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Lecture-1

What is Corporate/Corporation?
A company or group of people authorized to act as a
single entity (legally a person) and recognized as such in
law.
Company Act, 1994
Not proprietorship concerns.
- Capital Shortage
- Limited Scope
- Low Pressure



Example of well known corporate:
Unilever
Microsoft
Chevron
IBM
Sony
HSBC
BAT
Standard Chartered Bank. (ETC)
Society
Environment
Where does corporate operate?
1 ton paper
equals 2,00,000
A4 sheets!
What is Corporate Environment
Management?
Control of organizations impact on environment.
It is the systematic approach to minimizing the
damage created by an organization to the
environment which it belongs to .
What do Consumers Expect?
Organizations to be environmentally friendly.
At least to be environmentally aware.
Where do we stand in terms of basic living
parameter?

Hazaribagh : 270 registered tanneries.
Every day, they collectively dump around 22,000 cubic litres of
toxic waste, including cancer-causing hexavalent chromium, into
the Buriganga, Dhakas main river and key water supply.
Source: The Daily Star
(Wed, November 6, 2013)
Recent Green Event from Akij Cement
Akij Cement is going green with a new campaign, Lets turn to green.
Akij Cement has bought changes in its production dynamics by omitting fly ash from its
ingredients with the inclusion of blast furnace slag, which will help reduce its carbon
footprint by 41% compared to OPC (ordinary portland cement) production.
A carbon footprint is an estimate of the total climate impact of an activity.

CEM Encompasses
Factors of Production:
Capital
Land
Labor

Other Involved Factors:
Technology
Vehicles
Usability of products
All sorts of Stakeholders
Consumers general expectations:
(from Corporate)
No pollution. (Air/Water etc.)
No Adulteration. (Specially Applicable in BD.)
Helping the poor/ affected people.
Equal opportunity/ Proper wage, salary for all.
Consume less energy/ Use renewable energy.
Stop deforestation.
Use recyclable material.
Use green technology/ not harming the env.
Water Pollution
Air Pollution
Climatic Change
Child Labor
Labor Wage Problems Human Rights Issues
Challenges faced by Corporate
What are the objectives of a Traditional
Business?
I. Profit Maximization try to make the
most profit possible increase share holders
value.

II. Sales Growth business tries to make as
many sales as possible. This may be
because the managers believe that the
survival of the business depends on being
large. Large businesses can also benefit
from economies of scale.
Traditional Business Obj.
Increasing sales.
Making Profit.
Increase value of shareholders.
Make the business Big

Additional Business Obj.
Corporate strategy balancing growth with env.
protection.
Taking care of the surroundings where it belongs.

Transition in corporate viewpoint:































Sustainable development recognizes that
without happy, healthy people and good
natural environment the supply of resources
for the business will simply be unsustainable
over the long term.






Corporate strategy now has to balance growth with
environmental protection.

Profit making through sustainable development
policy.
The Key: Sustainability
Sustainable development recognizes that the
economy and the society depend on the
biosphere and environmental process
occurring within them.
Definition by WCED: Sustainable
development is the development that meets
the needs of the present without
compromising the ability of future
generations to meet their own needs.

The Key: Sustainability (Cont.)
The stand alone term of sustainability is a
vague one. It needs to be specified.
In order to establish sustainable
development irrespective of areas of any
business, an organization should articulate
strategies keeping in mind three basic
strategies-
Efficiency, Sufficiency & Consistency.
Efficiency
Efficiency: Strategies of efficiency aim to reduce the
environmental damage associated with the
production of each unit of output. How to achieve-
I. Use of fewer material resources in production,
II.extension of the life of products and production
equipment,
III.reduction if waste output and
IV.lower rejection rates are common output of
efficiency which eventually lowers the
environmental impact.
Sufficiency
Sufficiency means having enough. Strategies of
sufficiency are less of a technical solution to
environmental issues and more of a behavioral or
psychological solution. Strategy reflects-
I. Place less emphasis on material values as an
important quality of life
II. Material consumption is not abandoned completely
but is balanced with closeness to nature
However, the problem is many aspects of
business focus on having more rather than having
enough.
Consistency
Strategies of consistency are linked to
technological innovations. It does not reduce
energy and material usage but try to
harmonize usage with the underlying
environmental purpose.

Example: Energy Saving Lights. (Constantly
produces a specific quality consuming same
amount of electricity).
Example
As a strategy of consistency: Traffic lights
may be designed to use the same set of
colored lights in sequence and therefore use
a specific amount of electricity.
As a strategy of efficiency: Traffic lights
could be designed to use solar energy
thereby saving on the use of fossil fuels as
well as on material that would otherwise be
required to connect to govt. electric line.
Difficulty in Differentiating
Its often hard to distinguish consistency
and efficiency from one another.

For example,
Re-usable systems can save energy and
improve efficiency as well as provide more
consistency than disposable systems.


3 Goals to achieve
Sufficiency Consistency
Efficiency
Integration of
Economy, lifestyle and environment
i. Enhanced Brand Image, Increase sales & Customer
loyalty
ii. Greater productivity & Quality
iii. Improved ability to attract and retain employees
iv. Possible improved financial performance with lower
operating costs
v. Reducing regulatory oversight
vi. Access to capital

vii. Product safety and reduce liability

Positive outcomes of corporate env.
Policy:
Theoretical Framework
Simpson (1991) suggested that corporate
responses to manage environmental pressures can
be divided in 3 groups.
1. Why Mes? : Forced to improve the environmental
performance. (BD Textiles Industries)

2. Smart Movers: Exploited the opportunity
created by the arrival of green consumer. (Heinz)

3. Enthusiasts: Have moved beyond compliance.
(The Bodyshop)
Example: (BD Textiles)





ETP
Textile industry produces:

56 billion liter (5600 crore)
contaminated water

Water clogging due to
unplanned establishment

Law got strengthened..
Now ETP is recommended.


ETP Picture: Envoy Textiles BD.


Mission Statement of Heinz:
"As the trusted leader in nutrition and wellness,
Heinzthe original Pure Food Companyis
dedicated to the sustainable health of people,
the planet and our Company.
To know ore about sustainability of Heinz
visit:
http://www.heinz.com/sustainability.aspx
Five core values of Body Shop:
The Body Shop is a leader in
promoting greater corporate
transparency, and we have been
a force for positive social and
environmental change through our
campaigns around our five core Values:
Support Community Fair Trade,
Defend Human Rights, Against Animal Testing,
Activate Self-Esteem and Protect Our Planet.
To know ore about sustainability of Heinz visit:
http://www.thebodyshop.co.uk/services/aboutus_company.aspx
What is Corporate Citizenship?

Corporate citizenship is a term used to describe a
company's role in, or responsibilities towards
society.
It is the extent to which businesses are socially
responsible for meeting legal, ethical and economic
responsibilities placed on them by shareholders.

The aim is for businesses to create higher standards
of living and quality of life in the communities in
which they operate, while still preserving profitability
for stakeholders.


Points in favor of Corporate as citizen:
i. Unique Entity
ii. Pay Tax
iii. Expect certain protection from Govt.


i. Can Corporate vote?
ii. Can Corporate be imprisoned?

Points against Corporate as citizen:

The End