Environmental aspects of social responsibility in International Business
Introduction:
Introduction: The traditional vision of the business opines that companies are responsible only to their shareholders. But now they have realized that they have to take into consideration the consequences of their operations on environmental, social and human aspects. Mere philanthropic and donations are not valued here. A company is viewed as a moral agent and citizen .To become a moral citizen who is accountable to a wider range of stakeholders a company has to incorporate good business ethics in its corporate culture. Thus managing relationships with the stakeholders is all the more difficult for a company operating internationally .This is due the cultural, legal and other differences among the countries and nations. Latest issues in the corporate social responsibility are the environmental concerns which are a matter of survival for the entire world as such.
Environmental management in international business:
Its now the era of environmental awareness. Protecting our planet has become a necessity for everyone. Corporate world is also marching towards the same issue. Thus environmental management is the buzz word on the international business. A company which is "green" makes it effect on the consumers' mind. The concept of carbon footprint also makes a company work towards this goal. The best example of a green company is GE with its eco- friendly products and production methods. GE's "Ecomagination" is a well reputed idea which has taken the brand to greater heights.
Many firms operating in international markets have actively contributed to maintaining a healthy environment. These companies develop tailor made production methods based on the countries requirements, rather than have a standard production line for all the countries. Similarly they have to set a minimum environment criterion to be eligible to get the financial assistance from world financers.
The example of Canon can be mentioned here. While spreading its business to the international market, Canon Camera Inc felt the need of a corporate philosophy that helps it to become a socially responsible company. It came across many imbalances in the global market like high tax rates, anti -dumping laws and long standing business disputes. The major imbalance was the degradation on the quality of environment which is the root cause of many climatic changes. The natural resources like oil, water, energy sources were depleting due to the increased consumption which is the result of the increase in population.
Canon was clear that it's the responsibility of the business to reduce the imbalances. It developed a corporate philosophy that helped it to strike a judicious balance between its financial commitments and its social obligations. They adopted the concept called Kyosei' philosophy under which they set certain rules and standards. Some of these rules were:
No harm to the environment will be made.
No research will be conducted in military activities
No imitation of technology or products will be undertaken
Respect for the products and technologies of others
Local commercialization.
Canon also undertook the development of the society where it had its operations. It undertook the education of the local people on the social issues, provision of employment to them to improve the standard of living etc. This shows the efforts taken by the organization to uplift the society.
There are a number of themes under the broad aspect of environment management. These aspects are discussed below:
Pollution :
Environmental pollution is one of the major issues which ponder an MNC. The non bio degradable wastes from the production units are a major pollutant. The soot forming from industries and vehicles are also increasing the pollution level. So companies are trying their best to reduce their carbon foot print by using eco friendly production methods or by producing green products. Toyota can be quoted as an example for a company which produces green products .Its eco -friendly car "Prius" is the first of its kind.
The Big Blue of the world, IBM is another company which has all set to reduce the carbon foot print with Lean and Six Sigma principles- Green Sigma. It is considered to be in the list of Top 20 Best workplaces for commuters which provided excellent commuter benefits to help reduce the traffic and air pollution. It has also undertaken a project to make the water safe for drinking in Endicott the birthplace of IBM.
Working towards a greener planet:
Not only the domestic market, the global market also heading towards making a greener planet. The concept of global warming is getting heated up even in the corporate world. The companies are spreading the awareness about growing more trees, use of bio degradable products, and at the same time they are fighting against the destruction of plants and greenery. Though Western European countries were the pioneers in this framework, soon other countries joined the band wagon. Government of India has a comprehensive policy for the protection of wildlife, forests and rivers, which are our most valuable resources.
One such company which educates the public about the greener planet is Idea Cellular .Its latest ads features a dry tree and a dry land and then it features people adopting a paperless life through the use of cell phones . The cell phones are used in all fields wherever paper is used like boarding pass, tickets typewriter in the Court and much more. Finally the dry area becomes full of lush green plants and with lots of birds and animals. The ad ends with the Tag line "What an Idea Sirji".Truly a brilliant ad which makes people think about the nature. Message of greenery promoted very effectively.
Non renewable energy :
The depletion of energy sources has made the corporate to think about developing alternative sources of energy which are not damaging the nature. Thus energy sources like wind, solar power and so on are emerging .Some countries are developing ways to produce electricity from waste. The latest joint venture between India and Japan to develop a solar city is a very apt example. This is a project to enhance a community based society through maximum natural resources of forest, sea, food and energy. The main concepts will be renewable energy such as solar, wind, hydro, and bio mass and so on.
Recycling :
Reduce, reuse and recycle are the buzz words of the day. The used products and byproducts can be recycled to produce reusable material. Automobile parts, tyres, wires and aluminum wires and many such precuts are recycled .This will reduce the level of pollution also. Moreover educated customers are also interested in buying products from companies that recycle their products.
The best example is Kodak. It instructed its customers to submit back their one time usage camera (instant camera) to the store, which will be recycled and converted into reusable material.
Nokia is another example which undertakes the recycling. Nokia educates its customers through the ads and their stores. The unused phones are dropped in the boxes at their service centers and this enables the company to recycle the old products.
Conclusion:
Thus many global companies have already undertaken its acts of making a greener tomorrow. Many others are also in the process of joining them. The most important thing is that the corporate should walk the talk and keep up the promise they are making. They must ensure that they implement what they plan. Nothing can substitute the dedication of the Business leaders to take the ideas of sustainability on an on going basis and to become socially responsible in its own way. Green companies must take into consideration the 4P's - People, Planet, Profit and Process and think of the well being of its customers and employees and ensure efficient productivity to save the nature. Then they can surely drive economic development while preserving nature and creating a more sustainable greener tomorrow.
Environmental aspects of social responsibility in International Business
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