision and
Vision: To steadily facilitate the germination of sustainable visions for
organisational growth, sharing specific triple bottom-line knowledge and tools

Mission Statement: To disseminate triple bottom-line knowledge to a

mission diversified group including corporate, social development and general business
groups primarily through a specialised journal, expanding in accordance with
organisational capacity and market readiness

march-april 2008 3
acknowledgement
The term ‘Triple Bottom-Line’ (TBL), which translates The tbl team expresses its profound gratitude to
into “People, Planet, Profits,” captures an expanded the companies whose names appear below, for
spectrum of values and criteria for measuring their agreement to support this publication.
organisational (and societal) success - social, Bringing out a knowledge-based publication like
environmental and economic. tbl involves considerable effort and costs. It may
not have been possible to bring out tbl in its
Through our masthead we personify the term TBL. present format without the invaluable support
Essentially, our ‘bottom line’ is a grey bar with a and contribution of our Founder Sponsors.
burgundy border which runs through the masthead,
Through their support to tbl our corporate
at some points overlapping the letters and running
sponsors have confirmed that they share our
under them at others. Here ‘t’ stands for triple and is Mission of disseminating triple bottom-line
represented through the three shades of the letter. knowledge to a diversified group including
The ‘b’ stands for bottom and it sits below our grey corporate, social development and general
line with the line going through it - since this business groups. We believe that helping to
magazine is a below the line activity, the two gel in spread awareness of true CSR is in itself an
together. The ‘l’ stands for line and the letter sits element of CSR. By becoming our sponsors, the
comfortably on top of the grey ‘bottom’ line. following companies have taken that vital first
step with us in our journey to facilitate awareness
and understanding of true CSR in our country.

mr tbl
National Foods Limited

Founder Sponsor

English Biscuit Manufacturers


(Private) Limited

Founder Sponsor
Mr. Tanveer B. Lone is indeed a busy man, laden with
his struggle for the truth in the Sustainability industry.
His first name, Tanveer, according to our wonderful
Ferozsons Urdu-English dictionary means
'illuminating'. We feel he is sometimes the seeker of Engro Chemical Pakistan Ltd.
enlightenment, and at others, the seemingly lone
bearer. Driven towards his destination – the true light ENGRO CHEMICAL PAKISTAN LIMITED Co-sponsor
of CSR – he sometimes feels like a lone voice buried
amidst the complex factors he confronts on the way.
Yet as he sets forth, oft-alone on this journey, he knows
he will meet companions along the sub-paths his
journey takes, merging at destinations common with
him. There will be occasions where we can all relate to
him. At times, though his capitalist-training-bred
financial focus may fluster us and his understanding
towards disseminating the true implications of the
triple bottom-line. Feel free to share ideas with Mr.
TBL that might help clear the oft-murky waters he'll
encounter in his expedition at tbl@apr.com.pk

4 www.triplebottomline.com.pk
editor’s note

beyond the basics

A
s businesses expand and become performance by all organizations should be
more accountable, the crucial link as routine as and comparable to financial
between higher levels of corporate reporting. Included in this issue is an article
transparency, accountability and especially written for TBL by Katherine
sustainability performance of businesses Miles Hill, Communications Coordinator of
becomes more stark. Eco-efficiency must be GRI and entitled, Putting the Value of
seen as a vital area for both improvement Sustainability Reporting into Perspective in
and for reporting. Indeed, one can even say Pakistan. It should serve as a tailor-made
that there is a direct co-relation between growth introduction to reporting practices for those among
(which invariably entails a larger environmental TBL readership who wish to tread this path.
footprint) and the need to leverage eco-efficiency. We
at TBL see eco-efficiency as a key driver of the triple We're also delighted to share with you Salman
bottom line and hence have chosen it as the theme of Abedin's trail-blazing thoughts on the new corporate
our publication's second issue. colour, philosophy and change-catalyst. The People-
Centered Model of Business, in our CSR Toolkit
Management Best Practices require recording and Section meanwhile gives thought-provoking insight on
reporting of various business functions. When a practical tool which organizations can use to examine
companies begin to pursue the triple bottom line - eco- the reality of their markets by focusing on human
efficiency being one important aspect of this - activity - written by the author herself.
reporting must be a mandatory exercise.
We hope there will be plenty of food for thought (and
One significant indicator of the growing importance of for action!) for our readers in the various articles in this
CSR is the number of companies, even in our own issue on eco-efficiency and other CSR subjects.
country, who have started bringing out an annual
report on their CSR activities. For some this may be Finally, on behalf of TBL's Editorial Advisory Board
little more than a public relations exercise. There are and the management, I would like to thank all of our
others who see this as an opportunity for introspection readers who gave us invaluable feedback on our first
and self-analysis, leading to improvements in systems issue. Taking this feedback into account we have
and practices for the growth of the company and for brought about certain improvements in the
delivering even better products and services to the publication's layout and design, which are reflected in
public. Whatever the motivation, the fact that this second issue. TBL aims to maintain a high
companies are increasingly willing to report on their standard in both presentation and content and your
CSR or sustainability practices is a good omen. It continuing feedback will be invaluable and greatly
implies that there is an awakening in the corporate appreciated.
sector to be accountable to their audiences.

The Global Reporting Initiative or GRI has emerged as Sincerely,


the world standard for reporting on CSR and
sustainability. A large multi-stakeholder network of
experts in dozens of countries worldwide participate in
GRI's working groups and contribute to the
development of the GRI reporting framework in other
ways - both formally and informally. Its vision is that Zohare Ali Shariff
reporting on economic, environmental, and social Editor in Chief

This publication is being sent complimentary to 1500 decision-makers and opinion-formers in the corporate sector, the government,
NGO sector, international institutions and academia. Recognising that your sphere of work has the potential to compliment and
reinforce the essence of our mission, we have taken the liberty to present tbl to you. It is also available at selected outlets.

We would love to hear from you. Please do contact us at tbl@apr.com.pk with your thoughts, feedback and input from your corporate
or social practices.

tbl strongly believes in knowledge dissemination and sharing. Please feel free to share tbl contents with your peers and teams - of
course we know you’ll give tbl the credit when you share our work.

march-april 2008 5
letters to the editor
O I
verall I found the magazine wanted to share with you my Dear Readers,
useful in helping to refine excitement at receiving my copy
an understanding of the of TBL. It's finally made it's way Thank you for taking the time to
role of the corporate sector in to me in Geneva, after travelling share your valuable input with TBL.
contributing towards the wellbeing through London and who knows
of a balanced society, which where else! Mr. Siddiqi and Ms. Thome, thank
includes improved social services you for your warm encouragement.
and the environment. The publication looks fantastic and The TBL journey has been a
I can see there was a lot of hard rewarding, yet challenging one. Our
While I found the opinion features work put into it by all of you. The goal to add value to the knowledge
such as the one about not using csr standard is very impressive and I base of our diverse readership
as a superficial buzz-word very am very proud to be a part of such remains an endeavour that will
useful, one would welcome a work. require our concerted efforts and
section of the magazine dedicated we look forward to input,
to share certain trend data analysis, Flavia Thome suggestions and initiatives for
such as the number of private Programme Administrator action from our readers.
companies registered under the ISO Trade Knowledge Network
14000 environment standard, the International Institute for Mr. Habib, you’ll be happy to see
number of companies producing Sustainable Development that we have incorporated your
separate reports on their Geneva valuable suggestion and have
environmental performance, and included in this issue a business
the number of banks that have intelligence survey, which we hope
signed up to the "Equator Principle" will be an informative and telling

I
environmental standards. t is heartening to see the read. We are also working with
realisation of profound social local universities to do ground
Wishing the magazine success for and environmental impacts research similar to the topics you
the future. businesses have and that is fast have shared and look forward to
catching up in a country like your ongoing feedback, and
Pakistan. The changing balance of moreover support from
Ali Habib power between the political and organizations such as WWF-
Director General economical forces in the present Pakistan.
WWF-Pakistan age of globalisation, with retreat of
Lahore traditional left, has put additional Mr. Soomro, thank you for candidly
responsibility on businesses to sharing your interests with us. We
assess their social and are all keen to learn more about the
environmental footprints and also evolution that we hope will balance

T
hank you for sending me a to improve upon them for the and neutralize interests towards the
copy of the first issue of tbl. It greater good of society. realization of an inclusive triple
is indeed a very admirable bottom line approach - instead of
venture and initiative in TBL can play a leading role in the traditional single bottom-line
highlighting CSR as an creating awareness and offer foci that unregulated capitalist
opportunity. solutions to businesses in this environments often result in.
regard.
My congratulations to you for In the next issue, we expect to
taking the initiative and being My felicitations to the TBL team for publish material that would be
among the pioneers. coming up with this platform. It insightful to all our readers.
would be nice to see some coverage
Fasihul Karim Siddiqi on various anti-capitalism We hope that tbl will continue to
Director & Board Advisor movements worldwide to better serve as a platform and change
Human Resources understand the context of evolving agent through our readers’ active
Progressive Manufacturing and social accountability of businesses. participation and debate.
CSR
Hinopak Motors Limited Favad Soomro Editorial Team
Karachi Karachi

6 www.triplebottomline.com.pk
global briefs

PEOPLE issues found growing interest in 1500 European business leaders,


CSR jobs. About 80% of students entrepreneurs, academics and
surveyed wanted to find CSR jobs; political leaders from dynamic
60% said they were interested in growing markets, including China,
finding them jobs right after India, Europe and the Gulf region,
graduating. The submitted number all sharing a common goal: to do
of resumes of interested MBA sustainable business. The Forum
students increased 46% since 2005, features such diverse leaders as
to 1126 from 796. Yulia Tymoshenko, Prime Minister
Increasing Demand for CSR Also, active membership of of Ukraine who was named the
business students and professionals third most powerful woman in the
Jobs Outpaces Supply: joining Net Impact to access career world by Forbes in July 2005.
CSR Job Report resources has almost doubled to
A multi-year study on CSR jobs about 5,000 in 2007 from 2,600 three This conference will address
was published by Net Impact, an years ago. technology and consumer
international nonprofit perspectives and the broader
organization which helps TBL- As the demand for CSR energy areas, including energy
minded companies connect with implementation expertise increases availability and usage, transport
top MBA talent, and the California- at a rapid pace, graduate schools and environmental issues. The
based CSR Recruiting firm, Ellen are recognizing the need for both platform creates business
Weinreb. environment and business expertise opportunities, develops clear
and knowledge, and are focusing strategies and helps connect
The CSR Jobs study found that on developing related programs. multinational service providers,
there has been a growing interest in An example: the recent $10M gift growing companies and brilliant
MBAs looking for CSR jobs and from Dow Chemical to UC minds.
although there are more CSR jobs Berkeley, to develop a Sustainable
available to business school Products and Solutions Program. The Globe Forum Business
graduates now than ever before, "An increasing number of MBA Network, a hub for sustainable
their supply (and hence serious students hope to find a career that business innovation in fast growing
CSR implementation?) is not blends business acumen with markets organizes the event. The
enough to meet the demand. positive contributions to society network identifies trends and
and the environment," said Karin captures sustainable and
Does this indicate a dreamier crop Cooke, Net Impact's Career prosperous business opportunities,
of new capitalists, as the current Program Director. "We advise particularly between Europe and
capitalist core may label them? Or a members to not only look for fast growing markets.
more responsible group, ready to traditional CSR jobs, but also look
tackle real world problems, with for functionally mainstream Once More for Gore?
real business solutions? positions within companies with You might want to sit down for
The study found that strong CSR and environmental this: Al Gore will announce his
environmentally focused jobs are values". candidacy for president this week,
one of the fastest growing areas, knowledgeable sources tell our
especially in clean-technology, So do these numbers indicate that content partner, Grist. Now there's
consumer products, and public true CSR practice in the business an inconvenient truth for Hillary
relations. world is not even sufficient to Clinton and Barack Obama. Gore
supply jobs to meet the fledgling believes the two Democrats and
The survey found a 37% annual demands of the limited business Republican John McCain aren't
growth in the number of CSR jobs education elite who can afford an giving climate change the urgent
over the past 3.5 years, with specific MBA? Or, do they simply indicate attention it deserves, so he's
growth in positions combining that someone did something right decided to go for the job himself,
environment and business. to inculcate this budding batch of say Gore advisors anonymously. A
triple bottom-liners from elite, lifelong Democrat, Gore will run as
The study looked at 3.5yrs of 1,255 capitalist education systems. an independent this time around.
CSR job listings posted on two of Gore's Alliance for Climate
the leading sources for CSR-related Annual Sustainability Protection launched a new public
jobs: Business for Social education campaign aimed at
Conference: Globe Forum
Responsibility's (BSR) jobs page convincing Americans that climate
The Globe Forum 2008 business
and CSR-Chicks, a listserve for CSR change is both urgent and solvable.
conference will be held on May 7-8,
professionals based out of London. We're guessing that will be the
2008 in Stockholm. This year's
theme: Business Innovation for thrust of Gore's presidential
A survey conducted by Net Impact campaign as well - if indeed he
Sustainable Growth.
in 2006 of MBA student opinions on runs.
the relationship between business
Globe Forum brings together over
and social and environmental
Shared by Grist, an online environmental news magazine

8 www.triplebottomline.com.pk
the only renewable alternative to
PLANET Clean Wave Technology
fossil fuels and do generally result has Potential for Wider
in greenhouse gas emission
Applications
savings. Scientists say some kinds
of biofuels generate as much carbon Japanese sailor Kenichi Horie set
dioxide as the fossil fuels they sail for Japan from the Hawaii
replace, and a lot of caution is Yacht Club in Honolulu on March
needed when coming up with 17, 2008 on his latest solo adventure
biofuel solutions that have a major at sea, on what he says will be the
impact on production of food world's longest voyage in an
Biofuels Boom Raises grains and an implication for food innovative wave-powered boat. He
Environmental Concerns safety. will travel nearly 4,000 miles
A recent UN Report states that the aboard a 3-ton, 31 foot-long wave-
biofuels boom is hurting poor powered catamaran, the Suntory
Uniform Carbon Pricing is Mermaid II, at a speed of up to 5
consumers in Asia by driving up
Crucial: IMF Report knots. The journey, which would
crop prices. It is hurting the poor
The International Monetary Fund take a diesel-powered boat about a
rural farmers who have not seen
said in a report released today that month to complete, is expected to
the benefits of biofuel production
sharply reducing the world's take Horie two to three months.
and have not been able to adapt
carbon emissions will cost
their production to cash in on the
relatively little economically if a This voyage aims to prove that
boom.
carbon-pricing scheme is adopted wave propulsion is viable. Whereas
soon that includes all the major- oil is a limited source, there is no
Small rural farmers lack the means
emitting countries. limit to waves as a power source.
and resources to extend their lands
and adapt to new crops. "The Wave energy, the greenest nautical
The report didn't endorse one propulsion system since the sail,
impetus for large-scale farming can
specific pricing mechanism, but has high development potential
push the poor off their land,
said that either a carbon tax or a and wide commercial viability.
excluding them from biofuels," a
cap-and-trade system could work if
United Nations report said.
it gradually increased the price of The vessel is made of recycled
carbon. "There are significant risks aluminum alloy and has fins
The rise of biofuels has raised
from climate change; damages mounted side by side beneath the
considerable criticism against
could be severe," said IMF bow, which generate dolphin-like
countries like the United States for
economist Natalia Tamirisa. "The kicks that propel the boat forward,
diverting farm products to produce
costs of mitigation could be making it the world's first boat to
biofuels, saying this had led to
moderate provided that policies are be powered by the motion of
soaring global food prices. The
well designed." waves. “The Suntory can transform
United States is the world's biggest
producer of biofuels, derived wave energy into propulsive power
Meanwhile, at the ongoing United regardless of where the wave
mostly from corn. "Several
Nations climate conference in comes from,” says Yutaka Terao, an
questions have arisen on even the
Bangkok, the IMF's partner engineering professor at Tokai
emissions implication of that route,
institution (and fellow predatory University in Japan who designed
and the fact that this has clearly
lender) the World Bank floated the boat’s propulsion system.
raised prices of corn," said Mr.
proposals to combat climate change
Rajendra Pachauri, Nobel Peace
that proved unpopular with Marine energy is still in its early
Prize winner and climate change
developing nations. Instead of stages. According to Roger Bedard,
scientist.
funneling cash through the U.N. ocean energy leader for the Electric
climate program to aid developing Power Research Institute, U.S.,
There is a growing controversy
countries, the World Bank “widespread use of marine energy
over using food crops to make
suggested it should administer a is about a decade away”. Several
biofuels as an alternative to fossil
$10 billion clean-technology fund, projects have been launched mainly
fuels; some environmentalists and
and possibly other such funds. in the U.S. and Europe to harness
politicians assert it has raised food
prices, distorted government marine power and convert the
Critics of the proposal said the ocean or river movements into
budgets and also led to
World Bank is too closely electricity - to create the world's
deforestation in South-East Asia
controlled by G8 countries and has newest form of renewable energy.
and Brazil.
a shady history of shafting poorer
nations.
The world must take care when
developing biofuels to avoid Shared by Grist, an online environmental news magazine
perverse environmental effects and
higher food prices.

Supporters claim that biofuels are

march-april 2008 9
PROFITS study closes this gap as it enables a Office Equipment Eco-
company’s efficiency gains to be Impact Calculator
expressed in monetary terms A new sustainability calculator
through benchmarking a developed by Xerox can help
company's production resource companies calculate the
efficiency against its competitors. environmental impact of office
The Sustainable Value approach is devices and reduce the energy
a practical and significant tool for wastage of printers, copiers, and
generating an in-depth, transparent other newfangled technology. The
Value-based Approach assessment of corporate calculator is designed to consider
Measures Sustainability sustainability ratings and factors including type of print
Performance of Automobile performance trends in the cartridge, print colour, speed,
automobile industry. number of pages printed per
Manufacturers
A recently published study month, and Energy Star rating, and
Recycling and other creates bar graphs demonstrating
"Sustainable Value in Automobile
Manufacturing” is the first in the Measures Undertaken to energy consumption, greenhouse
world to assess the corporate Reduce Waste: Japan gases, and solid waste produced
sustainability performance of 16 "Japan is home to the from use of the office device.
automobile manufacturers overwhelming majority of the
worldwide using the Sustainable world's incinerators", which is a The "Sustainability Calculator" uses
Value approach. The study major source of dioxin, according to proprietary algorithms and
examines the sustainability The Japan Times. The amount of research to suggest ways to reduce
performance of the companies garbage produced in Japan is energy and paper consumption
BMW Group, Daihatsu, increasing every year. from office devices, regardless of
DaimlerChrysler, FIAT Auto, Ford, manufacturer. The calculator has
GM, Honda, Hyundai, Isuzu, About 90% of the dioxin released two sets of fields. After the first
Mitsubishi, Nissan, PSA, Renault, every year is created during waste basic set, an office manager can
Suzuki, Tyota and Volkswagen incineration - 2,900 grams in 1998, describe how he would like to see
Group over the period 1999 – 2005. according to a government study. the machines perform in the
This project was undertaken by Nearly half of this is believed to second. The calculator shows bar
researchers working at the Institute come from municipal waste alone, graphs covering energy
for Futures Studies (IZT) and almost 80% of which is incinerated. consumption, greenhouse gases
Technology Assessment in Berlin Stores in Japan use plastic and and solid waste produced by the
and Queen’s University Belfast paper bags, and elaborate gift machine. Defense manufacturer
packages and wrappings. Northrop Grumman decreased the
This is the first value-based method Furthermore, disposable wooden number of printers and copiers in
that links corporate sustainability chopsticks are widely used in the one of its divisions from 2,000 to
performance and the value-based country. 1,100 after using the calculator,
approach that is traditionally used Xerox states. As a result, the
in management practice and By 2015, Japan aims to reduce the company’s energy consumption fell
company financial analysis. This total amount of garbage produced 27%, greenhouse gases by 26% and
method establishes whether a by industries and individuals to 23 solid waste by 33%.
company is successfully using its million metric tones - 40% of the
economic, environmental and social amount produced in 2000. The There is an increasing awareness of
resources to create value, in relation government target for individuals the eco-impact of office devices. On
to its peers. For example, the report is a reduction of 20%. Japan aims to the lighter side, a American
found that, in 2005, Toyota achieve this target through education institutions have
generated an absolute Sustainable recycling and other measures such observed a strange, contagious
Value of €6.5 billion, followed by as less packaging. disease striking photocopy
BMW with a Sustainable Value of machines. Symptoms of this disease
€2.93 billion, i.e. Toyota generated A set of plans to promote recycling include “a propensity to chew up
€6.5 billion more profit than the and halve the garbage it produces trees at an amazing rate, all while
average automobile producer was launched by the Cabinet using tremendous amounts of
would have achieved with the same recently. Japan will urge citizens to energy in the process.” This has
set of resources. avoid using disposable chopsticks raised great concern in several
and instead carry their own, and go schools in New York and Florida,
So far the debate has mostly shopping with their own bags for instance. A national day of
focused on the usage phase of instead of using plastic ones. The action will be observed on April 17
automobiles and related CO2 fleet adopted plans also encourage the to stop global warming by putting
emissions, rather than the obvious: that people use public copiers under quarantine.
environmental burden created transportation and ride bicycles.
Compiled by Rutaba Ahmed
during the production phase. This

10 www.triplebottomline.com.pk
cover story

tbl and eco-efficiency:


where to start?
by khadeeja balkhi
for tbl

T he spirit of eco-efficiency? To combine economic value creation or enhancement


while continuously mitigating environmental resource usage and impacts.

Eco-efficiency is a key driver for overall business performance because it helps


companies understand that they can produce better goods and services while using
fewer resources, and lowering ecological impact: Thereby improving both, their
environmental performance and their bottom line.

The World Business Council on Sustainable Development (WBCSD) coined the term
in 1992. The idea of eco-efficiency as a major driver of corporate excellence, according
to them, was perhaps introduced by Swiss industrialist Stephan Schmidheiny in the
same year, through his book ‘Changing Course’.

This article aims to introduce the eco-efficiency concept, some of its key
manifestations, and perhaps most importantly, how companies can become more eco-
efficient.

Identifying the positive link between environmental improvements and economic


benefits, is eco-efficiency's first base and taps the potential for enhancing savings
from environmental improvements.

march-april 2008 11
Key Considerations for their consumption of resources and thinking, claims Suncor, makes it a
reduce their individual and more sustainable energy company
Eco-Efficiency collective environmental impact. that continuously improves the
At the heart of eco-efficiency is All while satisfying their needs performance of its operations and
creating -or delivering- more, with often more effectively, and at a products. Like many companies
less. And at the heart of CSR or the better price. who've treaded these warm waters,
triple bottom line is creating, Suncor believes that this thinking
instead of perhaps simply re- Budding entrepreneurs from specifically enables more
locating, honest value addition. developing countries can offer all of rewarding decision making given
the above - but the catch sometimes its triple bottom line parameters
The Geneva-based WBCSD, a is that quality becomes a victim. such as societal concerns and
coalition of about 125 leading, Without consumer demand for priorities as they impact project
international companies that share rigorous standards, why supply design and implementation,
commitment to the environment. them? This is where downstream including safety and community
economic growth and sustainable consumer empowerment in the perspectives. It also facilitates the
development has identified a form of information is vital for development of an eco-efficient
handful of key action-areas of a leading companies who have firm "design of processes and operations
basic eco-efficiency mandate. faith in the value chain that went based on opportunities to reduce
Perhaps most relevant to into producing their products. They costs and environmental impacts
companies functioning in must help consumers understand and improve net value".
economies such as Pakistan's is the and demand ethically produced,
combined gist behind the quality goods. The benefits? A reduced risk of
components: that businesses must unintentionally shifting the burden
harness their creativity to deploy It is a tough line to walk - but only or environmental impacts created
new technologies, initiate if a company's business strategy by company decisions in direct
improvements along the entire lacks ingenuity. (Please note: the operations to upstream or
value-chain and bring new, value- existence of a robust, long-term downstream activities - for starters.
added products to the market. business strategy is assumed). Want more? A "reduced business
However, companies that have risk from hidden socio-economic or
Eco-Efficiency Along invested their time and energy into environmental liabilities, and/or
the Value Chain: LCVA honest creativity towards value- regulatory or stakeholder
addition are already reaping the expectations" - now for a traditional
The eco-efficiency concept has now
benefits. energy company that is not only
expanded to include the
serious baggage potentially
exploration of business
For instance, offering services in a unloaded but a massively enhanced
opportunities to be gained from
manner that meets the 'license to operate'.
sustainable development strategies,
environmental, economic and social
an idea which gained popularity
(triple bottom line) expectations of Private Sector: Living
with Harvard Professor, Prahalad's
all stakeholders will create a solid
Bottom of the Pyramid (popularly the Wake up Call
foundation for increasing
called BoP) theory. The BoP The good news, at least from the
shareholder value over the long
movement is now in full-swing perspective of the eco-efficiency
term. Not rocket science.
with everyone clamouring to serve journey, is that the corporate sector
the billions of 'consumers' at the has woken up to realize that eco-
Canada-based Suncor Energy for
bottom of the income pyramid. efficiency is the only way forward.
instance, uses the Life Cycle Value
This, in a country often perceived
Assessment tool to facilitate
to be sliding towards the BoP, is old Although many may have different
"integrated decision making that
news. names for it, several companies are
takes into account long-term triple
bottom- line benefits and impacts, in fact rigorously implementing
Eco-efficiency though, can work measures towards their own eco-
not just short-term paybacks".
throughout the supply chain, end- efficient future.
Managers or business unit heads
users included - hence an increased
can often become too focused on
focus on minimalistic packaging For instance, over a 15-year period,
cost-cutting measures, which can
that is driven by the understanding Engro Chemical has actually
actually hinder both the realization
that post-consumer processing is a reduced its energy intake by 32%
of the triple bottom line and the
part of the cost of production. In per ton of urea produced - while
long-term financial bottom line.
developed markets, companies are production has actually increased.
already developing products and Within this period, the plant's
Proactive application of triple
services that allow customers to cut production capacity increased more
bottom line or life cycle based

12 www.triplebottomline.com.pk
than two-fold in 8 years: to 850,000 calls this a form of biomimicry, measures are among the highest
tons per year in 1999, from 268,000 using the biological organism as a impact ways to live the triple
tons per year in 1990. basis for designing industrial bottom line. In the language of six
systems, thereby closing the sigma, the 'low-hanging fruit' are
Additionally, the company also material cycles. here; this is where creativity and
consistently improves its feed: fuel commitment combined with oft-
ratio, producing more urea, with But, these zero-waste targets miniscule financial input synergize
less natural gas input. This means require intensive, proactive and oft- to offer almost immediate financial
that by streamlining its plant and wrinkled cooperation between gain can be realized.
power operations, the company has industries. The basic tools he
been consistently able to shift its recommends include tools such as The WBCSD and Dr. Assefa
main operational input: natural gas, the life cycle assessment tool reinforce the following starting
towards actual urea production as described above. For industrial points below for companies to chart
opposed to consumption in the ecology, a life cycle energy analysis eco-efficiency into their business
shape of power generation. to assess the environmental impact strategies - as many are already
is more meaningful still. forced to do given dizzying fuel
Evolution of Layering costs. So while we still have room,
He also outlines four key let's try to be proactive by:
Concepts: Industrial considerations to Sustainable reducing the material intensity of
Ecology Design, which he defines as "the art goods and services - using less to
One of the most promising of designing physical objects to make a product or deliver a
manifestations of the eco-efficiency comply with the principles of service;
movements is that of industrial economic, social, and ecological reducing the energy intensity of
ecology (IE). Sweden's Royal sustainability": goods and services;
Institute of Technology, for instance 1. Energy efficiency: this mainly enhancing the recycling
defines it simply as an entails lower overall energy possibilities and options of all
interdisciplinary study of usage in manufacturing materials used;
technology, society and ecology. processes choosing a TBL-criteria based
2. Low-impact materials: non- method for production, service,
"Industrial Ecology sees industrial toxic, recycled sustainably- disposal or recovery;
systems (for example a factory, an produced materials usage increasing mineral recovery,
ecoregion, or national or global 3. Quality and durability: better using fewer inputs such as
economy) as being part of the quality and long-lasting energy and water and recycling
biosphere," says Dr. Getachew products, lengthening positive more while reducing emissions;
Assefa of the Institute's Department product life cycles using new technology, fewer
of Industrial Ecology. "It considers 4. Design for reuse and recycling: inputs per unit of product such as
such systems as a particular case of design for performance in a energy and water;
an ecosystem, but based on commercial 'afterlife' recycling more and reducing
infrastructural capital rather than toxic emissions;
on natural capital," Dr. Assefa adds. The fourth is a venture that maximizing the use of renewable
developing countries seem and recycled resources,
It is essentially the shifting of especially well-positioned to particularly strategic
industrial processes from open loop explore. Our indigenous, informal geographical resources - for
linear systems to closed loop recycling systems catalyzed by instance, in Pakistan, wind and
systems, meaning that no outputs BoP-based entrepreneurs are a solar energy are abundantly
are considered waste, they become living example of this in fact. For available - and wasted.
the inputs of another industry - instance, the organic waste of a The bottom-line of eco-efficiency?
hence an ecology emerges. Instead food company becomes input for a Fully and honestly integrate it into
of resources and capital cattle feed company; the waste your business strategy (and
investments moving through steam of its plant air conditioning national strategies to neutralize
systems to become waste, IE shifts units is channeled to power its your own competitiveness in the
to systems where wastes become industrial cooking appliances and short term) - before it integrates its
inputs for new processes. so on. own way in as natural resource
prices sky-rocket. And continue to
Dr. Assefa asserts that natural Ways to Become Eco- advocate and support policy
systems have no waste - hence measures which reward eco-
proposes modeling human-made
Efficient? efficiency, as Pakistan's National
systems after natural ones, thus The hope is that this article has Conservation Strategy so wisely
rendering them sustainable. He helped unravel how eco-efficient recommended, way back in 1992.

march-april 2008 13
renewable energy

the feasibility
of renewable
energy in
pakistan
by miriam katz
for tbl

O
ver the last thirty Origins of Wind
years, Asia has Power
become a major Many people do not realize that
player on the global scene. wind energy first came about in
Many economies have Asia. Between 500 and 900 AD, a
become tigers while China vertical axis turbine was
developed in Persia to grind
and India are developing grain and pump water. These
more rapidly than anyone wind turbines were made from
had expected. Because of bundles of reeds or wood.
these developments, During the 11th century, the
electricity demand is Crusaders brought back the
concept of the windmill to
expected to increase 8% Europe where it was first used by
every year until 2015. As the Dutch to grind corn and to
the world wakes up to the drain wetlands in order for
reality of climate change, people to settle and build homes.
electricity will increasingly In recent years, Europe and
North America have led in terms
have to come from of installed wind capacity.
renewable sources such as Asia is now -again- making its
wind and solar. Pakistan is presence felt. India and China
in a good position to exploit currently have the fourth and
these because it has fifth largest number of wind
turbines installed, respectively.
abundant wind and sun. It is interesting to note however,
This article will look at this that while India has 45,000
potential, the barriers that megawatts (MW) of wind energy
exist to further potential and a much larger
development - and of surface area, Pakistan has at least
50,000 MW of potential.
course reasons why it must
follow the course to a
greener energy future.

14 www.triplebottomline.com.pk
The Viability of Wind Gharo and Keti Bandar corridor, deforestation. Women are also
Pakistan is also very fortunate to forced to walk for many miles
Power in Pakistan have many rivers and lakes. each day to gather wood. Then,
Pakistan is fortunate to have Wind turbines that are situated their health suffers from the
something many other countries in or near water enjoy an smoke emitted from cooking on
do not, which are high wind uninterrupted flow of wind, wood fires. The AEDB
speeds near major centres. Near which virtually guarantees that completed a project whereby
Islamabad, the wind speed is power will be available all the villagers that received solar
anywhere from 6.2 to 7.4 metres time. Within towns and cities, panels were also given solar
per second (between 13.8 and wind speeds can often change cookers. During the project,
16.5 miles per hour). Near quickly due to the presence of deforestation decreased by 80%
Karachi, the range is between 6.2 buildings and other structures, near the villages and the cookers
and 6.9 (between 13.8 and 15.4 which can damage wind were also made in Pakistan,
miles per hour). Pakistan is also turbines. In addition, many which generated local economic
fortunate that in neighboring people do not wish for turbines growth.
India, the company Suzlon to be sited near cities because of
manufactures wind turbines, noise, though these problems are
thus decreasing transportation
Coal Power and
often exaggerated. Wind
costs. Its turbines start to turn at turbines make less noise than an Hydroelectricity
a speed of 3 metres per second. office and people comfortably In addition to wind and solar,
Vestas, which is one of the carry on conversations while Pakistan has the fifth largest coal
world's largest wind turbine standing near them. deposits in the world. However,
manufacturers, has wind the negative impacts of coal have
turbines that start turning at a been well documented. When
speed of 4 metres per second. In
Solar Energy - a power is produced from coal,
addition to Karachi and Feasible Alternative sulfur dioxide and nitrous oxides
Islamabad, there are other areas for Pakistan are produced as well, which
in Pakistan that receive a As is becoming painfully evident cause an increase in smog, ozone
significant amount of wind. with summer around the corner, depletion and acid rain. Nitrous
Pakistan is an exceptionally oxide is also a very powerful
In only the Balochistan and sunny country. If 0.25% of greenhouse gas. Even before the
Sindh provinces, sufficient wind Balochistan was covered with power is produced, the
exists to power every coastal solar panels with an efficiency of transportation of coal also
village in the country. There 20%, enough electricity would be impacts health due to the coal
also exists a corridor between generated to cover all of dust and the emissions from the
Gharo and Keti Bandar that Pakistani demand. In all vehicles. Lastly, the heavy
alone could produce between provinces the AEDB has created metals from coal mine waste can
40,000 and 50,000 megawatts of 100 solar homes in order to seep into groundwater and
electricity. exploit solar energy. rivers, of which there are many
in use Pakistan.
Given this surplus potential, Solar energy makes much sense
Pakistan has much to offer Asia for Pakistan for several reasons: Pakistan also has some deposits
with regards to wind energy. In firstly, 70% of the population of natural gas in the Potwar
recent years, the government has lives in 50,000 villages that are Plateau region and near the
completed several projects to very far away from the national border between Balochistan and
demonstrate that wind energy is grid, according to a report by the Sindh, but these are likely to
viable in the country. In Mirpur Solar Energy Research Centre disappear within 20 years.
Sakro, 85 micro turbines have (SERC). Connecting these
been installed to power 356 villages to the national grid Because of the presence of many
homes. In Kund Malir, 40 would be very costly, thus rivers and lakes, it may be
turbines have been installed, giving each house a solar panel tempting to go down the route of
which power 111 homes. The would be cost efficient and large hydroelectric dams, but
Alternative Energy Development would empower people both this may not be the answer for
Board (AEDB) has also acquired economically and socially. Pakistan. There are many
18,000 acres for the installation of examples of hydroelectric
more wind turbines. In many Pakistani villages, wood projects in India and China that
and animal dung is used for show the detriments of
In addition to high wind speeds cooking fuel; however, this is hydroelectricity. In China, one
near major centres as well as the causing widespread million people are being

march-april 2008 15
relocated as part of the Three kilowatt hour while in Pakistan,
Gorges Dam project and 62,000 the cost is 7 cents. In December
Conclusion
acres of farmland will be 2006, President Musharraf
flooded. The reservoir for the announced a national renewable
It is starkly evident that
dam will contain one billion tons energy policy. This policy means
Pakistan is a suitable
of sewage, states Diana Biggs in that small projects do not need
country for the installation of
her case study on the Three approval and that any person
wind and solar: due to high
Gorges Dam. In Pakistan, the can put up their own project.
winds near cities; the
Kalabagh dam was put on hold However, there are no financial
presence of rivers and lakes
for environmental reasons in the incentives for doing so. At the
as well as the availability of
1980s and since then, there has moment, all renewable energy
wind turbines from nearby
been very little activity in this equipment has no sales or
India. There are also other
area. Due to the publicity that income tax and is free of custom
reasons for installing
large dams have gained in recent duty, but these incentives do
renewable energy.
years, it looks unlikely that very little to stimulate growth in
Pakistan will take this route. the renewable energy market
In 2006, the government
where RoIs and other financial
reported that Pakistani
Financial and Policy ratios have a long gestation or
economic growth reached
breakeven period.
Incentives 8.4 percent and will most
Despite the fact that Pakistan is likely grow for the
so well endowed with wind and foreseeable future. It is
solar potential, only a few
1. Diana Biggs, "Three Gorges Case Study" quite normal for power
http://www.arch.mcgill.ca/prof/sijpkes/arch374/win-
projects such as those mentioned ter2001/dbiggs/three.html outages to happen on a
above have been completed. One 2. GLOBE-Net, "India: Renewable Energy Market" daily basis in the country,
http://www.globe-net.ca/market_reports/
but this cannot continue if
of the reasons why this has index.cfm?ID_Report=1069
the Pakistani economy is to
occurred is that Pakistan does 3. Ministry of New and Renewable Energy Sources, "CFA
Provided Under Various Renewable Energy Schemes/ grow. In March 2007,
not have major financial Programmes" http://mnes.nic.in/cfa-schemes-
President Musharraf stated
incentives available for those
programmes.htm

that renewable energy


who want to install wind
should be part of the push to
turbines or solar panels. Let us
increase energy supplies by
look at the case of India,
about the writer 10 to 12 percent every year.
Pakistan's neighbour. Despite
The government has also
having less potential for wind,
Miriam Katz is a freelance writer set a target of 10 percent of
India now has the world's fourth
based in London. She currently energy to come from
largest number of wind turbines writes for the Environmental renewables by 2015. If it
installed at 7,093 MW, according Peace Review. Her areas of does follow through with
to ‘India: Renewable Energy interest include environmental aggressive capacity
Market’ report. In front of India issues, renewable energy,
enhancements, Pakistan
are Germany at 21,283 MW, biofuels and climate change. She
could be an Asian leader in
Spain at 13,400 MW and the US holds a Bachelor of Arts in
Political Science and renewable energy given its
at 12,934 MW. In Germany,
Environmental Studies from the strategic endowments.
Spain and India, those who
University of Toronto. She can be
install wind turbines and solar reached at m.il.katz@gmail.com
panels are guaranteed a certain
rate per kilowatt hour. In India,
this varies according to the
technology and the area. The
Ministry of New and Renewable
Energy, India reports that in
most areas, between 2500 and
4800 rupees are guaranteed for
solar panels, and for wind
turbines, between 250,000 and
300,000 rupees are awarded.

Because of the above incentives,


the cost of wind in India is
between 2 and 2.5 cents per

16 www.triplebottomline.com.pk
leapfrogging past green

can blue be the next green


in pakistan?
by salman abedin
for tbl

paint factory catches fire. All the city's fire

A brigade is involved in trying to put out the


fire. Still, the burning chemicals continue to
burn throughout the night. The firm puts out an ad
in the papers soon after telling the world that they
are back to business as usual. An insurance
company puts out a press release telling the world
that they have made the insurance payment in
record time.

Life moves on in Pakistan. Was any question


asked as to who will bear the environmental cost?
Did any spokesman for the company even verbally
accept the company's shortcomings - perhaps in
the shape of shoddy standards of safety that
resulted in the inferno?

This seems to be a perfect example of a company


that is solely and soullessly treating profits as their
only motive to exist. No higher goals here. No
triple bottom line considerations. HSE? Green
practices? Stakeholder analysis? These seem like
high flying ideals in the world where black and red
seem to be the only colours we can see.

International Context
This concept was introduced by international advertising firm
JWT, as one of their predictions for 2008.

Blue is the New Green: Climate change has quickly become the
driver of Environmentalism 2.0, and people worldwide
understand that climate is all about the seas and the sky-both blue.
Our effluents, our emissions, both impact these blue bodies.

Trend Alert: Watch for "green" to become a subset of "blue,"


which is coming to denote the much larger emerging spirit of
good-citizen ethics. Back to basics we learnt in our KG primary
colours art class.

march-april 2008 17
How to leap frog ahead to blue?
Pakistan today The world in
The developed
the 90’s
world today

"The key driver of may be able to leapfrog ahead to 'the price of a petrol tank'
Environmentalism 2.0 is the the Blue Zone. Although it seems (depending on where you live of
climate, and most people quite unlikely. Both because an course).
understand that the climate is all ill-informed populace cannot
about the seas and the sky, both begin to demand its own rights, Thirdly, Sustainability, which
of which are blue," shared Ann much less its rights in relation to used to be a word bandied
Mack, Head of TrendSpotting at the integrity of the environment around by a group of 'tree
JWT. Mack who goes so far as to it lives in. Also because huggers', is now the buzz word,
claim that blue will overtake regulations are tightening: and since corporate entities need
green as the environmental developing countries after all, buzz words, let the new Word -
movement's main hue: "Blue is are being punished for the acts with ensuing policy and action,
the new green." of the developed world, or so the of course- be…: Bluing(!)
argument swerves.
The Blue>Green
Companies, irrespective of the 1. http://www.jwt.com/pdf/news/trends2008.pdf)
Equation government's stand on the issue, 2. (http://www.chicagotribune.com/features/lifestyle/chi-
With CO2 emission capping now can start with the following: 0124blueisgreenjan24,0,2901237,full.story)

being a global priority, blue is As a first step, companies must


easily more important than to take a longer term view -
green in terms of generating which some do, and many don't,
hype and action towards the particularly regarding the about the writer
environment. This is now being external environments.
seen in a whole gamut of steps Corporate entities generally take Salman Abedin is currently
that companies are taking, the view that they are passive Executive Director at Contract
including calculating and participants in the larger
Advertising. He welcomes input
reducing their carbon footprint. and discussion on the model
environment. However, this is briefly inserted for TBL
Countries are also being not always the case, and through readership and can be reached
cornered by activists for being industry groups, and other at salman.abedin@gmail.com.
slow on carbon reductions. forms of lobbying, they can
Interestingly enough blue is also influence policy on a much
the colour of power and larger scale.
strength, and hence, the
corporate world's reluctance to Secondly, companies need to
turn green may be finally make an assessment of the CO2
overcome (with a subliminal or other greenhouse emissions
start at least). they are responsible for. This is
easily begun by using a website
Turning Pakistan Blue like liveneutral.org, which has
Having missed the whole calculators for individuals,
"green" part of the companies and communities -
developmental cycle, Pakistan with the journey beginning for

18 www.triplebottomline.com.pk
footprints in the air

air pollution prizes?


by ainul abedin
for tbl

I
t is now a well known fact is not taking into account the the Economic and Co-ordination
that we, humans, are very high line losses of our Committee of the Cabinet
systematically ruining our utilities which would increase (ECNEC), no notice was taken
planet by disregarding the CO2 and other pollutants further by anyone and the authorities
damage done by industrial by 30%. (Line losses are power continued to sanction gas for
pollution and our wasteful life transmission and distribution extremely inefficient
style. losses mainly due to overloading installations.
of power cables and
An average car, with a 1000 cc transformers).. We cannot remain oblivious to
petrol engine, produces about the basic need of reducing our
160 grams of greenhouse gas In November 2006, the then- CO footprint, especially when
carbon-di-oxide (CO2) per km, Government had taken a bold emitted from industries and
besides many other pollutants. step in approving Energy commercial buildings.
Our inefficient power plants Efficiency and Conservation Concerned publishers on the
tend to ensure that we produce Laws, by acceptance of the fact other hand are printing books
more than 1 kg of CO2 that energy efficient applications (even Harry Potter) on certified
whenever we use only 1 kW would be given priority when paper made from well-managed
(power) load for one hour sanctioning our heavily forests while large stores are
(typically, a single 1.5 tons air subsidized Sui gas supply. Even asking suppliers to reduce
conditioner uses 3 kW). And this though these were approved in packaging material.

march-april 2008 19
Our entrepreneurs cannot afford pollution levels are to be they provide energy security
to continue to ignore even the controlled in the long term (and from our own vast energy
most basic, common-sense short term). source, early initial power plant
approach to environmental installation at the best location
awareness. We use the world's This gas, in turn could be with minimum requirements of
most polluting sources, furnace sourced from our nation's water (very scarce resource in
oil and coal as an economical planned pipeline gas or future this area at present) and a
source of energy, without 'coal-gas' from Thar coal. possible up-gradation to
calculating in the real costs to combined cycle power plant
ourselves and the society we live Thar: Must Be Pivotal operations when an on-site
in. Though coal is basically used economic water source becomes
by most cement plants, furnace Point of Our Energy available.
oil is used by most Planning
WAPDA/PEPCO and private The solution to our energy Second Place:
power producers, accompanied dilemma has been with us for
by some industries that have not many years but various lobbies
In-house Power
been able to get gas supply. with seemingly vested interests Plants Average at 1/3
in the import of furnace oil have Utilization
Worse still, these highly ensured that till now our own Not lagging behind in
polluting fuels are used in vast coal deposits at Thar are environmental damage are the
extremely poor efficiency ignored. hundreds of in-house power
processes, thus compounding
plants being operated by many
the problems of environmental As a side - had Thar coal been industries and large commercial
degradation - and resulting in developed with sensible buildings, all over Pakistan.
considerable health costs and technologies, all talks of huge Although it is difficult to
loss of production due to poor hydel power projects (involving estimate the number of in-house
health and absenteeism. enormous environmental generators installed in various
complications and very high industries and large commercial
Biggest Polluters: costs) would have become buildings throughout the
redundant. country, the writer believes it is
Furnace Oil Power
safe to state that these are
Plants? Now that Thar must become the producing around 1000 MW of
The biggest polluter prize could pivot of our future energy power. Almost all of these power
perhaps be given to power planning, we have to be careful plants are, again, low-efficiency
plants fired by furnace oil. Most how we use our low-quality coal types, with only one-third fuel
of our local furnace oil based since both coal mining and coal- energy being utilized. To top
power plants are of a low- based conventional steam power that off, they spend further,
efficiency type with high CO2 plants could very well considerable energy and scarce
emissions, in addition to other materialize into a nightmare for water to get rid of the remaining
pollutants. Most of our furnace anyone concerned with the two-thirds of waste heat.
oil in use is imported, which ensuing high pollution levels.
often has a high sulphur content. How can an energy-deficient
However, in Pakistan, these Real progress towards energy country and its struggling
plants tend to lack security and environmental economy sustain these power
desulphurization units. protection can come only when plants? The results are there for
both the government and private everyone to see: exorbitant costs
The result is enormous damage investors confirm the of production despite heavily
to the environment, with really development of environmentally subsidized gas supply, making
no solution in sight since these acceptable coal-bed methane for our products uncompetitive.
power plants have been power plants. For those aware of
designed with a disregard of the gas supply network in the Just as importantly, they cause
even minimum environmental UK in the 1960s (when North Sea serious environmental damage,
protection. gas fields had not been which again in turn begets
discovered), the base was "coal significant health-related costs.
All low-efficiency furnace oil gas" - which met their
power plants will have to be 're- requirements for many decades.
powered' to accommodate a
combined cycle design, with a The advantage of coal-bed
change of fuel to gas if the methane for power plants is that

20 www.triplebottomline.com.pk
Third Runner Up: However, almost all Pakistani economics and environmental
air-conditioning applications are protection were addressed,
Industrial Steam, Hot based on inefficient technologies. perhaps beginning with
Water Production This applies to industrial process commitment at the highest
Installations requirements or large corporate level. While soaring
commercial buildings for offices, energy costs were arrested in
Similarly, inefficient production
hotels, hospitals, airport terminal these examples, the consequent
of steam and hot water in
buildings and so on. Most of pollution and social costs were
industries and large commercial
these airconditioning mitigated simultaneously: the
buildings is another major
applications use very low inherent, big-picture harmony
source of air pollution - and
efficiency systems and these that CSR is all about.
increased costs. The American
cause environmental havoc,
Society of Heating, Refrigerating
besides exorbitant costs of
& Airconditioning Engineers
energy - costs that are still rising,
(ASHRAE) estimates that a about the writer
beyond currently unacceptable
typical gas-fired fire-tube boiler
levels.
for a 10 ton-per-hour steam Mr. Ainul Abedin has over 46
output consumes the same years experience in Building
amount of gas as a Cogeneration All is not lost though; there are Engineering Services and is
System would use for the some examples of responsible presently an Engineering
production of a 10 ton-per-hour environmental behavior that can Consultant specializing in
steam output - but, with an match the very best anywhere. Energy Conservation. He holds
additional 3 MW of power When a major car assembly plant two international Engineering
in Karachi decided to add indoor Patents. He is Fellow, ASHRAE
generated, 'free' of any extra fuel and the co-author of the
costs. Since no data is available environment temperature and
Cogeneration chapter in
specifying the availability of Sui humidity controls in their paint ASHRAE Systems Handbook for
gas to conventional boilers for shop, they did not follow the the last 12 years, as well as a
steam and hot water production, "norms" by adding over a contributor to ASHRAE
it is difficult to quantify how thousand tons of cooling, using GreenGuide 2006. He has been
much total power (free of inefficient chilling and heating teaching Green Building
additional gas, and thus free of processes which would have Concepts at the Indus Valley
wasted considerable Sui gas College for 8 years.
additional pollution) could
become available, but this figure supply, besides resulting in
could be estimated at around increased pollution levels and
1000 MW. Investments for costs. They insisted that the
additional power (free of gas entire indoor environment
costs) would normally have a conditioning should be achieved
simple payback period of 3-4 through utilization of waste heat
years. In some cases, especially from the planned power
in composite textile units generators and this cogeneration
operating 24 hours, 7 days a system should ensure CO2
week, this period could be as depression in considerable
low as 2 years. quantities compared to
conventional KESC supply and
Our latest grandiose living gas-based central air-
philosophy has resulted in conditioning system.
acceptance of chilling indoor
environments in summer as Similarly, a large Pakistani bank
opposed to perhaps sensible chose to install an efficient
airconditioning in essential areas cogeneration system in their
only, resulting in a magnitude of main office in Karachi to ensure
wastage which even rich economic generation of power
countries can not afford. Even and production of chilled water
the country-of-plenty is ensuring for central airconditioning in an
energy and water efficiency. efficient manner and thus
Moreover, green buildings are considerably reduced their CO2
often the norm for new footprint.
industrial construction in
developed economies, based on These are excellent examples of
basic feasibility analyses. CSR since both positive

march-april 2008 21
business intelligence

EIU surveys sustainability


impact on businesses
report by
The Economist Intelligence Unit 2008

The Economist Intelligence Unit (EIU)


conducted a wide-ranging survey of over
1,200 executives worldwide to investigate
and assess the impact of sustainability on
business. EIU conducted numerous in-
depth interviews with leaders of business
and non-governmental organizations
(NGOs) as well as other sustainability
experts. A georgraphically diverse sample of executives.

S
ustainability is a change in attitude that aligns financial,
social and environmental goals. Fortunately, businesses
rarely need to establish clear values for themselves.
Instead, they need to apply the ones they have. In practice,
companies are defining sustainability widely, looking at a range
of relevant environmental and social goals. The specific form
that sustainability policies take, however, will inevitably be
shaped by differing drivers and needs-economic and regulatory,
as well as environmental and social- around the world, leading
to a bewildering range of activities involving every function
within business.

Although a few companies have a long history of addressing


sustainability issues, business as a whole is still, as Mr Potter of
Coca-Cola puts it, at the "baby steps stage", scrambling to
address the issues and experiencing the pains inherent in
learning to master a new area. Four key areas currently
receiving too little attention within business are: leadership;
supply chains; reporting and metrics; and the transformation of
values into processes. At present, weaknesses in one or another
of these will condemn too many companies to poor performance
in this area. This presents more than a social or environmental
problem. The financial benefits of sustainability remain unclear,
but an understanding of where the economic advantages are-in
particular cost reduction and a range of untapped market
opportunities-can be very helpful to profits. Perhaps more
important, as the social and environmental forces driving
sustainability reshape the global economy, an inability to
understand and perform in this area could be fatal for
businesses.
A diverse group of industries.

C The Economist Intelligence Unit 2008


22 www.triplebottomline.com.pk
Neither business, nor governance, companies environmentally damaging
government, nor any other surveyed for this report had supply chains abound. "This is
stakeholder, can meet these implemented an average of just not charity: it is pure business.
challenges on its own. If they are 4.8 globally. Quantity aside, We create a better long-term
to be addressed, however, it will many executives also rated the relationship with suppliers, have
be through a messy period of quality of their company's efforts better products, and better
redefining, among other things, poorly. More respondents say control over volume and price,"
business's relationship with the that their organisation's says Roland Waardenburg,
world around it, as well as the performance has been poor in Director of Corporate Social
legal and regulatory framework individual areas of Responsibility at Ahold.
in which it operates. Companies sustainability, than those who
must, at the very least, be part of believe their firms are doing A Lack of Clear
that debate, for their own sakes well. Just 6% rate their
as well as for that of society as a companies as outstanding when Leadership on
whole. Businesspeople have long it comes to the reduction of Sustainability
realised that the image of an greenhouse gases, waste and Tony Juniper, an Executive
immoral private sector pollution, compared with 15% Director at Friends of the Earth,
motivated only by greed is a who describe themselves as says "senior management or
caricature, and a poor one at poor. chief executive buy-in to the
that. Most think that their agenda is absolutely crucial" for
economic activity serves the …But is Often real change to occur. Most firms
public good. Moreover, the understand that senior
executives interviewed for this Confused by Such leadership is critical here. But at
study held that corporate values New and Poorly many other firms sustainability
were not window-dressing, but Defined Demands responsibilities are dispersed
at the core of what their firms throughout the organization.
The research shows that
did. The innovation that "Sustainability needs a strong
companies have difficulty
sustainability demands is to seat at the table like procurement
devising useful targets, and
integrate these values into the and finance," argues Francesca
aligning social and
structures, processes and DeBiase, VP for Worldwide
environmental objectives with
incentives that mould behaviour Supply Chain Management at
financial ones. Moreover,
inside companies. Social and McDonald's. "It is the way
management frequently lacks an
environmental initiatives should everyone should be thinking."
understanding of what
become a central part of the
sustainable development means
strategy for corporate prosperity. TBL Reporting Needs
for the organization.
"Sustainability, at different More Work
This report suggests that
times, can mean all things to all Although companies rate their
companies are at an early stage
men," says Dr James Suzman, performance on communication
in developing such an
Director of Corporate highly, efforts regarding formal
understanding. While 53% of
Citizenship at De Beers. reporting are less advanced.
firms worldwide surveyed by
the EIU claim to have a coherent Only 22% of executives say their
sustainability policy, only half of The Supply Chain is firms have formal Triple Bottom
these extend this beyond internal the Weakest Link Line reporting, although a
operations to encompass their Extending sustainability policy further 40% say they will adopt
supply chains. to suppliers is the area where it within five years. There is, in
companies gave themselves the Mr Juniper's words, "a huge
Key findings from the study worst marks: about one-fifth say level of disengagement" from
include the following: their companies have performed sustainability reporting.
poorly in setting stronger
Business Knows that supplier standards on both Sustainability Pays
it Needs to Raise its environmental and human rights Most executives (57%) say that
issues. About the same the benefits of pursuing
Game… proportion have only sustainable practices outweigh
Out of a list of 16 sustainability implemented supplier controls the costs, although well over
policies, encompassing issues in the last five years. The eight out of ten expect any
ranging from energy problem is not new, and change to profits to be small.
consumption and carbon examples of disastrous Specifically, sustainable practices
emissions to diversity and consequences from socially or can help reduce costs

C The Economist Intelligence Unit 2008 march-april 2008 23


(particularly energy regulation. Not here. Forty
expenditure), open up new percent of those in our survey
markets and improve the believe additional regulation is
company's reputation. The costs necessary to tackle social and
of implementation, however, are environmental challenges.
not to be ignored: respondents Another 50% say that voluntary
view this as the most formidable action is generally more
barrier to expanding effective, but that additional
sustainability practices. regulation may be required in
some areas. However, this
Strong Link between openness to new rules is
combined with the desire for
Corporate clearer guidance about what
Sustainability and government expects from
Share Price business.

Performance The social and environmental


In our survey, companies with issues facing companies today
the highest share price growth are not going away-and are
over the past three years paid likely to involve a redefining of
more attention to sustainability relations between business and
issues, while those with the society. This often involves
worst performance tended to do fundamental political and even
less. The companies that rated moral questions. A good
their efforts most highly over sustainability policy needs to
this time period saw annual know when, and why, to say
profit increases of 16% and share "no" as well as "yes" to
price growth of 45%, whereas stakeholders' innumerable
those that ranked themselves demands.
worst reported growth of 7%
and 12% respectively. In general, Companies need to adjust by
Eco-efficiency alert: More than half of the sample has
these high-performing integrating best practices in implemented policy changes to reduce energy consumption,
companies put a much greater these fields into their operations and to improve governance in relation to the organization's
emphasis on social and and by joining the broader environmental and social performance.

environmental considerations at debate on the responsibilities of


board level, while the poorly business, government and
performing firms are far more individuals in addressing these
likely to have nobody in charge challenges. If firms do not get
of sustainability issues. involved in the latter, it will hurt
their own finances, as well as the
Business Leaders are environment and social
conditions worldwide.
Open to More
Regulation on TBL
Issues
Executives in our surveys are
often opposed to increased

The TBL-adoption impact on financial performance: Over


80% respondents report that in the next five years, board-level meetings will allocate almost 10% 30% believe that among the biggest benefits of sustainable
more time on the company's social and environmental impact. practices is manifested in shareholder value and profitability.

24 www.triplebottomline.com.pk C The Economist Intelligence Unit 2008


43% of the respondents agree that it is critically important that a corporate sustainability strategy meets the company's
objectives of increasing revenues. Enhancing brand reputation and compliance with regulatory and legal obligations also rank
highly among the defined criteria.

More than half of the respondents report that their companies formally report on philanthropic activities, at least.

Interesting to note: Almost 60% correspondents adopt different standards for working hours and pay, given local laws.

C The Economist Intelligence Unit 2008 march-april 2008 25


Half of the respondents say voluntary business action is
more effective, but additional government regulation may be
required in specific areas.

Reinforced: It is critical that the top management, especially


CEOs take interest in sustainability performance of the
organisation.

The need for consumer education highlighted: Repondents believe that almost 40% of customers would not pay more for ethical
sourcing, carbon offset schemes or SRI practices.

Less than one in three executives (29%) say their company


has a coherent strategy that covers the whole business and
its supply chain. Only 22% of executives say their firms have formal Triple
Bottom Line reporting.

26 www.triplebottomline.com.pk C The Economist Intelligence Unit 2008


csr talk

challenge of the
21st century:
advancement-
poverty paradox
HUSSAIN DAWOOD
Chairman
The Dawood Group

by khadeeja balkhi
for tbl

n your opinion, what is The key challenge of sustainable With developments like the FTSE

I true CSR? Or what is an


understanding of
sustainable practices
development is that it demands
new and innovative choices and
ways of thinking.
Sustainability Index, language
which 'corporate types' understand,
will, in time lead to people
rewarding companies with their
within your sphere? While developments in knowledge purchasing power.
CSR has been made synonymous and technology are contributing to
with corporate philanthropy (CP) economic development, these The investor of the future will look
in peoples mind whereas it is about developments also have the for companies who, besides giving
sustainable development in the key potential to help resolve the risks them profit, are also transparent in
areas of social, environment and and threats posed to the their operations and plan to grow
economic well-being of sustainability of our social in a sustainable manner.
organizations and societies at large. relations, economies. New
As economies globalize, new knowledge and innovations in What is the logical / valid
opportunities to generate technology, management, and connection between
prosperity and quality of life are public policy are challenging
developing but these positive
corporate philanthropy and
organizations to make new choices
improvements are accompanied in the way their operations, strategic CSR, in your
with new risks to the stability of products, services and activities opinion?
our environment and the impact the earth, people and Corporations can use their
continuing burden of poverty and economies. charitable efforts to improve their
hunger on millions of people. This competitive context: for example
paradox of advancement and These emerging challenges are the quality of the business
poverty is the challenge for the 21st forcing organizations to maintain environment in locations where
century. transparency in their operations. they operate.

28 www.triplebottomline.com.pk
Using philanthropy to enhance environment impact assessment For the development sector, social
competitive advantage aligns social studies. responsibility is an end in itself. It
and economic goals and improves sees its role as one of reacting and
long-term business prospects. As far as the ROIs are concerned; responding directly to human
Attending to surroundings enables for the economic and environment conditions. Development sector
a company not only to give money initiatives just shared, the organizations are therefore at the
but also to leverage its capabilities investments are business decisions, vanguard of bringing about change
and relationships to support and are strictly ROI-based. in society's attitude and (in the
development causes. West) have an acute understanding
What might be your input to of the power of the media and
the community on effective celebrities to accelerate social
What specific examples change.
ways to implement result -
can you share from your oriented CSR programmes On the other hand, it is the social
companies of successful that are aligned with a environment that prompts and
CSR implementation? In company's core business? educates acceptable corporate
these examples, what are If CP has to take roots in corporate behaviour. Trend-setting
some ways, creative and Pakistan, the alignment with core corporations now view CSR as a
otherwise, that ROI's business is a must. Businesses have way of differentiating themselves
to see a gain from the initiatives in from the competition and are keen
(returns on investments) on
the form of expanded markets, and proactive participants in it.
CSR initiatives have been They use the media to validate their
brand build-up, supply chain
measured? strengthening and so on. social responsibility credentials.
Under our business-integrated,
corporate philanthropy banner, we Microsoft and CISCO offer clear Hence, what began as a movement
are now integrating CP into new examples of integrating CP with to ensure that corporates managed
businesses, at their inception. their core businesses by investing risk adequately and thus had a
into human capital through license to operate -after catastrophic
Also, we've developed a water training and development in core incidents like Bhopal and Exxon
conservation system through the IT skills not only to become Valdez- is now about attracting
use of PVC lining and drip product users but also to develop human resources and
irrigation initiatives that are linked skills to sustain themselves in discriminating customers who
to Engro Polymer's core products. emerging job markets. value social responsibility.

In the same category, related to I can share a few examples for The process is similar in Pakistan as
Engro Foods' core business, we are instance, from Engro on what well but is not as advanced or
developing the capacity to enhance business alignment could entail. evident on a large scale. There is
milk production in rural Sindh Engro Chemical is investing in agri- greater understanding of the issues
through extension services that extension services and balanced and hence learning on both sides,
focus on improving hygiene, and fertilization initiatives. Or Engro which gives rise to collaborative
animal health initiatives. Energy is exploring energy efforts towards the common good.
conservation projects.
Under our environment-based To me, examples of some of the
initiatives, at the Engro Chemical Our challenge as a conglomerate: emerging similarities include:
plant for instance, we have a we are now evaluating how all the the need for implementing
continuous effort to reduce our above can be combined in a single change in a sustainable manner;
environmental footprint. initiative for synergistic the use of micro credit as a
Additionally, we have developed a intervention in rural areas. developmental tool;
2015 sustainability vision for the use of technology to impact
reducing water use, waste As chairman of the PPAF, development: telemedicine, and
generation and reduction of green so on;
house gases emission. We have
how do you think CSR is
a more 'business like' attitude
eliminated the use of CFC's in viewed (in similarity and in towards accountability and
compliance with the Montreal opposition) by the efficiency in social interventions,
protocol. We are also actively development sector, and by and;
working on carbon trading the business sector? a greater orientation towards
opportunities under the Kyoto I think trends relating to Social results.
protocol. Responsibility are coalescing, but of
course, the business and the about the writer
As part of our economic development sector are
transparency and efficiency drives, approaching it from different
As a Sustainability Consultant, Khadeeja
Balkhi helps organisations embed and
our project implementations are directions. document sustainable practies into their
open to public scrutiny through core business models.

march-april 2008 29
csr toolkit

the people-centered
model of business
by ramla akhtar
for tbl

30 www.triplebottomline.com.pk
"Our way is not of feats of action,
but feats of perception."
E Schuitema, author of "Intent" & "Leadership."
Teacher of the "Care & Growth Model"

The Four Life Zones

1. Spiritual (S) Zone


This Life Zone deals with
The Dilemma people's beliefs, ideologies,
Sometimes, we refuse to change not and life outlook - or the lack
because we don't want to, but because we of them. Closely related to
don't know how to - and what to change to. the faith system of
Consider the dilemma of contemporary individuals is their heart,
corporations within which kind souls wish to their intellectual mind and
create a better world through business - but free will. To understand a
are caught in a world-view where business person or culture, it is
is equated with "not doing good." Business important to understand
is based on economics, and that, at its their belief and spiritual
crude core is based on price and quantity. system. A belief can be true,
No wonder businesses only factor in Profits false, completely wrong, or
- not People and Planet. absent. S zone is the primary
PC-MoB zone, as it
What if we had a model that looked at the determines a person's
bigger picture? behavior in the respective
life zones.

PC-MoB: See The Big Picture


2. Personal-Familial (PF) Zone
The People-Centered Model of Business The family is the basic unit
(PC-MoB) is a practical tool through which of society. A person will
organizations (businesses and others) always be an individual, in
examine the reality of their markets by the context of their family -
focusing on human activity. It has multiple whether it's joint, nuclear, or
application modules including: Market dysfunctional. Personal
Insight, Trend-Forecasting, beliefs shape family
Entrepreneurship, Creativity, Organizational dynamics and families shape
Leadership, and Social Business - the last society. In Maslow's terms,
is detailed in this article. the PF zone is where a
person seeks emotional and
physical security and
stability. This determines the
level and quality of peace in
society, and its creative
energy.

march-april 2008 31
3. Socio-Economic 4. Ecological-Political four Life Zones are connected in
(SE) Zone (EP) Zone a cycle: "The Circle of Life".
When each zone reinforces the
Finally, a balanced human other, it's a progressive cycle.
A person interacts with the being, or society, progresses When each zone leads to
larger community for enough to participate in the spillover, ill effects on the next,
economic and social larger universe - of law, it's a vicious cycle.
purposes. This is where a politics, ecology, and cosmic
transaction occurs between philosophy. "Balanced"
personal-familial values of describes experiencing, Business = Busy-ness
individuals and household learning, and evolving from
units as they begin to the previous three zones. Picture the Four Life Zones in
interact with one another. A Some groups try to short-cut movement. Where an ill person
the first three zones, and is being treated, a household
shared vision that governs
jump into the universal zone manager is preparing food, one
these social contracts is
perhaps as a means to avoid is building homes, or requires
created out of those
their duties and safety, travel, or learning - it is
dynamics. These in turn "the busy-ness of life." Since
establishment of rights in the
determine society's collective these actions require a deep web
S, PF, and SE zones. That
behavior. of "helpers" who are paid in
results in a perpetual futile
conflict between these money, business is created.
In the SE zone, a person rises wishful idealists and society, Business is thus a part of the
above the self-development which rightfully needs able society, if it is based on the real
and family care needs to persons. needs and understanding of the
communicate with society at society. Whoever was trying to
large. Help is given and In mature societies, the EP sell refrigerators to Eskimos was
taken. A person is both an zone represents universal a true conman, and died
employer and an employee love, art, entertainment, unpopular.
in the economic system. travel, and discovery. Media
Information is traded; is the child and the lifeblood The key is that our businesses
people earn, save and build; of this zone - because by cannot prosper without adding
and money becomes a definition, media is media true value to their own
between the real products consumers: an issue that is easily
medium of exchange.
and people who already skirted -and hard to tackle- in a
Technology emerges to
exist. A media that exists out society as oft-ill-informed as
facilitate the speed and
of harmony with its own Pakistan's.
beauty of transactions
society heralds its own
between people and
disabling through
resources.
frustration. The institutions PC-MoB: The Social
of charity, establishment of
A person chooses their SE good and prevention of evil,
Business Module
zone behavior in line with "Social-izing business" is one of
collective prayer, the judicial
how they have developed in the most profound emerging
system, defense, foreign
the S and PF zones. Societies global trends of the 21st century.
affairs, and struggle are in
that have accessible This concept has various
the EP zone. These are
information and open meanings, one referring to
higher level societal
communication, where businesses whose primary aim is
institutions that cannot be
to serve social needs profitably.
transactions are facilitated, imposed on/by immature
Business thinker C K Prahalad
and social contracts are people.
has built a case for doing
honored become creative -
profitable business for "bottom
and foster open opportunity. of the pyramid (BOP) markets" -
Else, they are unfair and The Cyclic which are the over 4 billion
transgressive. The latter are Relationship of the consumers of the world with
marked by confusion, modest but real spending
resentment, violence and
Four Life Zones powers. They represent a largely
warped employment The Four Life Zones are not
untapped market which can be
dynamics - as the case of strictly separate. Some roles
served - and profitably so. Using
overlap boundaries, others can
Pakistan could be PC-MoB to study the lives of the
fit into other zones. In a way, the
interpreted. BOP market would reveal a

32 www.triplebottomline.com.pk
multitude of niches that can be The PC-MoB makes it simpler to cannot be projected reasonably
filled by small local businesses and understand the fabric of society - onto another's - owing to the
create tremendous employment and hence the dynamics within variety of human nature and
opportunities. This role has been which all organizations function. It culture.
typically relegated to NGOs and also establishes the social context of
charities. We need a new construct the business so that unnecessary Drawing up a PC-MoB profile for
that balances people + planet + conflict is avoided. In fact, business each group of markets will lead to
profits; the imbalance of one shakes becomes a pleasure - both for the rich insights about their unique
another markets being served, and for the lives, tastes, aspirations.
entrepreneur who can use their
innate potential for issues that are
Application Scenarios relevant to their own environment. Welcome Back Home!
The PC-MoB is an integral tool; it
In Pakistan, food stock puts things together into the "big
fluctuations can be better Characteristics of the picture," where one thing is related
managed by improved to another - as is the case in our
warehousing and transport -
PC-MoB
daily lives. This is the reality of life
leading to decrease waste in Questions, Not Answers that traditional single-disciplinary
produce, and hence market The PC-MoB is a template. These models could not perceive nor
prices. [SE-zone] roles are questions, not answers. incorporate. The simple PC-MoB
The role of "ill," for instance, asks liberates organizations from the
Tele-medicine services have the studier: what ailment does this guilt of feeling "external" to the
seen an opportunity in sending group of people suffer from? For human life by weaving them back
mobile medical teams to instance, poor people suffer lesser into the social fabric where they are
otherwise inaccessible areas. from heart disease (often the result active, healthy participants in
[SE-zone] of overindulgence), more from human activity. This ends the
infection (the product of filth). fictional divide between "the good"
In India, Unilever has a Thus, North American markets and the necessity of "just doing my
program called "Shakti" - need obesity control as Africa or job/ business." This, in short, is the
literally meaning "power" - Pakistan might need disinfectants. beginning of the end of secluded,
that empowers poor women by incomplete thinking patterns which
turning them into Unilever is the root of why modern
sales representatives - which in Realistic, Not Fictional businesses compulsively act solely
turn gives the women better profit-centered as if there's no other
lifestyles and expands the The PC-MoB demands reality, not
way.
company's reach. [PF-zone] fiction or desire. Facts lead to
insight. How will we know the
answers to these questions? With
research. With unstoppable
Business Realizes Human
curiosity and fact-finding. With
Potential determination to really know the
Business is not a cancer. It is an people we market to. To envision
integral, legitimate part of a healthy their needs, so needed solutions can
social organism. The condition is be served and waste is prevented.
that the business is empathetic to That's the higher purpose of about the writer
the society/societies it operates in business.
and helps legitimate "busy-ness". Ramla Akhtar runs a consultancy,
"NEXT>". She works with emerging
The entrepreneur affects change
when s/he accepts the society as is, Empathetic ideas, global change agents and
organizations and enjoys creating
and does not create products and Empathy is elicited as a reader intra-disciplinary, technology-neutral
markets for a make-belief group. identifies the truth of the people designs for the realization of innate
Then the entrepreneur is in a very being studied. It also gives human potential.
powerful position to mobilize perspective to consumer study and Ramla has experience in talent
change. A business cannot consumer insight. management, television media
effectively live in denial of the management and brand strategy.
http://nextbyramla.blogspot.com
society and environment around it. Accommodates Diversity
Understanding this fine point will
save many businesses a lot of There is a strong implication that
heartache and headache. one consumer group's life profile

march-april 2008 33
breather

34 www.triplebottomline.com.pk
march-april 2008 35
sustainability reporting

the pakistani perspective on


sustainability reporting

t's true that with 73 percent of the population living on

I below US$ 2 a day and 17 percent of the population living


on less than US$ 1 a day (UNDP), the sustainability
performance of Pakistani businesses is not the primary
concern of the majority of the country's population.

by katherine miles hill


for tbl

36 www.triplebottomline.com.pk
But it should be a concern of the to companies being encouraged WWF Best Sustainability
business community, especially by internal and external Reporting Company in 2007), the
those who want to compete on stakeholders to demonstrate Pakistan Tobacco Company and
the international market or their performance in these areas, the Pakistan Refinery Limited.
tempt multinationals to choose which has resulted in the The question is what is the
them as suppliers boosting the emergence of sustainability benefit of reporting for
economic development of the reporting. companies like these?
country. At the same time it
should also be the concern of Internal forces (such as Besides reducing the
those who want fairer, more employees, investors, senior organization's sustainability
sustainable development both management) within footprint, there are many reasons
within Pakistan and throughout organizations have also begun to for reporting. Already touched
the wider world. recognize the value of on is the competitive advantage
sustainability reporting and the in the international marketplace,
Awareness of sustainability has business case behind whether that be Pakistani
significantly changed in recent communicating their progress companies investing overseas,
years. Sustainability is rightly towards reducing their social, directly selling their products
now high on the international economic and environmental abroad or supplying
agenda. It is in part due to the impacts, and innovating around multinational companies.
dawning reality of climate new opportunities provided by a Customers, particularly those in
change but also as a result of commitment to a more European markets, increasingly
unprecedented economic growth sustainable future. reward companies which
of emerging economies such as disclose their sustainability
China and India. Driven by the Sustainability reporting is impacts. Consumers buying
desire to alleviate poverty, this sometimes also called triple from Pakistani companies want
amazing growth has successfully bottom-line, non-financial, or to be sure that they do not
reduced poverty levels but corporate social responsibility contribute in exacerbating the
resulted in severe unintended reporting and it refers to widespread poverty and instead
consequences. This has caused organizations formally contribute to eradicating it.
the global community to sit up disclosing information on their
and address the tension between social, environmental and Reporting using a standardized
the need for development and its economic impacts. For example framework is a way to show that
negative impacts. disclosing how much water they a company is transparent and
use as part of their operations, accountable and so can build
In this context, there is a whether they respect the human trust between the customer and
growing understanding among rights of their employees, and if the business or the purchasing
the international community that they pay them fairly. company and the supplier. If
a different approach to companies disclose information
development is needed, a It is about a company making following a standardized
sustainable approach, an clear the positive and negative approach, it enables the
approach that allows the needs effects of its operations on the comparability between
of the present to be met, without local community and organizations both within
compromising the ability of environment, how it intends to Pakistan and internationally.
future generations to meet their enhance those positive aspects, Customers can use this
own needs. As such, financial and how it will endeavour to information to evaluate the
performance is no longer the eradicate or improve on the performance of one company
exclusive driver for businesses. negative aspects of its business against another with respect to
Economic, environmental and on the community in which it certain indicators, such as the
social factors are now recognized operates. In essence, it's about total number of employees by
as also playing important roles. reporting on how the age which shows a company is
organization is contributing to not relying on child labour. They
Consequently the competitive sustainable development. can also use this sustainability
international marketplace information to benchmark
increasingly rewards those that Within Pakistan, sustainability organizations' performance with
go beyond the legal reporting is in its infancy but respect to laws, norms, codes,
requirements in terms of steadily growing. Current performance standards and
managing their economic, Pakistani reporters include the voluntary initiatives. Disclosure
environmental and social likes of Engro Chemical Pakistan can also improve a company's
impacts. This recognition has led Limited (winner of the ACCA- access to capital because the

march-april 2008 37
investment community trusts What is needed is a global guidance is also created using a
companies who openly present standardized framework for balanced group of geographic
sustainability information. disclosure and the Global and sectoral representatives
Reporting Initiative (GRI), a including Pakistani nationals.
A sustainable approach to multi-stakeholder network and a
business can also enhance the collaborating centre of the Over 1250 companies in over 60
brand value of the company. It United Nations Environment different countries have self-
develops an association with Programme, has pioneered just declared the use of the GRI
good virtues and values, that. The GRI's Sustainability Guidelines as a framework for
attracting customers in whatever Reporting Framework facilitates their sustainability reports, while
shape or form, as well as transparency and comparability a multitude of other companies
talented employees. A study among companies that use it and use the GRI Guidelines on a
conducted by play a vital role in enabling a more informal basis without self-
PricewaterhouseCoopers of 3000 standardized approach to declaration. The benefits of
graduates in the UK, US and disclosure. First issued in 2000, reporting outlined are clear to
China found that 87 percent of then 2002, the third iteration, the these companies, including the
respondents said that they G3 Guidelines, was released in likes of Engro Chemical Pakistan
would deliberately seek to work 2006. Limited. As more businesses and
for employers whose corporate other organizations in the
responsibility reflect their own The GRI Guidelines set out the country start to recognize the
ethics and values. principles and indicators that benefits of sustainability
organizations can use to measure reporting and the contribution of
There are also internal benefits and report their economic, this practice to the Pakistani
as the process of gathering environmental, and social population's economic and social
sustainability data is a useful performance. In order to ensure development, sustainability
internal management tool. The the highest degree of technical reporting in the country is set to
process of producing reports quality, credibility, and increase.
enables businesses to internally relevance, these guidelines have
identify operational been developed and are The GRI Guidelines can be
inefficiencies, cut waste and save continuously improved through downloaded for free at
money for the company. For a consensus-seeking process www.globalreporting.org
If you are interested in supporting
listed companies this helps with participants drawn globally
the translation of the GRI Guidelines
deliver shareholder value. Just as from business, civil society, the into Urdu, please contact GRI at
an external stakeholder can labour movement, and info@globalreporting.org
benchmark company professional institutions. A cross
performance from the section of global stakeholders
information disclosed in these who share the vision that
reports; this benchmarking reporting on economic,
information can also be helpful environmental, and social
for the internal management of a performance by all organizations
company and driving improved should become as routine and
performance. comparable as financial
reporting develop this standard.
But sustainability disclosures are The resultant G3 Guidelines are about the writer
only useful for all parties in as a free global public good and
far as companies disclose have been translated into many Katherine Miles Hill works in
communications for the Global
information that is relevant to languages.
Reporting Initiative. She has
the organization and their over five years experience in
stakeholders. If companies, In addition to the universally communications and strategy,
based in Pakistan or elsewhere, applicable core guidelines, the she began her career at
fail to present comprehensive framework also contains Sector international healthcare
and comparable information Supplements. These are company BUPA. Katherine holds
about their economic, specialized reporting guidance a MSc (Cum Laude) in
environmental and social for companies in a range of International Development with
a specialism in Education and
impacts, and gloss over the industry sectors - such as mining
Development, from the
material issues, then it's not and metals, automotive, and University of Amsterdam and a
much use to internal as well as retail and apparel, which caters BA (hons) Anthropology, from
external stakeholders. to the unique sectoral the University of Durham.
sustainability challenges. This

38 www.triplebottomline.com.pk
social partnership

the challenge of poverty


alleviation in the coastal
areas of pakistan

by uzma taimoor
trustee, indus earth
for tbl

I
n a small fishermen village, at nightfall, off the
coast of Sind, children gather around a solar
powered LED light pole to read; women gather
to sow; and men gather to discuss the day gone by.
This is a village which has never seen electricity.

In the same village a wind turbine harnesses the


coastal breeze to produce electricity that powers a
motor that pulls up potable water. This is a village
where women would dig a well themselves - often
at great risk to their lives - and then wait for hours
for their turn to gather water.

In the same village women, dressed in colourful,


traditionally embroidered kurtas learn the art of
masonry and of low-cost construction for a school
of bamboo and mud for their children's education.
Their children observe their mothers as they learn
to use newly acquired tools to lay the foundations
for the bamboo structure of the school.

Later this same school served as a life-saving


shelter when a cyclone hit their village and tore
down their thatched huts. The newly constructed
school was the only structure in the village to
survive the gale force.

Pit latrines for men and women are constructed at


the corner of the same village for greater hygiene.
A green patch nearby, using drip and clay-pot
irrigation techniques, demonstrates how fruit trees
and other vegetation can grow with the least
amount of sweet water - a scarce, essential
resource.

This village is Abdullah Goth, Kemari Town,


Karachi District, Sindh with a total population of
1,200 inhabitants where the founder and CEO of
Indus Earth, Shahid Sayeed Khan drove me in his
Suzuki jeep at dawn. There are many other villages

march-april 2008 39
- in hundreds - like Abdullah Goth that as an alternative source they
along the coastal areas of Sind and should look to the land. For
Balochistan in Pakistan. Each has a example just by growing a coconut
community organization that tree, an income of
works together with Indus Earth in Rs. 5,000 can be achieved after the
an effort to improve the quality of tree bares fruit. However,
life for their people. understandably, they were
reluctant to undertake this exercise
Financially supported by partner as the sea has for generations
institutions such as PPAF [Pakistan provided for them. So the Indus
Poverty Alleviation Fund], WWF Earth team built a "demonstration"
[World Wildlife Federation], CIDA, farm on four different locations of
and the Japanese government, one acre each, planting chico, baire
Indus Earth took up the challenge and coconut trees. Chico and baire
of poverty alleviation for the began to bear fruits after three
years. Coconut trees typically need Shahid divides his time between
two years to mature and bear fruit. soliciting funds for Indus Earth,
All of the above used a drip catching up with his team, and
irrigation system to minimize water overseeing project delivery on the
utilization. field. Working round the clock, the
Indus Earth team is looking to
Pitcher irrigation is a very old focus on the coastal areas of
method used mostly throughout Pakistan and thematically focus on
areas where water is scarce. A clay potable and clean drinking water
pitcher, before it is finally prepared while also working with the
for carrying water, is buried in the fishermen community to help them
ground. This 'immature' form build a better quality of life for
allows water to pass through its themselves and future generations.
porous sides, thus keeping the
ground moist all around it for a Indus Earth has also developed
radius of 3-4 feet. Any plantation low-cost housing options for the
within this moist ground will grow earthquake affectees in Kashmir in
prolifically. The great advantage of 2007 in collaboration with other
this is not only its simplicity but international organizations. They
also that "dirty' water can be used, also distributed essential food and
such as washing up soapy water. clothing to the cyclone affectees in
The pitcher allows only moisture to Sind and Balochistan in the same
poorest of the poor in 2001 with the go through thus acting as a filter. year.
simple, and matter-of-fact slogan:
'It needs to be done!' and a mission In a country like Pakistan such a Indus Earth is also a member of the
statement "To facilitate a movement mission is nothing short of a International Union for the
to raise living standards by daunting challenge. Political Conservation of Nature and
enhancing the quality of socio- instability, rising costs of living, Natural Resources (IUCN)
economic conditions through an and religious strife are just some of Pakistan, where Shahid Khan is
integrated development approach." the factors that create hurdles in the currently the honorary Pakistan
Other than the Village Rural achievement of Indus Earth's goals. National Committee Chairperson.
Development Programme, Indus Nonetheless it is a challenge that All its projects are environmentally
Earth is involved in other projects has been taken up with a spirit that friendly and promote a greater
which include building check dams says there is no other option. awareness of environmental issues.
for irrigation, drought mitigation, Shahid Khan, an architect by
technological innovations and profession, returned to Pakistan In an age where people aspire to
smokeless stove project among around fifteen years ago after afford a ticket to the next shuttle to
others. The programme of using having lived in the United the moon, the poorest of the poor in
alternative irrigation techniques in Kingdom for most of his life. He Pakistan are being given a chance
a water-starved area is an came back with the dream of to overcome paucity of resources to
interesting example of Indus setting up such a development give themselves and their children
Earth's participation and organization. Having been the basic necessities of life,
contribution in fishermen involved with developmental work appropriately.
communities. in Africa, he had strong conviction
that the same can be done for the For more details, please visit
Income from the sea is on the poor of Pakistan. With steely www.indusearth.org. or visit the office in
decline owing to over fishing and determination and perseverance, Karachi, Pakistan.
pollution. Indus Earth suggested and a hands-on method of working,

40 www.triplebottomline.com.pk
energy conservation

collective conscience
by fouzia ishaque
for tbl

C
hances are you may With capital investment, we can
have been reading develop new dams, nuclear
power houses and adopt
about conserving alternate bio-fuel technologies.
energy in the wake of The subject matter is too vast to
prolonged load shedding be discussed here, however, to
exercises by the sum it all up the United Nations
government. Blame the says: "Human activity -
particularly the burning of fossil
think tanks for overlooking fuels - has made the blanket of
this critical utility for greenhouse gases around the
business and households earth thicker." The resulting
alike and curse the KESC increase in global temperatures is
for coming up with power altering the complex web of
systems that allow life to thrive
cut plans every now and on earth, such as cloud cover,
then. To top it all, you must rainfall, wind patterns, ocean
be wondering why the currents, and the distribution of
summers become hotter plant and animal species. It is
every year. crucial to use our resources
conscientiously as fuel and
energy technologies have
The Ministry of Water and multitude effects on the climate.
Power maintains that "the Global warming and climate
power crisis in the country change are a rising threat to
was primarily a crisis of everyone.
investment and not a rises The Australian government plans
of planning." While we are to gradually phase out
at it, there is no denying incandescent light bulbs and
that we are hit by the worst replace them with more energy-
power crisis ever. efficient compact fluorescent
bulbs across the country.
Electricity shortage, natural Environment Minister Malcolm
gas resources depletion and Turnbull says that this could help
looming increase in reduce carbon emissions by 4
petroleum prices calls for million tons by 2012 and cut
collective careful efforts by household power bills by up to
66%.
all stakeholders.

march-april 2008 41
Shared by Philips, Pakistan

A commercial Jumbo Jet has The responsibility of sustainable and effort, and if as a bank we
recently been tested by Virgin development does not lie can make a difference towards
Atlantic to fly on a mixture of entirely with the government; it the safety of our environment,
bio-fuels extracted from the nuts requires collective efforts and then we can do wonders as a
of babassu tree and coconut oil, collaboration to bring about a nation. Hence, a message for all
in an effort to reduce their significant positive change and professional and working
carbon footprint. The initiative the state plays a key role as a people: we can, and should
has been praised by some facilitator to organizations and promote such initiatives and
analysts as a potentially useful other stakeholders. The actively participate as a team,
experiment. It takes great corporate sector, with its group or an industry."
commitment and perseverance resources, has an important role
to launch such an experiment to play by adopting eco-friendly Irfan Saeed, who works at a
amidst contradicting views by ways of doing business. technology firm in Maidenhead,
environment experts and UK says, "When I was in
scientists about the Lighting accounts for 19% or Pakistan, I never knew such
environmental benefits of nearly one-fifth of all electricity initiatives existed. When I
biofuels. Nonetheless, such usage in the world. That is received a communication from
experiments and initiatives give because much of the lighting my office that some of the
a big boost to efforts to find currently installed is technology servers and lights would be
environmentally- friendly that dates back over a century. switched off, I was taken by
energy and fuel resources. On March 29th, 'Earth Hour', an surprise. In fact, my colleague
annual event to symbolise was telling me that she had been
One might argue that countries collective efforts to make a anxiously waiting for this event
such as Australia and companies positive impact on climate to train her daughters about
like Virgin Atlantic can afford to change, was observed. ABN conserving energy and she made
engage in such experiments AMRO bank, Pakistan observed them switch off all the lights in
because they are a part of the the day by sending out prior their house. I now realize the
developed economy. However, email communication to all importance of such initiatives as
let us not forget that Cuba's Fidel employees to shut down their being critical to spreading
Castro launched a similar PCs, monitors and all office awareness. I hope that more and
programme whereby youth lighting except for critical lights, more organizations back home
brigades were sent into homes to across all branches and participate in such much-needed
switch off regular bulbs in an departments. initiatives."
effort to save energy and help
battle electrical blackouts around Shaiza Aslam of ABN AMRO With inefficient lighting, 95% of
the island. bank says, "This is a great cause energy is wasted in heat, with a

42 www.triplebottomline.com.pk
mere 5% generates light. Some as scrap metal, glass can be Environmental Protection
75% of all lighting is used in reused for making other glass Agency and the Department of
professional applications like products and the mercury can be Energy. While buying electrical
street lighting and buildings, utilized for new bulbs or other appliances for offices and homes,
while 25% is used in homes. The devices. The need however, is to one should consider and support
initiative taken by the create a recycling mechanism products that offer the ENERGY
government to promote the use through which domestic and STAR® rankings. Philips
of "Energy Savers" and to commercial users can easily get Pakistan offers a range of green
educate the masses through rid of the diffused bulbs. One products in Pakistan, including
media campaigns about proper thing that comes to mind lighting solutions and televisions
utilization of electricity is a step instantly is utilizing the built with Eco-Design and
in the right direction. The 'Turn 'raddiwalas' (junk and Sustainable Technology at
the Tide' project of the New wastepaper collector). An subsidized rates to encourage
America Dream captures this by incentive discount scheme consumers to buy products
replacing four standard bulbs should be launched by the bearing environmental labels.
with CFLs; one can prevent the companies to promote purchase
emission of 5,000 pounds of of new CFLs for a deposit of Initiatives to conserve energy
carbon dioxide and reduce used CFL bulbs. The corporate have merit, but they only
electricity bill by more than $100 sector makes bulk purchases and address the tip of the iceberg. To
over the lives of those bulbs. If should liaise with vendors for begin with, companies must
only a thousand of us each proper disposal of used bulbs. invest in the development of
replace four standard bulbs with human resources with the
CFLs, collectively we can Organizations should train their necessary set of skills and
prevent the emission of five maintenance staff about proper development of long-term
million pounds of carbon handling of CFL's. If a CFL bulb strategies to encourage research
dioxide and reduce our breaks, it is important to follow a and development of efficient,
electricity bills by more than proper procedure to avoid environmentally-friendly energy
$100,000 over the lives of those inhaling or being in contact with alternatives.
bulbs. the mercury.

Having said that, most people The lighting solutions have


are unaware of the precautions improved with tremendous about the writer
which need to be taken for the energy savings. Philips Pakistan
Fouzia Ishaque works with Habib
disposal of CFLs. gives an overview of the
Bank Limited (HBL) in HR & OD.
solutions available to buyers for As a Project Manager, she has
CFL lighting fixtures, like all making sensible purchase participated in crucial change
fluorescent lamps contain small decisions (see illustration). initiatives of the bank. She
amounts of mercury. Broken began her career at an
CFLs pose a threat to health and Energy conservation goes international software company
environment as they release beyond just lighting solutions Clarus Technologies, gave it a
mercury content in the with longstanding environment new brand identity and
strengthened strategic alliances.
environment. That is why it is effects. Organizations as
Fouzia has a diverse educational
critical that these bulbs are responsible citizens have a major background with a BCS in
properly disposed of and role to play by being the early Software Engineering and an
recyclyed. The Environmental adopters of eco-friendly MBA in Finance from SZABIST.
Protection Agency, United States technologies and standards
maintains that landfill and which have a positive impact on
"disposal methods can lead to a the environment. A solid
release of elemental mercury commitment by organizations to
into the environment through environmental standards can go
breakage and leakage and a long way in benefiting the
ultimately contaminate the food organizations and sustaining the
chain". environment.

The good news is that virtually At present, the Pakistani market


all parts of a CFL can be recycled offers ENERGY STAR® products
after its commercial usage life. to buyers. These products use
Its metallic end cap, glass tube, less energy and prevent
mercury and phosphor powder greenhouse gas emissions by
can be separated and recycled. meeting strict energy efficiency
The metallic portion can be used guidelines set by the U.S.

march-april 2008 43
green perspectives

green business sense?


by glenn schloss
for tbl

B
usiness is turning green for green cars, HSBC's green
globally. From cars to credit card launched in Hong
credit cards to light bulbs, Kong made from recyclable
and even potato chips, plastic and donating a portion of
environmentally-friendly purchases to an innovative
versions of products and services programme providing schools
loved by consumers for decades with green rooftops, and
are hitting the market. Driving Walker's potato chip packets
the trend are two key factors: stamped with Carbon Trust logos
consumer demand for green indicating the company is
alternatives and increasing working to reduce its carbon
stakeholder scrutiny of emissions. Every major light bulb
companies' environmental brand now offers an energy-
footprints. efficient alternative.

Recent examples include Toyota's These products and services are


stunning success with the Prius underpinned by a nascent yet
hybrid car which has prompted budding green awareness among
all major automotive consumers, at least in developed
manufacturers to launch plans market segments. It is a

44 www.triplebottomline.com.pk
movement which is in full bloom they will definitely or probably driving investments in energy
in developed Western markets have to make lifestyle changes to efficiency, and innovation
such as the US, Europe as well as help tackle climate change, while towards the path of creative
Australia and already shifting a majority in US and Europe are solutions.
into wealthier developing resigned to increased energy
economies in Asia such as Hong costs as a primary means of Awareness of the need for action
Kong, Singapore and even limiting global warming". Such is strong but when it comes to
China. In the next phase, over attitudes are increasingly eco-efficiency there is much
coming years the "green as a effecting consumers purchasing work to be done. A Hill &
lifestyle" trend will transition decisions, due to the rise in Knowlton survey of 420 senior
and take firmer hold in South public concern and activism executives from China, the US,
Asia including Pakistan. The around climate change. Canada and the UK in 2007
trend is important because found that while a majority of
consumers are making Companies must proactively senior technology leaders from
behavioural changes based not adapt to these blatant realities - around the globe (82%) closely
only on responses to growing the sooner they do, the more monitor the issue of global
environmental threats but competitive they become. warming, most do not have a
because it is developing a defined energy strategy to deal
fashionable appeal, making it With this ever-growing focus on with it (65%). The risk is clearly
hip to be green. Already leading climate change, consumers are evident and winners will be
Hollywood celebrities such as also examining energy efficiency those who seize the opportunity
Leonardo DiCaprio and Brad as a product attribute or as a while it remains an opportunity -
Pitt are championing factor in their purchasing it is already an undeniable risk
environmental issues in a serious criteria. According to a for many players.
but sartorially-appealing manner ReputationZ study conducted by
- not to forget Mr. Hill & Knowlton and market
Schwarzenegger with his researchers Millward Brown in
hydrogen-powered Hummer. It late 2006, climate change headed
won't be long before more the list of issues consumers in
Bollywood stars take up the the UK have heard a lot about
green cause. recently. It is in this environment
that companies and brands
It all makes good business sense. recognise the opportunity in
Green products are often sold at seeking to build or enhance their
a premium, both for the added bonds with green consumers. about the writer
value cycle and to compensate
for the higher costs associated The greening trend is not just Glenn Schloss is Hill & Knowlton's
with mitigating environmental occurring at the brand or Regional Director of Corporate
impact and complete life cycle product level, it's increasingly Communications, Asia Pacific.
considerations. Market research being viewed by companies as a Glenn.schloss@hillandknowlton.com
suggests that consumers are responsibility - and an
willing to pay a higher price for expectation of stakeholders,
socially-responsible products; including a growing group of
however, this can only be financial investors. Amid
quantified through in-market concerns about global warming,
testing. A BBC poll of 22,000 NGOs, media, the public and
people in 21 countries (of which some governments even are
Pakistan was not one) found that putting pressure on corporations
people in developed economies to reduce their carbon emissions.
are willing to make lifestyle At the same time, executives are
changes to support green realising that a green corporate
products and green taxes to positioning can actually be good
tackle environmental problems for the bottom line. The benefits
such as climate change. The are twofold: long-term cost
survey, carried out by savings from lower energy
GlobeScan, found high levels of consumption and increased
support for green taxes. goodwill among stakeholders
Furthermore, the survey found including consumers and
that "83% of respondents accept government. This trend is

march-april 2008 45
book in focus

ethics incorporated -
top priority and bottom line
by fariha rashed
for tbl

G
lobally, Business Ethics
has been a much talked

“ Business
Ethics is quite
simply applying
the basic
about term recently and
efforts have been made to even
incorporate it in the syllabus of
business administration courses.
What is the concept behind
Business Ethics? It is a practice
which should be perceived by
employees as something which
principles of they can incorporate in their
everyday routine - it should not
ethics in the be constituted as a means of
realm of control by management. When a
company stresses on conformity
business rather than principles, it does
more damage than healing.
where profit is
These are some of the underlying
the key concepts explored in detail in the
book "Ethics incorporated - Top


consideration Priority and Bottom Line"
authored by KPMG's Dr
Dipankar Gupta. It demonstrates
By Dipankar Gupta how ethical business practices
Publisher: HarperCollins India are not only good for the bottom and Delhi School of Economics.
216pp. Rs. 395 line, but also for employee Dr Gupta has also been a
morale and productivity. This researcher and teacher abroad.
book inspects business ethics He acted as the Visiting
from an organizational Leverhulme Professor at the
perspective and will do well as London School of Economics and
an introductory book on the as the first occupant of the
subject for students, executives, Visiting Asia Chair at Institut
managers and leaders. D'Etudes Politiques de Paris in
2004. Dr Gupta has written over
The author, Dr Dipankar Gupta, 10 books on various social and
heads the business ethics and political issues and is also the
integrity services practice of author of articles that have been
KPMG in India and has been printed in scholarly journals in
associated with the practice since India and abroad.
its inception in 1999. Dr Gupta
has been influential and active in His book "Ethics Incorporated -
setting up business ethics Top Priority and Bottom Line"
systems in domestic and gives a keen insight on the basic
multinational companies in principles of corporate
India. He has also taught at the accountability and ethics. It
Jawahar Lal Nehru University carries practical and interesting

46 www.triplebottomline.com.pk
examples drawn from European, actively give thought to the content we would do better if our business
U.S and various Indian companies. and operational aspects of their was run like sport - an easy
Dr Dipankar Gupta has done a ethics programmes. Ethics admission of one's error usually
praiseworthy job in discussing programmes need to be 'live' and slides away without leaving
issues such as corporate not be weighty and cumbersome distasteful recollections.
governance, corporate social pieces of paper behind which their Transparency has been stressed
responsibility, as well as the purpose is lost." Gupta further upon in making the practice of
connection between business ethics adds, "A corporate unit is not just a ethics effective.
and social reform. Even though he site where profits are made and
writes specifically for Indian jobs are performed, it is also a The "red flags" as the author terms
companies, the lessons that surface culture producing unit." it, are early warnings useful in
are globally relevant. detecting problems. The only way
"Ethics Incorporated - Top Priority citizens can protect themselves
In general, elevating the standards and Bottom line" is a valuable read from corporate frauds is to be able
of business and bringing business for decision-makers in to read red flags when they spring
ethics to the forefront is what books organisations of any size wanting up.
such as Gupta's will help do in the to design and implement a business
long run. The book speaks in depth ethics programme based on global Ethics does best when it is initiated
about the strains of contemporary standards. The book highlights and at home, at the workplace, and with
competition that make it vital for extends on the fact that business colleagues - business leaders are
top executives to secure popular ethics helps organizations to run team leaders who recognize that
acceptance to norms and practices cohesively by substituting talent is not located just at the top.
within an organization. Several surveillance and fright with The book illustrates how if top
useful guidelines are also included leadership and contribution. management has a clear focus on
in the book, to help executives on a However, it would have been ethics, it instigates more
number of significant issues helpful if the book would have competitiveness, creativity,
ranging from how to design a been slightly more user friendly in cohesion and direction in business
mission and vision statement, to the terms of its structure and pace. The practices.
making of a Business Ethics reader is overwhelmed by an
manual, as well as to the mapping abundance of information right At times it seems as if the author is
and calibration of existing attitudes, from the start. a little too cynical and comes across
feelings and values of co-workers as someone who believes that
within the organization. The author argues in favor of adopting corporate ethics will solve
Business Ethics at two levels in this all business problems. This
The book emphasizes that the book. The first is the analytical and perspective may be slightly naïve.
context of corporate leadership has conceptual one, and the second is to Corporate Ethics is just one aspect
altered enormously in modern show how Business Ethics can be that could certainly lend a hand at
times. Leadership in today's day put to work as a standard and making the business environment
and age requires skills which were lasting device for business more effective.
not standard in the past. Thinking executives. Ranging from the
in terms of ethics is equal to creating of an ethical manual, to the The author finally concludes that
thinking leadership and therefore it resolution of ethical dilemmas, to having little ethics is a hazardous
is vital that business ethics corporate social responsibility and thing and an organization should
programmes be driven from, and at governance, to questions of vendor go the whole way. Appealing
the top level. KPMG's support to monitoring and child labour, the subtitles and eye-catching
this book shows their commitment book reveals how Business Ethics highlights in bold print make the
towards incorporating strong can help in every circumstance to book easily readable. Carrying a lot
ethical values within their own add to corporate efficiencies and to of direction on ethics, the book is a
organization as well as in the bottom line. bit short on illustrations. The
organizations on a global front. language is simple and easy to
The importance of the stakeholder understand. Students and
This book strongly promotes that perspective has been well explained practitioners of management are
Business Ethics be clear and and it has been rightly stated that likely to find the book useful in the
effective - there are illustrations on the most admired companies today current context.
how norms and values can and have swung their concern from
should be made practical and shareholders to stakeholders.
usable on an everyday basis. Dr Comparing ethics in sport to that in
Dipankar Gupta, explains, business is another interesting and
"Business leaders today need to clever insight. The author says that

march-april 2008 47
musings

a second life
by praetor
for tbl

I
f one was to be given a second same time do good for others. second chance to avoid making all
life with all the experience of the One can argue that indeed such those mistakes they did make or
first at one's disposal upon re- countries do exist and the grants in avoid losing all the opportunities
birth, would one live differently? billions of dollars that some they lost, stunting their growth and
And if so, how differently? There Western countries pour into the perhaps even driving some into
would perhaps be a handful of third world every year is evidence irreversibly into the red. Would
people who will say that they of the altruism we speak about. there also be companies who would
would live the second life no This is a fact that is difficult to use a second chance to do better for
differently. Fortunate beings who deny. While aid, governmental or themselves and for the larger
had it all in the first life and are institutional, bilateral or multi- society at the same time?
ready to have it all again given the lateral, invariably has strings
chance. A huge number, probably attached, grants need to be taken at I believe yes, there would be such
the vast majority of people on this face value. Grants at the country corporate entities. More so later
planet would come up with a level are akin to corporate than now. A herald to this belief is
thousand things they would want philanthropy at the company level. that while still in the first life, so to
different the second time round. Cynics will doubt the purity of speak, the phenomenon of
Then, possibly there would be a motive and attach any of a number corporate philanthropy is present. I
precious few who too would want of possible hidden agendas for the believe this is an indicator even if
it different; but more in terms of a philanthropy, both at the the surveys tell us again and again
more holistic lifetime achievement individual and at the country level. that corporate philanthropy is in
than in terms of worldly wealth or But who are we to say whether large part driven by certain
material comfort alone. such philanthropy is inspired by individuals in companies practicing
some sense of guilt or atonement, philanthropy, rather than because
Now apply this second life or inspired by true compassion and of a strategic company policy.
possibility to countries instead of a finer sense of justice? If Warren
individuals and see what comes up. Buffet can just wake up one And like most other aspects of
morning and give away to charity a doing business today, corporate
The countries who would perhaps sum of about $ 37 billion in one philanthropy too is evolving.
want it no different might mainly stroke (that's about our total export Evolving for the better, from pure
be from the northern hemisphere - revenues for 2 years), must we be charity (that often may or may not
countries in Scandinavia, Western insecure enough to doubt or be good for the recipients or even
Europe and North America. And question his sincerity? for the company itself) to true CSR
may be Australia and New Zealand or corporate social responsibility.
in the southern hemisphere. Then, Let's go further and apply the
an overwhelming number of second lifetime opportunity model This, is the good news. If the
countries who would want it quite to the corporate sector. Things corporate world was to be given a
different in every which way, change dramatically here. One second life, there will be a larger
would probably come from Asia would be hard pressed to find a number of companies who will use
and Africa mainly. South American company who would want it no the opportunity to do better for
and Eastern European countries differently a second time round. themselves, and do better for
would possibly opt for some Even the biggest multinationals others. These will be the companies
changes, although not as many as with assets more than those of who have awakened in the second
the Asian and African ones. Then dozens of countries accumulated life to the pursuit of the triple
you will have to look very hard to would probably want to change bottom line of people, planet and
find countries who too want it several things in the second life, to profits as the logical, the ethical and
different the second time, but in a be even bigger and even more the profitable way forward.
spiritually uplifting sense. To live powerful. Certainly most middle-
the good life themselves and at the tier companies would relish a

48 www.triplebottomline.com.pk