Wednesday, December 29, 2010

CSR Lecture 5: 27 December, 2010

Continuing the life-cycle environmental impacts of products, we identified (a)energy consumption, (b) water consumption, (c) use of hazardous substances, (d) waste generation, (e) emissions, (f) discharges, (g) mass balance (input-output balance) etc., as some of the issues to be considered in the manufacturing operations. Similar issues are applicable to suppliers too. Green purchasing aims at reducing the risk to the organization by ensuring that the supplier meets all the environmental requirements of the organization. It is important to ensure that the supplier complies with environmental regulations, does not use any banned substance (like cadmium, lead, mercury, Chromium vi, PBB, PBBE etc., for products exported to  Europe), improve the energy efficiency of the operations etc. It is also important to help the supplier to be environmentally sound. Issues related to the use of the products, like the toxicity of pesticides, repeated stress syndrome with computer or mobile use, energy consumption etc., were discussed. At the end of life (EOL), the product becomes a waste and it is either recycled, reused, remanufactured etc., or sent for incneration or landfill.

Coming to the social issues related to business, there are a few issues that are not under the control of Business - these are issues like un-employment, lack of educational facilities, poverty, discrimination, poor-hygiene, lack of infrastructure etc., of the society. These are generic issues on which the business organization does not have any control. Through philanthropic activities, however, business can influence these generic issues locally, e.g. by providing medical facilities to the villagers around the factory, by providing clean drinking water to the society, by building roads around the factory, by building townships (e.g. Bhilai, Jamshedpur etc.), by establishing schools, colleges in the villages etc. There are quite a few other issues where the organization has control or influence. These are (a) worker health & safety, (b) Fair wages (above the minimum wages), (c) fair treatment of workers, (d) avoiding discrimation based on sex, race, religion, language, caste, creed, colour etc., (e) avoiding workplace harrassments, (f) working hours (maximum of 60 hrs a week including overtime), (g) weekly holidays (one day off for every six days worked) etc. These are internal to the organization. One major social issue, where the organization has control, that affects people outside the organization is the safety of the products marketed by the company (e.g. burning cell phones).

Other issues that are included under "Social" are: ethical issues, governance issues, corruption and bribery


In the second half we continued with the reading of the paper by Porter and Linde.

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