Seminar report On BUSINESS ETHICS AND ENVIRONMENTAL ISSUE

SUBMITTED TOMR. AMANPREET SINGH (SMS)

SUBMITTED BYSURJEET SINGH

SCHOOL OF MANAGEMENT STUDIES, PUNJABI UNIVERSITY PATIALA

Contents
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page no. 3. 4. 4. 5. 8. 9. 9. 10. 10. 14. 15. 16. 19. 29. 30.

Business Ethics Business Culture Of India Why Study Ethics? Business Ethics Covers Code of Ethics Business Ethics Leadership Alliance Environmental law Environmental law in INDIA Description of Environmental law of Environmental Law environmental law

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10. Purpose

11. International 12. India

treaty obligations

13. Cases 14. Conclusion 15. References

BUSINESS ETHICS
INTRODUCTION
Business ethics is a form of applied ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and business organizations as a whole. Applied ethics is a field of ethics that deals with ethical questions in many fields such as medical, technical, legal and business ethics.

WHAT IS APPLIED ETHICS.......?

Applied ethics is, in the words of Brenda Almond, co-founder of the Society for Applied Philosophy, "the philosophical examination, from a moral standpoint, of particular issues in private and public life that are matters of moral judgment". It is thus a term used to describe attempts to use philosophical methods to identify the morally correct course of action in various fields of human life. Bioethics, for example, is concerned with identifying the correct approach to matters such as euthanasia, or the allocation of scarce health resources, or the use of human embryos in research. Business ethics can be both a normative and a descriptive discipline. As a corporate practice and a career specialization, the field is primarily normative. In academia descriptive approaches are also taken. The range and quantity of business ethical issues reflects the degree to which business is perceived to be at odds with non-economic social values. Historically, interest in business ethics accelerated dramatically during the 1980s and 1990s, both within major corporations and within academia. For example, today most major corporate websites lay emphasis on commitment to promoting non-economic social values under a variety of headings (e.g. ethics codes, social responsibility charters). In some cases, corporations have redefined their core
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values in the light of business ethical considerations (e.g. BP's "beyond petroleum" environmental tilt).

BUSINESS CULTURE OF INDIA

The business culture of India is a reflection of the various norms and standards followed by its people. Indians have various cultural yardsticks, which extend to their business culture too. Thus, it is important that a person visiting the country has an idea of the business culture of India. Thus, it is important that a person visiting the country has some basic idea regarding the business ethics and customs followed here. Having a good grasp on Indian business culture will ensure that you succeed in maintaining a well-earned affinity with your business counterparts.

Why Study Ethics?

Even granting that business ethics is important, many seem to believe that there is no point in studying the subject. Ethics is something you feel, not something you think. Finance, marketing, operations, and even business law lend themselves to intellectual treatment, but ethics does not. The idea that ethics has no intellectual content is odd indeed, considering that some of the most famous intellectuals in world history have given it a central place in their thought (Confucius, Plato, Aristotle, Maimonides, Thomas Aquinas, etc.). Ethics is in fact a highly developed field that demands close reasoning. The Western tradition in particular has given rise to sophisticated deontological, teleological and consequentialist theories of right and wrong. No one theory explains everything satisfactorily, but the same is true, after all, in the natural sciences. Even when they grant that ethics has intellectual content, people often say that studying the field will not change behavior. Character is formed in early childhood, not during a professors lecture. If the suggestion here is that college-level study does not change behavior, we should shut down the entire business school, not only the ethics course. Presumably the claim, then, is that studying finance and marketing can influence ones conduct, but studying ethics cannot. This is again a curious view, since ethics is the one field that deals explicitly with conduct. Where is the evidence for this view? The early origins of character do not prevent finance and marketing courses from influencing behavior. Why cannot ethics courses also have an effect?
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WHY SHOULD ONE BE ETHICAL?

There is already something odd about this question. It is like asking, Why are bachelors unmarried? They are unmarried by definition. If they were married, they would not be bachelors. It is the same with ethics. To say that one should do something is another way of saying it is ethical. If it is not ethical, then one should not do it. Perhaps when business people ask why they should be ethical, they have a different question in mind: what is the motivation for being good? Is their something in it for them? It is perfectly all right to ask if there is a reward for being good, but this has nothing to do with whether one should be good. It makes no sense to try convince people that they should be good by pointing to the rewards that may follow. One should be good because good is, by definition, that which one should be. As for motivation, good behavior often brings a reward, but not every time. Think about it. If it were always in ones interest to be good, there would be no need for ethics. We could simply act selfishly and forget about obligation. People invented ethics precisely because it does not always coincide with self interest.

WHAT BUSINESS ETHICS COVERS

Doing Well By Doing Good Although ethics is not the same as self interest, business executives often want to be assured that it is the same. They want to make certain that one can do well by doing good, meaning that one can succeed in business by being ethical. There is no denying that one can often do well by doing good. An ethical company is more likely to build a good reputation, which is more likely to bring financial rewards over the long term. But good behaviour cannot be grounded in tangible reward alone. People who are interested only in reward will behave ethically when it suits their purpose, but they will go astray whenever the incentives change. There is a deeper confusion here, too. To look to ethics for motivation is to misunderstand what ethics is all about. It is like studying finance to find a reason to make money. Finance does not teach one to want to be rich. It teaches one how to be rich, assuming one wants to be rich. So it is with ethics. Ethics teaches one how to be good, assuming one wants to be good.

It is important to know that one can normally do well by doing good. Otherwise ethical people could go into business only with a high risk of failure. Business ethics, however, addresses the opposite question: how can one do good by doing well? It begins with the premise that managers want to do something good with their lives and investigates how to accomplish this through business. In other words, it treats profit and business success as means to a greater end: making the world a little better. The Duty To Make Money Granting that a business persons ultimate objective is to make the world better, how is this best achieved? A common view is that it is achieved by making as much money as possible. The best thing business people can do for society is to be good business people, which is to say, to maximize the companys profit. They should therefore stick to finance, marketing and operations management rather than waste time with ethics. Economist Milton Friedman articulates this view in an essay that is quite popular with business students, The Social Responsibility of Business Is to Increase its Profits.1 According to Friedman, corporate officers have no obligation to support such social causes as hiring the hardcore unemployed to reduce poverty, or reducing pollution beyond that mandated by law. Their sole task is to maximize profit for the company, subject to the limits of law and rules of the game that ensure open and free competition without deception or fraud. Friedman advances two main arguments for this position. First, corporate executives and directors are not qualified to do anything other than maximize profit. Business people are expert at making money, not at making social policy. They lack the perspective and training to address complex social problems, which should be left to governments and social service agencies. Second, and more fundamentally, corporate officers have no right to do anything other than maximize profit. If they invest company funds to train the chronically unemployed or reduce emissions below legal limits, they in effect levy a tax on the companys owners, employees and customers in order to accomplish a social purpose. But they have no right to spend other peoples money on social welfare projects. At best, only elected representatives of the people have such authority. Sole proprietors can spend the companys money any way they want, since it is their money, but fiduciaries and hired managers have no such privilege. If they contribute corporate money to arts or community development, it must be with an eye to increasing profit, perhaps by attracting better employees or improving the companys image. If they want to contribute to other social causes, they are free to join civic organizations and donate as much of their own money as they please.
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It would be nice if the world were so simple. What happens, for example, when laws permit antisocial behavior? Should businesses not restrain themselves voluntarily, even if it imposes a cost on company stakeholders? Friedmans reply is that they must not, again on the libertarian principles just described. But suppose a hurricane hits a town and cuts off routes to the outside world. There is a desperate need for portable electric generators, and the only local seller takes the opportunity to charge an exorbitant price. (Something like this happened when Hurricane Andrew hit southern Florida.) Since this sort of price gouging is legal, the store manager has no right, on Friedmans view, to tax the owners by charging less than the market will bear. He does, however, have a right to ask the buyer to pay more, since the purchase decision is voluntary in a free market.

THE RULES OF THE GAME

The task of business ethics, then, is to identify the duties that business people have as business people. What are these duties? One can begin with the most basic ones mentioned by Friedman: the duty to obey the law and the rules of the game, which provide for open and free competition without deception or fraud. Yet even these basic obligations are disputed. Albert Carrs very popular essay, Is Business Bluffing Ethical? argues that deception, for example, is a legitimate part of business-2Business, he says, is like a poker game. There are rules, but within the rules it is permissible to bluff in order to mislead others. In fact one must do so or lose the game. The ethical rules of everyday life therefore do not apply to business. Using examples from the 1960s era in which he wrote the paper, Carr defends: food processors that use deceptive packaging of numerous products; automobile companies that for years have neglected the safety of car-owning families, as described in Ralph Naders famous book Unsafe at Any Speed; utility companies that elude regulating government bodies to extract unduly large payments from users of electricity. As long as they comply with the letter of the law, he says, they are within their rights to operate their businesses as they see fit.

CODE OF ETHICS
It is believed that the best way of promoting high standards of business practices is through selfregulation. Business should be conducted in a manner that it earns the goodwill of all concerned through quality, efficiency, transparency and good values. This Code has been designed as a voluntary guideline to achieve these objectives.

1. Be truthful and realistic in stating claims. 2. Be responsive to customer needs and concerns. 3. Treat all stakeholders fairly and with respect. 4. Protect and promote the environment, conserve water and power and community interests. 5. Be law abiding and do not suppress the truth howsoever unpleasant it may be in the short run.

SEVEN STEPS FOR IMPLEMENTING THE CODE

Integration and Endorsement Distribution Breaches Affirmation Contracts Training Nurture

BUSINESS ETHICS LEADERSHIP ALLIANCE

The goals of the Business Ethics Leadership Alliance (BELA) are: (1) to publicly affirm commitment to certain ethical principles and compliance practices; (2) to provide public resources for BELA members to uphold their commitment and other companies to follow our lead. Leadership in business must set the standard and walk the talk when it comes time to ethical behavior. There can be no compromise of ethics. There can be no waiver of ethics. A leader must constantly keep his or her actions above reproach. If leaders are committed to that high standard, there will be no more Enron, WorldCom, Tyco, and Adelphia ethical meltdowns. Knowing what is right is very important to personal and business ethics. Doing what is right is absolutely critical to personal and business ethics. A strong unwavering commitment to your core values and guiding principles of your business or organization will lead to the right ethical decisions and actions. In the absence of these actions, all one has is good intentions and that simply is not enough for effective leadership.

WHAT IS ENVIRONMENTAL LAW....?

Environmental law is a complex and interlocking body of statutes, common law, treaties, conventions, regulations and policies which, very broadly, operate to regulate the interaction of humanity and the rest of the biophysical or natural environment, toward the purpose of reducing or minimizing the impacts of human activity, both on the natural environment and on humanity itself. Environmental law draws from and is influenced by principles of environmentalism, including ecology, conservation, stewardship, responsibility and sustainability. From an economic perspective it can be understood as concerned with the prevention of present and future externalities. Areas of concern in environmental law include air quality, water quality, global climate change, agriculture, biodiversity, species protection, pesticides and hazardous chemicals, waste management, remediation of contaminated land and brownfields, smart growth, sustainable
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development, impact review, and conservation, stewardship and management of public lands and natural resources.

ENVIRONMENTAL LAWS IN INDIA:

In the Constitution of India it is clearly stated that it is the duty of the state to protect and improve the environment and to safeguard the forests and wildlife of the country. It imposes a duty on every citizen to protect and improve the natural environment including forests, lakes, rivers, and wildlife. Reference to the environment has also been made in the Directive Principles of State Policy as well as the Fundamental Rights. The Department of Environment was established in India in 1980 to ensure a healthy environment for the country. This later became the Ministry of Environment and Forests in 1985. The constitutional provisions are backed by a number of laws acts, rules, and notifications. The EPA (Environment Protection Act), 1986 came into force soon after the Bhopal Gas Tragedy and is considered an umbrella legislation as it fills many gaps in the existing laws. Thereafter a large number of laws came into existence as the problems began arising, for example, Handling and `Management of Hazardous Waste Rules in 1989. Environmental law in India is an exhaustive study of the growth of the law relating to environment in India. The third edition highlights the various aspects of environmental regime law of public nuisance and civil remedies, protection of forest habitat, natural resources and coastal zones, control of pollution, liability for environmental torts, constitutional mandate for environmental protection, judicial review of decisions affecting environment and environmental impact assessment processes. It contains a qualitative analysis of the laws pertaining to the field, reference to relevant international conventions and comments on recent and updated case law, making it an indispensable tool for legal practitioners, decision makers, environmentalists and students of law and environment .

DESCRIPTION OF ENVIRONMENTAL LAWS:

In the Constitution of India it is clearly stated that it is the duty of the state to protect and improve the environment and to safeguard the forests and wildlife of the country. It imposes a duty on every citizen to protect and improve the natural environment including forests, lakes, rivers, and wildlife. Reference to the environment has also been made in the Directive Principles
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of State Policy as well as the Fundamental Rights. The Department of Environment was established in India in 1980 to ensure a healthy environment for the country. This later became the Ministry of Environment and Forests in 1985. The constitutional provisions are backed by a number of laws acts, rules, and notifications. The EPA (Environment Protection Act), 1986 came into force soon after the Bhopal Gas Tragedy and is considered an umbrella legislation as it fills many gaps in the existing laws. Thereafter a large number of laws came into existence as the problems began arising, for example, Handling and Management of Hazardous Waste Rules in 1989.

FOLLOWING IS A LIST OF THE ENVIRONMENTAL LEGISLATIONS THAT HAVE COME INTO EFFECT: GENERAL
1986 - The Environment (Protection) Act authorizes the central government to protect and improve environmental quality, control and reduce pollution from all sources, and prohibit or restrict the setting and /or operation of any industrial facility on environmental grounds. 1986 - The Environment (Protection) Rules lay down procedures for setting standards of emission or discharge of environmental pollutants. 1989 - The objective of Hazardous Waste (Management and Handling) Rules is to control the generation, collection, treatment, import, storage, and handling of hazardous waste. 2001 - The Batteries (Management and Handling) Rules, 2001 rules shall apply to every manufacturer, importer, re-conditioner, assembler, dealer, auctioneer, consumer, and bulk consumer involved in the manufacture, processing, sale, purchase, and use of batteries or components so as to regulate and ensure the environmentally safe disposal of used batteries. 1999 - The Environment (Siting for Industrial Projects) Rules, 1999 lay down detailed provisions relating to areas to be avoided for siting of industries, precautionary measures to be taken for site selecting as also the aspects of environmental protection which should have been incorporated during the implementation of the industrial development projects.
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2000 - The Municipal Solid Wastes (Management and Handling) Rules, 2000 apply to every municipal authority responsible for the collection, segregation, storage, transportation, processing, and disposal of municipal solid wastes. 2002 - The Noise Pollution (Regulation and Control) (Amendment) Rules lay down such terms and conditions as are necessary to reduce noise pollution, permit use of loud speakers or public address systems during night hours (between 10:00 p.m. to 12:00 midnight) on or during any cultural or religious festive occasion 2002 - The Biological Diversity Act is an act to provide for the conservation of biological diversity, sustainable use of its components, and fair and equitable sharing of the benefits arising out of the use of biological resources and knowledge associated with it

FOREST AND WILDLIFE

1927 - The Indian Forest Act and Amendment, 1984, is one of the many surviving colonial statutes. It was enacted to consolidate the law related to forest, the transit of forest produce, and the duty leviable on timber and other forest produce. 1972 - The Wildlife Protection Act, Rules 1973 and Amendment 1991 provides for the protection of birds and animals and for all matters that are connected to it whether it be their habitat or the waterhole or the forests that sustain them. 1980 - The Forest (Conservation) Act and Rules, 1981, provides for the protection of and the conservation of the forests.

WATER
1956 - The River Boards Act enables the states to enroll the central government in setting up an Advisory River Board to resolve issues in inter-state cooperation. 1970 - The Merchant Shipping Act aims to deal with waste arising from ships along the coastal areas within a specified radius.

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1977 - The Water (Prevention and Control of Pollution) Cess Act provides for the levy and collection of cess or fees on water consuming industries and local authorities. 1978 - The Water (Prevention and Control of Pollution) Cess Rules contains the standard definitions and indicate the kind of and location of meters that every consumer of water is required to affix. 1991 - The Coastal Regulation Zone Notification puts regulations on various activities, including construction, are regulated. It gives some protection to the backwaters and estuaries.

AIR
1948 The Factories Act and Amendment in 1987 was the first to express concern for the working environment of the workers. The amendment of 1987 has sharpened its environmental focus and expanded its application to hazardous processes. 1981 - The Air (Prevention and Control of Pollution) Act provides for the control and abatement of air pollution. It entrusts the power of enforcing this act to the CPCB . 1982 - The Air (Prevention and Control of Pollution) Rules defines the procedures of the meetings of the Boards and the powers entrusted to them. 1982 - The Atomic Energy Act deals with the radioactive waste. 1987 - The Air (Prevention and Control of Pollution) Amendment Act empowers the central and state pollution control boards to meet with grave emergencies of air pollution. 1988 - The Motor Vehicles Act states that all hazardous waste is to be properly packaged, labelled, and transported.

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PURPOSE OF ENVIRONMENTAL LAW

A significant challenge for jurists, for public policy makers, and for the public in general is the degree to which economic development is to be curtailed in the interests of environmental preservation. A Utopian model might offer a scenario of collective reduction in consumerism and a global redistribution of assets, as a means toward reversing the current pattern of human impact on the physical environment. However, realities of human nature and current perceptions of quality of life and standard of living necessitate development of models reflecting modern realities. Subsequently increasing tensions exist between competing interests in terms of the approach to be taken in economic development and interaction with the physical environment. Environmental law has moved from the realm of individual protection, tort and negligence-based law to the statutory, public policy arena in which case law has deemed that the interests of economic development will coexist with the interests of environmental protection. The challenge for law makers is achieving the appropriate balance of competing interests.

Why do we need to protect the environment?

Our new Constitution says that everyone has the right to a safe and healthy environment. The quality of our environment affects all of us no matter where we live. The environment is our home. If it is not healthy, nor are we. When people abuse the environment, this affects us all. If water is polluted, if the air is full of smoke and chemicals, if food contains poisons, people (and plants and animals) get sick. All people also have a responsibility to protect and use the environment in a way that will protect it for ourselves, our children, and our grandchildren. Many people don't understand why we need to worry about the environment. They think people's needs and environmental needs cannot both be looked after, and that people are more important than the environment. They say that our major aim must be creating economic growth and jobs, and that the green (environmental) agenda must take second place. Some people feel hurt or

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insulted when others show concern over endangered species like rhinos when children do not have enough to eat.

INTERNATIONAL ENVIRONMENTAL LAW:

In international law, a distinction is often made between hard and soft law. Hard international law generally refers to agreements or principles that are directly enforceable by a national or international body. Soft international law refers to agreements or principles that are meant to influence individual nations to respect certain norms or incorporate them into national law. Although these agreements sometimes oblige countries to adopt implementing legislation, they are not usually enforceable on their own in a court. Only nations are bound by treaties and conventions. In international forums, such as the International Court of Justice (ICJ), countries must consent to being sued. Thus, it is often impossible to sue a country. The final question in the jurisdictional arena is who may bring a suit. Often, only countries may sue countries. Individual citizens and non-governmental organisations (NGOs) cannot. This has huge repercussions. First, the environmental harm must be large and notorious for a country to notice. Second, for a country to have a stake in the outcome of the subject matter, some harm may have to cross the borders of the violating country into the country that is suing. Finally, even if transboundary harm does exist, the issue of causation, especially in the environmental field, is often impossible to prove with any certainty.

CORE ISSUES RELATING TO INTERNATIONAL ENVIRONMENTAL LAW

Consider for a moment why any law is enacted -- domestically or internationally. Some would maintain that it is a moral statement about behaviour that a society cannot tolerate. Some would argue that certain conduct is outlawed to deter that conduct, which is why we also attach a penalty. Some would argue, especially in light of the inefficiencies in enforcement, that laws socialize society's members to behave in a certain way by defining a code. What is the purpose of international environmental law -- is it a moral statement, a deterrence, or a socializing tool? If it is a moral statement, which many of the framework conventions seem to
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be, is it merely aspirational? Do we honestly believe that all nations will achieve all the ideals expressed in all the agreements? Or do we, as a global community, simply like to think of ourselves as the kind of people who believe in these things? If it is intended as deterrence, why are there not more international forums for dispute resolution, more international bodies empowered to enforce agreements, more substantive requirements, and more 'hard law' selfexecuting agreements? If there were, would any nation sign them? If it is intended as a socialization technique, is it working? Are nations more environmentally aware?

INDIA'S INTERNATIONAL OBLIGATIONS

India has obligations under numerous international treaties and agreements that relate to environmental issues. As a contracting party, India must have ratified a treaty, that is, by adopting it as national law before it came into force, or by acceding to it after it has come into force. For a treaty to enter into force, the requisite number of countries must ratify the treaty, which then has the force of international law. Specific obligations under any treaty vary, depending on the treaty itself. The nature and degree of compliance and implementation depend on a number of factors, among them: (1) the capabilities and staff of an international institution charged with coordinating national compliance efforts, if there is one; (2) the willingness of other state parties to enforce or comply with the treaty; (3) the political agenda of the government and popular support; (4) trade and diplomatic pressures brought to bear by other countries; and (5) sometimes, judicial or NGO involvement through court cases and publicity.

INDIA'S TREATY OBLIGATIONS

1. The Antarctic Treaty (Washington, 1959) 402 UNTS 71. Entered into force 23 June 1961. India ratified with qualifications, 19 August 1983. 2. Convention on Wetlands of International Importance, Especially as Waterfowl Habitat (Ramsar, 1971). 11 I.L.M. 963 (1972). Entered into force 21 December 1975. India acceeded, October 1, 1981.
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3. Convention Concerning the Protection of the World Cultural and Natural Heritage (Paris, 1972). 11 I.L.M. 1358 (1972). Entered into force 17 December 1975. India signed, 16 November 1972. 4. Convention on International Trade in Endangered Species of Wild Fauna and Flora (Washington, 1973) 12 I.L.M. 1055 (1973). Entered into force 1 July 1975. India signed, 9 July 9 1974; ratified 20 July 1976. 5. Protocol of 1978 Relating to the International Convention for the Prevention of Pollution from Ships, 1973 (MARPOL) (London, 1978). Entered into force 2 October 1983. India ratified with qualifications, 24 September 1986. 6. Convention on the Conservation of Migratory Species of Wild Animals (Bonn, 1979) 19 I.L.M. 15 (1980). Entered into force 1 November 1983. India signed, 23 June 1979; ratified 4 May 1982. 7. Convention on the Conservation of Antarctic Marine Living Resources (Canberra, 1980). 19 I.L.M. 841 (1980). Entered into force 7 April 1982. India ratified, 17 June 1985. 8. United Nations Convention on the Law of the Sea (Montego Bay, 1982). 21 I.L.M. 1261 (1982). Entered into force 16 November 1994. India signed, 10 December 1982. 9. Convention for the Protection of the Ozone Layer (Vienna, 1985). 26 I.L.M. 1529 (1987). Entered into force 22 September 1988. India ratified, 18 March 1991. 10. Protocol on Substances That Deplete the Ozone Layer (Montreal, 1987). 26 I.L.M. 1550 (1987). Entered into force 1 January 1989. India acceded, 19 June 1992. 11. Amendments to the Montreal Protocol on Substances That Deplete the Ozone Layer (London, 1990). 30 I.L.M. 541 (1991). Entered into force 10 August 1992. India acceded, 19 June 1992. 12. Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal (Basel, 1989). 28 I.L.M. 657 (1989). Entered into force 5 May 1992. India signed, 5 March 1990; ratified 24 June 1992.

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13. United Nations Framework Convention on Climate Change (Rio de Janeiro, 1992). 31 I.L.M. 849 (1992). Entered into force 21 March 1994. India signed, 10 June 1992; ratified 1 November 1993. 14. Convention on Biological Diversity (Rio de Janeiro, 1992). 31 I.L.M. 818 (1992). Entered into force 29 December 1993. India signed, 5 June 1992; ratified 18 February 1994. 15. Convention to Combat Desertification in Those Countries Experiencing Serious Drought and/or Desertification, Particularly in Africa (Paris, 1994). 33 I.L.M 1332 (1994). Entered into force, 26 December 1995; India signed, 14 October 1994; ratified 17 December 1996. 16. International Tropical Timber Agreement (Geneva, 1994). 33 I.L.M. 1016 (1994). Entered into force 1 January 1997. India signed, 17 September 1996. India ratified 17 October 1996. 17. Protocol on Environmental Protection to the Antarctica Treaty (Madrid, 1991). Entered into force 15 January 1998.

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CASES
COCA-COLA'S LATEST ENVIRONMENTAL SCAM

Under fire for its mismanagement of water resources in India, Coke has gone all out to create an image of itself as a leader in water conservation. The Coca-Cola Co. is up to its old tricks again. The company, which is under fire for its mismanagement of water resources in India, has gone all out to manufacture an image of itself as a global leader in water conservation. Little Drops of Misery The International Campaign to Hold Coca-Cola Accountable for its abuses in India has been frustrated with Coca-Cola's increased public relations, under the guise of corporate social responsibility, to respond to the crisis that Coca-Cola has created in India. Communities living around some of Coca-Cola's bottling plants in India are experiencing severe water shortages -due to Coca-Cola's extraction of water from the groundwater resource, as well as pollution by the company's plants. Located primarily in rural areas, the hardest hit have been farmers who have seen significant declines in crop production, as well as women who now have to walk farther to access potable water. A study funded by Coca-Cola -- which the campaign forced it to agree to -- confirmed that Coca-Cola is a significant contributor to the water crises, and one of its key recommendations is

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that Coca-Cola shut down its bottling plant -- in Kala Dera in the state of Rajasthan -- where the community has been campaigning against Coca-Cola. The study -- a damning indictment of Coca-Cola's water management practices in India -concluded that the Coca-Cola Co. had sited its bottling plants in India from strictly a "business continuity" perspective that has not taken the wider context into perspective. It also warned Coca-Cola of worsening water conditions around its bottling plants, found an alarming increase in pollution as one got closer to Coca-Cola bottling plants and faulted the company on pollutionprevention measures, among others. In typical fashion, Coca-Cola has chosen to ignore the findings of the study -- which it paid for and even participated in -- and is now insisting that shutting down the Kala Dera plant and leaving is not an option because the responsible thing to do is to stay and solve the problem because they are "problem solvers!" Lies and Half-Truths: Coca-Cola's CSR The Coca-Cola Co. Released its 2007/2008 sustainability review, and surprisingly, critical issues facing the company's operations in India do not find mention in the review. Needless to say, the company gives itself high marks in its sustainability report. We can understand that mentioning the company's atrocious record in India would not look good for a company that is on a fast track toward manufacturing a green image of itself. But surely a company cannot just choose to ignore the fiercest battleground it faces when it comes to measuring Coca-Cola's sustainability? Evidently, if you are Coca-Cola, you can conveniently choose to omit the most critical issues facing the company's use or abuse of water. The sustainability report must look good, and facts do not matter. One of Coca-Cola's champion projects in India to deflect attention away from the water crises it causes is rainwater harvesting, a traditional Indian practice. Although the company started operations in India in 1993, it only had four rainwater-harvesting structures in 2001 -- definitely not a priority for the company. As the community-led campaigns against Coca-Cola's water abuses spread around India, so did Coca-Cola's championing of rainwater harvesting. Today, the company claims to have over 200 rainwater-harvesting structures. Along with the massive publicity of their rainwater-harvesting structures (which, incidentally, the Coca-Cola
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funded study found to be in "dilapidated" condition), Coca-Cola also started making fantastical claims. In Kala Dera, for example, the company claims to recharge (through rainwater harvesting) five times the water they use from the groundwater resource. In other words, they claim that they put back fives times as much water they use back into the groundwater resource. Forget water neutral, this would be water positive! Yet, while they make this claim in a letter to the University of Michigan, they also note that they do not have any metering mechanisms in place to measure how much water is being recharged. If you don't have measuring devices in place to measure the recharge, how can one claim that they recharge five times the amount of water they use? If you are Coca-Cola, you just make it up. And the University of Michigan officials never even bothered to clarify this point. It sure resonates well with the media, officials and NGOs. And evidently, it seems to work. The Coca-Cola Co. Extended its partnership with the World Wildlife Fund to conserve freshwater river basins around the world, except India. Announced originally with much fanfare in Beijing in July 2007 as part of their Olympics presence, the partnership with the WWF is yet another attempt to deflect attention away from the real crises that the company creates in India. Coca-Cola regularly highlights the partnership when responding to the issues in India. While we welcome any initiatives on water conservation, it makes no difference to the communities in India that are reeling from water shortages -- courtesy Coca-Cola. Conserving freshwater river basins in China and Guatemala do absolutely nothing to impact the depleted groundwater in Kala Dera and other Coca-Cola bottling plants in India. Water issues are local issues. The list of Coca-Cola's initiatives to mislead the public is long and is well documented by the India Resource Center. The company has repeatedly publicized the Golden Peacock Awards that it has received for "environmental excellence" in India, for example. What the company does not tell you is that Coca-Cola is the primary sponsor of the organization that gives out the awards.

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ADARSH HOUSING SOCIETY CONTROVERSY

The Adarsh Housing Society is a cooperative society in the city of Mumbai in India. It was reserved for the war widows and veterans of the Kargil War. In 2010, the Indian media brought to public the violations of rules at various phases of construction in the Adarsh Society. Questions were raised on the manner in which apartments in the building were allocated to bureaucrats, politicians and army personnel who had nothing to do with Kargil War and the way in which clearances were obtained for the construction of the building of the Adarsh Society. The Adarsh society high-rise was constructed in the posh Colaba locality of Mumbai, which is considered a sensitive coastal area by the Indian Defence forces and houses various Indian Defense establishments. The society is also alleged to have violated the Indian environment ministry rules. Many activists like Medha Patkar had been trying to uncover this scam since a long time. The exposure of the infamous nexus between politicians, bureaucrats and builders in this scam is said to be only the tip of the iceberg. It had led to resignation of the then Chief Minister, Ashok Chavan. Several inquiries have been ordered by the army and the Government to probe into the irregularities. Some of the current occupants of the flats in the Adarsh co-operative society building have offered to vacate their flats at the earliest, denying allegations that they were alloted flats because they influenced or helped, in some manner, the construction of the society by violating the rules. The media also exposed that the lower house of the Indian Parliament was misled by one of the bureaucrats, Pradeep Vyas, involved. The environment minister Jairam Ramesh formally set the ball rolling for the demolition of the entire 31-story scam-tainted Adarsh building in Coloba's eco-sensitive zone on Friday November 12, 2010. The environment minister is said to have sent a show cause notice to the Adarsh housing society. The environment minister is said to have stated that "all options under the law are open except regularization of the structure" As per the Ministry of Environment and Forests' order dated 16 Jan 2011, 'the unauthorised structure should be removed in its entirety and the area restored to its original condition'.

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VEDANTA CONTROVERSY
The recent Lok Pal report highlighting gross irregularities committed to favour the Vedanta Group with regard to its world-class university project is a strong indictment of the BJD Government in Orissa. Its time Naveen Patnaik comes clean on the issue. Orissa Chief Minister Naveen Patnaik is in trouble again. This time for the biggest land grab scam in independent India. As much as 6,000 acre of three-crop agricultural land has been allotted by the State Government to the London-based Vedanta foundation, purportedly for establishing a worldclass university on the Puri-Konark marine drive. The recent order of Orissa Lok Pal Justice PK Patra in response to a petition filed by trade union leader Dwarika Mohan Misra is a strong indictment of the functioning of the State Government. As brought out by the findings of the Lok Pal, the whole idea of Vedanta university was conceived in the Chief Ministers office. Mr BK Patnaik, Principal Secretary to the Chief Minister, had initiated a file relating to the establishment of Vedanta university by putting up a note which was signed by the Special Secretary of Finance, the Agriculture Production Commissioner, the Minister for Higher Education, the Minister of Finance and the Chief Minister on July 13, 2006. Just six days after the initiation of the file, a Memorandum of Understanding was signed on July 19, 2006, between the Orissa Government and the Vedanta foundation for the establishment of a multidisciplinary university. The MoU in question signed by the parties does not constitute a legally enforceable contract. It appears from the records that the officials of the Government of Orissa had acted in haste to accede to the request of the foundation, says the Lok Pal in his 26-page order. The Lok Pals findings clearly indicate that 6,000 acre of agricultural land which includes 1,300 acre of arable land belonging to the Jagannath Temple that farmers linked to the seva of the temple cultivate, and another large stretch of land containing huge quantities of thorium and other rare minerals is in the process of being acquired by Vedanta Foundation. This violates the Land Acquisition Act, 1894 and the Shri Jagannath Temple Act, 1954, the Lok Pal observes. There is also a huge chasm between the land required and the land grabbed. The Lok Pal agrees that such a vast track of land would not be required for the establishment of the proposed university, as even world-class universities like Oxford, Cambridge and Harvard are built on lesser land space. This clearly points to an ulterior motive behind the acquisition.

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The project will affect at least 50,000 people across 22 maujas (villages) of Puri district who depend primarily on agriculture for their livelihood. Also, the land in question comes under the Costal Regulation Zone and is situated adjacent to the sweet-water zone of Puri district which stands to be adversely affected if the project is operationalised. It is interesting to note that following the proposal for Vedanta university, the foundation has changed its name thrice. It was originally named Sterlite Foundation but later changed to Vedanta Foundation and then again to Anil Agarwal Foundation. It has been further revealed that Anil Agarwal Foundation is not a public company but a company under Section 25 of the Companies Act, 1956. The State Law Department clearly stated that the acquisition of land for Vedanta university would require the change of status of the foundation from private company to public company, and only then would it meet the qualification prescribed by the Land Acquisition Act, 1894. But the views of the Law Department appear to have been misread by the public servants concerned, the Lok Pal says. The foundation submitted erroneous documents with regard to the change of its legal status from private to public, and thus, cleverly hoodwinked the core committee comprising senior bureaucrats of the State and influenced them to believe that the Section 25 company had been converted to a public company. Following this, the core committee rendered all assistance to the foundation even without complying with the statutory requirements. From the materials available on record it is clear that the representative of Anil Agarwal Foundation was able to manoeuvre or influence, mislead and misguide senior bureaucrats of the State who had acted without application of mind, the Lok Pal judgement says, adding, Steps had been taken in extending the helping hand in haste to Anil Agarwal Foundation in various ways. Citing the Supreme Court verdict that says imparting education is essentially charitable in nature and educational institutions should not be established with the motive of earning profits, the Lok Pal has raised a cloud of doubt on the motive of Anil Agarwal Foundation in establishing the proposed international university. The foundation has so far not defined an international university, further putting a question mark on its intention. The Lok Pal has made a series of recommendations to the Orissa Government on the university project. It has recommended that the Chief Minister consider a moratorium on the project until
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compliance with the legal provisions for conversion of Anil Agarwal Foundation from a private to public company was met. It has also asked the State Government to constitute a vigilance cell to monitor the progress of the project and to see to it that the land acquired and delivered to the foundation is done so in phases and not utilised for purposes other than education. Besides, it has directed the State Government to ensure payment of adequate compensation by the foundation to those affected by the project. Meanwhile, the Lok Pal order has triggered strong reactions from the Opposition. The BJP has rightly raised the issue in the national domain. The party has also demanded the resignation of the Chief Minister on moral grounds. Shamed by the Lok Pal order and worried over its political ramifications, the Orissa Government has come out with a Press release which says that the media cannot publish the Lok Pal judgement as it has not been tabled in the Orissa Assembly a logic strongly contested by the BJP which says that it is not the proceeding but the findings which the media should be able to report. The State Government has also written to the Lok Pals office, urging the latter to restrain the publication of the report.

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POSCO CONTROVERSY
An organisation working for forest dwellers welfare in Orissa alleged that South Korean steel major POSCO used fraudulent means to secure forest, environment and coastal clearances from the environment ministry for its $12 billion project. The National Forum of Forest People and Forest Workers (NFFPFW) claimed that POSCO deliberately unbundled - steel plant, captive port, power complex - into smaller parts and sought environment clearances for each independent part, even though they were all components of one project and located within one complex. No mention whatsoever was made about the massive township that would be developed demanding additional land, and the impact of water pipeline and rail and road network in the forest area, said Leo F. Saldanha, coordinator, Environment Support Group, who did a study for NFFPFW. Saldanha, who visited all the villages near the POSCO site at Jagatsinghpur in Orissa, said the fact that the port at Jatadhari in Paradip was claimed to be a minor one is an alarming aspect. The port, in fact, was designed for cape sized ships - large cargo ships - of 170,000 deadweight tonnage (DWT). It was perhaps the largest built in Asia and would be set up in the ecological sensitive Jatadhar creek, he said. The devastation the ships would cause is unimaginable, particularly considering that the Jatadhar creek is an important nesting ground for the endangered Olive Ridley turtles, he said. Citing from the environment panel report that sought cancellation of environment clearance to POSCO, Ashok Chowdhury of NFFPFW said: The report states that environment and forest clearances were given to POSCO by deliberately suppressing relevant information by the project proponent, and regulatory agencies systematically overlooked critical concerns. Key appraisal bodies of the environment ministry also ignored expert demands for comprehensive inquiry and rushed the clearances regardless of the social, economic and environmental consequences, he said.

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The NGO alleged that panel chairperson Meena Gupta used her strange justification to merely recommend some additional conditions as ameliorative measures while promoting a business as usual approach. What all this reveals is that POSCO is perhaps the greatest fraud and loot project in the history of Orissa. Given that fraud has been the basis of securing forest, environmental and coastal regulation zone clearances, the ministry must immediately withdraw these and initiate a comprehensive enquiry to fix individual responsibility of officials involved in the fraud, said Chowdhury. Governemtn has imposed 28 conditions on POSCO containing : Posco will have to invest 2 per cent of its net annual profit for welfare of the region. It has also been entrusted with mangrove protection. The company has been asked to submit detailed maritime environment conservation plan to the ministry.

Lavasa controversy: a question of height?

Lavasa, a hill city being developed outside Mumbai by Lavasa Corporation is in the thick of controversy. Lavasa Corporation is promoted by Hindustan Construction Company (HCC), which in turn is promoted by Ajit Gulabchand. HCC holds 65% stake in Lavasa. It plans to develop 5 towns under the project and expects to complete the first town in 2011 and the second by 2013-14. The Ministry of Environment and Forests (MoEF) on Friday issued a show-cause notice asking why the construction should not be razed, as construction is being done on land above 1,000 metres against policy. Lavasa has been ordered to remove entirely, all unauthorised structures erected without clearance. It also said clearance from the Centre was never sought. Lavasa said on Monday that there are mala fide intentions against the project, and the MoEF has come under the influence of activists like Medha Patkar. The company said the show-cause notice was issued in haste, no notice was issued before the drastic order, and the planned IPO is under attack.

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The Maharashtra revenue department is probing certain land transactions of Lavasa. The company maintains there is no irregularity in land transactions. The company claims it has invested around R3,000 crore in the project. If the project is spiked, thousands of employees would be forced to exit, it claims.

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WIPRO
Wipro, being one of the leading green IT brands, has taken various initiatives to help retailers reduce their carbon footprints and carbon levels. Wipros award winning platforms, the Global Command Center (GCC) and Global Service Management Center (GSMC) have been used for many years to help its customers manage their IT infrastructure, substantially reducing the costs of service delivery. Wipro also offers a power saving solution, which shuts down the desktops in retail shops, godown, back offices and places where desktops are not used by end user beyond their office hours. Wipro also suggests the retail layout to retailers to reduce load, which might also involve civil work.

DABUR
Dabur has initiated several new green projects under which alternate sources of energy are proposed to be utilized as a substitute for boiler fuel. One such project is in which briquettes will be made out of herbal waste. A project to use wet herbal waste as fuel directly in the boiler is being initiated at Pantnagar, Uttranachal in collaboration with a Belgian company. A new husk based gasifier is being installed at the Nepal unit for reducing dependence on conventional fuels.

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CONCLUSION
Nature has its own order de despite its complexity. But its supreme order is being disturbed by the confused ways of our thinking and living. The beautifully balanced Prakriti has been turned into a terrifying and imbalanced Vikrti. Disorder in life has been on the increase despite our efforts to resolve it. We need to take recourse to the Middle way of using Nature wisely and with responsibility. The Middle Way implies a development which is sustainable but not destructive. It is not interested in short term gains by going for indiscriminate development which consumes nature. Environmentalists and business leaders have traditionally seen themselves at odds. But the concepts of business, ethics, and the environment can be aligned to create innovation rather than legislation and litigation. An increasing number of citizens consider themselves to be environmentalists. Governments are increasing their cooperative actions to address worldwide environmental concerns such as global warming and biodiversity. And interest groups are beginning to propose solutions to problems that involve business decision-making outside of and beyond government regulation think about business, ethics, and the environment in one complete breath.

REMEMBER: GOOD ETHICS IS GOOD BUSINESS. "Non-corporation with the evil is as much a duty as is co-operation with good" - Mahatma Gandhi.

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REFERENCES:
1) http://gadfly.igc.org/e-ethics/Intro-ee.htm 2) http://en.wikipedia.org/wiki/Natural_environment 3) http://en.wikipedia.org/wiki/Ethics 4) http://scienceclarified.com/Environmental_ethics 5) http://www.indiaenvironmentportal.org.in/node/152068 6) http://www.ncbi.nlm.nih.gov/pmc/articles/PMC1142333/ 7) http://www.infosys.com/sustainability/reports/2008-09/Pages/sustainable-environment-p2.aspx 8) http://www.tata.com/article.aspx?artid=q+PScqAG3ME 9) http://economictimes.indiatimes.com/news/news-by-industry/services/advertising/Idea-Nokiajump-on-environment-bandwagon/articleshow/5502867.cms 10) http://www.scienceclarified.com/El-Ex/Environmental-Ethics.html 11) http://www.ecch.com/casesearch/product_details.cfm?id=21690 12) http://plato.stanford.edu/entries/ethics-environmental 13) http://Ethics%20and%20the%20Environment.htm (Business Ethics: Concepts & Cases: Chapter 5 Outline) 14) http://Environmental%20ethics.htm

Books and journals referred to:

1. Singer, Peter. " Environmental Values. The Oxford Book of Travel Stories. Ed. Ian Marsh. Melbourne, Australia: Longman Chesire, 1991. 12-16. 2. Business Roundtable Institute for Corporate Ethics report on ENVIRONMENT ETHICS

3. Patrick Curry. Ecological Ethics An Introduction 4. Manuel G. Velasquez Business Ethics.

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