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Corporate Environmental Responsibility

&
Sustainability
(MBC 110)

Manvendra Pratap Singh

PhD (NIT D), MBA (IBS, Hyderabad), B.Tech

CER & Sustainability

Syllabus
Module one: Fundamentals of Sustainable development
Definition, History, Brundtland commission, business triple bottom line, sustainable development
goals (SDGs), Environmental responsibility, corporate social responsibility.

Module two: Sustainable consumption & Production

Green consumerism, eco-labeling, green-washing , green consumer theories-GFT, VBN, TPB,
Environmental competitiveness: green innovation (product innovation, process innovation,
organisational innovation, marketing innovation), life cycle assessment, environmental management
system, ISO:14001, circular economy (reduce, reuse , remanufacture and recycling), greening of
waste, challenges of sustainable production.

Module three: Corporate sustainability strategy

Sustainability footprints, developing strategy through benchmarking and balanced scorecards,
Intrapraneurs and stakeholder engagement, Implementation of sustainable management strategy,
green supply chain, reverse logistics.

Module four: Corporate regulatory Compliance and governance

Corporate governance through the eyes of various international standards including AS 8000, AS
8002, GRI, Sustainability metrics, materiality and assurance, transparency and accountability,
Sustainability in higher education, Sustainability challenges and solutions.

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Pedagogy & evaluation

• Pedagogy:
CER and Sustainability uses a mix of lectures, class discussions, caselets,
case studies, assignments and exposure to industry projects to stimulate
learning. More focus will be given to project work based on real data/
problem of any firm/industry from India. An emphasis on contemporary
material, reports, journals, diagnosis of policy interventions, issues and
strategies is a unique feature of this course.

• Evaluation (tentative)
Internal Exam, case Study, presentation, project, assignments and
attendance.

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General Instruction

• For each of Session, please read the concerned chapters for the purpose of better understanding and
participation in the class. Discuss/ solve the problems/cases.

• All students are encouraged to visit digital platforms and self-study modules.

• For the purpose of Project, students are required to form themselves into groups of five members
each. Each group needs to provide me with a soft/hard copy document containing the group number,
members’names of each student.

• There will be negative points for any LATE SUBMISSION, Thus, you are advised to strictly
maintain the submission schedule for each of component as given above.

Grade allocation

• If students get score 50 percent or less than (either internal or external) will be failed.

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Mobile phone Industry

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Ancient Business Model

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Current Business Models

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Cradle to Grave

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Myths
The champagne glass
• Most environmental degradation is
done by the poor
• Poverty reduction leads to
environmental degradation
• Population growth necessarily leads to
env. degradation
• The poor are too poor to invest in env.
• Poor people lack technical knowledge
for resource management

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Limits to Growth

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Sustainable Development

Normative definition

Development that meets the needs and

aspirations of the current generation without
compromising the ability to meet those of
future generations (UNWCED, 1987)

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Our Take

• Development which enables individuals and communities in

underdeveloped regions of the world to raise living standards through

profitable products, consistent with minimizing adverse environmental

effects and social impact.

• Ensure socially responsible economic development.

• Consider resources for our future generations.

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Bottom Line of Business

• Money (Profits)
• Cases:
– William Energy- Benzene Spill near Colorado.

– Dow Chemical-Spewing dioxins in waterways

– Rio Tinto-Australian mining Company

– U.S.Steel- Discharge of harmful chemicals i.e. Mercury.

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Business Bottom Line

• Elkington (1994)
• Triple bottom line
– Economic (Wealth) or prosperity
– Environmental quality
– Social capital

Green Capitalism

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We live in 3D world

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7D World- A complex business Challenge

Revolu Focus Old New Paradigm Cases Blind Spot
tion Paradigm

1 Markets Compliance Competitive Shell-Nigeria Sustainability-

a religion

2 Values Hard Soft Dolly-Scottish Creation

Lamb economic
value

3 Transparency Closed Open Satyam/Shell Keep head

down
4 Lifecycle Product Function Super computer Company gate
Technology is a limit

5 Partnerships Subversion Symbiosis Shell We can handle

2+2=50
6 Time Wider Longer Millennium WSJ
clock/JIT
7 Corporate Exclusive Inclusive TATA Group Inability to see
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Governance 21
things around

Is Capitalism Sustainable?

• Corporate Restructuring in Japan.

• Germany’s Daimler-Benz AG- pull NV Fokker (Aircraft

manufacturer) in Netherland.

Capitalism is a creative destruction-J. Schumpeter

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Business and society

• Businesses are part of societies (locally, nationally, globally)
therefore have a duty to act within their expectations and
norms.

• By doing so they are able to operate successfully without

harming the societies, communities and environments in which
they operate (Sethi, 2003).

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Key Issues in CSR

• Labour rights:
– child labour
– forced labour
– right to organise
– safety and health

• Environmental conditions
– water & air emissions
– climate change

• Human rights
– cooperation with paramilitary forces
– complicity in extra-judicial killings

• Poverty Alleviation
– job creation
– public revenues
– skills and technology
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Key drivers of CSR

Around the world

• NGO Activism
• Responsible investment (PRI) www.unpri.org
• Litigation

Developing Countries
• Foreign customers
• Domestic consumers
• FDI
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Main Concepts of CSR

CSR (Carrol, 1979)

Firms have responsibilities to societies including economic, legal, ethical and
discretionary (or philanthropic).

Social Contract (Donaldson, 1982; Donaldson and Dunfee, 1999) – There

is a tacit social contract between the firm and society; the contract bestows
certain rights in exchange for certain responsibilities.

Stakeholder Theory (Freeman, 1984) – A stakeholder is “any group or individual

who can affect or is affected by the achievement of an organisation’s purpose.”
Argues that it is in the company’s strategic interest to respect the interests of all its
stakeholders.

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CSR Defined (1)

World Business Council for Sustainable
Development (1999):

“The continuing commitment by business to

behave ethically and contribute to economic
development while improving the quality of life
of the workforce and their families as well as of
the local community and society at large”.

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CSR Defined (2)

“CSR is the commitment of business to contribute to sustainable economic
development-working with employees, their families, the local community
and society at large to improve the quality of life in ways that are both
good for business and good for development” (World Bank, 2008).

“CSR is a commitment to improve community well-being through

discretionary business practices and contributions of corporate
resources”(Kotler & Lee, 2005).

“Social responsibility of business is to encompass the economic, legal,

ethical and discretionary expectations that society has of organizations at
a given point in time” (Carroll, 1979).

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CSR Defined (3)

“Corporate social responsibility is essentially a concept whereby companies
decide voluntarily to contribute to a better society and a cleaner environment.
At a time when the European Union endeavours to identify its common values
by adopting a Charter of Fundamental Rights, an increasing number of
European companies recognise their social responsibility more and more
clearly and consider it as part of their identity. This responsibility is expressed
towards employees and more generally towards all the stakeholders affected
by business and which in turn can influence its success.”

The Commission of the European Communities (2001, p.4)

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Corporate Citizenship concepts

Corporate Social… Emphasizes…

Responsibility Obligation, accountability

Responsiveness action, activity

Performance outcomes, results

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Corporate Social Responsibility (CSR)

Carroll’s Four Part Definition
Understanding the Four Components

Responsibility Societal Examples

Expectation
Economic Required Be profitable. Maximize sales,
minimize costs, etc.
Legal Required Obey laws and regulations.

Ethical Expected Do what is right, fair and just.

Discretionary Desired/ Be a good corporate citizen.

(Philanthropic) Expected
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Pyramid of CSR

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Corporate Social Responsibility (CSR)

Business Criticism/ Social Response Cycle

Factors in the Societal Environment

Criticism of
Business
Increased concern A Changed
for the Social Environment Social Contract

Business Assumption of Corporate Social Responsibility

Social Responsiveness, Social Performance, Corporate Citizenship

A More Satisfied Society

Fewer Factors Leading Increased Expectations Leading

to Business Criticism to More Criticism

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EVOLUTION OF CSR
We are getting here

Section 135 Compliance

Investment in social development

Good corporate
as part of the Business plan
citizenship
(NVGs)

Strategic Community investment Strategic giving linked to business

interest

Philanthropy Passive donations to charities

Pure self interest

Corporate profit
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FROM CORPORATE RESPONSIBILITY

TO CORPORATE SOCIAL RESPONSIBILITY

Nation Building Compliance to

135

Immediate Community Sanitation, education,

development environment

Welfare of staff families School for staff children,

sanitation in staff colonies etc.

Staff welfare
Occupational safety

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CSR Management:
Emerging standards in CSR Reporting

Global Reporting Initiative (GRI)

A multi-stakeholder initiative
www.globalreporting.org

International Standards of Accounting and

Reporting (ISAR)
A project of UNCTAD
www.unctad.org/isar

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The Global Sustainable Development Goals

MDGs SDGs
(2000-2015) (2015-2030)

Developing country
Universal
focused

Social Social, Economic, and

Environmental

Foreign Aid Domestic Investment,

Private Flows, and Aid

Official Statistics and Big Data, Citizen

Administrative Data Generated Data,
Geospatial and Earth
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Observation Data,
Open Data, and more

The origins of the UN 2030 Agenda

• 2012 UN Conference on Sustainable Development in
Rio de Janeiro (Rio+20)
• Appeal made to formulate common goals and include these in the
post-2015 development agenda
• The MDGs did not consider environmental issues, eg
– Emissions of greenhouse gasses
– Access to clean drinking water
– Management of water resources
• New focus on the concept of ‘sustainable development’
– Need to consider the relationship between nature and society
– Social, environmental and economic dimensions

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The international proposal: ‘Transforming

our world’

https://sustainabledevelopment.un.org/content/documents/21252030%20Agend
a%20for%20Sustainable%20Development%20web.pdf

The 2030 Sustainable Development

Goals
• The main goals focus on the 5 Ps
– People: the wellbeing of all people
– Planet: protection of the earth’s ecosystems
– Prosperity: continued economic & technological growth
– Peace: securing peace
– Partnership: improving international cooperation
• These five aspects are interdependent
• Therefore the SDGs demand integrated thinking
as well as integrated approaches to achieving the goals

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• 169 targets
https://sustainabledevelopment.un.org/sdgs

1. No Poverty

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Goal 1: India

• HDI Ranking

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Targets
• By 2030, Reduce at least by half the proportion of population of all ages living in
poverty.

• Social protection systems and measures for all.

• Ensure all men and women, have equal rights to all resources and services.

• Build the resilience of the poor and reduce their exposure and vulnerability to
climate and other economic, social and environmental shocks and disasters

• Create sound policy frameworks at the national, regional and international levels,
based on pro-poor and gender-sensitive development strategies, to support
accelerated investment in poverty eradication actions.

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Goal 2: Zero hunger

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Goal 2: Zero hunger

India

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Goal 2: Zero hunger

Targets

•Double the agricultural productivity and incomes of small-scale food

producers.

•Ensure sustainable food production systems and implement resilient

agricultural practices.

•Correct and prevent trade restrictions and distortions in world

agricultural markets,
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Goal 3: Good Health

and

well-being

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SUSTAINABILITY
IS

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• Many responsible for today’s rise in

atmospheric CO2 are no longer here;
• most who will be affected are not yet born

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