See discussions, stats, and author profiles for this publication at: https://www.researchgate.

net/publication/367189918

Digital Disruption and Environmental, Social & Governance

Book · January 2023

CITATIONS READS

0 3,565

3 authors:

Shuchita Singh Arpana Kumari

G.L.Bajaj Institute of Management & RESEARCH Uttarakhand Technical University
26 PUBLICATIONS 8 CITATIONS 9 PUBLICATIONS 18 CITATIONS

SEE PROFILE SEE PROFILE

Piali Haldar
G.L.Bajaj Institute of Management & RESEARCH
2 PUBLICATIONS 4 CITATIONS

SEE PROFILE

All content following this page was uploaded by Shuchita Singh on 17 January 2023.

The user has requested enhancement of the downloaded file.

 Digital Disruption
and
Environmental, Social & Governance

Edited by

Shuchita Singh
Arpana Kumari
Piali Haldar
Published by: Book Bazooka Publication
Email Address: [email protected]
Website: www.bookbazooka.com
Contact: +91-7844918767 (India) +1-919-893-4075 (US & Canada)
Copyright © 2022, Editors
All right reserved

ISBN : 978-93-91363-12-3

All rights reserved. No part of this book may be reproduced or utilised in any form or by any
electronic, mechanical or means, now known or hereafter invented, including photocopying and
recording, or in any information storage and retrieval system without permission in writing
from the authors/editors.
 Preface

I am only one, but I am one. I cannot do everything, but I can do something.

And I will not let what I cannot do interfere with what I can do.

– Edward Everett Hale

Rightly said but hardly adopted. The purpose of compiling this book is to
invoke the thoughts of sustainable business practices in minds of readers. In the
disruptive business environment, it is very important to address the need of an
ecosystem which can create the disruptive, sustainable technologies. All
stakeholders like nonprofits leaders, policymakers, academicians, business
leaders and entrepreneurs will have to act responsibly towards Environmental,
Social and Governance related issues to ensure sustainable growth of corporates,
economies, nations and eventually the entire community on the planet.

This book is a compilation of 18 chapters with well researched

perspectives in the area of digital disruption and ESG practices in the corporates.

The book can be offered as a handy compendium of readings of the

dynamic business environment.

Editors
 Acknowledgements

The publication of this book has been possible with sincere and well-timed efforts of
the number of intellectuals. We are highly grateful to all the authors and co-authors
for putting faith and submitting their original valuable contributions in quick
timelines.

We express our sincere thanks to our family and friends for their support,
understanding, and love throughout the journey of completion of this book.

Editors

Shuchita Singh
Arpana Kumari
Piali Haldar
 Editorial Board

Prof. (Dr.) Sapna Rakesh

Director, GL Bajaj Institute of Management and Research, Greater Noida

Prof. Emeritus (Dr.) Devendra Pathak

Distinguished Professor, Foundation for Organizaonal Research and Education (FORE)

Prof. (Dr.) Deepankar Chakrabarti

Professor & Dean Research, Jaipuria Institute of Management, Noida

Prof. (Dr.) S L Gupta

Director, Birla Institute of Technology, Noida Campus

Prof. (Dr.) D K Batra

International Management Institute, New Delhi

Prof. (Dr.) Daleep Parimoo

Professor, Sharda School of Business Studies, Sharda University

Prof. (Dr.) Nirupa Lakshmi

Associate Professor and Head of the Department, Galgotias College of Engineering and
Technology, Greater Noida.

Prof. (Dr.) Saif Siddiqui

Associate Professor, Department of Management Studies, Faculty of Management Studies,
Jamia Millia Islamia, New Delhi
 Contents

1- Assessment of Renewable Energy Utilization–A Future Challenge of

Sustainability 1-20
Nagavarapu Sowmya, Dr. Kali Charan Rath

2- Performance of Education Sector in Virtual & Hybrid Learning Teams:

During or Post Covid-19 Restrictions 21-29
Dr. Shilpa Bhal, Monika

3- Environment Sustainability and Governance, based on SDG by United

Nations 30-33
Dr. Shuchita Singh, Simran Arora

4- Employee Engagement in ESG Practices: A Way to Sustainability

34-46
Yachna Malhotra, Dr. Vivek Pachauri

5- ESG Mutual Funds in India: Performance and Future Prospects 47-56

Dr. Shilpa Bhal, Ashutosh Singh

6- Outcome-Based Learning: An Overview 57-66

Dr. Ritu Saxena, Dr. Nitin Kumar Saxena

7- Green Marketing: A Building Block for Corporate Image 67-78

Nidhi Nirwan

8- Hindustan Petroleum Corporation Limited commitment towards

Environment 79-85
Mukul Kumar

9- Anti-Consumption and Responsible Living 86-89

Dr. Manisha Sharma

10- Nykaa: Business Model vs Valuation 90-97

Dr. Anand Rai, Dr. Arvind Bhatt

11- ESG Training and Development program for employees in a

Coffee Store 98-108
Dr. Muskan Khan, Dr. Arpana Kumari

12- Human Augumentation Technology 109-112

Dr. Arpana Kumari, Kumar Aniket
13- Green Organizational Culture at Workplace for Environmental
Sustainability 113-127
Dr. Antima Sharma, Rahit Kundu, Dr. Geeta Rana, Dr. Ravindra Sharma

14- Motivating Millennial Employees for ESG Participation

and Adoption 128-138
Anchal Kumari

15- Employee Engagement and Motivation for ESG at Workplace 139-150

Dr. Santhi Narayanan

16- Promoting ESG for Sustainability 151-155

Dr. Parvi Bharti Singhal

17- Sustainable Investment and Innovation 156-165

Dr. Amit Kumar, Dr. Shuchita Singh

18- An Incredible Story of ITC's E-Chaupal Initiative 166-172

Dr. Piali Haldar
 1
Assessment of Renewable Energy Utilization – A Future
Challenge of Sustainability

Nagavarapu Sowmya
Assistant Professor, Department of ECE, GIET University, Gunupur, Odisha
Dr. Kali Charan Rath
Associate Professor, Departments of Mechanical Engineering, GIET University, Gunupur, Odisha

Abstract

Society and economic progress are influenced by energy. The need for power has
increased due to aggressive obligations on the part of the country. Money and
resources could have been invested in our progress if the current energy use and
maintenance situation had not arisen. There will always be access to renewable
resources. There is a surge in leisure activities in the economy because people
need to adjust to worries about toxins, toxic gases, and other issues. The
environment and way of life should be kept healthy. The purpose of the study is
to show how to use streamlining techniques in order to use sustainable power
sources. In computational advancement, the computation fields are used to
support the model, responsibility research is used to demonstrate the
framework, software engineering is used to increase and examine computations,
and programming is used to test the model. Technical breakthrough may be used
to solve daily life problems. India's main objectives for using sustainable
electricity are to boost economic growth, enhance power security, expand access
to electricity, and halt environmental change.

Shifting activities and using sustainable energy will benefit the economy,
mechanical assembly, construction and improvement, building and
transportation, industry, and transportation according to this paper. Additional

Digital Disruption and Environmental, Social & Governance Page | 1

 jobs will be created as a result. The region's electricity needs can be met by
power sources based on renewable energy.

Keywords: Renewable energy, Sustainability, Wind turbine, Utilization of renewal

energy and Optimization technique.

Introduction

A variety of practical energy sources are referred to as renewable energy. They

fill up quicker than they are used to. With the use of renewable electrical
resources and equipment, energy-related issues can be dealt with. Traditional
renewable technology is used to store and recycle the energy from these energy
resources [Alnaser & Alnaser (2020), Gross et al. (2003)] . The table shows the
top 15 nations in terms of wind energy potential.

Position Country Total Capacity (MW) Added Capacity (MW) Growth Rate (%)
1 China 1,47,000 33,825 23.0102041
2 USA 75,428 8745 11.5938378
3 Germany 44,257 5219 11.7924848
4 India 27,658 2782 10.0585726
5 Spain 23,875 0 0
6 UK 14,879 1174 7.89031521
7 Canada 12,345 1621 13.1308222
8 France 11,123 1002 9.00836105
9 Italy 9123 304 3.3322372
10 Brazil 8923 2856 32.0071725
11 Sweden 6725 628 9.33828996
12 Poland 5456 1354 24.8167155
13 Portugal 5324 145 2.72351615
14 Denmark 5128 234 4.56318253
15 Turkey 4923 1099 22.3237863

Total capacity (MW) of all countries = 4,02,167 MW

Total added capacity (MW) in all countries = 60,988 MW

Growth Rate (%) for countries = 12.37263319 MW

Digital Disruption and Environmental, Social & Governance Page | 2

The need of renewable energy sources has increased. First, from the viewpoint of
power security, nations that import fossil fuels would benefit from the growth of
the gas mix made viable by way of renewable electricity assets. Governments
may have less of an impact at the surroundings if they use more of the herbal
assets. Manufacturing and use of sources can be used to produce sustainable
international financial growth. It wouldn't help with the trouble of energy getting
admission to. Modifications to energy systems, power exchange, and strength
safety were brought about by the advantages of renewable.

Global warming and environmental challenges such as air pollution, ozone

depletion, greenhouse gases, acid rain, and wildlife extinction are related to
energy usage and trade. The impact of the existing energy supply is significant.
People are turning to renewable energy sources to address the energy crisis due
to these issues. It is possible to diminish the environmental, social, and economic
challenges in order to achieve good technology, affordable power, employment
opportunities, improved health, community development in both rural and
developing countries.

Figure 1. Complete analysis of renewables uses in total energy consumption

Digital Disruption and Environmental, Social & Governance Page | 3

 The study for utilisation in renewable energy is presented in Figure 1. It has been
seen that 243EJ of energy and 45% of the power sector's accounts found. The
functions of wind and bioenergy should be well known to everyone. For the
benefit of future generations, the government has recently implemented changes
and small developments in terms of energy capacity. In order for hydropower
and wind turbine to operate well and produce energy continuously for use in a
variety of industrial sectors, commercial enterprises, residential buildings,
people need to be educated on how to use these resources effectively.

India is the second biggest shopper of power because of the scale and
development of the populace. The variety of inhabitants inside the country could
surpass . Regardless of the rising populace, India could reveal the top notch
results in the extension of strength utilization, the usage of coal, and hobby for
sustainable energy. By 2020, petroleum gas and various kind of oil will be the
second most important wellspring of home result. With the aid of 2050, India's
utilization of sustainable strength will increment to an anticipated 256 excellent
tons.

Table 2: Renewable Energy consumption in India from year-1990 to year-2020

and prediction up to the year-2040

Level (Mtoe)
1990 1995 2000 2005 2010 2016 2020 2025 2030 2035 2040
Oil
59 77 108 128 158 214 261 312 362 423 487
(Mb/dl)
Gas
13 19 26 33 53 47 56 74 91 108 132
(Bcf/dl)
Renewable 0 0 1 2 8 19 43 87 135 194 258
Coal 114 148 165 217 295 418 487 598 718 832 957
Hydro 17 18 18 23 27 32 38 47 49 51 54
Nuclear 1 2 5 5 6 11 13 17 26 33 42
Total 204 264 323 408 547 741 898 1135 1381 1641 1930

Digital Disruption and Environmental, Social & Governance Page | 4

From 1990 the percentage of growth in all respective energy utilisation and plant
installation increasing. It has been seen that the wind energy and solar energy
utilisation is increasing more w.r.t change in technology through year by year.

There are six main ways to generate and store renewable energy.

a) Solar power: Solar panels in homes, power stations, and other institutions
use sunlight as a source of power. These panels use the sun's rays to
generate strength, which can be saved in batteries for use whenever the
solar sets, and they also use the sun's rays to generate strength during the
day. The unused power will be offered to the national grid as part of the
authorities's Smart Export Guarantee.

b) Wind energy: The pressure of the wind is what makes it. The electric
strength of air currents is transformed by using wind turbines. Wind
strength is more important than power resources as it does not emit
pollution into the air or water and does not need water for cooling.

c) Hydro energy: This type of energy source is more reliable and flexible than
solar or wind because it ensures the garage of energy in enormous dams.

d) Tidal energy: It has a wind turbine, with blades rotating 14 to 20 times a

minute, and it also produces electricity.

e) Geothermal energy: It is one of the sustainable power assets due to the fact
that the strength of the earth is continuously created by the warmth of the
sun.

f) Biomass energy: It has an ample energy supply. Diverse waste products and
agriculture are some of the sources. The maximum priced option is the use
of up to 43% of biomass to supply energy.

Wind strength is best for assisting people in the development and deployment of
innovative power-saving technology because it reduces the need for fossil fuels,

Digital Disruption and Environmental, Social & Governance Page | 5

produces no pollution, and eliminates the effects of greenhouse gases that
contribute to global warming. It aids in the distribution of seeds, pollen, and
other creatures by plants and other living things. India has a large wind potential.
In this chapter, authors emphasized the value of wind energy and power
generation and its utilisation.

2. LITERATURE REVIEW

Wind turbine power is also produced. The blades of a wind turbine are different
from the photovoltaic ones. Similar to an inverter in a solar array, the rotor
transfers energy to a generator, which converts it into AC electricity. Similar to
solar energy, wind energy can be stored in batteries or absorbed into the grid
[Hernandez et al. (2019) , Bessette & Mills (2021) , Karad & Thakur (2021)]. Both
Panwar et al. (2011) and Ghadami et al. (2021)] provided portrayals of various
sustainable power resources, how they're utilized, as well as the financial and
natural favors. Their exploration likewise describe how ecological components
affect regular resources. Harjanne and Korhonen (2019) and Jebli et al. (2021)
outfitted outlines of the area's energy prerequisites, different family
inexhaustible power choices, and public view of natural valuable asset
consumption. In the article, Lund (2007) described the issues with renewable
strength, consisting of voltage fluctuations, harmonics, and the electric behaviour
of switching operations. In order for wind energy to be a reliable, constant supply
of electricity era, the aforementioned technological concerns need to be taken
into consideration. Moriarty & Honnery (2012) described a number of difficulties
with integrating renewable electricity assets into the grid, in addition to with
predicting and ongoing tracking of strength assets at the same time as producing
electricity. Additionally, this text also emphasises the capacity of renewable
manufacturing in deserts and a communications method [Shamshirband et al.
(2019)]. Sadorsky (2021)] provided the wind's energy causes two or three
blades that look like propellers to change direction. The generator is attached to
the primary shaft.

Digital Disruption and Environmental, Social & Governance Page | 6

The reviews provided to a clear concept on renewal energy sources and the
technology adopted for their proper utilisation. These energies are highly
essential for the society. Out of the energy sources so available, it is decided to
focus on the wind and solar energy utilisation for the societal sustainability by
making eco-technology principle.

3. RENEWABLE ENERGIES AS AN SUSTAINABLE SOURCE

Sustainable power assets can be utilized to endlessly produce strength. They are
home grown, self-restoring, and often have almost no or no carbon impression. A
couple of instances of sustainable strength resources incorporate breeze,
daylight, bioenergy (regular fabric utilized as gas), and hydroelectricity, which
incorporates flowing strength.

Fossil fuels cause more emissions than renewable assets. The transition to
renewable power from fossil fuels is needed to reverse the climate catastrophe.

The most popular renewable energy sources currently are:

a) Biomass energy
b) Tidal energy
c) Geothermal energy
d) Wind energy
e) Solar energy
f) Hydro energy

Biomass energy: Natural resources like wood, charcoal, and dung can be used to
make bioenergy. This energy can be used to generate heat, power, and
agricultural vegetation. Poor people in rural areas of developing nations use the
majority of their energy for lighting, space heating, and cooking. Plants, shrubs,
agricultural products, and various natural waste streams are made use of in
modern biomass systems.

Digital Disruption and Environmental, Social & Governance Page | 7

Tidal energy: With twice-daily tidal currents, this extra hydro strength supply
powers turbine mills. Contrary to some other hydro electricity assets, tidal flow
isn't always usually gift, however it in all fairness predictable and can
consequently catch up on periods while it is weak. For additional facts, please
visit our marine energy website.

Geothermal Energy: Under the surface of the earth, heat is generated. Water or
steam is used to carry the energy. Depending on the characteristics of the energy,
it can be used to generate clean electricity or heating and cooling. It has been
shown to be reliable, easy to use, and at ease, as well as being used for electricity
generation and heating and cooling. It is one of the most promising sources of
renewable energy. The power supply produces energy with low environmental
harm.

Wind Energy : Wind is a huge wellspring of sustainable power. Wind ranches are
turning out to be more recognizable sights in the UK as wind energy's
commitment to the Public Network increments. Plants power factories to deliver
power from wind energy, and the Public Lattice is hence provided with power.
Regardless of whether there are ways of creating "off-network" or homegrown
power, not all locales can uphold a private breeze turbine. To look into wind
strength, go to our breeze strength site.

Solar Energy : Sun based power is the most plentiful wellspring of power and
may try and be utilized when it is shady. The rate at which the Earth ingests
sunlight based energy is multiple times more noteworthy than the rate at which
individuals use energy. Sun designs can give heat, cooling, home grown lighting,
strength, and powers for a large number of utilizations. Sun based energy
frameworks can change over daylight into electrical power utilizing photovoltaic
boards or sun radiation-concentrating mirrors. Direct solar electricity can still
provide a significant contribution to any state's electrical mix, even though not all
nations have the same access to solar energy. Due to a sharp drop in the cost of
solar panel production over the past ten years, solar panels are often not only the

Digital Disruption and Environmental, Social & Governance Page | 8

most practical source of energy, but also the cheapest. Depending on the type of
fabric used in their production, solar panels come in a variety of colours and have
a 30-year lifespan on average.

Hydro energy : One of the most reliable sorts of inexhaustible strength is

hydropower. By building a dam, making a managed skim of water to energy a
turbine and produce strength is suitable. Since it can be saved to be utilized all
through spans of appeal, this strength source is extra solid than sunlight based or
wind power. Hydropower every so often expenses less to use for business
purposes than various strength resources.

4. SOLAR ENERGY AND ITS UTILISATION

Even though the sun is out of doors, it can still offer energy. Greater humans are
using solar energy to generate strength, heat their houses, and desalinate their
water. There are two main techniques to generate solar energy:

The two names for technological innovations that directly transform sunshine
into electricity are solar cells and photovoltaics (PV). One of the renewable
energy sources that is now advancing the fastest is photovoltaics (PV), and likely
contribute significantly to world's future electricity supply [Gong et al. (2019) ,
Graziano et al. (2019) , Mancini & Nastasi (2020) ].

Solar photovoltaic systems [Tilley (2019) , Neupane et al. (2022)] can be linked
to produce electricity on a large scale for commercial private use. It's an excellent
way to give people who don't live close to power lines access to electricity in
developing countries with plentiful solar energy resources. Over the past ten
years, the price of solar panels has dropped so much that they are now the
cheapest source of electricity. Depending on the type of material used in their
production, solar panels come in a variety of colors and have a 30-year lifespan
on average. The solar beams are focused on the sun. By heating a fluid, the rays
produce steam, which turns a turbine. CSP is used to produce electricity in power

Digital Disruption and Environmental, Social & Governance Page | 9

stations. The solar beams are focused on the sun. By heating a fluid, the rays
produce steam, which turns a turbine. CSP is used to produce electricity in power
stations. ACSP power plants usually have a field of mirrors that direct light
towards a tower. The ability to use molten salts to store heat and generate
energy after the sun has set is one of the main advantages of a CSP power station.

The innovations of sunlight based cells and photovoltaic (PV) cells may
straightforwardly change over sun oriented energy into electrical power. The
sun's surface temperature is around 6,000 degrees Celsius, and the warmed
gases it contains radiate light with a range that ranges from bright to infrared.
The wave-molecule duality of light is a peculiarities that happens when light
shows both wave-like and molecule like properties relying upon how it
cooperates with issue. The molecule hypothesis expresses that discrete photons,
which are energy bundles that look like small particles, make up light. The energy
of sun oriented photons (hv), which mirror the energy of the sun's surface
temperature, goes from around 3.5 electron volts (eV) (bright region) to 0.5
electron volts (eV) (infrared district). Energy in the noticeable area goes from 3.0
eV (violet) to 1.8 eV (red); at around 2.5 eV, the yellow part of the apparent
district is where the sun is most grounded.

Light absorption, spatial advent, division, and arrangement of the electrons and
apertures at varied energies are what all photovoltaic cells depend on. The
photocurrent depends on the adequacy of electron and opening creation,
detachment, and assortment, while the photovoltage depends on the energy
distinction between the electrons and openings in their last condition prior to
leaving the cell. By separating the electrical power produced by episode sun
based irradiant power by the amount of photocurrent and photovoltage, one
might decide the effectiveness of changing sun oriented energy over completely
to power. The result power rating of a sun based cell is communicated in top
power (Wp), which is produced at high early afternoon on a crisp morning.

Digital Disruption and Environmental, Social & Governance Page | 10

Inorganic cells, which depend on strong state inorganic semiconductors, natural
cells, which depend on natural semiconductors, and photoelectrochemical (PEC)
cells, which depend on semiconductor-particle interfaces, are the three distinct
sorts of PV cells that might be isolated. The picture shows an inorganic sunlight
based cell with a sandwich structure made of two distinct semiconductor
materials. There are two kinds of semiconductors: n-type semiconductors, which
have versatile free regrettable electrons, and p-type semiconductors, which have
portable free certain openings (called a p-type semiconductor). The sandwich,
frequently alluded to as a p-n intersection, makes it conceivable to isolate the
electrons and openings delivered by photosynthesis and communicate them to
outside wires to create power. There are no moving components in the cells. The
utilization of over the top steam delivered through centered daylight based
strength can be used to create strength pointed toward the sun.

When sunlight moves a photovoltaic mobile, it causes the electrons to drift inside
the wafer and into the generation of an electric contemporary. There are some
issues related to solar electricity:

a) Shady solar panels shouldn't be used because they won't create as much
power as those in direct sunlight. The amount of sunlight produced may
occasionally be impacted by seasonal variations, so the panels should be
installed so that all of the solar electricity reaches those solar cells for the
most reliable power generation.
b) During the winter months a cloudy day may not be as efficient as a sunny
day. We want to have a clear plan in place so that the development that is
already underway won't be stopped.
c) The inclination of the sun panels or solar cells must be the same as the
range. The sun must travel through the solar azimuth angle on the compass
in order to impact the solar panels. If the azimuth orientation is off, the solar
panel's power output will be reduced.

Digital Disruption and Environmental, Social & Governance Page | 11

 Figure 3 : Block diagram of solar power generation

E=A.R.H.PR (1)

where E= total energy in Kwh

A= total area required for installation of solar panel (m2)

r = efficiency (%)

H= Annual median solar radiation on tilted panels

PR = Performance ratio

5. WIND ENERGY AND THEIR ADVANTAGES

Good sized wind turbines can be found on land near by ocean area. Despite the
fact that wind strength has been used for a long time, the wind generating age
has improved to maximize the amount of energy produced through using
stronger and larger turbines. There is a huge amount of space for wind energy
extension in spite of the wide renditions. Wind energy is more advanced than the
strength age.

Strong winds may be discovered everywhere in the world, although they're most
often found in faraway areas, which are pleasant for producing wind energy.
There is large capability for offshore wind electricity. Wind energy has its fair

Digital Disruption and Environmental, Social & Governance Page | 12

share of advantages and disadvantages. Some renewable energies operate better
in certain regions of the world due to a variety of conditions and causes.
Customers should be aware of which is the best for their area.

5.1 Advantages of Wind Energy

Since wind power doesn't require direct daylight publicity like solar strength, it's
a practical preference for the vast majority of the sector.

Free from fuel : There is no need for gas when wind generators are powered by
wind energy. The turbine does not need gas or an energy source to function once
it is constructed and delivered. This lowers the overall cost to compete with
large-scale wind farms, unlike other sustainable electricity sources, which may
require some energy use.

Cleanest sources of energy: Since the mills used to generate the energy aren't
fueled by fossil fuels, wind electricity doesn't make contributions to climate
alternate by emitting greenhouse gases at some point in strength manufacturing.
Wind power in a roundabout way releases greenhouse gases while wind turbine
are synthetic, transported, and installed.

Technologically advanced: Recent mechanical improvements have made rough

wind turbine designs workable energy collectors. The market for turbines is
growing as a result of the wide range of sizes that are available for projects of all
types as well as for private usage by individuals at home on larger lots and
parcels of land. The structure's features have led to designs that produce more
electricity, require less maintenance, and run more quietly and securely.

Does not affect farm operations: Wind turbine locations can be found by using
strength corporations in change for contracts or lease from the farm owners. It
won't have an effect on how effective the farm is because wind turbine footprints
are so minimal.

Digital Disruption and Environmental, Social & Governance Page | 13

5.2 Wind Energy Generation

Wind strength is one of the most famous renewable electricity assets because it
has less impact on the environment than burning fossil fuels. The use of the wind
to offer mechanical power via wind turbines is how it is activated. The generated
wind energy is calculated as:

= . . . 3.t (2)

Where ,

E= wind energy in Joules

A = cross-sectional area in m2

ρ = density of air in kg/m3

v= speed of wind in m/s

t= time in seconds

The area which the air movements can be calculated from the length of the
blades is shown in figure 2.

= . (3)

where r = wind turbine blade length

Figure 2 : Sweep area of wind energy

Digital Disruption and Environmental, Social & Governance Page | 14

Equation 1 and 2 together gives the formula of wind source as:

= . . . . . (4)

The wind strength could be generated by the right wind turbine blade design.
There are two types of blade shapes. Flat blades, which are the traditional blade
designs and are simple to design, small, and require little professional
recommendation, are less common today because of their gradual rotational
abilities and tendency of the wind to thrust back in opposition to them all
through the upstroke. The air travels quickly around curved blades. They can
turn quicker in the path of the wind to produce power. For the purpose of
capability energy manufacturing, this sort of blade layout wishes.

The essential layout of a wind turbine is the focus of this chapter's version, which
also includes the correct turbine blade design and the mechanical and electric
parts of the tool. Here, an intensive clarification of the accessibility of wind
turbine design, diverse blade designs, production of electrical present day using a
wind turbine, calculations for strength and electricity, in addition to turbine
speed, is furnished. One of the best ways to reduce global warming, pollutants,
and other poor environmental effects is to use wind power. In order to
demonstrate how to correctly use and preserve herbal assets for the benefit of a
country and the exponential growth of future generations, we've got selected
wind as certainly one of our energy source media.

Three elements affect how much electricity a wind turbine produces.

Speed of wind: If the wind blows at twice that rate, the energy will increase
eight times.

Availability of wind turbine: It should only be used when the wind is blowing.
The energy produced will be more useful.

Digital Disruption and Environmental, Social & Governance Page | 15

Arrangement of wind turbines: Since they are so far apart, no turbine in a wind
farm could capture wind from another. There are times when environmental
factors and grid integration technologies are superior to the ideal wind farm
construction.

The mechanical and electrical components of a wind turbine that produce energy
and transfer it to various locations for domestic and industrial uses are shown in
figures-4 and figure-5.

Figure 4 : Mechanical parts of wind turbine

Figure 5 : Electrical parts of wind turbine

Horizontal axis wind generators and vertical axis wind generators are the most
important types of

wind turbine designs. The blades are rotating because of the wind. In places with
hills and other types of terrain, horizontal is used more often, although it has a
high maintenance cost and common restore wishes.

Digital Disruption and Environmental, Social & Governance Page | 16

The quantity of available wind energy and the performance of the wind turbine
are two of the most

important parameters to remember when calculating the strength of a wind

turbine.

Think about the following scenario. The wind speed is 30 m/s and blade length is
60m . We can calculate the wind power now that we have these measurements.

Given: Wind speed (v) = 30m/s ; Blade length (l) = 60m ; Air density (ρ) =
1.23kg/m

Area (A)= πr2 = π*3600 = 11,304m2

Thus, wind power is defined as

P = 1/2ρAv3

= ½*1.23*11,304*303

= 375405.84 KW

The plan of a breeze turbine and how effectively it's miles used to deliver energy
are inescapable, the cost and transportation totally matter in light of the fact that
the cost of the gadget wanted for the turbine is all very unreasonable. It is
difficult to move windmills and sharp edges of various plans since it requires
additional work, affects imports and commodities, and calls for consideration of
yearly walking costs along with substitution expenses and land rent charges.

CONCLUSION

Both solar and wind energy are renewable sources of energy. The most
accessible energy source is solar energy. The sun is thought to have used 2% of
its own energy over millions of years. Wind mills are capable of catch
approximately 50% of the energy that passes through them, in comparison to the

Digital Disruption and Environmental, Social & Governance Page | 17

greatest domestic solar panels' 20% performance. Wind turbine produce
electricity as well. The wind turbine's inner rotor is not used for the photovoltaic
effect. The generator converts the energy from the rotor into AC electricity,
which is similar to an inverters in a solar array. Wind energy can be integrated
into the grid or kept in batteries.

References

 Alnaser, W. E., & Alnaser, N. W. (2020). The impact of the rise of using solar
energy in GCC countries. In Renewable energy and sustainable buildings (pp.
167-183). Springer, Cham.

 Bessette, D. L., & Mills, S. B. (2021). Farmers vs. lakers: Agriculture, amenity,
and community in predicting opposition to United States wind energy
development. Energy Research & Social Science, 72, 101873.

 Gross, R., Leach, M., & Bauen, A. (2003). Progress in renewable energy.
Environment international, 29(1), 105-122.

 Gong, J., Li, C., & Wasielewski, M. R. (2019). Advances in solar energy
conversion. Chemical Society Reviews, 48(7), 1862-1864.

 Graziano, M., Fiaschetti, M., & Atkinson-Palombo, C. (2019). Peer effects in the
adoption of solar energy technologies in the United States: An urban case
study. Energy research & social science, 48, 75-84.

 Ghadami, N., Gheibi, M., Kian, Z., Faramarz, M. G., Naghedi, R., Eftekhari, M., &
Tian, G. (2021). Implementation of solar energy in smart cities using an
integration of artificial neural network, photovoltaic system and classical
Delphi methods. Sustainable Cities and Society, 74, 103149.

 Panwar, N. L., Kaushik, S. C., & Kothari, S. (2011). Role of renewable energy
sources in environmental protection: A review. Renewable and sustainable
energy reviews, 15(3), 1513-1524.

Digital Disruption and Environmental, Social & Governance Page | 18

 Harjanne, A., & Korhonen, J. M. (2019). Abandoning the concept of renewable
energy. Energy policy, 127, 330-340.

 Hernandez, R. R., Armstrong, A., Burney, J., Ryan, G., Moore-O’Leary, K.,
Diédhiou, I., .& Kammen, D. M. (2019). Techno–ecological synergies of solar
energy for global sustainability. Nature Sustainability, 2(7), 560-568.

 Jebli, I., Belouadha, F. Z., Kabbaj, M. I., & Tilioua, A. (2021). Prediction of solar
energy guided by pearson correlation using machine learning. Energy, 224,
120109.

 Karad, S., & Thakur, R. (2021). Efficient monitoring and control of wind
energy conversion systems using Internet of things (IoT): a comprehensive
review. Environment, development and sustainability, 23(10), 14197-14214.

 Lund, H. (2007). Renewable energy strategies for sustainable development.

energy, 32(6), 912-919.

 Moriarty, P., & Honnery, D. (2012). What is the global potential for renewable
energy?. Renewable and Sustainable Energy Reviews, 16(1), 244-252.

 Mancini, F., & Nastasi, B. (2020). Solar energy data analytics: PV deployment
and land use. Energies, 13(2), 417.

 Neupane, D., Kafle, S., Karki, K. R., Kim, D. H., & Pradhan, P. (2022). Solar and
wind energy potential assessment at provincial level in Nepal: Geospatial and
economic analysis. Renewable Energy, 181, 278-291.

 Shamshirband, S., Rabczuk, T., & Chau, K. W. (2019). A survey of deep learning
techniques: application in wind and solar energy resources. IEEE Access, 7,
164650-164666.

 Sadorsky, P. (2021). Wind energy for sustainable development: Driving

factors and future outlook. Journal of Cleaner Production, 289, 125779.

Digital Disruption and Environmental, Social & Governance Page | 19

 Tilley, S. D. (2019). Recent advances and emerging trends in
photo‐electrochemical solar energy conversion. Advanced Energy Materials,
9(2), 1802877.

Digital Disruption and Environmental, Social & Governance Page | 20

 2
Performance of Education Sector in Virtual & Hybrid
Learning Teams: During or Post Covid-19 Restrictions
Dr. Shilpa Bhal
Associate Professor, School of Business, Galgotias University, Greater Noida
Ms. Monika
Research Scholar, Galgotias University, Greater Noida

Introduction

The Academic year 2019-2020 and 2020-2021was one of the most challenging
time periods for the students, Facilities & Academic institutions administrators.
Even after having the widespread vaccination programme return to face to face
interaction mode subsequently quite challenging.

Before the situation of covid-19 (Pandemic) teaching learning situation or

activities used to happen in Brick and Mortar Traditional format. In this teaching
modality format teaching or classes were in real time format .Where students
and Faculty engaged in physical modes in other word face to face format.
Students learn in the best manner in this format. They can get their doubts
resolved easily in a more face to face approach. Teachers can get a good view
over the students .Those people who value in face learning scenarios because
they can easily form an organic bond between educators and learners. Therefore
it was quite hard for the institutions, be it teachers and most importantly for the
students, to shun the face to face teaching learning process and shifting to online
learning mode. It was a challenge for the students to hold concentration and sit in
front of computers for such long hours and hours. There are Various research
shows that on campus Teaching is very effective it builds concentration ,It

Digital Disruption and Environmental, Social & Governance Page | 21

provides motivation which is needed for the encouragement of the students at
the same time. The educators can add or mend the non verbal cue in their
teaching curriculum by being in the physical touch with the students, Which
ultimately help the teachers to do a better supervision over the students.

During pandemic (Covid-19) or post Covid The transition From on campus

learning to Online learning is something savior for our education industry.
Because online or virtual and hybrid Educational tools or platforms helped our
educational system to get through or survive smoothly.

Objectives

The objective of the chapter is to aid the audience k-12 (kindergarten to 12th
grade), college students institution to educate about the educational response in
covid -19 by drawing their attention towards the response toolkits, necessary
steps to intervention.

This Chapter is focused on virtual and hybrid learning. How the blended mode of
traditional and modern /online learning can create a wonder to add the juice of
life in the plain teaching and learning activities.

 There is paucity in the body of existing knowledge or research on the virtual

and hybrid or blended learning in educational sectors. So this study has a
potential to guide or contribute how to do the wide practical application of it.

 One of the objective of this study is to make aware the graduate or K-12
school or other academic institution about the implementing the virtual and
hybrid or blended model

 It is also helpful when we talk about the post pandemic effects on academic
institutions. Once everything gets normalized, Courses which are a blend of
virtual or hybrid format help the students to sign up for multiple crash
courses.

Digital Disruption and Environmental, Social & Governance Page | 22

 It has been researched that virtual and hybrid learning help the students in
their time management skills, their Critical skills , their comprehension skills

 This style of teaching and learning emphasizes the learner centric approach,
which lets the students explore.

Concepts of virtual learning and Impact on the virtual learning in Covid-19

restriction

In the Educational Industry virtual teaching learning environment is described as

a wide array of ICT platforms or technological platforms which facilitate
classrooms beyond the physical limit of a single room. Technically these virtual
environments make the student sit in one place and He or she can access learning
content or lectures, At the same time students can access the experiences and
different cultures ,monitoring and exploring different environments .

Initially these virtual learning environments encompassed television and radio.

Now These virtual learning environments can be accessed through LMS (learning
management system) and can also be accessed via websites and Application
based sources ,youtube. From the past 20 years virtual learning environment
systems have potentially evolved.

Virtual learning environment increased the interactivity between the Students to

teachers and students to content that need to be delivered through ICT format.

When we draw the attention towards the interest and interactivity then Now a
day game based application or softwares that are designed for the students
which is part of the virtual learning environment Such as :

 EDapp

 Kahoot

 Centical

Digital Disruption and Environmental, Social & Governance Page | 23

 Archy Learning

 Hoopla

 Raptivity

Concepts of hybrid learning and Models of hybrid /blended mode of

learning environment

Hybrid learning is defined as some sort of compendium of in person learning

with remote learning where it improves the students learning experience. It also
ensures the continuity of education or learning. This mode of learning was at its
peak at the scenario of partial reopening of school and in potential scenario of
virus covid -19 resurgence.

Models of hybrid learning/blended learning

In the research of Christensen et al. (2013) mentioned four models of hybrid

(and blended) education. The four model types are as follows: (a) rotation, (b)
flex, (c) A La Carte, and (d) enriched virtual.

Digital Disruption and Environmental, Social & Governance Page | 24

Most of the Technology enhanced learning tools fall under these four types of
models.

(1) Under the Rotational model of hybrid learning environment:- In the

Coursework structure Student is rotated between the different learning
modalities.In this model at least one of the modalities need to be on an online
medium.

Now which learning activity must be online and which one must be face to face
learning .That is something that depends on the instructor(The one who instructs
the course) or as per the pre planned schedule. The below image shows different
submodels including the rotation model.

(2) The Flex model of coursework ,Where Students have a liberty to study
whatever way they feel comfortable with , Here online learning modality is the
key pillar of the type of model . There is an increased flexibility being given to the
students as they can customize their learning , They have fluid courses scheduled
,Which they can easily mend.

Digital Disruption and Environmental, Social & Governance Page | 25

In One of the form of Flex hybrid learning model students have personal coach
(faculty)

Who helped them to their daily basis task whereas in other form Students have
little face to face interaction.

As per the structure of this model ,It is made of different staffing and combination
as per the need of the students as learners pass through further in the course.

(3) Under the A La Carte Model ,Students have an option to complete the course
either in online format or complete it with face to face onsite campus learning.It
is differ from full time course. An onsite tradition learning model student capable
of completing a few classes on A la carte hybrid learning format and other face to
face in the tradition models .

(4) (Christensen explained that the Enriched virtual model includes courses in
which students are required to complete in-person face to face sessions and then
complete part of the hybrid learning experience in online mode .

Fishbone Analysis

Fishbone model played the main role to identify the cause of issue at the phase of
post Covid-19 restriction ,Where we started to move through complete online
learning to partial online learning or at the time of Covid-19 resurgence where
there was a sudden shift from traditional learning to online learning .

This is also known as Cause and effect model ,Which is a fishbone like structure .
This model has a potential to identify the arising causes or issues putting them
under consideration and then plotting ideas into different situations. The
Fishbone analysis model helped the institution to identify the problem which
may not be otherwise noticed.

This model has a mere resemblance to the skeleton of a fish bone.

Digital Disruption and Environmental, Social & Governance Page | 26

In the far right side of this diagram problem is written and the central line is
moved toward the left where potential problems are included . Diagonal lines
that come out of the central line signify different groups of causation of the
problem. . Diagonal lines that come out of the central line signify different groups
of causation of the problem. The issues categorized into the different groups .
Subgroups of the causation are people, machine , material, Environment . The
model works as swot analysis as fishbone analysis models work to identify the
potential cause of the problem.So that correct improvement initiatives need to
be taken for the same.

Benefits of The Virtual and Hybrid Learning Environment

(1) Attentive and engaging learners :- It has been found that hybrid learning
environments help the people to be more engaging at the time of delivery of
lectures.

This platform gives them a customized schedule or way of learning. Here

learners can engage multiple courses and they also can sign up for personality

Digital Disruption and Environmental, Social & Governance Page | 27

build up courses which ultimately help them to grow along with their formal
traditional education.

(2) Cost effective:-hybrid and virtual environments are not only cost effective
for students but also for the institutions as well . It helps to reduce the
operational cost of the physical model schools and college classes.

★ Lower expenses for school space/desk/electricity/cleaning

★ Access to more talent in different locations in terms of recruiting talented

faculty.

Hybrid and virtual environments are also cost effective for the parent's
bank account . AS it most reduced the daily commuter cost of the students
and reduced the canteen bill.

(3)Students can study at their own place . So basically the whole point is to
emphasize flexibility that is obtained by the educators as well as learners
in this type of learning environment.

(4) Access the material : As long as physical presence is not needed.

Students can access the material / E-resources and continue with their
learning or classes.

(5) Relearning or revising or reviewing multiple times, As everything is

available on an online E-learning platform .Moreover learners can go back
multiple times and watch the lecturers if they don’t get the concept in the
very first go.

Drawbacks /Limitation of hybrid and virtual learning

(1) Time management skills need to be learned,if the students want to get the
real deal out of virtual and hybrid learning.Ability to self motivate need to
be learn else students struggle outside the class.Students ,those need a

Digital Disruption and Environmental, Social & Governance Page | 28

 physical supervision in order to study, Specially they may find a hard time
to study by themselves or without the structure of physical classroom
,some may fall behind.

(2) Limited internet access or lack of technical gadget .Sometime platform or

pattern on which lectures are going to be delivered create a problem, As
students and parents are not aware of them.

(3) Less peer to peer interaction. In the hybrid learning environment students
may not participate or interact as much as they usually do in the physical
face to face classroom structure. This is something problematic as teachers
may find difficulty as she is at the same page with the learners or not.

References

 Singh, J., Steele, K., & Singh, L. (2021). Combining the Best of Online and
Face-to-Face Learning: Hybrid and Blended Learning Approach for COVID-
19, Post Vaccine, & Post-Pandemic World. Journal of Educational
Technology Systems, 50(2), 140–171
 orres Martín, C., Acal, C., El Homrani, M., &Mingorance Estrada, Á. (2021).
Impact on the Virtual Learning Environment Due to COVID-19.
Sustainability, 13(2), 582. MDPI AG. Retrieved from
 Kintu, M.J., Zhu, C. & Kagambe, E. Blended learning effectiveness: the
relationship between student characteristics, design features and
outcomes. Int J Educ Technol High Educ 14, 7 (2017)
 ED/PLS/2020/04/Rev.2
 http://hdl.handle.net/123456789/5773
 www.googleScholar.com
 http://shodhgangotri.inflibnet.ac.in/
 UNESCO Covd-19 response report

Digital Disruption and Environmental, Social & Governance Page | 29

 3
Environment Sustainability and Governance, based on SDG by
United Nations

Dr. Shuchita Singh

Associate Professor (Finance), GL Bajaj Institute of Management & Research , Greater

Noida

Simran Arora

Student, GL Bajaj Institute of Management & Research , Greater Noida

Introduction

ESG (Environment, social and governance) started in 2009 with the Ministry of
Corporate Affairs, Government of India, issuing the National Voluntary Guidelines
on Corporate Social Responsibility Section 135 of company’s act ,2013.

"ESG" represents Environmental, Social, and Governance. Presently it has

likewise turned into a rule for monetary examination of any organization. These
days, investors are more educated, and they remember this data for their
investigation prior to going with any venture choice.

This assists them with giving a superior comprehension of the organizations they
are wanting to invest in. Aside from the financial elements, financial investors
have additionally begun non-monetary variables for their risk management and
better opportunities.

There are ESG Rating Agencies giving rating to every one of the organizations
with the goal that investors can put resources into the companies which has high
ESG rating.

Digital Disruption and Environmental, Social & Governance Page | 30

Sustainalytics ESG Risk Ratings, MSCI ESG Ratings, Bloomberg ESG Disclosures
Scores Etc. are some of the trust worthies providing ESG rating.

In an arising nation like India, participating in an ESG subject will permit more
organizations to be ESG-consistent, which will prompt practical development for
people in the future and add to abundance creation for the two organizations and
partners. As a matter of fact, in India, the Nifty ESG 100 record has conveyed
equivalent or a bigger number of profits than more extensive Nifty files, very
much like its worldwide companions on a highlight point and moving premise.

Investment in ESG Funds

ESG funds are funds that dispense their major portion in stocks of companies that
are evaluated on the basis of environmental, social, and governance factors.
These organizations are profoundly reasonable in their activities and providing
adequate returns to investors SBI Magnum Equity ESG Fund with an asset base of
Rs 3,518 crore is the oldest ESG Fund in India.

Economical assets outflanked customary friend reserves and diminished venture

risk during Covid in 2020, as per the Morgan Stanley Institute for Sustainable
Investing.

Best Funds to Invest in 2022

Digital Disruption and Environmental, Social & Governance Page | 31

Variables to consider while choosing ESG Funds

The organizations with higher ESG scores should be chosen. One ought to
consider the organizations which are effectively playing out their corporate
social obligation. Then, at that point, the organizations which are making a
positive social effect in the public eye ought to be given the honor and have solid
corporate administration and morals. Aside from this, the financial backer ought
to search for reserves that proposition lower cost proportions and those that
have no lock-in time or leave load.

What is the formula for calculating ESG?

There is no single expert on ESG scores since they are determined by various
organizations utilizing the diverse methodology . Most providers list specific ESG
measurements, for example, the effect of environmental change and political
commitments. Be that as it may, these pointers fluctuate broadly.

The strategies by which providers get information differed also. MSCI ESG
Exploration, one of the main free makers of ESG appraisals, involves information
from organization filings as well as government, college, and non-administrative
association data sets.

MSCI ESG ratings are a comprehensive measure of a company's long-term

commitment to socially responsible investments (SRI) and environmental,
social, and governance (ESG) investment standards. In particular, the MSCI ESG
ratings focus on a company's exposure to financially relevant ESG risks.

ESG Avoid Investing in these Particular Funds

ESG reserves try not to put resources into inherently damaging firms to the
climate or society since they center around the three mainstays of ecological,
social, and administration supportability. Tobacco, betting, and firearm
producing organizations are only a couple of models. Financial backers should

Digital Disruption and Environmental, Social & Governance Page | 32

peruse the plan related documentation for conspire explicit subtleties since there
are no common principles regarding the matter.

References

 https://www.robeco.com/en/key-strengths/sustainable-
investing/glossary/esg-funds.html
 https://www.forbes.com/advisor/investing/best-esg-funds/
 https://wealthbucket.in/funds/before-investing-in-esg-funds/
 https://www.etmoney.com/blog/what-are-esg-funds-should-you-invest-in-
them/
 https://www.investopedia.com/msci-esg-ratings-5111990

Digital Disruption and Environmental, Social & Governance Page | 33

 4
Employee Engagement in ESG Practices: A Way to
Sustainability

Yachna Malhotra
Associate Professor, I. T. S school of Management, Mohan Nagar, Ghaziabad

Dr. Vivek Pachauri

Associate Professor, I. T. S school of Management, Mohan Nagar, Ghaziabad

Abstract

The desire to boost employee engagement in hybrid workplaces has been

spreading like wildfire among HRs and businesses today. A highly engaged
workforce that adds value and revenue to the business is the dream of every
organization. To accomplish this, HRs are now constantly experimenting and
innovating with their employee engagement strategy. The pandemic was
accompanied by job uncertainty, layoffs, and the great resignation phase. All this
increased the need for employee engagement initiatives, for organizations to
relook at their employee engagement strategy, and start afresh. There is growing
interest into the relationship in workplace behaviour, organisational
sustainability values, and psychological factors including motivation and
engagement. Employee engagement influences the workplace behavior of
organisational members. Environmental, Social, and Governance (ESG)
performance has gained academic, corporate, and political interest in recent
years. Investors are increasingly interested in the relationship between ESG and
financial suitability and return on investments. Research has shown how ESG or
CSR initiatives support a company’s positive reputation (Tkalac & Sincic, 2018)
which may be positively related to employee’s commitment. Furthermore, a

Digital Disruption and Environmental, Social & Governance Page | 34

positive reputation fosters the identification of employees with their company.
Aggerholm, Andersen, and Thomsen (2011) suggest that strategies for
sustainable development including CSR activities improve the employer‟s
branding and positioning in the labour market. And finally, Donia claims that
especially millenials care more about “purpose than a paycheck when it comes to
work” (Donia, 2021, p. 21).This chapter will give you more insight to explore the
interplay of a employees engagement in ESG practices in organizations which can
open new vistas for the leaders and practitioners to redesign engagement
strategies and practices in order to improve the firm performance.

Keywords: ESG, Employee Engagement, HR Practices, Sustainability

Introduction

Business and Academic interest in Corporate Social Responsibility (CSR) is well

established. Over the last decade the focus has shifted towards Environment,
Social, and Governance (ESG) values. ESG has become the new “CSR” in the
financial sector where ESG investing is booming (Ignatius, 2019; PwC, 2021a).
The environment is probably the most discussed part of ESG activities including
climate change, natural resources, and pollution and waste. The S in ESG takes a
more Human Capital angle assessing labour standards, diversity, and social
opportunities as health care and employees benefits and finally the discourse on
the G in ESG is probably the least visible topic and focuses on corporate
governance, culture, and corporate behavior. There is evidence that in some tech
firms employees are organising themselves around issues such as sexual
harassment, migrant detention, and discrimination (O‟Leary & Valdmanis, 2021).

Employee engagement is critical for successful ESG initiatives. Engaged

employees will ultimately drive the real-world progress on these efforts.
Therefore, knowing the true level of employee engagement at your organization
will be an important part of your leaders' dashboard.ESG is more than good
intentions. It's about creating a tangible, practical plan that achieves real results.

Digital Disruption and Environmental, Social & Governance Page | 35

Success is not about climate change, diversity and disclosures alone. It’s about
embedding these principles- and more across your business- from investment to
sustainable innovation. Bringing together your best people and smartest
technology so you can see more, go deeper and act swiftly. Enabling you to tackle
the biggest challenges of today – and capture the best opportunities of tomorrow.

Workforce Engagement

Workforce engagement is the aggregate of elements that people are engaged

when working hard, putting in effort, staying involved, showing up for work,
remaining focused on what they are doing, and striving to move their work ahead
(Schneider et al., 2017). Schneider et al. (2017) found the relationship between
workforce engagement and the financial metrics which are ROA and net margin,
and customer metrics which are the data from The American Customer
Satisfaction and The Harris Reputation Quotient. Regarding workforce
engagement, it is beneficial for an employer because the research found that
engaged workers are less turnover, able to improve customer relationship and
organic growth and more present and productive (Harter & Mann, 2017).
Moreover, there is the evidence, tangible impact to business returns and
shareholder value when company’s build high level of employee engagement
(Business Valuation Update, 2019). Several research could obtain positive results
on the relationship between workforce engagement and other items such as
business performance and organizational commitment.

ESG

ESG stands for environmental, social, and governance. ESG is considered as

sustainability factors which is now considered as one of corporate activity
toward the society. ESG had its genesis as a framework to help investors use
criteria other than simply financial return in choosing their investments.The
problem investors were trying to solve was that they had no way to account for

Digital Disruption and Environmental, Social & Governance Page | 36

externalities — the things that did not cost an organization anything (such as
dumping waste) but had a cost to others (who had to clean it up).

Three central factors emerged:

 Environment – How does an action or choice by an organization use

energy and other resources and in what ways does it create waste?

 Social – How does an action affect people in the broadest, most diverse
sense?

 Governance – How are decisions made and are they honest, ethical and
fair?

This three-part framework has been extended beyond its original investment
roots and now describes much of how society expects its companies, nonprofit
organizations and governments to operate.

ESG and Employee Engagement

ESG performance as a driver of employee satisfaction is an important piece of

what makes a company a great place to work. Employers that have high
employee satisfaction and are attractive employment destinations for university
graduates tend to have lower carbon emissions, have more diversity, and make a

Digital Disruption and Environmental, Social & Governance Page | 37

greater effort to understand employee feelings. This is making ESG performance
a competitive advantage for engaging and attracting employees. The
stakeholders are not just the people that own the business.”

How does ESG Matter to Employees?

World events of the past couple of years have put social sustainability in the
spotlight. Globally, employee and worker attitudes have shifted significantly with
more and more people caring about the social impact of their jobs. In 2021,
millions quit their jobs due to a perceived lack of job security, flexibility, and
good pay. An evident lack of overall satisfaction in the workplace led to a loss of
talent for many companies. While changing HR policies around employee
compensation, flexibility, and job security may lead to some short-term
improvements for companies looking to hire, long-term success in retention will
be more likely affected by an organization’s ability to appeal to the emotional
reasoning of employees by transparently displaying deeply embedded ESG
endeavors. According to Mercer’s 2021 Global Talent Trends Report, 63% of
businesses in Hong Kong say the ability to keep their ESG strategy visible to their
employees has a significant impact on their success.

ESG has emerged as a key factor in engaging today’s workforce, as one in three
employees prefer to work for organizations that show responsibility towards all
stakeholders, not just shareholders and investors. Globally, employers with the
highest ESG scores also perform 14 percent higher in employee satisfaction and
are 25 percent more attractive to prospective talent than the average. In return,
engaged employees strengthen a company’s talent pipeline for their long-term
success. While it may sound too good to be true, engaging employees in making
the world a better place through ESG practices improves a company’s financial
performance as well as gives employees a sense of fulfilment by making an
impact through their work.

Digital Disruption and Environmental, Social & Governance Page | 38

ESG Success linked with Employee Engagement Best Practices

The world of corporate responsibility has evolved quickly. ESG initiatives are no
longer nice-to-have accessories for businesses. These must-have assets add value
to an organization and give a significant competitive advantage over others. A
company’s ESG strategy has become increasingly central to its reputation and
financial performance. ESG performance is scrutinized by several stakeholders
including investors, rating agencies, and clients to predict the viability of the
business. The most effective ESG practices encourage high levels of engagement
with all stakeholders, specifically employees. One of the many benefits of such
engagement is higher retention rates for top employees. With the COVID-19
pandemic and rising demands for social justice globally, employees are now
more driven to work for purpose-led organizations and companies that share
their values. Additionally, ESG principles dictate greater care for the well-being of
individuals, including employees. In this “Great Resignation,” job seekers have
more flexibility to wait for positions in companies that can tangibly show efforts
to care for their employees. Businesses that have established ESG initiatives have
better odds for attracting new recruits and retention.

When a company employs ESG practices that focus on social and environmental
good, it motivates employee loyalty, contributing to the overall success and
productivity in the workplace. It is important to recognize that employee
relationships (supplier interactions and connections, service to customers,
engagements with the local and global community) are at the core of ESG
profitability. Therefore, from an ESG perspective, the main stakeholder for any
organization is its employees. Businesses need to actively engage with employees
to successfully manage ESG strategy and meet ESG targets.

How can businesses engage with employees?

ESG strategies promote investor confidence and business resiliency. This is

evidenced by companies with previously established strong ESG programs

Digital Disruption and Environmental, Social & Governance Page | 39

outperforming and attracting more investment during the financial struggles
associated with COVID-19. However, without the essential elements of employee
buy-in, a company’s ESG strategy will underperform or end up unsustainable.
Investing in ESG without a follow-up effort of employee engagement contributes
to the higher probability that all the ESG investments made by the company will
not lead to the desired payoff in the future. The following are the Top 4 ways
businesses can engage with their employees for ESG success:

1. Create buy-in for your employees.

Mandates for ESG reporting aside, businesses need to proactively generate buy-
in with a strategic declaration of intent regarding ESG. As mentioned earlier,
without this buy-in, ESG strategies cannot reach their fullest potential and can
result in little to no return on investment. To avoid ESG strategies becoming a
wasteful endeavor or nothing more than a hollow ideal, employees need to
understand how these efforts will benefit external stakeholders (customers,
communities, and investors via corporate brand reputation) and themselves.
Leaders within the organization also need to understand the value their ESG
strategy creates for their employees. When higher-ups can answer the question
of what this strategy means for employees, they can then lead by example as well
as more easily motivate others to responsibly accomplish what is needed from
them to make this strategy a reality. With employee buy-in, half the work in
implementing an ESG strategy is already done.

2. Collect employee input.

Similar to other types of stakeholder engagement, businesses should consider

employee input when planning their ESG strategy. When they feel more
ownership and personal investment in the initiatives, employees will more
readily help companies navigate their strategy, resulting in a greater impact at
the social and environmental levels. For example, employee input in favor of
racial diversity can have a positive impact on corporate policies (e.g., the

Digital Disruption and Environmental, Social & Governance Page | 40

Diversity and Inclusion Policy), leading to successful acceptance of the
recruitment and growth of a more diverse team at all levels of the organization.

Seeking, accepting, and acting on employee input boosts workplace morale and
improves quality, productivity, customer service, and safety concerning ESG
initiatives. At every viable opportunity, businesses should encourage employee
input and provide positive recognition and reinforcement for this feedback.

3. Embed ESG in your work culture.

A natural result of businesses truly embracing their ESG strategy by embedding it

into the core and culture of their organization is greater employee engagement.
Though any investment requires an initial cost, ESG strategies, when properly
implemented, are proven to lead to improved financial standing. Engaging
employees around sustainability issues beyond the typical CSR/Philanthropy
departments has been shown to strengthen a company’s competitive advantage,
financial performance, and brand reputation. Employees being able to craft
sustainability outside of these normal silos generates more opportunities for the
realization that their work does contribute a positive impact.

An embedded ESG culture also attracts talent and increases retention rates.
A Marsh & McLennan study found that the employers with the highest employee
satisfaction rates and the most appeal to recent university graduates tend to be
the ones with lower carbon emissions, more diversity, and displayed efforts to
understand employee feelings.

4. Drive top-down and bottom-up behavior change.

For any successful transformation within an organization, those leading the

change need to focus on creating tools and training to help every individual align
with (and/or adjust to) the desired way of thinking and working, especially when
it comes to deeply embedding a new value set. Establishing an unconscious habit
for the entire organization takes time and transparency from every participant. It

Digital Disruption and Environmental, Social & Governance Page | 41

is critical for the establishment of an ESG strategy that all levels of the
organization are held accountable for their part in driving it forwards. ESG efforts
do not do much for employee satisfaction unless employees are aware and
actively participating. Clear communication and a compelling ESG narrative are
essential to gain the workforce benefits of ESG performance.

By offering employees a “So What?” statement regarding ESG and allowing them
to contribute a “voice,” businesses can implement a lasting ESG strategy within
the workplace.

By embedding ESG into the company culture to drive change throughout the
organization, leaders will create the greatest potential for the desired return on
investment to come to fruition. Deciding to engage employees and nurture a
positive mindset towards ESG requires maximum transparency and minimal
effort, as most of the work would be done by employees taking ownership of
their actions in making the world a better place through their work.

Engaging Employees in Your ESG Strategy: A New Perspective

Start by building up the knowledge base of your employees. When you increase
the ESG IQ of your employees, you can inspire them to think about how the
organization can operate more efficiently, which spurs business innovation, as
well as builds workforce morale. The key to inclusive cultures is psychological
safety.Organizations need to move beyond just making statements about their
ESG strategy to actually following through on them so employees believe in—and
work in accordance with—stated goals. In our latest research study, ITA Group
identified several challenges impacting employee buy-in for company
sustainability efforts and looked for ways those challenges could be
overcome.The data revealed several factors contributing to ESG challenges,
including an employee’s:

 Tenure

Digital Disruption and Environmental, Social & Governance Page | 42

  Affinity with senior leadership

 Perceived authenticity of mission and values

 Generation

 Industry

 Type of work

There’s a proven way to improve employee engagement, lift financial

performance and help save the world all at the same time.Focusing on your
workplace ESG, which stands for the environmental, social and governance
impacts of an organization’s activities, is the key to delivering all three of these
goals. The concepts of ESG are mostly spoken about at the boardroom,
shareholder and global level. But by focusing on ESG in the workplace,
organizations can do their part for the planet while also delivering improvements
to employee engagement, innovation and productivity, and driving business
success. Giving employees a clear connection to something important – a purpose
that is bigger than an individual role – is an important factor in an organization’s
success.

Conclusion

The importance of this chapter is to focus on ESG and employees. It is good to see
the trend that investors pay more attention to ESG, and decide to invest in the
companies working on environment, society and governance issues. However, it
is also worth considering the impact of ESG on employees. While the sustainable
business is more important in recent years, the impact on employees can be
considered as one of the factors when companies consider their strategies,
especially sustainable business strategy as well as corporate decision. The most
effective ESG practices encourage high levels of engagement with all
stakeholders, specifically employees. Additionally, ESG principles dictate greater

Digital Disruption and Environmental, Social & Governance Page | 43

care for the well-being of individuals, including employees. In this “Great
Resignation,” job seekers have more flexibility to wait for positions in companies
that can tangibly show efforts to care for their employees. Businesses that have
established ESG initiatives have better odds for attracting new recruits and
retention. When a company employs ESG practices that focus on social and
environmental good, it motivates employee loyalty, contributing to the overall
success and productivity in the workplace. Organizations can take initiative by
building up the knowledge base of your employees. When you increase the ESG
IQ of your employees, you can inspire them to think about how the organization
can operate more efficiently, which spurs business innovation, as well as builds
workforce morale. There are many ways to develop content for your employee
engagement program. Strategically align the activities with your ESG goals and
leverage what others have done to customize programs for your organization.

References

 Abbas J (2020) Impact of total quality management on corporate green

performance through the mediating role of corporate social responsibility. J
Clean Prod 242:118458

 Ahamed WSW, Almsafir MK, Al-Smadi AW (2014) Does corporate social

responsibility lead to improve in firm financial performance? Evidence from
Malaysia. Int J Finance Econ 6(3):126–138

 Ali I, Rehman KU, Ali SI, Yousaf J, Zia M (2010) Corporate social responsibility
influences, employee commitment and organizational performance. Afr J Bus
Manag 4(13):2796–2801

 Aras G, Aybars A, Kutlu O (2010) Managing corporate performance.

International Journal of productivity and Performance management

 Asrar-ul-Haq M, Kuchinke KP, Iqbal A (2017) The relationship between

corporate social responsibility, job satisfaction, and organizational

Digital Disruption and Environmental, Social & Governance Page | 44

 commitment: case of Pakistani higher education. J Clean Prod 142: 2352–
2363

 Banker RD, Mashruwala R (2007) The moderating role of competition in the

relationship between nonfinancial measures and future financial
performance. Contemp Account Res 24(3):763–793

 Burianová L, Paulík J (2014) Corporate Social Responsibility in commercial

banking-a case study from the Czech Republic. Journal of Competitiveness
Campbell JL (2007) Why would corporations behave in socially responsible
ways? An institutional theory of corporate social responsibility.

 Cornelius N, Gagnon S (1999) From ethics ‘by proxy’ to ethics in action: new
approaches to understanding HRM and ethics. Bus Ethics Eur Rev 8(4):225–
235 Crane A, Matten D (2004) Business ethics: a European perspective:
managing corporate citizenship and sustainability in the age of globalization.
Oxford University Press Oxford

 Clementino, E. & Perkins, R. (2020). How Do Companies Respond to

Environmental, Social and Governance (ESG) ratings? Evidence from Italy.
Journal of Business Ethics (2021) 171:379-376

 Harter, J. & Mann, A. (2017). The Right Culture: Not Just About Employee
Satisfaction. Retrieved September 5, 2021 from
https://opensource.com/business/11/9/z-open-source-generation

 Johnson, C. (2020). The measurement of environmental, social and

governance (ESG) and sustainable investment: Developing a sustainable new
world for financial services. Journal of Securities Operations & Custody
Volume 12 Number 4. 336-456

Digital Disruption and Environmental, Social & Governance Page | 45

 Meyer, J. P., Allen, N. J. (1990). A Three-Component Conceptualization of
Organizational Commitment. Human Resource Management Review, Volume
1, Number 1, 1991, pages 61-89.

 Robbie, R. I., Roz, K. (2021). The relationship of workplace spirituality,

organizational commitment on employees performance, and job satisfaction
as moderating variable. Technium Social Scieneces Journal Vol. 21, 611-619,
July, 2021 ISSN: 2668-7798

 Schneider, B. ,Yost .A .B., Kropp, A., Kind ,C., & Lam, Holly. (2017). Workforce
engagement: What it is, what drives it, and why it matters for organizational
performance. .Journal of Organization Behavior2018 ;39 :462-480.

Digital Disruption and Environmental, Social & Governance Page | 46

 5
ESG Mutual Funds in India: Performance and Future
Prospects
Dr. Shilpa Bhal
Associate Professor, School of Business, Galgotias University, Greater Noida.
Mr. Ashutosh Singh
Assistant Professor, Greater Noida Institute of Professional Studies, Greater Noida.

Introduction to Fintech

For centuries India has followed the philosophy of harmony. Harmony exists
among humans and also among ecosystems. India is one of the developing
countries that are among the highly affected countries by the repercussions of
climate change. Government and Private initiatives have been taken to reduce
the Indian carbon footprint. Several start-ups are also coming up with this
initiative. India is trying hard to cure environmental damage.

ESG investments can push companies to make efforts for environmental and
social change.

SEBI has signified ESG and made Business Responsibility and Sustainability
Report mandatory. Various companies have launched ESG mutual funds. These
funds are targeting companies that are in non-polluting business, fulfilling their
social responsibility and promoting corporate governance. In this chapter, we
aim to study the performance of ESG Mutual Funds in the Indian financial market.
The annualized return, standard deviation, beta, Sharpe Ratio, Treynor Ratio,
and, Jensen Alpha will be used to analyse the mutual fund performance.

Keywords: ESG, Environment, Mutual Funds, SEBI.

Digital Disruption and Environmental, Social & Governance Page | 47

Introduction

For decades and centuries, corporate profitability and the environment have
been opposite ends. The profit maximization motive led the organization to do
practices unfair practices. These practices may contaminate the environment,
and damage the social wellbeing and governance of businesses. Although, a
handful of organizations are involved in protecting the environment. A global
initiative has been started to shift the economy from carbon-based fuel to
alternative energy sources. The investment preference of investors is also
changing. Investor’s choice is shifting toward a sustainable organization. In the
past 20-30 years organizations are showing more concern about the habitat and
planet (Muñoz, Vargas, and Marco, 2014).

ESG is a new business terminology from the last several years. ESG stands for
Environmental, Social, and Governance. It is a long-term strategy to create a
sustainable firm. Furthermore, it’s an initiative to project an organization that
cares about people. However, such an initiative insists to think out of the box for
the top management. Also, bring down the profits of the organization during the
start. But in the future, it pays back to the organization. India has a long history
even in modern industries of CSR initiatives. Prof. C. K. Prahalad (2006) quoted
several examples of Indian Giants that are uplifting the social well-being in Indian
villages. ITC, ICICI Bank, and HUL perform several such activities like E-Chaupal
and Project Shakti, etc.(Prahalad, 2006). Organizations are realizing that due to
damage tothe environment, deterioration of social well-being, and lack of
governance in business will lose customers. The ultimate loss is of the
organization itself. Unsustainability is also a potential risk for investors. The
study indicates that for the long term investors prefer businesses that can sustain
themselves in long run(Sarkar, 2022). It pushes an organization to diversify
itself and addresses ESG issues.

Digital Disruption and Environmental, Social & Governance Page | 48

In the year 2020, six ESG funds were launched, at present 9 ESG-themed funds
are present in India. While the concept is new in India, at the global level
outstanding growth has been seen from 2016 to over $150 Billion in 2019. ESG
investing is an umbrella term that aims for a positive return on investment in
addition to creating a long-term impact on society, and the environment. It is also
called socially responsible investing and sustainable investing. It is a process of
evaluating the target companies not only based on financial parameters but also
giving due weightage to certain non-financial parameters. The non-financial
elements are ESG (Environmental, Social, and Governance). ESG is an extension
of CSR (Corporate Social Responsibility). ESG is a criterion to judge a company.
The companies are evaluated based onthe positive or negative contributions they
make to society as a whole. ESG score is given to the companies by the research
organizations like- MSCI, Morning Star, and Sustainalytics. The ESG score is
dynamic as it changes according to changes in norms and regulations. Mutual
fund companies that invest in ESG companies can have their methodology for
scoring the companies. ESG funds are categorized as thematic funds.

Apart from that, there are a few limitations of ESG Mutual Funds in India. Very
less large and mid-cap companies are available inthis category.

ESG Mutual Funds a Global and Indian Outlook

The interest of the public in organizations’ CSR activities has increased. The
canvas of CSR activities has increased just from social welfare to financial
performance and financial disclosers (Landi and Sciarelli, 2019). Organizations'
effort to take care of investors’ hard-earned funds. Furthermore, there is an
apprehension about protecting the environment for the coming generation.
These combined efforts are considered “Green Investing”, “Sustainable and
Responsibility Investing (SRI)” ESG, etc. Investor’s interest has increased in the
ESG Mutual Funds. There is a belief that such organizations will sustain for a long
time, while authorities will modify the regulations. In a global-level study Muñoz,

Digital Disruption and Environmental, Social & Governance Page | 49

Vargas, and Marco (2014) questioned the capability of fund managers as they
underperform in comparison to their traditional counterparts. ESG mutual funds
were found underperforming and not well managed(Muñoz, Vargas, and Marco,
2014).

ESG mutual funds are highly risky. As they are diversified into various sectors
and are all equity funds. Investors prefer the quality of the fund must be good
(Carlsson Hauff and Nilsson, 2022). The pattern of selecting a mutual fund
depends upon the value, pattern, volatility, and size of the funds. The study
suggests investors are highly influenced by the ESG score of the fund. Mutual
fund companies prefer to invest in large-cap stocks more in comparison to small-
cap(Madhavan, Sobczyk, and Ang, 2021).

Das, Chatterje, Ruf& Sunder (2018) concluded that investorswho are

concernedabout environmental issues don’t care about market conditions.
Mutual funds whether performing good or underperforming(Das et al., 2018).
While environmental criteria are an important aspect but Indian investors act
differently from investors around the world. For Indian investors corporate
governance is the most influential, further followed by ecological factors. Social
factors received the least preference among investors. Corporate governance is
meant animportant element that ensures the profitability of the
organization(Sood and Pathak, 2022).

ESG mutual funds belong to the same risk class as equity mutual funds. (Chang,
Nelson, and Witte, 2012)

Methodology

The study is based on secondary data. The data relating to mutual funds are
collected from the database of individual mutual funds, the Association of Mutual
Funds of India.The growth of ESG mutual funds is observed through a timeline of

Digital Disruption and Environmental, Social & Governance Page | 50

mutual funds launch.To analyse the performance of mutual funds
parametersused are below-

Annualized return- It is the percentage change in the return generated by the

mutual fund within a year. The period can be longer or shorter than a year it
consists of 52 weeks. In case the inception of the fund has not been completed for
a year, the annualized return will be less than a year.

Standard Deviation- It is the measure to check the volatility of funds return. It

states the variation in return in a fund from the average return in comparison to
the targeted fund.

∑( − )
= √

Beta Value- It is another measure of checking the volatility of the fund. Lower
beta is always better.

( , )
=
( )

Cov = Covariance

Var = Variance

rm = Expected market return

ri = Expected return of an asset

Sharpe ratio- This technique is useful to analyse the return that a fund is
generating while taking additional risk. A Higher Sharpe ratio is better

−
=

Rp = Return of Portfolio

Digital Disruption and Environmental, Social & Governance Page | 51

Rf = Risk-free Return

σp = Risk of portfolio

Treynor Ratio- It’s a process to calculate the one additional unit of return that is
generated through bearing one additional unit of risk.

−
=

Jenslon’s Alpha- It measures the additional return an asset is generating in

comparison to the benchmark.

Jensen’s Alpha = R(i) − (R(f) + β × ( )− ( ) )

R(i) = Realised return of the portfolio.

R(m) = Return of the appropriate market index

R(f) = Risk free rate of return

β = Beta of portfolio

Sample-A total of nine ESG mutual funds were selected for the study. Namely –
SBI Magnum Equity ESG Fund, Axis ESG Equity Fund, KotakESG Opportunities
Fund, Aditya Birla Sun Life ESG Fund, ICICI Prudential ESG Fund, Invesco India
ESG Equity Fund, Mirae Asset Nifty 100 ESG Sector Leaders Fund of Fund,
Quantum India ESG Equity Fund and, Quant ESG Equity Fund.

Findings-

The first ESG fund was introduced by SBI Mutual Funds. In the last four years
rest, eight mutual funds are introduced into the market. On the global
platform,more than twenty-three mutual funds are operating. Compared to the
Indian mutual fund industry the number is very less. Although three indexes

Digital Disruption and Environmental, Social & Governance Page | 52

cover ESG companies namely NIFTY 100 ESG, NIFTY 100 Enhanced ESG
introduced in 2018,and NIFTY 100 ESG Sector Leaders launched in 2020. A most
frequent choice of the mutual fund are sectors like- power equipment, cement,
paints, retail, banking and NBFCs, telecom, auto ancillaries, consumer food,
pharmaceuticals, home appliances, healthcare, automobile and commercial
vehicles, consumer electronics, software, IT & ITES, engineering and
constructions, film production, plastic products, jewelry, and chemicals. Some of
the common companies that most mutual funds are preferring are- Wipro Ltd., V-
Mart, Ambuja Cements, Avenue Smartmarts Ltd. Axis Bank, Bajaj Finance Ltd.,
BhartiAirtel, Bosch Ltd. Cipla Ltd, Divis Laboratories Ltd., HCL Technologies
Limited, HDFC Bank Ltd., Hindustan Unilever Ltd., ICICI Bank Ltd., ICICI
Lombard General Insurance Co Ltd., Infosys Ltd., Kotak Mahindra Bank
Ltd., Larsen & Toubro Ltd., Mahindra & Mahindra Ltd., Marico Ltd., Reliance
Industries Ltd., SBI, Tata Consultancy Services Ltd., Titan Company Ltd.
and, Ultratech Cement Ltd.Out of nine mutual funds SBI Magnum Equity ESG
Fund, Axis ESG Equity Fund and, ICICI Prudential ESG Fund is also investing the
funds in foreign companies like Visa, MasterCard, Unitedhealth Group Inc, etc.
Axis Equity fund has the highest foreign equity holding i.e. 24.44%. ICICI
Prudential ESG Fund has 6.58% and SBI Magnum Equity ESG Fund has 2.43%
foreign holding. Fund managers of ICICI Prudential ESG Fund tried to control the
risk by investing some part of the fund in debt as well. Among all the nine ESG
funds Mirae Asset Nifty 100 ESG Sector Leaders Fund of Fund and Axis ESG
Equity Fund are the most diversified funds, invested in 57 different companies. In
the ESG mutual funds, 50%-80% of equity is invested into large-cap funds rest
amount is invested in mid-cap and the least amount of funds are invested in
small-cap funds. Quant ESG Equity Fund is one of the newest funds among all but
it is giving the highest annualized returns, SBI Magnum Equity ESG Fund being
the oldest fund is giving positive returns but they are very less. The industry’s
average Standard Deviation (SD) is 19.37. Table1 on these criteria SBI Magnum
Equity ESG Fund fails, its returns are highly volatile. ICICI Prudential ESG Fund is

Digital Disruption and Environmental, Social & Governance Page | 53

the least volatile fund with the least SD of 11.55. Quant ESG Equity Fund has the
highest Sharpe Ratio among all i.e. 3.3 and Kotak ESG Opportunities Fund has the
least i.e. 1.36. It implies that the former can generate a higher return on the risk
taken in the portfolio. The same is related to Beta, the industry’s average is 0.92
while SBI Magnum Equity ESG Fund’s beta is 0.99, whichalso shows high
volatility of returns. ICICI Prudential ESG Fund has the lowest beta i.e. 0.67. 0.71
is the industry average Sharpe Ratio, the highest ratio is of Mirae Asset Nifty 100
ESG Sector Leaders Fund of Fund at 3.42 and the lowest is on Quantum India ESG
Equity Fund at 0.85. The industry average of Treynor’s Ratio is 0.18 all the funds
are generating higher returns,Quant ESG Equity Fundhas offered the highest
returns.Jenslon's Alpha is 3.18 as per industrial average, here again,Quant ESG
Equity Fun is showing the highest returns in comparison to the benchmark.

Conclusion-

Mutual funds are getting the consideration of investors in India as in recent times
the other traditional schemes are not generating good returns. At present Indian
mutual fund industry is providing several attractive options to investors. ESG
mutual funds come in the high-risk category. While diversifyingyour portfolio,
ESG mutual funds are a good option. ESG mutual funds can give good returns in
the long run. The sustainability of the companies in these funds makes them
attractive in the long run. Yet these funds have not gained the consideration of
investors. Although SBI Magnum Equity ESG Fund is the oldest mutual fund it has
the highest standard deviation and beta. Although the annual performance of the
funds is not very good. The reason behind it is easily understandable and i.e. the
all equity fund and investment in a very diverse portfolio. These funds can offer
lucrative returns in the long run. As investment is always a long-term affair.
Quant ESG Equity Fund is one of the new funds in the ESG family but it is one of
the best-managed funds as the numbers are suggesting.

Digital Disruption and Environmental, Social & Governance Page | 54

References

 Carlsson Hauff, J. and Nilsson, J. (2022) ‘Is ESG mutual fund quality in the eye
of the beholder? An experimental study of investor responses to ESG fund
strategies’, Business Strategy and the Environment, (May), pp. 1–14.
doi:10.1002/bse.3181.

 Chang, C.E., Nelson, W.A. and Witte, H.D. (2012) ‘Do green mutual funds
perform well?’, Management Research Review, 35(8), pp. 693–708.
doi:10.1108/01409171211247695.

 Das, N. et al. (2018) ‘ESG Ratings and the Performance of Socially Responsible
Mutual Funds: A Panel Study’, Journal of Finance Issues, pp. 49–57. Available
at: http://jofi.aof-mbaa.org/69097-jfi-spring-1.4512063/
http://hdl.handle.net/10419/196120 www.econstor.eu.

 Landi, G. and Sciarelli, M. (2019) ‘Towards a more ethical market: the impact
of ESG rating on corporate financial performance’, Social Responsibility
Journal, 15(1), pp. 11–27. doi:10.1108/SRJ-11-2017-0254.

 Madhavan, A., Sobczyk, A. and Ang, A. (2021) ‘Toward ESG Alpha: Analyzing
ESG Exposures through a Factor Lens’, Financial Analysts Journal, 77(1), pp.
69–88. doi:10.1080/0015198X.2020.1816366.

 Muñoz, F., Vargas, M. and Marco, I. (2014) ‘Environmental Mutual Funds:

Financial Performance and Managerial Abilities’, Journal of Business Ethics,
124(4), pp. 551–569. doi:10.1007/s10551-013-1893-x.

 Prahalad, C.K. (2006) The Fortune at the Bottom of the Pyramid. Dorling
Kindersley.

 Sarkar, S. (2022) ‘PERFORMANCE EVALUATION OF ESG FUNDS IN INDIA – A

STUDY’, The Management Accountant [Preprint], (March).

Digital Disruption and Environmental, Social & Governance Page | 55

 Sood, K. and Pathak, P. (2022) ‘How does an investor prioritize ESG factors in
India ? An assessment based on fuzzy AHP’, Managerial Finance [Preprint].
doi:10.1108/MF-04-2022-0162.

Digital Disruption and Environmental, Social & Governance Page | 56

 6
Outcome-Based Learning: An Overview
Dr. Ritu Saxena
Assistant Professor, ABES Business School, Ghaziabad
Dr. Nitin Kumar Saxena
Professor, Jaipuria School of Business, Ghaziabad

Abstract

The outcome in the course learning is something that the student should be able
to achieve at the end of the course. Outcome-Based Education (OBE) is a
innovative approach in which curriculum design and content accomplishments
are driven by concluding learning outcomes. The objective of the OBE is to attain
the encoded learning outcome. In different countries where the economy is
driven by knowledge, outcome based education is recognized as one of the most
important mechanisms in higher education.

Continuous Quality Improvement (CQI) is the key to possession the quality and
standards of an OBE model.

In other words, in an OBE system, teachers act as facilitators for students so that
they can increase the knowledge, skills and qualities that will make them achieve
the expected outcomes.

In characteristics of OBE, Programme outcomes (PO) mainly engrossed on the

attainment of Knowledge, Skills and Attitudes by students. Programme outcomes
are associated with Course outcomes and fulfilled by the attainment of course
outcomes. Lesson Learning Outcomes are aligned with course outcome and their
achievement gratifies the course learning outcome. OBE based courses yield

Digital Disruption and Environmental, Social & Governance Page | 57

qualities in the graduates, students are well informed in advance and trained of
the skills compulsory out of them.

Realistic, conceptual, practical and metacognitive knowledge, intellectual skills,

functional work skills, personal and entrepreneurial skills, Ethics and
professionalism are some of the trait’s students accomplish at the end of the
programme. Integrated learning of courses is an significant curriculum concept.
Using Bloom’s taxonomy for appropriate verbs according to difficulty level, is of
prime importance while designing an assessment approach. Formative
assessment with feedback instruments is crucial in constant improvement of the
student. Formative and summative assessments are an essential part of the
learning process.

Keywords: outcome-based education, course learning outcome, continuous

quality improvement

Introduction

The persistence of higher education is to make an individual proficient of

utilizing the knowledge in recognizing the problems conquered in various sectors
and providing the optimum solution by employing scholarly skill and generating
new ideas to make society and country to progress.

A programme in education is a combination of subjects or modules in a

structured way to attain the learning outcome which precedes to the award of
qualification. These qualifications are certificates, diploma, degree, postgraduate
or doctorate that are awarded by qualified institutions or competent authority
after confirming that the required quality standards and necessary learning
hours or credits are completed in a satisfied manner (Harden RM, 1999).

Program learning outcomes are a description of the knowledge, skills, attitudes,

competencies, and values a student displays at the completion of the program.

Digital Disruption and Environmental, Social & Governance Page | 58

Course learning outcomes are expected to be learned by the completion of the
course. These outcomes should be meaningful, observable and measurable. The
nature of learning outcomes is mainly cognitive outcomes, behavioural outcomes
and affective outcomes.
Teaching and learning and evaluation methods are the tools to achieve these
outcomes. Constructive alignment in teaching & learning and assessment
strategies is emphasised to achieve these outcomes in appropriate manner.

Analysis of these outcomes is necessary at the end of each cohort to assess the
effectiveness of the program. This assessment could provide key information to
improve the curriculum by indicating the performance of each program outcome.
Continuous quality improvement is a dynamic process which can be done
periodically to ensure the quality of the program while implementing the
outcome-based education. (Takahashi H & Kosano H., 2015)

Andres WCO and Cheryl LCR, 2012 reported the implementation of OBE
framework in an undergraduate engineering course in Department of Civil
Engineering, De La Salle University, Manila, Philippines. The study reported EGA
(Expected Graduate Attributes), college & department vision and mission,
learning outcome for statics, teaching learning activities and assessments
methods. (Andres Winston C. Oreta and Cheryl Lyne C. Roxas, 2012)

Khor PY et al, 2016 developed outcome-based pharmaceutical science

curriculum. Researchers carried out a questionnaire using web-based survey.
The study achieved an 81 per cent response rate and fulfilled the sole purpose of
using triangulation method in getting a broader perspective in curriculum
development. (Khor PY, 2015)

Physical movement, coordination and the use of the motor skills fall under the
psychomotor domain.

Digital Disruption and Environmental, Social & Governance Page | 59

It has seven levels-perception, set, guided response, mechanism, complex overt
response, adaptation and origination. Perception and set are lower order and
guided response, mechanism, complex overt response, adaptation, origination
are higher order. Psychomotor skills are practical skills which are learned by
practical demonstration and assessed by practical test or examination.

The way we deal with things like feelings, interests, thoughts, appreciation,
enthusiasms, motivations fall under affective domain. It has five levels-receiving,
responding, valuing, organizing and internalizing. receiving and responding are
lower order and valuing, organizing and internalizing are higher order.

For knowledge, teaching strategy are mostly based on lectures and tutorials
whereas assessments are mostly written examination. However other novel
teaching, and assessment methods are also employed such as quizzes. Critical
thinking, problem-solving usually involves case study, group work or projects
and assessed by presentation, reports and essays.

Communication skills are learned through group work, projects, tutorials or case
studies and assessed by presentations. Social skills, ethics, professionalism could
be learned by projects, case studies, group work and can be evaluated by reports
or presentations.

Lifelong learning, managerial and leadership skills are learned by case studies,
group work, projects, discussions and can be evaluated by portfolios,
presentations and reports.

Mapping of course-learning outcomes with Bloom’s taxonomy or other taxonomy

is extremely important. While designing the course and lesson learning outcome,
appropriate action verbs should be used matching with difficulty level and
outcome. To make these course and lesson learning outcomes more clear,
conditions and standards should be added.

Digital Disruption and Environmental, Social & Governance Page | 60

Program learning outcome (PLO) should be written in line with industrial and
profession needs. Course learning outcomes should be written in such a manner
that they match program learning outcome. Educator should be able to
understand the mapping and correlation between CLO & PLO, CLO & LLO (lesson
learning outcome) (Khor PY, 2015).

Need of Outcome-Based Education

There is a substantial gap between academia curriculum and industry

requirement. Graduates with diploma and degree frequently face difficulty when
they come in the job market due to lack of necessary critical skills and expertise
compulsory in the industry. A substantial portion of the syllabus in academia is
knowledge-based which is memorized by students without having sufficient
exposure on the practical applicability. Gap between industry and academia may
lead to problem of unemployment in the country as courses and curriculum in
academia are not matching up to the needs of the industry. Outcome-based
education produces human resource with critical skills, moral and ethical
qualities which are valued by industries. (Rao NJ., 2020)

Outcome-Based Education (OBE)

OBE in higher education is a inimitable way of learning in which the curriculum

is guided by the learning outcomes that the learner should demonstrate at the
end of the course. It’s a complete transformation of the learner as a result of
value education. Appropriate curriculum content, diverse teaching and learning
strategies and appropriate evaluation methods are the backbone of this learning
system. OBE is a resultoriented, learning-centric system which benefits all the
stakeholders. Key performance indicators such as performance in various
assessments, employability rate after course completion are among the other
important outcomes in OBE. (Wudthayagorn J., 2015)

Digital Disruption and Environmental, Social & Governance Page | 61

 S. No. Outcome Based Education Traditional Education
Traditional Education (Content-Based
1 Outcome-Based Education
Education)
Formative summative
2 Examination and grades-driven
assessments
Integrated subjects, Problem-
3 Individual Subjects
based learning
4 Flexible Framework Rigid and fixed framework

Learning Domains

Educational objectives are divided in to three domains-affective, psychomotor,

and cognitive. According to Bloom’s Taxonomy, the main goal of assisting and
motivating educators is to focus on all three domains thus imparting a holistic
form of education.

Cognitive domain has a knowledge component and the development of

intellectual skills. It has six levels–knowledge, comprehension, application,
analysis, synthesis, and evaluation. Knowledge and comprehension fall lower in
the order with cognition and application, analysis, synthesis, evaluation falling
under higher order thinking skills.

Lesson Plan

It is a document which is made up of written explanation on how to impart

academic content. It facilitates to organize teaching objectives and methods and
provides focus for the lesson to be presented. Components of Lesson Plan:

 Goals/ Aims
 Outcomes
 Prerequisites
 Materials
 Description
 Procedure

Digital Disruption and Environmental, Social & Governance Page | 62

  Assessment/Evaluation
 Rubrics

Feedback Mechanism

Providing feedback to students representing levels of attainment after each

assessment method will moderate the misunderstandings and learning
problems. Feedback helps scholars to identity the area of development in their
performance and bring transparency in the system.

This instrument helps teachers to notice ineffective teaching techniques and

assessment tools which can help them to prepare course analysis report
including the feedback from students and all the instructors involved, in
particular course indicating the performance in each PLO attainment for the
particular course and further carry up the lacuna to improve through CQI
(Continuous Quality Improvement).

Student Learning Time (SLT)

Students must give quality time for self-reformation. Effective learning time or
Student academic load should be allocated in such a way that it reflects quality of
student’s achievement. In course syllabi credit hour calculation should include
the student learning time which includes face-to-face and non-face-to-face. In
traditional teaching, credit system is mainly based on educator contact hours and
is mostly teachercentric. In OBE, the credit system includes student learning time
including face-to-face, non-face-to-face, independent learning time and
assessment preparation time.

Blueprints for Assessment

Blueprints for assessment are important in ensuring that the assessment is in-
line and appropriate to evaluate predefined outcomes with predetermined

Digital Disruption and Environmental, Social & Governance Page | 63

difficulty level for each course. Difficulty level in the courses gradually increases
as the student advances to higher classes.

While these provisions are usually developed to ensure test validity for the
assessment of cognitive domain, they also should be developed to ensure test
validity for the assessment of psychomotor and affective domain.

Rubrics for Assessment

It is a scoring tool that assists the evaluator to assess a student’s performance

based on the sum of attributes rather than a single numerical score.

These rubrics are usually handed out to the students and explained before the
assessment so the students will know on which criteria their work will be
evaluated. Rubrics can be created in different ways with several levels of
complexity (Malaysia Qualification Agency 2011).

Students can also be made to participate in the assessment process through both
peer and self-assessment hence understanding the designing and utilising it for
assessment is critically important for students. Involvement of the students bring
self-confidence and as a result, their learning becomes more focussed and self-
directed (Shamsul Mohamad, 2012).

Evaluation

Evaluation methods should relate directly to learning outcomes and evaluation

activity should be designed in a way to promote student growth. Feedback
should be useful to the student after each evaluation. Multiple evaluation
strategies should be provided to master achievement of outcomes/competencies.
Students should clearly understand the methods of evaluation for test or activity.
Students must understand the rubrics used in evaluation. Assessment strategy
should be based on teaching and learning method used and it should cover the
learning outcome assessment (Ben-david MF, 1999).

Digital Disruption and Environmental, Social & Governance Page | 64

Conclusion

OBE is an educational system which involves the transformation of curriculum,

assessment in education to follow the achievement of outcome-based learning
and mastery rather than merely accumulating the degree or certificates. In OBE,
educators assist students in their professional development and also ensure that
students are achieving the intended outcomes in their education. Students differ
in their knowledge, skills, motivations and predisposition hence there is great
need of a type of education which can cater to the academic need of each student
and OBE can cater to such a need.

References

 Andres Winston C. Oreta and Cheryl Lyne C. Roxas, Implementing an

outcomes-based education framework in the teaching of engineering
mechanics (STATICS), International Conference on Civil Engineering
Education (ICCEE2012) November 9-10, 2012, De La Salle University,
Manila, Philippines
 Ben-david MF. (1999). AMEE guide no. 14: Outcome-based education: Part
3--assessment in outcomebased education. 21(1):23-25.
 Harden RM, Crosby JR, Davis MH. (1999). AMEE Guide No. 14: Outcome-
based education: Part 1-An introduction to outcome-based education.
Medical Teacher. 21(1), 7-14.
 Khor PY, Mahendran S, Mohammed TA, (2016). Developing an Outcome-
Based Pharmaceutical Science Curriculum: An Evaluation Based on
Triangulation Method, Indian Journal of Pharmaceutical Education and
Research. 50 (4), 534-541.
 Malaysia Qualification Agency. (2011). Malaysian Qualifications
Framework. Point of Reference and Joint Understanding of Higher
Education Qualifications in Malaysia. Malaysia:

Digital Disruption and Environmental, Social & Governance Page | 65

  Rao NJ. (2020). Outcome-based Education: An Outline. Higher Education
for the Future. 7(1), 5-21.
 Shamsul Mohamad, Zarina Tukiran, Rafizah Mohd Hanifa, Afandi Ahmad,
Mohamad Md Som (2012). An Evaluation of Assessment Tools in Outcome-
based Education: A Way Forward, Journal of Education and Vocational
Research. 3 (11), 336-343.
 Takahashi H, Kosano H. (2015). Introduction of outcome-based education
in pharmaceutical education in Japan.
 Yakugaku Zasshi. 135(3), 339-43.
 Wudthayagorn J. (2015). Implementing Outcome-Based Assessment:
Lessons Learned from an English for Pharmacy Course. In: Darasawang P.,
Reinders H. (eds) Innovation in Language Learning and Teaching. New
Language Learning and Teaching Environments. Palgrave Macmillan,

Digital Disruption and Environmental, Social & Governance Page | 66

 7
Green Marketing: A Building Block for Corporate Image
Nidhi Nirwan

Assistant Professor, G.L. Bajaj Institute of Management, Greater Noida

Abstract

In the present era of green-awareness, people are becoming more concern

about environmental products or services issues. Green marketing is about
the product modification, changes to production process or packaging
process and modifying advertising. Therefore, strategic green marketing
becomes very important in order to enhance the corporate image. The
present study aims to explore the role of green marketing functions in
building corporate image and enhancing firm’s value. Among various other
responsible factors, the use of green business concept has positive effect on
corporate image and firm value. Corporate image influences firm value
positively and plays mediation role (indirect effect) in the relationship of
green business on firm value.

Here we took several live cases from different industries to investigate the
capability of the businesses in implementing the green marketing strategy to
enhance the green corporate image.

This chapter discusses managerial implications of strategic marketing

performance for building corporate images on a basis of green marketing.
Also this chapter will provide insight to the readers regarding the impact of
green marketing practices on the corporate image which in turn results into
long term positive effects. Chapter suggests various strategies that can be
adopted by the businesses to implement green marketing in order to ensure
that the objectives on enhancing the green corporate image can be achieved.

Digital Disruption and Environmental, Social & Governance Page | 67

Keywords: Green Marketing, Green Corporate image, Green Business,
Marketing Strategy, Corporate Social Responsibility

Customers today perceive corporations as being concerned with the welfare

of their societies rather than merely being profit-driven entities. As a result,
companies have prioritised sustainability and used green marketing
strategies to entice customers to purchase eco-friendly products. The
likelihood of purchasing eco-friendly goods was investigated in relation to
variables such eco-labelling, eco-friendly packaging and branding, and eco-
friendly goods, premium, and pricing.

Green products have been developed as a result of the growing concern that
consumers and businesses have about the environment. As a result,
marketers must portray green products as secure and environmentally
responsible. The ability of marketing to affect change and influence
government regulations in favour of green business is now an irrefutable
force. However, the results of earlier studies on green marketing methods
revealed decreased sales and enactment in terms of market shares. Marketing
plays a crucial role in affecting firm sales, enhancing performance, and
gaining market shares. Traditional analysts have prioritised influencing
consumers to care more about the environment. Green marketing therefore
encompasses a wide range of concepts, such as the facilitation and generation
of value that satisfies consumer needs and wants. Traditional academics have
focused more on influencing people to adopt more environmentally friendly,
sustainable behaviour. The goal of green marketing is to protect and establish
enduring bonds with stakeholders including the environment, culture, and
consumers. Selling environmentally friendly products and services is a viable
mechanism that affects society's pro-environmental behaviour.

‘Climate change encompasses not only rising average temperatures but also
extreme weather events, shifting wildlife populations and habitats, rising
seas, and a range of other impacts.’ – National Geographic

Digital Disruption and Environmental, Social & Governance Page | 68

We all enjoy engaging in consumerism while maintaining our moral integrity.
The purchaser feels they have made a wise choice when they acquire goods
from businesses that uphold moral standards for social responsibility and
environmental protection. On the other hand, companies that engage in
unethical trading, endanger animal extinction, and make significant
contributions to global warming are seen negatively more than ever before.
Green marketing has numerous advantages for businesses, especially for
those looking to show their moral commitment to protecting the environment
to customers.

In latest years, an increasing number of establishments are searching into

development and success now no longer simply thru their economic balance.
Success is measured thru enterprise growth, its stakeholders and the way
those stakeholders understand its organisation.

This paper intends to proportion diverse ideas associated with sustainability

in enterprise and make clear the definition of Green Corporate Image (GCI)
and it importance. Taking companies one step in addition within side the
beyond decades, companies are visible to comprise sustainability schedule of
their companies. Sustainability is described as the important thing
component to fulfil the cutting-edge want without affecting the destiny
generation. It is now one of the key component of a hit enterprise.

Green Marketing:

Green marketing involves weaving a company’s eco-friendly efforts into its social
media marketing campaigns and advertising strategy. In a bid to demonstrate a
business’s core values, enhance its image, and attract and retain customers who
are conscious about their impact on the world.

“Sustainability is not a goal to be reached, but a way of thinking, a way of being, a

principle we must be guided by” — Giulio Bonazzi – Chairman, Aquafil Group.

Digital Disruption and Environmental, Social & Governance Page | 69

Aside from rules and regulations that set expectations, it is up to each
organisation to the extent that it is determined to alter its current practises in an
effort to create a greener future and a healthier planet. Below is a breakdown of
the various levels that businesses are prepared to strive for in order to show that
they are environmentally conscious. Look at the sections below to see which ones
apply to your business and whether you can make any improvements.

1. Comply only with appropriate environmental protection and preservation

laws, regulations, and policies.

2. Ecological metrics are developed based on the actions of rivals. Businesses will
only make an effort to surpass the environmental commitments of their rivals.

3. The corporation concentrates on internal research and development to

identify potential green-transition areas.

4. Based on tried-and-true techniques for enhancing business sustainability and

cutting-edge new products created by the company, a green strategy is
developed.

The concept of green marketing strategy was founded in 1980 after conducting
the first workshop on ecological marketing (Baumann et al., 2002). The
Marketing Association (AMA) defined green marketing as a marketing process
for products assumed to be environmentally safe. It offers environmentally
friendly products, production process, change of packaging, and product
modification of marketing communications (Murthy, 2010) and provides ethical
decision in their business process. Ethical decision in the marketing process is an
important aspect that managers should consider. Ethics in green marketing
contributes to minimize harmful impacts to the environment and satisfy
consumers using the best ingredients from their limited resources. Seth & Khan
(2015) stated that green marketing is a blend of ethics and corporate CSR which

Digital Disruption and Environmental, Social & Governance Page | 70

helps businesses become a socially responsible entity. There are five important
factors in the Green Marketing Orientation/GMO dimensions;

i. The greening process,

ii. The green supply chain management,

iii. The green policy strategic initiatives,

iv. Proactive energy conservation and the

v. Green marketing innovation.

Additionally, Chow & Chen (2012) developed a sustainable enterprise framework

modeled on dimensions integrating the dimensions in the social, economic and
environmental development.

Green Marketing Strategy:

From the perspective of environmental preservation, marketers must define and

create the four pillars of the marketing mix. The components of the green
marketing mix effectively and appropriately handle the major environmental
challenges.

Element # 1. Green Products:

Entrepreneurs seeking to tap into the growing green market may either research
consumer environmental demands and create products to meet those needs, or
they will create environmentally friendly items to outperform rivals.

Think about things that use a lot of packaging, use hazardous chemicals, cannot
be recycled, and consume more energy. Such goods endanger the environment by
causing pollution and environmental deterioration. On the other side, items that
contribute to the environment are those that use natural materials, recycle,

Digital Disruption and Environmental, Social & Governance Page | 71

conserve energy, or have less packaging. As a result, "green products" are those
that are produced in harmony with the environment.

Green technology is the foundation for the creation of green products. Green
products contribute to a sustainable future by conserving natural resources.

Environmentally friendly items assist organisations conserve energy resources

and have minimal negative effects on the environment. The many steps taken in
the creation of environmentally friendly items are effective in terms of
preserving and protecting the environment.

Natural and organic ingredients are used in environmentally friendly products,

which are manufactured and distributed in a way that has little to no influence on
the environment. These ingredients are purchased from regional sources. The
product is certified as green by several governing bodies and certification
programmes after being evaluated for environmental performance standards.

Element # 2. Green Price:

The most important component of the marketing mix is pricing. The majority of
clients will only be willing to spend more if they believe the product has more
value. This value could be enhanced functionality, design, aesthetic appeal, or
taste. Environmental benefits are frequently what separates products of similar
value or quality.

Green product creation demands changing the production procedures, which

costs money. Cost increases cause the price point of green products to rise, which
makes it challenging for the product to get acceptance in the market. The high
cost can serve as a disincentive because buyers might be unable or unwilling to
pay this green premium.

The term "pricing gap" refers to the difference in cost between green and non-
green goods. Price barriers can be overcome by either reducing the price point of

Digital Disruption and Environmental, Social & Governance Page | 72

green products to make it comparable to the currently available products on the
market or by increasing the perceived value of the green products in the eyes of
the customer (by enhancing the benefits derived such as improved packaging,
improved attributes, and tailoring the product to customers' needs).

Element # 3. Green Place:

Your ability to attract customers will be significantly impacted by the decision of

where and when to make products available. Few consumers intentionally seek
out green items to purchase them for aesthetic purposes. Marketers who want to
successfully launch new eco-friendly products should position them widely in the
marketplace rather than targeting a specific green niche.

The distribution of green products without endangering the environment is

referred to as a "green location." This is accomplished by planning logistics with
the fewest emissions and using fuel and energy efficiently.

A significant portion of business expenses go toward transportation, and local

production can reduce the resources required for distribution. This lowers the
cost of transportation and lowers carbon footprint. Saving business resources is
another benefit of selling online rather than at a physical store.

Element # 4. Green Promotion:

Paid advertising, public relations, sales promotions, direct marketing, and on-site
promotions are all methods of promoting goods and services to target markets.
By utilizing environmentally friendly marketing, communication, and marketing
strategies, savvy green marketers will be able to strengthen their environmental
credibility.

E-marketing is quickly replacing more traditional marketing strategies, for

instance, and printed materials can be generated using recycled materials and

Digital Disruption and Environmental, Social & Governance Page | 73

effective procedures like waterless printing. Many organisations in the financial
sector also offer electronic statements via email.

Customers must be educated about green products and encouraged to buy them.
As a result, businesses spend a significant amount of money and effort promoting
and advertising green products today. Green marketing involves raising
customer awareness of green products and advertising them in an
environmentally responsible way, such as by using social networking sites to
publish profiles about green marketing.

Nike has released its first entirely recycled television ad as part of its "Better
World" campaign. The ad was created by remixing and recycling footage from
Nike's previous campaigns.

Green Corporate Image

A positive consumer experience with the firm's products will result in a positive
perception of the company and help to build a positive image for the business.
Harrison (2005) outlines four components of company image: personality,
general company characteristics, ability to understand public targets, reputation,
activities carried out by the company, and public beliefs based on personal
experience or information from third parties about the company's values.

Businesses who are able to recognise the significance of social issues will have
possibilities to boost their reputations. In addition to tangible forms, firm acts
and conduct also contribute to the development of a corporate image. The
development of a corporate identity as a result of the company's actions and
behaviour. Customers place a higher value on social quality brands than they do
on technical and practical qualities. Corporate identity is crucial since a
company's brand is a major factor in how consumers evaluate its products. The
majority of consumers are persuaded by the marketing that highlights the
business's dedication to the environment. Businesses that use green advertising

Digital Disruption and Environmental, Social & Governance Page | 74

and promote an environmentally friendly image impact the purchasing decisions
of their customers. People prefer to identify with brands that care about the
environment. When a business conveys this through its advertising, promotion,
publications, and social responsibilities, it is certain to gain a large following of
devoted clients. According to studies businesses must pay close attention to their
brand identity, taking into account how it affects employees' loyalty to their
companies as well as brand performance and satisfaction. Customers are
prepared to trust that they will make a purchase of an environmentally friendly
goods. There is a green segment consumer in each sample who has a
considerable impact on a number of elements of the other market categories.
Customers are willing to pay a premium for a greener lifestyle because they want
to associate themselves with businesses that adhere to environmental
regulations. As a result, green marketing served as both a tool for environmental
protection and a marketing tactic looked into the beneficial impact of green
intellectual capital on a firm's ability to compete.

The development of a corporate identity as a result of the company's actions and

behaviour (Francisco and Jaime, 2016). Customers place a higher value on social
quality brands than they do on technical and practical qualities.

Corporate identity is crucial since a company's brand is a major factor in how

consumers evaluate its products. The majority of consumers are persuaded by
the marketing that highlights the business's dedication to the environment.
Businesses that use green advertising and promote an environmentally friendly
image impact the purchasing decisions of their customers. People prefer to
identify with brands that care about the environment. When a business conveys
this through its advertising, promotion, publications, and social responsibilities,
it is certain to gain a large following of devoted clients. Companies must pay close
attention to their brand identity, taking into account how it affects employees'
loyalty to their organisations as well as brand performance and satisfaction.

Digital Disruption and Environmental, Social & Governance Page | 75

Customers are prepared to trust that they will make a purchase of an
environmentally friendly goods. According to a study, there is a green segment
consumer in each sample who has a considerable impact on a number of
elements of the other market categories. Customers are willing to pay a premium
for a greener lifestyle because they want to associate themselves with businesses
that adhere to environmental regulations. As a result, green marketing served as
both a tool for environmental protection and a marketing tactic. Chen (2008)
looked into the beneficial impact of green intellectual capital on a firm's ability to
compete. The development of a corporate image as a result of a company's
actions and behaviour. Customers place a higher value on social quality brands
than they do on technical and practical qualities. Corporate identity is crucial
because a company's brand has a significant impact on how consumers evaluate
its products. The majority of consumers are persuaded by the marketing that
highlights the business's dedication to the environment. Businesses that use
green advertising and promote an environmentally friendly image impact the
purchasing decisions of their customers. People prefer to identify with brands
that care about the environment. When a business conveys this through its
advertising, promotion, publications, and social responsibilities, it is certain to
gain a large following of devoted clients.

It requires businesses to pay close attention to their brand identity, taking into
account how it affects employees' loyalty to their companies as well as brand
performance and satisfaction.

Customers are prepared to trust that they will make a purchase of an

environmentally friendly goods. In actuality, a green segment customer in the
various samples has a substantial impact on a number of facets of other market
sectors. Customers are willing to pay a premium for a greener lifestyle because
they want to associate themselves with businesses that adhere to environmental
regulations. As a result, green marketing served as both a marketing strategy and
a tool for protecting the environment.

Digital Disruption and Environmental, Social & Governance Page | 76

 # Green Marketing
Stratergy
# Green Innovation
# Green Value creation
Green Competitive
Advantage
#Brand Image
#Brand Credibility
Corporate image #Green Brand equity
Building
# Energy Efficiency
Organisation culture and # Information System
environment # Organisational
perspective

Conclusion

Building a company's reputation has long been recognised as a crucial

component of strategic business operations. By analysing corporate image in
conjunction with green marketing performance, the above graphic offers
marketers insight into designing an effective marketing plan. According to the
findings, a company's total success is directly impacted by its corporate image,
which is closely correlated with its green marketing campaign. Green marketing
in particular is crucial for positively enhancing a company's reputation. Social
responsibility, product image, and corporate reputation are the three
components that make up corporate image in the context of green marketing.
Through organisational culture and environment, as well as green corporate
advantages, all three can be established. According to this result, consumers view
corporate image as an entire identity that connects to factors of product quality
and company social responsibility. Corporate image is a byproduct of several
circumstances and conveys an organization's identity.

Digital Disruption and Environmental, Social & Governance Page | 77

References

 Sri Widyastuti, Muhammad Said, SafitriSiswono, Dian AndiFirmansyah,

European Research Studies Journal, Volume XXII, Issue 2, 83-99, 2019DOI:
10.35808/ersj/1427
 Kotler, P., & Keller, K.L. 2012. Marketing Management, 14th Global Edition,
Prentice Hall International, Inc., USA.
 Chen, Y.-S. 2008. The positive effect of green intellectual capital on
competitive advantages of firms. Journal of Business Ethics, 77(3): 271-
286.
 Awatara, I.G.P.D., & Wahjudin, I.H., 2010. The impact of the environment
organizational culture and environmental leadership toward competitive
advantage green with green organization's identity as an intervening
variable. Ekosains, 2(3): 1-13.
 Prakash, A. 2002. Green marketing, public policy and managerial
strategies. Business Strategy and the Environment Bus. Strat. Env. 11:
285-297.
 Sharma, Y., 2011. Changing consumer behaviour with respect to green
marketing – a case study of consumer durables and retailing. Zenith
International Journal of Multidisciplinary Research, 1(4).
 Subrat, S. & Suvendu, K.P., 2015. Strategic CSR, Corporate identity,
branding and marketing: review & comments. Review Integrated
Business. Econ. Res. 4(3), 121-140.
 Ravindra, P.S., & Pradeep, K.K., 2012. Greening of industries for
sustainable growth An exploratory study on durable, non-durable and
services industries. International Journal of Social Economics, 39(8): 551-
586.

Digital Disruption and Environmental, Social & Governance Page | 78

 8
Hindustan Petroleum Corporation Limited commitment towards
Environment

Mukul Kumar
Student, 2nd Year PGDM, GL Bajaj Institute of Management and Research, Greater Noida.

About the Company

Hindustan Petroleum Corporation Limited is an Indian state-owned oil and

natural gas company with its headquarters at Mumbai, Maharashtra. It has about
25% market-share in India among public-sector companies and a strong
marketing infrastructure. Hindustan Petroleum Corporation Limited (HPCL) is an
Indian state-owned oil and natural gas company with its headquarters at
Mumbai, Maharashtra. It has about 25% market-share in India among public-
sector companies (PSUs) and a strong marketing infrastructure. Oil and Natural
Gas Corporation owns 51.11% shares in HPCL and others are distributed
amongst financial institutes, public and other investors. The company is ranked
367th on the Fortune Global 500 list of the world's biggest corporations as of
2016.

HPCL was incorporated in 1974 after the takeover and merger of erstwhile Esso
Standard and Lube India Limited by the Esso (Acquisition of Undertakings in
India) Act 1974. Caltex Oil Refining (India) Ltd. (CORIL) was taken over by the
Government of India in 1976 and merged with HPCL in 1978 by the CORIL-HPCL
Amalgamation Order, 1978. Kosan Gas Company was merged with HPCL in 1979
by the Kosangas Company Acquisition Act,

HPCL is a Maharatna Central Public Sector Enterprises (CPSE) and S & P

PlattsTop 250 Global Energy Company with a ranking of 26 with Annual Gross

Digital Disruption and Environmental, Social & Governance Page | 79

sales of Rs. 2,69,243 crore during FY 2020-21. In 2003, following a petition by the
Centre for Public Interest Litigation (CPIL), the Supreme Court of India restrained
the Central government from privatising Hindustan Petroleum and Bharat
Petroleum without the approval of Parliament. As counsel for the CPIL,
RajinderSachar and PrashantBhushan said that the only way to disinvest in the
companies would be to repeal or amend the Acts by which they were
nationalised in the 1970s. As a result, the government would need a majority in
both houses to push through any privatisation.

HPCL owns and operates refineries at Mumbai &Vishakhapatnam with designed

capacities of 9.5 MMTPA & 8.3 MMTPA respectively. HPCL also owns the largest
lube refinery in the country at Mumbai for producing lube oil base company,
HMEL which operates a 11.3 MMTPA capacity refinery in Punjab and also has
16.96% equity stake in MRPL which operates a 15 MMTPA capacity refinery in
Karnataka.

ESG Goals

HPCL is committed to conducting business with an objective to preserve the

environment for sustainable development, being a safe work place and
enrichment of the quality of life of employees, customers and the community.
HPCL’s CSR reaffirms the continuing commitment of corporation toward societal
development. The key focus areas are in the fields of child care, education,
healthcare, skill development & community development, positively influencing
the lives of less privileged. The overall spend on CSR activities was Rs. 156.35
crore during 2020-21.

HPCL has set up HP Green R&D Centre (HPGRDC) at Bengaluru with state-of-the-
art infrastructure facilities in a sprawling campus of 110 acres with energy
efficient green buildings and eco-friendly design norms. Phase-I consists of 7
research labs viz. Crude Evaluation & Fuels Research, Hydro Processing, Fluid
Catalytic Cracking (FCC/RFCC),Catalysis, Bioprocess, Analytical Lab and Nano-

Digital Disruption and Environmental, Social & Governance Page | 80

Technology labs and phase-II labs comprises of Petrochemicals, Residue Up
Gradation, Battery, Corrosion, Engine, Centre Of Excellence-Lubes Research Labs.
Main objective of HPCL Green R&D Centre is to provide advanced technical
support to refineries and marketing division for operational improvement,
absorb new technologies, develop innovative & path breaking technologies/
products and on the long run license technologies and become a knowledge hub.

Sustainable Environment

The growing awareness about the negative environmental impact of using fossil
fuels has led to a greater emphasis on the development of alternate renewable
and cleaner forms of energy such as biofuels and biogas. Biogas has
conventionally been produced from relatively ‘easier to degrade’ substrates like
organic waste, food waste, poultry litter, dairy waste etc. And several
commercial-scale biogas plants are already running successfully using these feed
stocks.

However, lingo cellulosic biomass (LCB) such as agricultural residues (rice straw,
wheat straw etc.). Stalks, leaves, and husks that remain on fields after he
harvesting of cereals and energy crops, or the vegetation removed during de-
weeding and clearing of agricultural lands is another abundantly available waste
material that can potentially be used for biogas production. The anaerobic
digestion of LCB is being carried out mainly at the laboratory or pilot scales only,
as the material cannot digest by majority of micro-organisms. The recalcitrant
nature of lingo cellulosic biomass can be attributed to the lignin that
encapsulates the cellulose and hemicellulose fibres and limits the availability of
holocellulose (cellulose and hemicellulose) to hydrolytic enzymes secreted by the
micro-organisms. Moreover, the existing processes for conversion of LCB biogas
are generally very slow due to inefficient conversion of biomass into biogas. A
few processes have been developed which include thermochemical pretreatment
steps, which are energy- and chemical-intensive and may not be suitable for
commercial scale plants.

Digital Disruption and Environmental, Social & Governance Page | 81

HPGRDC has developed an indigenous and low-cost technology for the enhanced
conversion of LCB to biogas and organic fertilizer, called HP-RAMP “rapid
acidification for methane production”. This technology involves a mild biogas
preconditioning step using commonly available and inexpensive chemicals for
the partial delignification of biomass, which reduces the recalcitrance of lcb
making it more amenable to microbial action. The general process flow of the
technology is given below:

Dry Mild Wet Anaer

Feedst Size Preco Size obic BIOGA Purific METH
ock Reduc nditio Reduc Digesti S ation ANE
tion ning tion on

This technology was initially tested at the laboratory scale using straw and
subsequently evaluated at 100l scale reactors using different feedstock such as
wheat straw, sugarcane bagasse, garden waste, napier grass etc. In all cases, it
was observed that ~83-86% of the carbohydrate content was converted to
biogas with high productivity. The methane content of the produced biogas was
~48-50% i.e. On par with similar technologies. The details of methane and
organic fertilizer generation from different feedstock is given in the table below:

Feedstock Kg of Methane/T of feedstock Solid fertilizer quantity (kg/T)

Rice straw ~107-110 450-480
Mixed biomass ~65-67 680-720
Napier grass ~108-112 450-480

The technology has also been demonstrated in the pilot-scale (4 m3 reactor) as

well as in-house developed microbial inoculum and the methane conversion
efficiency from rice straw was 93% i.e. 107 kg methane could be produced from
1 ton of feedstock. The technology also refuses 100% of the water, and is
therefore practically a “zero liquid discharge” process. Moreover, the organic

Digital Disruption and Environmental, Social & Governance Page | 82

fertilizer generated from the process is of superior quality and has been tested
internally to grow crops such as tomato and sugarcane and found to have
equivalent nutritional qualities with other bio-fertilizers.

Lignocellulosic biomass is an abundantly available feedstock that is available

throughout the year in India. It has been estimated that rice and wheat straw are
generated in millions of tonnes each year. With no suitable mechanism for its
disposal, farmers resort to burning the stubble generated post harvesting of their
crops. This not only generates a huge quantity of noxious gases leading to
deterioration of air quality and a higher incidence of respiratory diseases in the
local population, but also leaves behind burnt carbon residue on the fields, which
progressively reduces the fertility of the soil.

The anaerobic digestion of lingo cellulosic biomass using hp-ramp technology

provides a reliable route for farmers to dispose their excess biomass and
generate high value biogas in the process .the biogas produced has ~48-50%
methane content and is therefore of high calorific value and could be used for
various applications such as heating, cooking, fuel etc.

Technologies for biogas production from lingo cellulosic biomass typically use
energy intensive thermo chemical pre-treatment steps,which significantly add on
to both capex and opex of the project .due to this reason; such technologies may
not be successful at smaller scales. However HP-RAMP utilizes a very low cost
pre -conditioning step that is carried out at near ambient conditions in standard
equipment and is therefore easy to demonstrate at small and mid- scale capacity
plants .HP-RAMP technology therefore can be easily set up at a local community
scale with minimal investment and can be used to supplement rural incomes
.moreover ,the high quality fertilizer generated in the process can be used locally
and this would lead to promotion of organic farming and increased soil fertility .
As mentioned earlier, the HP-RAMP technology uses less amount of water and
additional nutrients as compared to other similar processes, leading to lower
opex and faster returns on investment.

Digital Disruption and Environmental, Social & Governance Page | 83

Key challenges addressed

i. Lignocellulosic biomass generated post harvesting of major crops like rice,

wheat etc. Represent a huge quantity of waste that cannot be easily treated
or disposed, HP-RAMP provides a cost effective solution to managing this
waste, while also generating high quality biogas.

ii. HP-RAMP use a low cost and indigenously developed method to prevent
condition biomas, making it more amenable to anaerobic digestion leading
to greater productivity and methane content in the biogas .

iii. HP-RAMP technology has ~90% water recyclability and therefore, much
lower water consumption than similar LCB -based biogas technologies.

iv. The organic fertilizer generated as a byproduct from HP-RAMP is of high

nutritional quality and can be used as a replacement to chemical fertilizers.

Impact Created

The anaerobic digestion of rice straw and garden waste using HP-RAMP has been
demonstrated successfully at the pilot plant located at HP-RAMP .the biogas
produced has been upgraded using an indigenously developed pressure swing
adsorption system, and the bio- methane so obtained has been compressed,
bottled and used for different on-campus applications. Moreover, the organic
fertilizer generated from the pilot plant has been used in-house for organic
vegetable farming and horticulture purposes. Thus, HP-RAMP technology
provides a cost effective solution to not only manage agri-waste but also
generates two high value products-biogas/biomethane and organic fertilizer .the
development of this technology has the potential to produce bio-methane from
agriculture residues of different kinds at the commercial scale.

Digital Disruption and Environmental, Social & Governance Page | 84

Way Forward

HP-RAMP is an indigenously developed technology by HPGRDC for the enhanced

conversion of lingo cellulosic biomass to biogas/bio-methane .the technology has
already been scaled up to a 4m3 reactor and consistent methane production has
been observed with diverse feedstock like rice straw, wheat straw, sugarcane
bagasse, Napier grass, mustard, etc. Further work in the area would involve
setting up commercial–scale units at different locations for producing biogas.

Digital Disruption and Environmental, Social & Governance Page | 85

 9
Anti-Consumption and Responsible Living
Dr. Manisha Sharma

Assistant Professor, Dept. of Business Administration, St. Xavier’s College, Jaipur

Abstract

The term anti consumption talks about the culture of non-use of material
attractions. It is a called to be the opposite of consumerism. The idea of
consumerism suggests about the over capacity of buying of the goods, and the
overuse of them. The idea of anti-consumption relates to the ethical aspects,
environmental aspects and the resistance towards consumerism. This chapter
discusses the reasons, types and anti-consumption lifestyles and the role of self-
control.

Introduction

There is a lot of focus on the materialism in today era. If someone has a specific
item that makes them feel unique, gives them the sense of success, and lets them
get possessive (Belk, 1985); it is materialism. The purpose of life in today’s world
is just to acquire the materialistic possession and try to accumulate as much
money as possible. We train our students in the similar way when we frequently
talk about the business purpose which is to maximize profits and sales. The
maximization of sales and profits is only possible when we are focusing on the
greater accumulation of material resources and possessions. The marketing and
the promotional branch of any commercial unit focuses on just buying more and
more of the quantity so that they can generate more profits. Today, we as a
consumer who believe in consuming the goods or services just buy the goods
even if we do not require them. Anti-consumption talks about the check on the

Digital Disruption and Environmental, Social & Governance Page | 86

buying and the using pattern of the consumer goods. It tries to find out the logical
understanding as to the real need of the commodity and then taking a rational
decision accordingly. There are certain benefits of anti- consumerism which are
as follows:

1. To gain happiness through material possession - We are told by the media

and the companies promotional agencies that the material possessions are
the one which can give you happiness for which each of us are looking for.
The human mankind has literally started believing on this theory and they
are trying to find the happiness through material belongings. However,
through the concept of anti consumerism people may judge the real need of
the product and try to restrain them as much as possible.
2. Leading life with ease- Imagine if you have to put less energy on the
maintenance of the foods, their keeping, getting them protected, getting
them insured, repairing and related expenses to it. If you do not have to
manage all this, it will make you more relax and happy. We can not
understand unless we follow this norm.
3. We are under influence which is created by the media that we always are in
a position of competing with each other through the method of materialistic
possessions. We need to focus on the above-mentioned possessions and we
have to compare it constantly with the others and with everyone who is
having the same bracket of income. Anti -consumerism does not support this
theory.
4. Consumerism talks about more buying and more using, increases the greed
in the human behavior which is even restricted by our scriptures also.
5. Amount of loan- The consumerism is running the economies in today’s time.
This behavior just focuses on the consumption and for that it is acceptable
to take loans from the market and repaying it later on. This leads to lot of
stress and financial complications. The idea of anti- consumerism focuses on
the less consumption which leads to a more satisfactory life.

Digital Disruption and Environmental, Social & Governance Page | 87

 6. Less consumerism focuses on greater inclination towards spirituality.
Materialism will lead towards the accumulation of more resources, more
luxury which eventually engross the mind of the person in such a way that it
is impossible for the individual to get connect to God on the way of
spirituality.

Joint Consumption

There is a term collaborative consumption which is used in various research

studies also. When we are talking in terms of anti-consumerism, we need to
derive some way out to reduce it. This can be done through sharing the goods, or
the reuse of the goods, pooling together to save the environment, to borrow the
goods sometime rather than having an ownership for every commodity whether
it is required or not quite often. Certain commodities can be taken on rent as well
whenever required.

Conscious Simplicity

Simplicity in life is obtained by making intentional decisions. We as a consumer

and being surrounded by so many allurements shown through various media and
people practising them, have to be conscious and rational in our approach to live
simply. This decision manifest that the consumer is choosing the minimum
products/goods/available facilities. It is a way to manifest the conscious
simplicity.

Impulse Purchase Behaviour

The material display of goods in the market, on the media, in the movies etc. is
directly and indirectly induce us to get into splurging and overspending even
when it is not required. The western concept of one life is so much made popular
by movies and the media that it has generated the understanding of doing any
right or wrong in this life only. So, the material possession of goods is also made

Digital Disruption and Environmental, Social & Governance Page | 88

compulsory. It shows that the material ownership has to be there in order to live
happily.

Consumption and Relation to Happiness

There is a belief in today’s world that in order to be happy you need to acquire
more material possession. This is the only source of happiness and well-being.
However, there are many researches being done on the subject which proofs that
there is a high negative correlation between over consumption and well-being.
(Albinsson et al. 2010). In today’s time a connect to spirituality is not a part of
people’s life. Everyone has an agenda to just acquire money, use money in over
buying of material things and flaunt money by acquiring goods. People relate
happiness with the acquisition of goods only. The need of spirituality has been
forgotten by most of the people and they are just living under the influence of
maya.

We being the responsible citizen belonging to various nations need to

understand the purpose of materialism, the extent of materialism, the
importance and effect of simple living and connect to God. We need to
understand our roles and limits also in order to use the material aspects. The life
should be simplified by way of discarding the unnecessary clutter which leads to
a connect to the Supreme personality of Godhead also.

References
 Albinsson, Pia A., Marco Wolf, and Dennies A. Kopf. 2010. Anti-
Consumption in East Germany: Consumer Resistance to
Hyperconsumption. Journal of Consumer Behaviour, 9 (6): 412–425.
 Seegebarth, B., Peyer, M., Balderjahn, I., & Wiedmann, K. P. (2016). The
sustainability roots of anticonsumption lifestyles and initial insights
regarding their effects on consumers' well‐being. Journal of Consumer
Affairs, 50(1), 68-99.

Digital Disruption and Environmental, Social & Governance Page | 89

 10
Nykaa: Business Model vs Valuation
Dr. Anand Rai

Professor-Finance, GL Bajaj Institute of Management & Research, Greater Noida

Dr. Arvind Bhatt

Professor-Marketing, GL Bajaj Institute of Management & Research, Greater Noida

Introduction

FSN E-Commerce Ventures (Nykaa), founded in 2012, provides content-led,

lifestyle retail experiences through its e-commerce site. The company has
recently ventured into accessories, lingerie, and even dresses. For both men and
women, it offers a wide range of skincare, makeup, luxury products, fragrances,
and hair care products.The e-commerce site is currently home to over 25 luxury
brands, including MAC, Clinique, Estée Lauder, NYX, Bobbi Brown, Calvin Klein,
L'Occitane, Yves Saint Laurent, Innisfree, The Face Shop, etc.In addition to its app
and website, it also operates 80 offline stores across 40 cities in India in three
different formats. Over 15,000 orders are shipped out every day.

Nykaa went public and listed on National Stock exchange (NSE) on November 10,
2021, with an IPO price of Rs 1125. The company witnessed a stellar
performance during its IPO. Compared to its IPO issue price of Rs 1,125 per
share, the stock began trading at an 82% premium.Post-listing, Nykaa's market
capitalization crossed Rs 1 lakh crore in early deals.It failed to sustain the peak
price of Rs 2572 on November 25, 2021, and started falling steadily. As of May
24, 2022, it is trading at Rs 1400.This raises the question of whether the stock
market's valuation of the company is overstretched?What is the company's
value?

Digital Disruption and Environmental, Social & Governance Page | 90

This case examines the current business model of Nyka and put forward the past
financial performance and future projections to estimate the fair valuation of the
company as on date.

Background

Falguni Nayar is the founder of Nykaa, the largest lifestyle and fashion portal in
India. Born and raised in a Gujarati family in Mumbai, she began her career as a
management consultant with AF Ferguson and Co in 1985 after graduating from
IIM Ahmedabad. Following that, she worked for Kotak Mahindra Group in
various roles for 19 years before starting her own business, risking her family
funds. In New York and London, she set up Kotak's international operations. Her
last position at Kotak was Managing Director of its institutional equities and
investment banking divisions. Nykaa was launched the same year to meet the
beauty needs of women with no previous experience in retail, beauty, or
technology. Twelve years later, she is now the richest self-made woman in India,
having amassed a net worth of over $6 billion.

After the listing, Falguni Nayar still holds a majority stake of 56.56%.Through her
experience as a banker, Nayar has developed a capital-efficient, asset-light
business model. Nykaa had raised just $100 million in equity before its $720-
million IPO. Additionally, it stands out among startups as a profitable company. It
posted an $8 million profit on nearly $330 million in revenue in FY21.All the
startups that have recently gone public or are in the process of going public, such
as Zomato, Policybazaar, Mobikwik, Paytm, Oyo Rooms, and Pharmeasy, are
losing money.

The Business Model of NYKAA:

Revenue comes from two major segments: the online store and the offline store.
Nykaa uses an inventory-led model, where it purchases products directly from
manufacturers and stores them in warehouses, which provides higher margins.

Digital Disruption and Environmental, Social & Governance Page | 91

Online Store

In 2017, Nykaa's average basket value for the three to four items in the cart was
Rs. 1,250-1,500, more than double the ticket size of Rs. 350-650 for other online
beauty portals. Nykaa's cost of customer acquisition also fell from Rs. 650-1000
in 2012 to Rs. 200 in 2017. The average cart size had grown to Rs 1983 by 2020.

Despite not being able to find the latest figures, it would be reasonable to assume
that acquisition cost has also fallen.

Offline Store

It should come as no surprise, then, that Nykaa's website generates more

business than its offline stores. In a November 2019 interview, offline stores
accounted for only 15% of the business. It's not the whole story, however. By
comparing the brands available offline and online, revenue share was split 50/50
between the two channels.

Sources of Revenue:

Nykaa Revenue
Model

Product Sales

Banner Ad Discount Commission Misc. Income

Figure-1: Sources of Revenueof Nykaa

Digital Disruption and Environmental, Social & Governance Page | 92

SWOT Analysis of NYKAA

Figure-2: SWOT Analysis of NYKAA

Financials of Nykaa:

 In FY19, revenue from operations stood at Rs 1,111.39 crore. Now in FY

21, it stands at Rs 2.440.90 crore with CAGR of 48.2%

 In FY 2020, the company turned profitable at an operating profit level and

the margin increased to 3.9% in FY 2021.

Digital Disruption and Environmental, Social & Governance Page | 93

  The margin increased in 2021 in part due to a 20% reduction in
advertising expenditures (~4% of sales). Due to lockdown and muted
business activity, the company cut advertising spending in H1.

 Management predicts advertising expenses will rise again in coming years

as the company focuses on customer acquisition and engagement.

 The numbers for the last three years show a net profit for the online
beauty and personal care business. However, the fashion segment
continues to lose money.

 Since 2019, sales from online channels have grown by 37%, while sales
from stores have grown by 20%.

Table-1: Financial performance of NYKAA

Financials of Nykaa
Particulars (₹ in crore) FY19 FY20 FY21
GMV 1,650.08 2,684.92 4,045.98
Revenue from Operations 1,111.39 1,767.53 2,440.90
Revenue Growth (%) - 59% 38%
EBITDA 20.51 81.06 161.43
EBITDA Margin (%) 1.85 4.59 6.61
PAT -24.54 -16.34 61.95
PAT Margin (%) -2 -1 3
EPS basic -0.6 -0.4 1.4
Return on Net worth -11 -5 13

Data Source: Company RHP

Table-2:Du Pont Analysis-Standalone of Nykaa

Du Pont Analysis-Standalone
DESCRIPTION Mar-21 Mar-20 Mar-19
PATM (%) 30.74 11.59 -0.41
Sales / Total Assets(x) 1252.4 1119.7 789.59
Assets to Equity (x) 15.27 18.89 20.46
ROE (%) 7.54 4.36 0.28

Digital Disruption and Environmental, Social & Governance Page | 94

Valuation Ratios:

An investment's attractiveness can be measured using valuation ratios, which are

some of the most commonly quoted and easily used ratios. Essentially, these
measures measure a company's publicly traded stock price to provide investors
with an idea of how affordable or expensive it is.

Ratio levels are usually associated with the attractiveness of investing in a

company, so the lower the ratio level, the better. Many analysts use the reciprocal
of a valuation ratio, or its multiple, as a measure of a company's relative value.

Popular valuation multiples include:

 Price-to-earnings (P/E)

 Price-to-book (P/B)

 Price-to-sales (P/S)

 Price-to-cash flow (P/CF)

Example: Price-to-Earnings

The price-to-earnings (P/E) ratio is one of the most well-known valuation ratios.
It compares a company's stock price to its earnings on a per-share basis. Like
other valuation ratio analyses, the price to earnings shows the premium that the
market is willing to pay.

The P/E ratio is calculated as follows:

P/E Ratio= Market Price per share/Earnings Per Share (EPS)

A ratio like this allows any company's earnings to be easily compared. It

indicates how much investors are willing to pay for a dollar's worth of earnings

Digital Disruption and Environmental, Social & Governance Page | 95

at a particular company. If the ratio is higher, investors are more willing to
invest.

But, a higher P/E ratio for one company does not necessarily mean that its stock
is overpriced. Various industries have substantially different P/E ratios, so it is
important to compare a company's P/E ratio with its industry's.

Annexure-1 provides a comparative analysis of Nykaa's valuation ratios with its

competitors.

Questions to Answer:

1. Are you of the opinion that Nykaa stock is overvalued in the secondary
market given the current price of Rs 1400 per share as of May 25, 2022?
Justify.

2. Where does Nykaa stand in the future? Examine the major threats to
Nykaa and its fair market value.

ANNEXURE-1:

Peer Group Comparison (Standalone)

Droom FSN E- Pepper Shop CJ Tata 1MG
Company Name
Technology Commerce fry Pvt Lt Network Tech
Financial Year FY-20-21 FY-20-21 FY-20-21 FY-20-21 FY-20-21
Net Sales 124.02 145.81 203.44 163.4 134.05
PBIDT -56.11 57.47 -40.01 -149.36 -255.03
PAT -66.21 36.19 -47.21 -157.13 -270.93
Adj. EPS (Rs) -5 -0.65 -2.68 -30103.22
PBIDTM (%) -45.25 39.41 -19.67 -91.41 -190.26
PATM (%) -53.39 24.82 -23.21 -96.16 -202.12
ROCE (%) -73.37 9.44 -83.07 -921.17 -150.72
ROE (%) -575.13 7.54 -343.45 -929.26 0
TTM Ratios NA 25-May-22 NA NA NA
Latest EPS (Rs) -3.46 0.76
Latest CEPS (Rs) -3.24 0.94 0 0 0
Price/TTM CEPS
0 1454.51 0 0 0
(x)

Digital Disruption and Environmental, Social & Governance Page | 96

 TTM PE (x) 0
Price/BV(x) 10.43
EV/TTM EBIDTA
1125.79
(x)
EV/TTM Sales
443.69
(x)
Dividend Yield
0
(%)
M Cap /TTM
445.06
Sales(x)
Latest Book
7.58 131.17
Value (Rs)

ANNEXURE-2:

Top Holdings as on as on 202203

Name Category Holding %
Sanjay NayarFamiy Trust Promoters 22.32
Falguni Nayar Family Trust Promoters 22
AnchitNayar Family Trust Promoters 3.03
AdwaitaNayar Family Trust Promoters 3.03

References

 Introduction of Nykaa retrieved from https://www.5paisa.com/ipo/nykaa-ipo.

on May 24, 2022
 Background and Business model of Nykaa retrieved from https://www.business-
standard.com/article/companies/nykaa-ipo-how-falguni-nayar-proved-it-s-
never-too-late-to-start-up-121111101674_1.htmlon May 24, 2022.
 Business model of Nykaa retrieved from
https://whatisthebusinessmodelof.com/business-models/nykaa-business-
model/on May 24, 2022.
 https://lapaas.com/paytm-case-study/ Accessed on March 18, 2022
 Competitors Valuation Ratio retrieved from https://www.tickertape.in on March
22, 2022.
 Financial ratio of Nykaa retrieved from
http://www.aceanalyser.com/Analyser.aspx?MenuCode=C3 on March 22, 2022.

Digital Disruption and Environmental, Social & Governance Page | 97

 11
ESG Training and Development program for employees in a
Coffee Store
Dr. Muskan Khan

Assistant Professor, Galgotias College of Engineering and Technology, Greater Noida.

Dr. Arpana Kumari

Assistant Professor, Symbiosis Centre for Management Studies, Noida

Symbiosis International University, Pune

Introduction

A set of criteria for a company's conduct known as environmental, social, and

governance (ESG) investing is used by socially responsible investors to evaluate
possible investments. Environmental criteria take into account a company's
environmental protection efforts, such as corporate climate change policies. The
management of relationships with customers, suppliers, employees, and the
communities in which it operates is examined under the social criteria.
Leadership, executive compensation, audits, internal controls, and shareholder
rights are all aspects of governance.

Investment companies that use ESG investing frequently have their own
priorities. For instance, Trillium Asset Management, based in Boston, uses a
range of ESG indicators to assist identify businesses poised for great long-term
success. As of December 2021, Trillium Asset Management has $5.6 billion under
management.

Training and development is crucial aspect for the employees but also for the
organizations in terms of ESG. Without proper training, an employee cannot cope

Digital Disruption and Environmental, Social & Governance Page | 98

up in the organization and so the duty lies with the organization to train and
develop their employees in whatever departments it is needed.

The business (h) need to have rules to provide training and development on ESG-
related activities such as health and safety training for employees; health and
safety training for the supply chain; training on non discrimination, diversity and
opportunity, justice and equality, responsibility towards environment.

Training has specific goals of improving one's capability, capacity, productivity

and performance. Nowadays, it has been seen that organizations have become
very serious in imparting training to their employees. There are continuous
training and development programs happening in organizations, some-on-the job
and off-the-job programs striving to make the employees competent for their
jobs and ESG roles. Training programs can be for imparting the learning of usage
of equipment or machinery or can be the behavioral learning i.e. how to behave
while working.

Our team’s case is to design a training module on the injustice happening with
the customers and fellow employees in the very reputed coffee shops company. It
was observed that the employees were following the practice of racial and
gender discrimination on their workplace. This practice or behavior has caused
company a lot of troubles. Many times, the employees have insulted the black
customers and the non-paying customers and not only this there even have been
cases of assault with the female employees. So, our team being the trainers have
designed the following training module in order to educate the employees on the
behavioral aspects of performing on the job. The motive behind this short
training program would be providing a balanced learning to the employees about
their do’s and don’ts while performing their job.

Objectives:

To create awareness on training program so that are employees are able to know
more about the ESG in their respective work locations.

Digital Disruption and Environmental, Social & Governance Page | 99

To understand the various diversified people in the organization for instance, the
old aged people, the different colored race, gender differences and many more.

To identify concept of workplace equity for equal treatment of all, irrespective of

their marginalization or identity.

This study covered issues on:

 Collective problem-solving and decision-making

 Promoting respect and value amongst co-workers

 Creating awareness about employees’ differences

 Emphasize the need for change and eradicate prejudices.

Table 1. Training Budget for ESG Training

S. No. Description Rate Amount

Development costs 50,000 each,
Human resource specialists working on the
1 4.5 lakh 55,000
training
Classroom , training equipment
max 75,000 per
Direct and indirect costs -
speaker ,
Semi annual webinar speakers - Web site
40,000
2 creation ; graphic designer 1,35,000 approx
E books, e videos 2000,
Email banner 1500
Pamphlets 4000
Participant compensation
3 1.5 lakhs 1.5 lakhs
2-3 days training cost
Cost of evaluation
4 Training certificates 20,000 25,000
Winner rewards
4.15 lakhs
approximately

Digital Disruption and Environmental, Social & Governance Page | 100

Reinforce the learning

According to Dr. Roy Pollock, who quoted Don and Jim Kirkpatrick from their
book Transferring Learning to Behavior, "A fantastic learning experience is
crucial, but if the trainees do not apply what they have learned, the program has
been a failure even if learning has taken place."

The training is only the beginning, regardless of whether you participated in a

corporate training program or a weekend seminar. To get the most out of the
investment, we must deliberately follow through and put what we learned into
practice. This is often referred to as learning transfer. Converting principles into
enduring practices and habits is the goal of learning transfer.

This could entail developing tools and procedures to implement, track, and
assess the post-training progress in the workplace. To ingrain the knowledge and
make it a part of you, you need discipline, consistency, and commitment.

Here are some straightforward strategies that we can use to seal the learning:-

1. Form a Group

People who share the same objectives, can form a group. They plan regular
group discussions about certain learning topics, and also review and support one
another. By giving prizes to those who make the most improvement, we can even
inspire and challenge the group.

2. Find an Accountable Partner

It's a good idea to work with one person at a time when dealing with more
intricate or specialized concerns. This is advantageous and appropriate when
carrying out a very specific action plan or when addressing private or delicate
matters. They apply this strategy while dealing with delicate matters.

3. Start a journal.

Digital Disruption and Environmental, Social & Governance Page | 101

Trainees canpurchas a blank notebook and begin a progress log. They can make
a summary of what they have learnt first, then list some monthly objectives. They
can keep frequent records of their successes and activities. They can reread what
they wrote at the beginning and recognize how far they have come when they are
feeling defeated and want to give up.

4. Read and Research

Trainees can review their training notes, both those they wrote by hand and
those they typed in their digital notebook. Typically, the things they are asked to
write down are the ones that jumped out to them. Go deeper by reading more
about those subjects and doing further research. They might perhaps discover
something about which they have a passion but were unaware.

5. Create

Why not turn their notes or memorable quotations into artworks if they enjoy
typography, lettering, or design? A mobile phone app can also be used to create
digital art. If they enjoy speaking, record themselves discussing what they have
learnt. Watching it later will be entertaining. Alternatively, creating a comic strip
about their education will be helpful. They will likely remember what they learnt
after doing tasks like these and have some resources to serve as reminders in the
future.

6. Share it

Sharing insights on social media, and consider tweeting some memorable

phrases would be a good practice or they might write a training review. They can
talk about their highlights with other people. It is a means to solidify and validate
their own knowledge and the learning process to teach others what they have
learnt. Sharing knowledge will help others learn it as well as help them
internalize it more thoroughly.

Digital Disruption and Environmental, Social & Governance Page | 102

7. Live it

It is required to make sure to internalize what they have learned. Make sure they
are setting out time to engage in more meaningful conversations with their
coworkers if they learnt the value of being more relational at work. Trainees
must fight the urge to separate themselves if they are antisocial and have learned
about social awareness.

We can use a mix of these strategies in our training program to reinforce the
learning process.

We can use positive reinforcement technique because as we are imparting the

training on behavioral skills the positive reinforcement methods would be more
effective and customer satisfaction would be better. On the other hand, methods
like negative reinforcement, punishment etc would demotivate the employees
and result in failure of the training program.

Developing the program

Strategic Training & Development Process

Business strategy

The mission of the company is –

“To inspire and nurture the human spirit – one person, one cup and one
neighborhood at a time”.

This mission clearly depicts that company values togetherness as well as human
as an individual and by saying one neighborhood it aims to establish a store at
every 2-block stoppage.

Strategic training and development initiatives

Diversify the learning portfolio and improving customer service

Digital Disruption and Environmental, Social & Governance Page | 103

The strategy of our training program desires to expand the learning portfolio of
employees by not just only providing them the materialistic knowledge like using
the appliances they have to work with, but also the behavioral knowledge like a
better understanding of customer service and dealing with them, in addition to
that the employees are learning here all the various tactics to deal with different
types of people which will not only help them in their professional life but also in
their personal life.

Capture and share knowledge

One of the initiatives that could be done is that after providing the training the
company can on a time-to-time basis monitor whether the employees are able to
implement it in any given situation no matter if it is foreseen or not. Also,
whether the senior level employees are able to transfer their own learnings to
their subordinates.

Training and development activities

Use web-based training: The training program will consist of semi-annual

seminars where the employees will get to know the various cultural diversities
from the well-known knowledgeable speakers in the respective fields.

Develop web sites for knowledge sharing: The following training program will be
focusing on creating a special web page where the employees can share their
day-to-day experiences and can also ask questions as to how to deal in a certain
situation. This web page will result in a great success as everyone working in the
organization will be able to capture more and more tactics to handle many
different situations.

Metrics that show value of training

Learning and reduced customer complaints:After completion of the training the

employees could be given certificates for the successful completion of the same.

Digital Disruption and Environmental, Social & Governance Page | 104

The training may result in less customer complaints and a move towards better
service.

Employees satisfaction: The training program aims to launch a “employee of the

month” and “the most generous employee” for the performance appraisal of the
employees which will result in higher satisfaction of the employees.

FAQs will be discussed like -

Q1- Which type of discrimination does the training module consists of ?

Q2 - How many hours will the training program consists of ?

Q3 - What will an employee do if a customer pressurizes to have an order which

could not be provided at the moment? What type of behavior should the
employee show and the correct solution of the problem ?

Q4 - what should an employee do if a non-paying customer is present in the shop

and is neither leaving the place nor ordering anything? What should be the
treatment towards the customer?

Delivery of training

After deciding the motive of training and the training program it is important to
get that training delivered in a right manner. So the delivery of training methods
we used were:

1. Role plays: to impart behavioural training, the most basic thing is to do role
plays to make them understand the real needs of the program and also make
them comfortable with the program first.

2. Global speakers: many global speakers were invited to speak online on the
issue of discrimination and make the employees/trainees understand the
importance of removing such discriminations.

Digital Disruption and Environmental, Social & Governance Page | 105

 3. Set-ups: a special setup was made to impart the whole training program
where the people can freely understand the issues.

Training Evaluation

After the training to employees, we will asess them using Kirkpatrick's Four-
Level Training Evaluation Model. It assist in answering questions like how
effective the training was? Are the employees applying what they've learned? Is it
having a beneficial influence on their function as well as the organization as a
whole?

It is evaluated on four different levels: reaction, learning, behaviour, and results.

Each level of the model reflects a more exact estimate of the effectiveness of a
training program.

Kirkpatrick’s Level 1: Reaction

The first level of criterion is "reaction," which evaluates how well-liked,

beneficial, and applicable the training is to the students' jobs.

 You want people to believe that the training was worthwhile.

 To assess their level of engagement.
 How actively did they participate, and how did they react to the training?

These questions will help us determine how well they received the training. It
also allows you to enhance future programs by highlighting essential issues that
may have been overlooked.

Kirkpatrick's Level 2: Learning

Level 2 is concerned with determining what our learners have and have not
learnt. Level 2 in the New World version of the instrument also assesses what
they believe they will be able to accomplish differently as a consequence, their
confidence that they can do it, and their motivation to make changes. This shows

Digital Disruption and Environmental, Social & Governance Page | 106

how the training improved their abilities, attitudes, and knowledge, as well as
their confidence and dedication.

What steps we took:

At this level we will do an assessment in the form of an exam and interviews on

ESG. To avoid inconsistencies, a specified, transparent scoring process was
decided upon beforehand.

Kirkpatrick's Level 3: Behavior

Level 3 of the Kirkpatrick Model evaluates whether participants were affected by

the learning and whether they are applying what they have learned. We have to
keep in mind that lack of behavioral change may not indicate bad training, but
rather that the organization's current procedures and cultural contexts don't
support the best conditions for learning the intended change.

What steps we will take:

 We started the process of evaluation 6 months after the training is completed.

 We used both silent observations and interviews/survey method to evaluate

changes in behavior. We started by evaluating change with subtle
observations and evaluations. More apparent evaluation measures, including
interviews and surveys, will be utilized once the change is evident.

Kirkpatrick's Level 4: Outcomes

Direct results measurement is the focus of the fourth and final level, Level 4.
Level Four compares the learning to the business outcomes of the organization—
the Key Performance Indicators—that were defined before learning began.
Higher returns on investments, fewer workplace accidents, and larger sales
volumes are examples of common KPIs.

Digital Disruption and Environmental, Social & Governance Page | 107

Conclusion

As everything was ready and imparting this training was a major thing for us we
had to convince our employees for the same. Seminars will be held to influence
them for the training program. Roleplays were played by the trainers themselves
to show how racial/gender discrimination can hamper not only their work life
but also their personal lives.Certain perks will be shown to the employees if they
will join the program. The timings will be adjusted for everyone to be available
and not get burdened with their work and then with this training program.And,
at last we will be able to convince our employees to join the training program for
their betterment and so the program was completed successfully.

It was concluded that ESG training program was well accepted by the company
and an important aspect for training employees. More responsible behavior
towards ESG is expected from employees after they have attended training.

Digital Disruption and Environmental, Social & Governance Page | 108

 12
Human Augumentation Technology
Dr. Arpana Kumari

Assistant Professor , Symbiosis Centre for Management Studies, Noida.

Symbiosis International University, Pune

Kumar Aniket

Student 2nd Year, PGDM, GL Bajaj Institute of Management & Research, Greater Noida

Introduction

A common description of mortal addition is “technologies that enhance mortal

productivity or capability, or that ever add to the mortal body”. We'd add that in
order for commodity to be an compound, it must come so integrated into the
stoner’s life that it becomes an extension of them. For case, a hammer is only
augmentation market are Google Inc. (US), applicable when you need it and
therefore would not be an compound. But a sufficiently discreet exoskeleton
could come as normal to your life as your capability to walk, and therefore would
be an compound. So, following this rule, a laptop would not be considered an
addition, but a smartphone — and especially a mobile smartwatch — could
fluently be considered an addition. It’s nearly always with (or on) you, and it
augments your capability to pierce any information at any time In other words,
for a technology to be considered an addition by our description, it needs to be a
patient and intuitive part of the mortal experience on a moment-by- moment
base. A tool no way becomes a part of your identity, but an addition nearly surely
has to. Eyeglasses, leaders, prosthetics, wearable bias, chip implants, and
inheritable variations w o u l d all be exemplifications of accruals under this
description.

Digital Disruption and Environmental, Social & Governance Page | 109

Key Market Players

Key players operating in the human Samsung Electronics Co. Ltd. (South Korea),
Ekso Bionics Holdings Inc. (US), Vuzix Corporation (US), Garmin (US), Fossil
Group Inc. (US), B-Temia Inc. (Canada), Casio (Japan), Magic Leap Inc. (US),
Rewalk Robotics Inc. (Israel), Polar Electro (Finland), P&S Mechanics. (South
Korea), Jawbone Inc. (US), Life Sense Group B.V (Netherlands), Atoun (Japan),
Mobvoi (China), Rex Bionics (New Zealand), Goqii (US), Guangdong BBK
Electronics Co. Ltd. (China), and Atheer, Inc, (US).

Fig1: Process of Human Machine Augmentation

Challenges

While making mortal addition a reality, engineering brigades have a lot of

challenges to contend with. Each new idea must be estimated from numerous
different angles to insure its viability. Since this is a fairly new field of technology,
it's indeed more important to ask questions in numerous areas, including as
under:

Digital Disruption and Environmental, Social & Governance Page | 110

1. Technological Needs- Is the technology available to support the conception?
Are the factors, detectors, recycling power, and tools formerly there, or will
they need to be developed? This is an important concern for budget and
feasibility.
2. Stoner- Benevolence and Integration How do you make a product that’s easy
to use and does not intrude with what the stoner is doing? To be successful,
an addition must work seamlessly with its stoner. After all, the thing is to be
an compound (and not a interference) to druggies.
3. Trust ability- Augments go beyond what a stoner is able of doing on their
own. Therefore, trust ability is important. For case, what happens if you
develop an exoskeleton that can lift 200 pounds and it fails while someone is
wearing it? To be useful, an compound requirements to be extremely
dependable.
4. Safety- Still, safety is the most important concern, If someone will work nearly
and constantly with a device (or potentially wear or implant it). Augments
need to be tested to rigorous safety norms in all angles.
5. Acceptance- Are people ready for this technology? Will they accept it? It’s
hard to know exactly how the public will admit new technology. But more
stoner exploration and testing outspoken will give generators a sense of how
a product will be entered.
6. Ethical Enterprises- Before diving into addition, it’s important to consider to
what extent the mortal body should be stoked. Before making new technology
available to the public, it'll be over to companies to consider the far- reaching
counteraccusations of their products.

Digital Disruption and Environmental, Social & Governance Page | 111

Implication

Ultimately these mortal addition technologies will blur the lines between humans
and machines, effectively creating the stoked mortal and forcing us to review
societal and profitable morals and the veritable fabric of what it means to be
mortal. Human augmentation technology also increases the productivity of the
organization.

Conclusion

The objective of this study is to explore how technology is increasing mortal

productivity. Also, the way it improves or restores the mortal body or internal
capabilities. Its thing is to ameliorate the mortal experience in both cognitive and
physical.

References

1. https://smebook.eu/knowledge-base/human-augmentation/human-
augmentation-disadvantages
2. https://smebook.eu/knowledge-base/human-augmentation/human-
augmentation-benefits
3. https://www.knowledgenile.com
4. https://www.freshconsulting.com/insights/blog/examples-of-human-
augmentation
5. https://graylinegroup.com/augmented-humanity-future-health-performance

Digital Disruption and Environmental, Social & Governance Page | 112

 13
Green Organizational Culture at Workplace for
Environmental Sustainability
Dr. Antima Sharma

Assistant Professor, University of Engineering and Management, Jaipur, India

Rahit Kundu

BBA Student, University of Engineering and Management, Jaipur, India

Dr. Geeta Rana

Associate Professor, Himalayan School of Management Studies, Swami Rama Himalayan

University, Dehradun

Dr. Ravindra Sharma

Associate Professor, Himalayan School of Management Studies, Swami Rama Himalayan

University, Dehradun

Abstract

The climate on our planet is changing every day and that it is growing worse
from what we hear, see, feel, and experience. Human activity and their needs are
the main causes of these environmental changes. Most of the environment
imbalance is due to factory, industry, workshops and offices etc. The primary
issue on a global scale is this climatic change. Organizations struggle with
difficulties including process and product alignment with regard to global
environmental requirements. Environmental management, meanwhile, remains
unfocused and in a compromised state. Business organizations are seeking for
green organizational cultures in order to exploit them as competitive advantages
in international contests. This study will explore the possibilities and ways to
adopt green organizational culture at workplace further paper will also highlight

Digital Disruption and Environmental, Social & Governance Page | 113

the role of corporate social responsibility to attain green organization culture in
the organizations.

Keywords – CSR, Green Organizational Culture, Global, Environment, Culture

Introduction

Nowadays we talk about one of the most serious problems which the world is
facing is environmental issues, pollution, greenhouse effect as well as the
degradation of the food quality due to which food safety and preserving our
mother earth is one the most discussed topic in today’s conferences and
discussions. The major factor due to which all these problems are arising is
pollution from factories and other means. The effect of companies activities on
environment is an important topic for debate today. Although many regulations
from the government are being implemented the longing of humans will open on
to the real result of it, and the real motivation of doing such things will come
from the behaviors that the individual’s organization will set on to carry out the
actions performed by the individuals.

Green organizational culture is one of the most debated topics by both the
laymen and elite classes of people in society. The green culture concept is mostly
concerned with realizing and obtaining the ecological balance (Mohezara et al.,
2016). a green organizational culture reflects that the people and organizations
need to have a cultural transformation for the collective awareness of their
collective actions toward stakeholders and environments (Aliyu et al., 2015). It
involves both environment and people hence the need to carry out green culture
since it promotes ecological development and sustainable economic growth
based on politics, science and aesthetics (Galpin et al., 2015).

Green organizational culture integrated with corporate social responsibility will

create a huge collision for preserving both the environment and safeguarding it
from future destruction, and not only this it will also put masks on both social as

Digital Disruption and Environmental, Social & Governance Page | 114

well ase environment-friendly organizations which will further give outcome in
the health as well as environmental issues that are being faced up by today’s
generations and will also create apreapical impact upon the government in the
process of policy creation and practical procedures carried up by.

Environmental issues such as pollution, global warming, and the greenhouse

effect have created a huge impact on the health of today’s generations which is
nowadays becoming a primary affair that needs to be considered both by the
organization, government and by individuals. Many ways are being implemented
by an organization to preserve nature and our mother earth, and one of which is
green consumerism in which an awareness among the consumer is being
advertised and promoted in which a message content is being circulated such as
reuse, reduce, recycle. Although this term has externally gained a huge market
concept, we are forgetting that for preserving the mother earth we also need to
be focused on the internal perspective of the whole procedure and that is the
“green culture” in which we will be more emphasized about the production of
goods in an eco-friendly as well as environment acceptable form. And hence this
article will be focusing on more internal factors through which we will be
promoting green culture integrated with organization CSR (company social
responsibility) through which we will be seeing a vibrant way of promoting eco-
friendly practices from an organizational perspective way. The detailed
discussion is as follows:

Before going forward it is important to understand the differences between

“CSR” and “green organization culture”. So, to understand it in a detailed manner
we need to first go through CSR (corporate social responsibility), first of all, it is
to be noted that “green culture” propagates a set of collaborative credence, but
“CSR” propagates by implementing it onto the field of the behavioral structure of
an organization. Another prospect to consider is that the term “CSR” is a vast
prospect and a wide field of research too. As per the statement of ‘Sheehy (2015)’
is concerned “CSR” can be diversified in the field of management studies which

Digital Disruption and Environmental, Social & Governance Page | 115

approaches a contribution toward the social responsibility of a business. The
statement of ‘Sheehy (2015)’ clarifies that:

“CSR (corporate social responsibility) can be conceptualized as a field of study, a

management practice and an approach to improving the dialogue concerning the
social contribution of business.”

From the above statements are concerned it is important to define CSR in a form
of a clear view before we proceed further in our discussion. The foremost
important thing to know about “CSR” is the actions or the activity performed by
an organization toward the social “responsibility” such as contribution towards
the environment, society, economy, or politically important matters. And hence
we can conclude that “CSR” is the efforts or the steps taken by the organization to
improve the social conjunctive impugn present in our society.

On the other hand, if we talk about the companies which follow the ‘Green
Organization Culture’ used to identify, investigate and rectify the causes and
build certain norms that propagate the companies to add certain value to the
environmental issues that are being faced up in recent eras. (Mc Cullough et
al.,2016). So, we can have a brief idea that ‘Green Organization Culture’ is a
procedure that the organization and the human workforce follow to promote
awareness for the environment, and not only that the collective transformation
took place in an organization to safeguard our mother earth is a part of it.

Al-Swidi, et. al., (2021). examine about the joint role of the environmental, GHRM,
and green leadership behavior on GOC, The study conclude that Important role
played by employees’ green behavior towards improving organizational
environmental performances. The study elaborated the joint effect of GHRM,
green leadership behavior on GOC. Gürlek, M., & Tuna, M. (2018),proposed to
develop green organizational culture framework to identify the positive effects of
environmental organizational culture and environment leadership on green
competitive advantage. The main findings of the study are that companies should

Digital Disruption and Environmental, Social & Governance Page | 116

enhance their environmental organizational culture and environmental
leadership to raise their green organizational identity and increase their
competitive advantage. Bulinska-Stangrecka, H., & Bagienska, A. (2021), analysed
the role oforganizational culture in fostering green practices in the workplace
while investigating the mediating role of intrinsic motivation in the context of
energy conservation. The researcher come out of fact that organizational culture
is an important mechanism to reinforce the green practices at workplace. Further
they suggested a key role of instinct motivation in such relationship. Aggarwal, P.,
& Agarwala, T. (2021), explored about the dimensions of green organizational
culture. Awareness and expectations of stakeholders about environmental issues
led to organizations to think about impact of their product and process on
natural environment. This changing scenario put the green organizational culture
to centre stage. The study on the basis of literature review found that integrating
environmental concerns with organizational culture should result in sustainable
competitive advantage mandates that firms measure the extent of ‘greening’ of
the culture. Study also suggests that measurement of green organizational
culture has important tool for creating green environment through proper
human resource practices and policies. Kucukoglu, M. T., & Pınar, R. İ. (2015),
examines the companies’ importance to environmental behaviour, whether they
support employees’ concern toward environment. The study highlighted that
organizations take initiative to promote behaviour of employees towards green
environment, this shows that organization understand the importance of green
environment for sustainable. Major activities followed by organizations as green
initiatives are switching of electrical appliances, recycling of waste materials, and
compulsion of environmental policy, practice of work from home, lesser business
travel and sustainable sourcing of food. Among all majorly practiced initiatives
by organizations are save energy through switching off all PCs and electric
appliances and recycling of waste material. As per study results both seniors and
line management plays vital role in for encouragement of green environment
behaviour at workplace. Study suggests that more study can be conducted to

Digital Disruption and Environmental, Social & Governance Page | 117

create more awareness about green culture in organizations. Jabbour, C. J. C.
(2011),explored the level of greening in HRM practices, organizational culture,
learning and teamwork at Brazilian companies. Conclusion drawn in study was
that entire environmental issues have not been implemented in the traditional
practices of human resource management. There is an unbalance between the
several human resource practice and environmental management. Human
dimension variables like teams, culture and learning are highly aligned with the
support environmental management. It is also observed that companies that are
able to align human resource practices with the objectives of environmental
management can be successful in to achieve environmental sustainability.
Inclusions of environmental issues in traditional human resource practices can
later badly affect good performance in formation of teams, organizational culture,
and learning resulting in negative. Liu, X., & Lin, K. L. (2020), framed a model of
green organization identity to develop green organizational culture and
leadership and its effect on competitive advantage. The study find out that
environmental culture and environmental leadership is positively associated
with organizational identity and competitive advantage. The researchers come to
a conclusion that companies should enhance their environmental organizational
culture and environmental leadership to raise their green organizational identity
which further helps to increase companies’ competitive advantage.

Green Organization Culture at the Workplace

Green organisational culture is nothing more than a strategy for raising

environmental awareness among employees and implementing policies that will
help the company's human resources contribute to a healthier environment.
Industries and organisations are making significant efforts to promote an
environment that is friendly to our mother earth in today's competitive world
and in the era of innovation.

Digital Disruption and Environmental, Social & Governance Page | 118

Members of the organisation take a variety of actions to support green initiatives,
including turning off PCs at night, recycling waste, and using more electronic
communication like mail to reduce paper consumption. The majority of the time,
it is observed that staff behave responsibly and take actions that could define
their responsibility towards green initiatives. This is necessary for promoting
green initiatives because the staff must be fully aware of their obligations to both
the organisation and the environment. (Kucukoglu, M. T., & Pınar, R. İ. (2015).
Next, we'll talk about some strategies that businesses can use to encourage their
staff to engage in environmentally friendly activities. The staff's eco-friendly
actions can be defined as the elimination of any potential harm that would have
been caused to the built environment by their actions.

Since senior team leaders typically control all of the junior-level management's
decisions, the senior level of management's role in a vision of green initiation
cannot be understated. In fact, it is the most crucial factor to take into account. As
a result, it's critical to support senior managers who are taking green action by
establishing green champions, task forces, and teams, among other strategies.

Nowadays, organizations are also taking many steps to promote green

organizational culture or promote pro-environmental activities by the employees
of an organization by introducing methods of incentives to their workers or
employees so that they can feel an urge or get motivated to promote such
activities which are not only in the aim to provide pro-environmental activities
but also can save our mother earth. It is also important to make a note that in this
whole process of promoting pro-environmental activities, the senior
management plays a great role in introducing awareness among the workers
about their activities and the consequences that their activity can bring to the
environment.

The most inoperable procedure is considered as hiring and sorting out criteria
that convey environmental attitude towards the commitment of pro-
environmental activities by imposing penalties for disobedience towards the

Digital Disruption and Environmental, Social & Governance Page | 119

orders from senior management in compliance with green organizational
behavior in an organization.

According to many journals and hypotheses, the organisation is moving forward

and taking steps to promote pro-environmental activities by incorporating it into
their infrastructural manifestos. Their primary support system is the
infrastructure on which they are currently residing. The following points can
help to clarify some of the statements made above.

Major Facts of Green Environment

Prevention of Pollution (P2):

Pollution is such a dangerous toxic which can be easily mixable in air, soil, and
water. Prevention of pollution by different means can also be considered P2, it
means reducing the waste from its source point. Organizational aims such as
reduction of waste and depletion of carbon footprints can create a more
widespread impact on the environment some of the steps, they are taking for
compliance with the above facts are:

 Administrations are continuously modifying their production process in such

a way in which there is less waste or emission of harmful gas can be brought
down to a minimum extent.

 Introducing less toxic or nontoxic material in their production process so that

emission can be at a minimum stake

 Different types of conservational procedures are continuously in a process of

implementation so that they can save energy as well as water at their facility
corners.

 Organizations nowadays emphasize more on reusing material rather than

putting it in the waste stream such as scrap or shop towels.

Digital Disruption and Environmental, Social & Governance Page | 120

 Organization takes an enormous step so that their packaging is reduced.

Conservation of Resources:

Resource conservation can be well defined as the practice done by the

organization in which they can reduce the minimum depletion of resources such
as water, energy, and raw materials and it also includes the use of these
resources most efficiently and in a useful manner.

Some of the techniques followed by organizations are:

a. Adding water-saving toilets and low-flow faucets to an organization's

infrastructure.

b. Water conservation in the landscaping.

c. Encourage staff members or workers to use these resources with more

awareness.

d. Setting up an automatic light-shutoff system.

e. Using LEDs instead of conventional lighting, which is more effective at

conserving energy.

f. Including in production specific procedures that result in the least amount

of waste.

In place of gaining market share or boosting profits, businesses are now focusing
more on sustainability. Companies are going "Green" to improve the
environment and become more sustainable. Here are a few examples to illustrate
this:

Digital Disruption and Environmental, Social & Governance Page | 121

 •Entroduces sustainiable product like recycled polyster.
•It uses renewable energy, due to that suppliers also need to develop
enviornmental policy .
Nike •Eliminates waste by using post-consumer athelic shoes and sneakers for to make
weight room floors and base ball fields

•Impact on climate change

•Presearvation of precious resources
Apple •Uses safer material and products

•Burt's bee commit to produce natural cosmetic products, uses botanical oils, herbs,
and beeswax.
Burt's •Emphazises on saving electricity and water through energy-efficient lightening,
Bee resource management software and effecient production equipments.
•Its goal is to reduce CO2 Emission by 30% from motercycles, automobiles and
power products.
•Honda mange to do this with its disposable partners and other renewable utility
companies.
Honda •Encouragages customers for enviornmental friendly lifestyles.

•Zero waste (nothins is lanfils)

Disney •Net Positive enviormental impact.

Figure 1.1: Green organisational culture demonstrated by few major corporations

Figure 1.1 demonstrates that major corporations are aware of the importance of
a green organisational culture and how it affects their bottom line, profitability,
and sustainability. Companies advertise themselves as environmentally friendly
working environments to entice clients, suppliers, investors, and employees. The
BOSCH website states that they strive to cut waste and increase energy efficiency
by 2% annually. Graphics Packaging: Graphics packaging aims to decrease
greenhouse gas emissions, non-renewable energy waste, water conservation, and
increase paper and paper board recovery.

Green Organizational Culture and Corporate Social Responsibility

The development of an organisation and the reduction of the social stigma

associated with environmental issues are specifically and significantly impacted
by green organisational culture and corporate social responsibility. We can only

Digital Disruption and Environmental, Social & Governance Page | 122

hazard a guess as to whether or not their employees are motivated by their
employer to engage in socially and environmentally responsible behaviour
outside of the workplace. The current paraphrases will briefly discuss how CSR
and CSR have a relationship that is not only connected but also related to their
name of the origination of the organization's social reputation in accordance with
the Operant Condition Theory. Organizational strategies or modules are crucial
in determining how nations and economies develop (Abbas, J., & Dogan, E. 2022).
However, the actions or procedures used in production continuously harm
mother earth and the natural world, which has led to an increase in pollution and
other factors (Ayayi, A. G., & Wijesiri, M. 2022).. The government requested that
the organisation alter its operational practises in order to reduce the likelihood
that nature and natural resources will become stagnant, taking into account the
use of natural resources and the issues that arise from their use. Since culture is a
fundamental component of an organization's perspective, it is crucial to keep in
mind that in order to effectively promote environmental responsibility, we must
first consider the cultural impact on the organization's workforce. As a result, it is
imperative to motivate the workforce to adopt GOC's organisational procedures.

Culture in an organization is an important factor an overhaul basic of

development of an organisation and GOC (Green Organisation Culture) is the key
for this overhaul development which ensures pro environmental activities which
is in the favour of mother earth Muisyo, P. K., & Qin, S. (2021) as well as both the
factors lead to the improving of social stigma and environmental hampers
occurring in day to day life or both the nature and mother earth. Both the factors
also lead to the overall fame and character of an up going organization from the
perspective of GOC it is not much more than only bifurcating the causes which
lead to pollution and manufacturing eco-friendly products (Muisyo, P. & Qin, S.
2021) . But the first step in GOC is that firm's factories must seek and act in a
manner in which the thinking of environment friendliness and adapt some
procedure in which both the internal and external management act green (Liu
and Lin,2020). On the other hand, the primary purpose of CSR (Corporate Social

Digital Disruption and Environmental, Social & Governance Page | 123

Responsibilities) is to focus primarily on external phenomena leading to an
organizational activity towards different stakeholders (KIM 2022) which
includes employees, customers, and improving the social development of a
particular society (Abbas 2020). In CSR organizations mainly propagate through
their financial and economic goals with a perspective on ethics and standards
(Latif et al.2022) whereas dynamic forms or organizations mainly discuss their
missions and steps taken to complete their particular mission or goals and the
values related to society (Deng et al.2022), CSR (Corporate Social
Responsibilities) and GOC (Green Organisation Culture) have important roles in
particular organizational workings which are directly linked with a reputation
(Kumari et al., 2021a) with their reputations. Through many researches and,
instances it has been seen that organizations that are mainly employee oriented
and seek CSR promote pro-environmental ethics among the employees which
further a strong uphold of corporate reputation. According to (Lee et. al., 2022),
the organizations that have a firm GOC not only help relations to achieve Green
Economic objectives but also have a strong reputation through their CSR
(Corporate Social Responsibility) according to (Muisio, P. and Qin, S. 2021) GOC
(Green organization Culture) have a interplay with GHRM (Green Human
resource management) practices which implicates organizations view of green
innovating objectives with the help of human resources of that particular
organisation.

Conclusion

In today’s scenario, if organisations want to sustain for the long term, they need
to make their inclination towards green organization, product, marketing, human
resources, and most importantly, the development of green organisation culture.
Consumers’ behaviour, perception, and intention of buying are changing and
positively affected by CSR activities. CSR is grounded in the green organisational
culture of companies. Companies realise that going green is their social
responsibility. They also know that their customers also expect green behaviour

Digital Disruption and Environmental, Social & Governance Page | 124

from their brands when they buy it. After a review of studies, it is observed that
there is a link between CSR and green organisational culture. To promote green
culture or to implement it into their CSR policies, they should develop green
behaviour in employees. Within office walls, through small habits, green
organisational culture can develop like-less paper use policy, use of LED lights,
use of disposable products instead of plastic, switch to recycled products, motion
dictators, encourage employees to pool vehicles for transportation, use recycled
lunch containers etc. To implement green behaviour at the workplace, rewards
can be attached to it. These little things will make a bigger difference in
developing a green culture within the office and helping them understand that
going green is not a compulsion but a necessity for them.

The study observed that businesses are realising that to become more
sustainable, they need to consider their corporate social responsibility to be a
green organization. This is also true that without developing a green culture at
the workplace, they cannot be green organisations and be able to fulfil their
responsibility.

References

 Abbas, J., & Dogan, E. (2022). The impacts of organizational green culture and
corporate social responsibility on employees’ responsible behaviour towards
the society. Environmental Science and Pollution Research, 1-11.
 Aggarwal, P., & Agarwala, T. (2021). Green Organizational Culture: An
Exploration of Dimensions. Global Business Review, 09721509211049890.
 Al-Swidi, A. K., Gelaidan, H. M., & Saleh, R. M. (2021). The joint impact of green
human resource management, leadership and organizational culture on
employees’ green behaviour and organisational environmental performance.
Journal of Cleaner Production, 316, 128112.

Digital Disruption and Environmental, Social & Governance Page | 125

 Aliyu, M. S., Rogo, H. B., and Mahmood, R. (2015). Knowledge management,
entrepreneurial orientation and firm performance: the role of organizational
culture. Asian Soc. Sci. 11:140.
 Ayayi, A. G., & Wijesiri, M. (2022). Is there a trade‐off between environmental
performance and financial sustainability in microfinance institutions?
Evidence from South and Southeast Asia. Business Strategy and the
Environment.
 Bulińska-Stangrecka, H., & Bagieńska, A. (2021). The role of employee
relations in shaping job satisfaction as an element promoting positive mental
health at work in the era of COVID-19. International journal of environmental
research and public health, 18(4), 1903.
 Galpin, T., Whitttington, J. L., and Bell, G. (2015). Is your sustainability strategy
sustainable? creating a culture of sustainability. Corp. Gov. Int. J. Bus. Soc. 15,
1–17. doi: 10.1108/CG-01-2013-0004
 Gürlek, M., & Tuna, M. (2018). Reinforcing competitive advantage through
green organizational culture and green innovation. The service industries
journal, 38(7-8), 467-491.
 Jabbour, C. J. C. (2011). How green are HRM practices, organizational culture,
learning and teamwork? A Brazilian study. Industrial and Commercial
Training.
 Küçükoğlu, M. T., & Pınar, R. İ. (2015). Positive influences of green innovation
on company performance. Procedia-Social and Behavioral Sciences, 195,
1232-1237.
 Liu, X., & Lin, K. L. (2020). Green organizational culture, corporate social
responsibility implementation, and food safety. Frontiers in Psychology, 11,
585435.
 Mohezara, S., Nazria, M., Kaderb, M. A. R. A., Alib, R., and Yunusb, N. K. M.
(2016). Corporate social responsibility in the malaysian food retailing
industry: an exploratory study. Int. Acad. Res. J. Soc. Sci. 2, 66–72

Digital Disruption and Environmental, Social & Governance Page | 126

 Muisyo, P. K., & Qin, S. (2021). Enhancing the FIRM’S green performance
through green HRM: The moderating role of green innovation culture. Journal
of cleaner production, 289, 125720.
 Uwem, E. I., Oyedele, O. O., & Olubiyi, O. T. (2021). Workplace green behavior
for sustainable competitive advantage. In Human Resource Management
Practices for Promoting Sustainability (pp. 248-263). IGI Global.

Digital Disruption and Environmental, Social & Governance Page | 127

 14
Motivating Millennial Employees for ESG Participation and
Adoption
Anchal Kumari

Executive Talent Acquisition

Abstracts

The most valuable asset for any organisation is its human resources. For any
organization, it is essential to comprehend their needs and invest in their
motivation. Millennials make up the majority of the global workforce today, and
they each have unique expectations and preferences from their employers. The
biggest asset management firms in the world have jumped on the environmental,
social, and governance (ESG) investing bandwagon. They look at their
stakeholders to collaborate in ESG practices. The motivation level of
organisation’s employees and their expected motivational factors need to be
considered for gradual ESG adoption. The chapter highlights the importance of
motivating employees for ESG practices specially millennials.

Keywords: Millennials, ESG, Motivation

Introduction

Millennials today are at a turning moment. They are on the cusp of their peak
saving years and are steadfast in their belief that the businesses they invest in
should do more than just make money; they should also contribute to the
solution. A startling 77 percent of millennial investors responded that
environmental, social, and governance (ESG) issues are their top priority when

Digital Disruption and Environmental, Social & Governance Page | 128

evaluating investment options in a recent global survey by the deVere Group
(Robertson, 2020). A recent investor poll published by the Hoover Institution,
the Rock Center for Corporate Governance, and the Stanford Graduate School of
Business questioned 2,470 investors with savings ranging from $10,000 to more
than $500,000, found significant generational differences. Younger shareholders
reported being much more eager to have fund managers pursue ESG objectives
and much more willing to risk greater losses in the process.

Overall, 83% of respondents agreed that when mutual fund managers use their
shares to vote on environmental or social concerns, their personal opinions
have to be taken into account. From there, their perspectives shifted. About two-
thirds of investors aged 58 and older indicated they were only slightly or not at
all concerned about environmental and social issues including income inequality
and carbon emissions, in contrast to the about two-thirds of millennial and Gen
Z investors who said they were very concerned. Additionally, the typical Baby
Boomer was unwilling to lose any money, in contrast to the average investor in
their twenties or thirties who was willing to lose between 6 and 10 percent of
their investments to see businesses improve their environmental practises.

“Motivation" is used to refer to the complete class of drives, desires, needs,

wishes, and other comparable forces that cause someone or a group of people to
work. While recognised to be a primary and ongoing requirement for
employees, it is also clear that firms that actively work to motivate people see
lower rates of employee churn and absenteeism (Davidescu et al., 2020;
Mazrouei, 2021). People naturally desire mentally challenging work that have
value. It's just part of being human. It's what keeps employees motivated and
feeling a sense of belonging to their company, their coworkers, and themselves.
Given that 71% of those surveyed reported feeling their employers' support
early on during the pandemic, the decrease in workforce engagement from the
previous year is disheartening. This trend can be swung around with an ESG
strategy that prioritises the needs of the workforce (Henderson, 2022).

Digital Disruption and Environmental, Social & Governance Page | 129

In this chapter we will explore several aspects of Motivation for ESG in
Millenials.

Environmental, Social, and Governance (ESG)

The phrase "environmental, social, and governance" (ESG) refers to a company's

corporate financial interests, which primarily Centre on ethical and sustainable
outcomes. ESG is a tool used by capital markets to assess businesses and
forecast their financial success. While corporate governance, sustainability, and
ethics are all seen as non-financial performance measures, they serve to
establish accountability and frameworks for controlling an organization's
impact, such as its carbon footprint.

As the number of ESG investment funds increases, businesses are taking ESG
seriously as a method of conducting business. The endeavor to put more
emphasis on sustainable and ethical investments benefits from each ESG
criterion.

Environmental

How seriously an organization takes the preservation of natural resources

depends on environmental conditions. The environment, climate change, energy
use and consumption, and their combined effects are some of these issues.

Air and water quality, biodiversity, deforestation, energy efficiency, carbon

footprint, including greenhouse gas emissions, depletion of natural resources,
waste management, and pollution are a few examples of environmental
variables.

Social Social considerations, such as these illustrations, have to do with how a

company treats its employees.

• Customer satisfaction

Digital Disruption and Environmental, Social & Governance Page | 130

 • Data protection and privacy policies and efforts

• Efforts to fund projects or institutions that assist poor and underserved

communities globally

• Employee diversity, equity, and inclusion (DEI)

• Employee engagement and relations

• Health and safety

• Human rights, including the prohibition of child labour and slavery

• Labor standards

Governance

Governance looks at the internal system checks and compliance-maintaining

procedures that a company uses to police itself. Transparency, industry best
practices, effective management of the business, and related growth activities
are the main goals of governance.

Company leadership, board composition, including diversity and structure,

corruption and bribery, donations and political lobbying, executive
remuneration and policies, and company leadership are a few examples of
governance.

• Tax planning, including internal controls, regulatory regulations, and the

composition of the audit committee.

Consumer behavior has evolved over time and has become more sustainable.
Consumers strive to reduce waste, recycle, and make eco-friendly decisions.
Additionally, this habit affects financial and investing decisions.

Investors are therefore eager to utilize their funds to support businesses that

Digital Disruption and Environmental, Social & Governance Page | 131

uphold these principles. As investors look to fund businesses whose beliefs on
environmental sustainability and social responsibility line up with their own,
ESG investing, also known as sustainable investing, has experienced exponential
development.

The Evolution of ESG

The ESG lens aids in evaluating how an organization handles the risks and
opportunities brought on by alterations in the social, economic, and
environmental factors. Some of these factors were noted in earlier iterations of
strategic and/or regulatory frameworks with a sustainability focus, such as:

EHS (Environmental, Health, & Safety)

Organizations in the United States started thinking about ways to use legislation
in the 1980s to manage or minimize pollution (and other harmful externalities)
brought on by the pursuit of economic growth. While great progress has been
made even today, they also aimed to raise employee labor and safety standards.

Business Sustainability

In the 1990s, EHS developed into a movement known as Corporate

Sustainability. This resulted from certain management teams wanting to
concentrate on lowering their company's environmental consequences above
and beyond what was required by law.

It is generally acknowledged that management teams frequently used corporate

sustainability as a marketing tool to exaggerate (or otherwise mislead) efforts
and environmental impacts—a practice that would later earn the moniker
"greenwashing."

CSR (Corporate Social Responsibility)

The Corporate Sustainability movement started including concepts about how

Digital Disruption and Environmental, Social & Governance Page | 132

businesses should address social challenges in the early 2000s; this concept
later became known as Corporate Social Responsibility.

A significant part of CSR was corporate philanthropy, while some detractors

contend that tax benefits made monetary donations just as alluring as their
eventual economic impact on the recipients. Volunteerism among the workforce
was another feature of CSR.

ESG

Finally, ESG started to become a much more proactive (rather than reactive)
trend by the late 2010s and into the 2020s.

The term "ESG" has developed into a broad framework that covers important
topics including environmental and social impact as well as how governance
structures can be changed to enhance stakeholder well-being.

ESG and employee motivation

The psychological engine that propels business performance, employee

engagement, is at an all-time low. According to a recent global Gallup poll, only
13% of employees are engaged at work, which is commonly described as a state
where workers are inclined to feel and speak favorably about their employment.
Actually, around twice that many deliberately detach from their jobs and freely
criticize their employers. Compare this to a firm like Unilever, which employs
more than 170,000 people and has an employee engagement rating of over 80%

How do they do it?

In a recent piece on this topic, Unilever CEO Paul Polman and I analyze the
various approaches taken by international businesses as they strive to integrate
sustainability into their individual business models. Along the road, we came
across numerous success stories of individuals and businesses that show

Digital Disruption and Environmental, Social & Governance Page | 133

excellent practices but do not provide a universal or predetermined solution for
every firm. To build a successful business, it ultimately comes down to fusing the
values and personal ambitions of each employee with those of the firm. That's
how simple or difficult it is.

Describe the long-term goal of the company.

Why does the business act in the way it does? This is a question that managers
should pose and answer with their staff. The goal, in Unilever's words, is to
"make sustainable living ordinary." The Unilever Sustainable Living Plan, which
integrates ambitious environmental and societal goals while fostering business
growth, has been used by the corporation to carry out this purpose. The brands
of Unilever also play a role in purpose because many of them already have a
social goal built into them. For instance, the goal of the antibacterial soap
Lifebuoy is to "help a kid reach the age of five." Employees can connect with a
company's largerpurpose by considering its social mission and using it as a
platform to share their values, which in turn gives their lives meaning.

Explain the economic justification for sustainability.

Sharing this knowledge with employees advances the cause because research
demonstrates that truly sustainable businesses are lucrative enterprises.
Consider IBM's efforts to increase energy efficiency. IBM has proven through its
extensive energy conservation programme that wise energy management is
both good for the environment and excellent for business. This is because every
kilowatt of electricity not used prevents the generation of greenhouse gases and
boosts IBM's financial performance. IBM executed energy-saving initiatives in
341 locations worldwide in 2014 alone, saving $37.4 million - or 6.7% of IBM's
overall energy use. Leaders should present their arguments to their teams.

Digital Disruption and Environmental, Social & Governance Page | 134

Make each worker a champion for sustainability.

The CEO often starts the process by bringing his or her leadership team on
board in order to establish leadership, which is essential to establishing the
sustainable business model. However, having sustainability champions at the
top is not enough; they must be developed at all organizational levels and
locations. Every Marks and Spencer store has a sustainability "champion," and
Unilever has sustainability "ambassadors" all around the company. Because of
this, 76% of Unilever's 170,000 workers believe their jobs allow them to
contribute to achieving the sustainability goal, and over 50% of all new hires
from universities identify the company's ethical and environmental standards as
their top motivation for joining.

Develop sustainable business practices with your staff.

Engaging employees in the co-creation of sustainable practices is a crucial step

in integrating sustainability into a business. And acting on employee initiatives
is a wonderful approach to do this. When ideas rise from the bottom of a
company, more and better ones are generated. An excellent illustration of this is
Marks & Spencer, which now has clothing recycling bins in its stores that
generate revenue for the global charitable organization Oxfam. An employee's
proposal for the boxes was supported by the board and was a big success.
Employees start to believe they do have a role to play and the ideas begin to flow
after they realize the good impact and financial returns on social and
environmental investments that they helped develop.

Promote sustainability both inside and outside of the organization.

People are constantly interested in tracking and sharing progress on important

sustainability indicators since we normally want to achieve in the areas that
count toward our evaluation. So it makes sense that leading businesses create
indicators to monitor the status of their sustainability plan, which they then

Digital Disruption and Environmental, Social & Governance Page | 135

communicate to staff via scorecards, dashboards, and webcasts. It's crucial to
acknowledge accomplishments in sustainability when they are made in order to
maintain high exposure and drive home the point that they matter to the
business (such as category leadership in the Dow Jones Sustainability Index).

ESG and motivation to millennials

In recent years, sustainable investing has grown significantly. The phrase

applies to any investing process that includes two different activities and adds
ESG considerations into investment decisions. First, it refers to incorporating
ESG factors into investment analysis and valuation, as well as engaging with
investee companies on those same concerns to improve their ESG performance,
in accordance with the United Nations-backed Principles for Responsible
Investment. Analysts that disregard significant ESG issues run the risk of
underperforming because they won't be providing their financial models with
critical risk and return inputs. Second, it describes the process of vetting
businesses based on moral, ethical, or social responsibility considerations:
matching an investor's ideals with the stocks in their portfolio. Compared to
previous generations, millennials have distinct perspectives on investments. The
biggest change is that millennials are more likely to be active investors than
baby boomers or Gen X investors; they also tend to be more hands-on.

According to an EY analysis on millennial involvement in sustainable investing,

the sector is transitioning from a population of passive investors who depend on
income from defined benefit and pension plans to a population that is self-
funding through its defined contribution plans. These millennials will seek
greater control over their money in order to have a greater say in how their lives
turn out. This more aggressive strategy will be accompanied by increased
activist tendencies.

In other way, ESG activities are changing more than simply the workplace.
Investors are also advising businesses to focus more on environmental

Digital Disruption and Environmental, Social & Governance Page | 136

initiatives. Bloomberg Intelligence predicts that ESG assets will increase from
$35 trillion in value now to $50 trillion by

According to Randstad's (2022) Work monitor poll, 41% of workers worldwide

indicated they wouldn't accept a job with a firm that isn't prepared to work to
enhance its diversity (Henderson, 2022). The rapid emergence of the Covid-19
global epidemic fundamentally altered everyone's lives. Regardless of whether
their jobs were secure, employees started to panic. Their performance, whose
graph was steadily and sharply sliding downhill, was a reflection of this ongoing
fear. This prompted firms to make serious efforts to maintain employee
motivation (Wiradendi et al., 2020).

Since the generational age groups, Millennials, make up more than half of the
global workforce, it is imperative to regularly infuse them with motivation to
keep them loyal to a particular company. Workers in particular are in a period of
technological growth, giving them a broader outlook than previous generations.
The fact that extrinsic motivation is insufficient for millennials makes
motivating them more challenging. For them to do their jobs effectively, they
need an equivalent degree of intrinsic motivation (Kuvaas et al., 2017). The
proliferation of Covid-19 moved everything into a digital paradigm, making it
more challenging for businesses to retain the motivation of their millennial
employees.

Thus, organizations must ensure that all interests, particularly those of

employees, are represented in corporate policies. When people are involved in
the decision process rather than simply hearing about ESG issues from the top
down, they are more likely to feel supported and included.

Conclusion

Employees that feel involved, motivated, and engaged become excellent brand
advocates for the company's ESG objectives and culture. This has a favorable

Digital Disruption and Environmental, Social & Governance Page | 137

effect on employee engagement within the organisation as well as the external
marketing of the employer and corporate brands. Give employees the resources
they need to spread the word about projects to their networks. Create a
procedure to keep track of, evaluate, and reward these efforts.

There are various justifications for why businesses are allocating more funds
and staff to developing their ESG initiatives. Among these, productivity and
workforce happiness are undoubtedly the most convincing. Employers can help
their workforce feel more purposeful and engaged at work by taking employee
interests into account when making investments and formulating policies.

Digital Disruption and Environmental, Social & Governance Page | 138

 15
Employee Engagement and Motivation for ESG at Workplace
Dr. Santhi Narayanan

Assistant Professor, Sharda University, Greater Noida

Abstracts

The last decade has witnessed a shift in the approach of companies with ESG
criteria becoming the top priority agenda in their social responsibility initiatives.
This criterion has become the yardstick to measure the sustainability of
businesses that in turn helps to promote a positive environment for its
workforce. The ability to identify and benefit from environmental, social and
corporate governance issues is paramount to a company's success and
sustainability. Employee engagement and motivation have become important for
all companies because they indicate how successful a company is in managing
sustainability. The workforce expects to know about the methods that the
organization undertakes to generate a positive social effect, including the
objectives, commitments, and development envisaged. This is causing an
evolution in many firms, forcing them to reconsider their strategy as a whole and
move away from corporate social responsibility (CSR), which is a philosophy that
promotes doing well by doing good to the ESG criteria enabling the workforce to
choose the organization as a great place to work. In this context, the chapter
explores the importance of motivation and employee engagement for ESG
practices in organizations.

Keywords: ESG, Employee, Employee Engagement, Motivation

Digital Disruption and Environmental, Social & Governance Page | 139

Introduction

The importance of environmental, social, and governance (ESG) issues to a

company's reputation and financial success is becoming clearer, and a variety
of stakeholders, including investors, rating agencies, and customers, are
scrutinizing how corporations are handling them.ESG principles also call for
increased attention to people's well-being, especially that of employees. The
pandemic has caused organizational processes to undergo a reset. Job seekers
have more freedom to wait for positions at firms that can demonstrably
demonstrate efforts to care for their employees. Businesses that have
implemented ESG initiatives have a better chance of retaining existing
employees and attracting new ones. HR leaders are now seeing ESG in a new
light as the world now incorporates diversity and inclusion into its systemic
elements. In addition to reallocating resources, business leaders are adding a
new stakeholder or focus area they want to strengthen. The letter ‘S’, stands for
‘Social’, representing‘ Stakeholders’ which indicates the businesses' reliance on
expanding their impact on people and society. However, it is challenging for
businesses, investors, and regulators to incorporate these measures into their
strategies. Although different organizations have been measuring the
performance of their employees for many years, it is only recently that these
measurements have been considered important enough to be included in
corporate sustainability plans. This points to the fact that the impact of a
company's ESG performance on one of the most significant stakeholder
groups—its employees—needs more attention now.

Talented employees are a company's biggest assets, but many employers face
the challenge of attracting and engaging those employees. A company's
environmental, social, and governance (ESG) strategies can be of help. High
levels of interaction with all stakeholders, particularly employees, are
encouraged by the most successful ESG practices (Fasih, 2022). Employing ESG
practices that prioritize social and environmental good drives employee loyalty,

Digital Disruption and Environmental, Social & Governance Page | 140

which boosts workplace achievement and productivity (Marcer, 2022).
Recognizing that employee relationships—including interactions and linkages
with suppliers, customer service, and involvement with the local and global
community—are fundamental to ESG profitability. Employees are therefore the
primary stakeholder for any organization from an ESG standpoint. Thus, to
successfully manage ESG strategy and achieve ESG goals, businesses must
actively engage with their workforce. This chapter seeks to explore the
importance of motivation and employee engagement for ESG practices in
organizations.

ESG

Three pillars of sustainability

Business, society and the environment have never been more interdependent
and the need to create growth in the right way is more urgent than ever. The
consumers are adding an increasing pressure on companies for providing
responsible choices and the companies need to act keeping in mind the ever-
dwindling natural resources. This has led to the companies incorporating
Sustainable Development Strategies (SDGs), Environmental, Social and
Governance (ESG) norms and adopting more socially responsible practices. The
present time calls for companies to create long term tangible plans with a focus
on sustainability that can achieve real results on ground.

Digital Disruption and Environmental, Social & Governance Page | 141

When we need to evaluate organizational success beyond the realm of profit, we
are required to evaluate long-term sustainability and the interest of all
stakeholders. using the environmental, social and governance criteria. This
criterion initially acted as a framework to assist investors to select investments
based on characteristics rather than financial return. The three elements look at
(a) Environmental – The actions of the organization that consumes energy and
generate waste i.e., the actions taken by the organization to address climate
change (b) Social - The business activity of the organization that affects people
and how an organization treats and values people. For example, updating
recruitment/HR/performance review policies to accommodate DEI
considerations as well as ESG considerations or integrating more responsible
labour policies and relations (c) Governance - The criteria used by the
organizations to make an honest, ethical and fair decision especially about the
structure of the Board, quality of the audit and transparency, company’s risk
management policies and the compensation given to its executives.

Concerns about climate change have led companies and their stakeholders to
focus primarily on the 'Environment' aspect of ESG, such as reducing pollution
and carbon footprints and using resources more sustainably, for the last decade.
However, in recent years, the 'Social' aspect of ESG has grown in importance. This
seeks to detail or assess how the company treats the people with whom it
interacts, such as employees, customers, suppliers, and local communities. (It
also acknowledges that for climate and environmental actions to be just,
inclusive, and long-term successful, their impact on people and communities
must be fully considered. Working conditions, health and safety, employee
relations, diversity, equity and inclusion, operations in conflict zones, and a wide
range of other topics related to sustainable labour relations are examples of
social factors. Meeting social criteria, like meeting other aspects of ESG, gives
investors more confidence that your company will avoid the sustainability risks
inherent in its industry. Constantly monitoring how people in your workforce,
community, and industry are treated can help avoid reputational and legal issues.

Digital Disruption and Environmental, Social & Governance Page | 142

It also provides opportunities to demonstrate how the company goes above and
beyond the minimum legal requirements to create a company that prioritizes
people.

ESG and Employee Engagement

Employee engagement is a key component of any company’s success. The ability

to retain your workforce—especially in today’s competitive business
environment—is imperative for healthy workplace culture, business
performance, sustained growth and profitability. Employee engagement is the
cornerstone of any organization’s success and a critical first step in ensuring
successful sustainability. Companies do not achieve sustainability without
employees’ commitment to it. Therefore, the employees are crucial to the success
of any business, as they implement programs and strategies that grow sales and
increase profits.

The firm sees the ability of employees to develop new goods, enhance existing
ones, and forge solid relationships with customers is increasing as its intangible
asset (Liu and Sun, 2021). A company's workplace has a direct bearing on its
profitability, competitive advantage, and stock market price. While there is a lot
of evidence to support the claim that a company's performance is positively
correlated with the quality of its work environment, there is less evidence to
support the idea that employee satisfaction with their workplace influences that
performance. Organizations with high employee satisfaction also tend to be more
diverse, use less energy, and put more effort into understanding the needs of
their workers.

People naturally desire mentally challenging work that has value. It's what keeps
employees motivated and feeling a sense of belonging to their organization, their
coworkers, and themselves. Therefore, giving employees a strong sense of
purpose, one that goes beyond their specific roles, is crucial to the success of any
organization. As a result of the COVID-19 epidemic and growing worldwide

Digital Disruption and Environmental, Social & Governance Page | 143

demands for social justice, employees are now increasingly motivated to work
for purpose-led organizations and businesses that reflect their values. Every
individual hope that their professional life will serve a greater purpose than
simply earning a living. However, a significant number of people spend the
majority of their waking hours working in settings that do not provide this. A
highly engaged and productive workforce that is proud to play a part in bringing
positive change to communities all over the world will benefit from businesses
that can resolve the conflict that employees feel between their values and the
best interests of the business. The employees must be aware of the ESG
initiatives and know how they can participate in ESG engagement.

The emerging demographic shift to the Millennials and Generation Z workforce

in the workplaces has created the need for organization’s the walk the talk and
action on ESG goals as these generations tend to have greater environmental and
societal concerns than previous generations. The shift is also primarily a result of
stakeholder demand; people anticipate that the businesses they work for and
transact business with will act as change agents and speak out for the greater
good. The stakeholders nowadays have access to more information than ever
before, and they pay attention to see if the organization is living up to their
promises. The employees prefer to undertake volunteer work on a fixed regular
basis as they feel it enhances their sense of well-being.

A key component of what makes a company a wonderful place to work is the ESG
performance acting as the driver of employee satisfaction. As a result, ESG
performance is now a competitive advantage for retaining and attracting
employees to the organization. Once the employees find that their ideas become
a part of the company’s strategy that not only helps in the progress of the
organizational goals of the company but also will have better employee
engagement.

Employee engagement should be a key component of an organization's ESG

strategy. Low internal engagement with the organization’s initiatives, on the

Digital Disruption and Environmental, Social & Governance Page | 144

other hand, may imply to external and internal audiences that the organization's
words about environmental issues are not being followed through on. When it
comes to the organization's ESG story, engagement is the key to authenticity, and
it helps to reduce the risks of losing talent, investment, and business through
improved public perception. The organization needs to prepare a compelling ESG
narrative to share externally with the right communications strategy, supported
by the right tools and features as the engaged employees are strong supporters
and enablers of ESG transformation.

Companies must invest in their corporate purpose and properly communicate it

to truly drive employee engagement around ESG. Thus, embedding ESG best
practices within the workplace will enable companies to improve employee
engagement and the ones that fail to adapt will be left behind.

ESG and Employee Motivation

Employers significantly outperform their competitors in terms of employee

happiness and talent attraction. This pattern is somewhat explained by the
comparatively good environmental performance of these businesses, but it is also
consistent with unique social and governance difficulties. This result implies that
ESG performance might assist businesses in increasing employee satisfaction and
luring in new hires. This is essential since earlier studies have demonstrated that
contented workers put in more effort, stay with their employers longer, and
strive to deliver better outcomes for the company. Enthusiastic candidates for an
employment boost a business' talent pipeline and guarantee the availability of
essential human resources.

The concept of motivation becomes relevant in this dimension of the workplace

as well. Motivation theories emphasize that when a goal, direction and rewards
are clear a person starts taking action to achieve the goal. Similarly, by
implementing ESG organizations can motivate employees with more clarity, logic
and direction that why ESG is important to be adopted and followed religiously.

Digital Disruption and Environmental, Social & Governance Page | 145

Also, the reward factor can be considered in the base two forms extrinsic and
intrinsic to make the ESG more ingrained in employees.

Extrinsic Motivation

Extrinsic motivation is a type of drive that is fueled by benefits from outside

sources. These can be material, like cash or grades, or immaterial, like acclaim or
renown. Extrinsic motivation is solely focused on external rewards, in contrast to
intrinsic motivation, which comes from within the person.

To influence job performance, promotion and training and development are good
motivators (Dorier et al, 2016). Employees stay motivated and their work
efficiency increases if they are found to have a better prospect in the same
company. Continuous feelings of development and challenges are very important
to avoid demotivation and turnover. People may become more motivated to
safeguard the environment if they feel like their physical or mental health is in
jeopardy. People who reside in a polluted environment, for instance, are more
likely than others to take action to lessen the pollution.

Motivation comes from challenging work, ESG work approaches, and autonomy
to choose ESG practices and plan work with ESG consideration. When there is a
time rush, this work structure also helps to keep them engaged and complete the
job. Employees feel appreciated at work when they receive recognition from
superiors, which convinces them that the ESG engagement duty was worthwhile
and that their efforts were not in vain (Sudhanshu & Chauhan, 2013).
Recognition has a direct impact on employee satisfaction and motivation.
Therefore, if their ESG ideas are adopted or taken into consideration, they get
motivated, which makes it simpler to keep them. A few motivational elements
that may affect employee involvement in ESG practices include "interesting ESG
tasks," "friendly work schedule," "possibility to balance work with other ESG
activities," and "career progression."

Digital Disruption and Environmental, Social & Governance Page | 146

Intrinsic Motivation

Intrinsic motivation contributes to the overall work motivation of employees.

Employees recognize the importance of financial security and desire for job
accomplishments. Employees also look for a possibility to learn and grow and to
be trusted with responsibilities and provided adequate job security. Employees
“enjoying their work" followed by “qualities of co-workers”, “rewards" and
“achievements/career growth" which include promotion and performance
achievements.

People's sensitivity to new prospects for environmental conservation will

increase if they learn that a portion of the environment's decline is caused by
their incapacity to protect it (their lack of competence). According to the same
logic, a decline in the quality of the natural and communal environment may
harm their needs for relatedness; young generations may begin to accuse the
older ones of failing to consider the effects of their actions, and some parents and
children may experience strained family relationships as a result of the
environment's deterioration, which may increase their sensitivity to
environmental protection measures. Last but not least, deteriorating
environmental conditions may put people's demand for autonomy in peril by
lowering some vacations and food variety

Employers who are aware of what employees want from their jobs and how
those jobs can fit into their lifestyles will make these young workforces feel
valued and provide them with the "independence to do their jobs," "deadlines
communicated through social media," "good rapport with colleagues," and
"friendly and comfortable working environment." Employees also seek work-life
balance. Such an approach become a good part of the social aspect of ESG.

Digital Disruption and Environmental, Social & Governance Page | 147

Expected motivation factors for Employees for ESG

Benefits that are both monetary and intangible can be used. ESG-initiated awards
may be considered available to employees. ESG can be used as a performance
metric to reward ESG practioner’s in the organization. The indicators will
increase their understanding of where and when they must contribute, how
much ESG contribution is necessary or excessive, and the relationship between
motivational output and employee satisfaction. Workplace guidance and support
during hard times are a sign of relief to the employees and it helps to regain their
confidence and motivation. Offering healthcare benefits to employees has proven
to be a successful strategy for motivating and keeping staff. Facilities are
something that employees demand, and this meets their security demands.
Employees now expect a combination of work from home and work from the
office as per their convenience. Employees are largely driven by modest rewards
like bonuses and pay increases. However, the two cohorts are also intrinsically
motivated, so rewards like responsibility and recognition further encourage
them. They align with organizational goals because they anticipate being happy
in their work.

Such policies would have significant advantages. Employee involvement in ESG

would significantly improve even though those environmental protection
measures were sometimes expensive to execute and rarely compensated
financially. The more supportive the organizationis of the employee pro-
environmental behavior the more efforts employees make to protect the
environment. Employees would give their all to the organization's performance
and the preservation of the environment if they were aware of the company's
values and policies.

The way forward

Companies committed to ESG that want to boost employee engagement can go

about it wisely by fostering both extrinsic and intrinsic drives. This would

Digital Disruption and Environmental, Social & Governance Page | 148

suggest a dual management system where employees might choose to actively
contribute to sustainable development on one side and procedures and
incentives on the other. Employee engagement encompasses four factors that
motivate employees: sustainability, ethical standards, employee skills and
competencies, and recognition. These factors are interdependent and work
together to provide an environment for employees to perform optimally. Classic,
broad-stroke motivation tactics only scratch the surface. Engagement is about
encouraging everyone to care about the company. Shifting these perspectives
about the purpose of work and how employees want to contribute can be helpful.
So, effective communication of the management with the employees for ESG
participation may create a good robust positive feeling in employees. Employees
would be more confident and clearer about the requirement and vision of the
company. Organizations can involve their employees in those sustainable actions
and educate them about those issues to make them understand that their job has
meaning. Companies should seriously promote their values related to sustainable
development in their internal communications. The organisations can include
some of the following measures (a) A diversity and inclusion model to recruit and
retain diverse talent (b) Customized employee benefits and terms to encourage
sustainability, lower carbon emissions (c) Link variable compensation with ESG-
driven objectives(d) Prioritizing employee well-being and (e)Modify employer
policies and procedures to place a greater emphasis on ESG.

Conclusion

All companies have not fully adopted ESG criteria, but it appears to be here to
stay and will probably change the outlook for businesses as they realize the value
of achieving ESG objectives. For some large businesses, the value of a single
percentage point in retention and improvement can be millions of dollars as it
correlates to a variety of indicators like reduced employee turnover, improved
customer retention, and increased productivity — all of which result in higher
profitability — ESG employee engagement has become a key component to their

Digital Disruption and Environmental, Social & Governance Page | 149

overall success. Inclusion and sustainability are intertwined within an ESG
framework. In the long run, businesses will be in a better position to increase
profitability and reputation if they analyze how ESG principles affect their
workforce and take steps to anticipate and control associated risks. A solid ESG
engages employees to contribute more than their extent of obligations, leaving an
enduring positive effect. As a result, ESG plays a significant role in increasing
employee satisfaction and retention. HR leaders will play a crucial role in
assisting organizations in investing in their people and process of supporting
sustainability goals when it comes to the "S" in ESG. Organizations that lag in ESG
adaptation will be rendered highly unattractive workplaces for employees.
Organizations with laid-out ESG programs are more likely to attract skilled
individuals and ensure undisrupted talent flow. Employees who participate in
ESG activities of the organizations are more likely to recommend the
organization, stay with it, and be leaders and supervisors in the long run.

References

 Dorier, Matthieu &Antoniu, Gabriel&Cappello, Franck &Snir, Marc &Sisneros,

Robert & Yildiz, Orcun & Ibrahim, Shadi & Peterka, Tom & Orf, Leigh. (2016).
Damaris: Addressing Performance Variability in Data Management for Post-
Petascale Simulations. ACM Transactions on Parallel Computing. 3.
10.1145/2987371.

 Fasih F (2022) “ESG Success: Employee Engagement Best Practices” |

SafetyStratus

 Mercer (2022) ESG as a workforce strategy, Mercer. Available at:

https://www.mercer.com/our-thinking/esg-as-a-workforce-strategy.html
(Accessed: November 19, 2022).

 Liu and Sun (2021) Work Environment and Employee Performance: Evidence
from Sell-Side Analysts Review of Business 41, no. 2, 85–117. Copyright © 2021
St. John’s University.

Digital Disruption and Environmental, Social & Governance Page | 150

 16
Promoting ESG for Sustainability
Dr. Parvi Bharti Singhal

Assistant Professor, Graphic Era Hill University, Dehradun

Abstracts

Environmental, social, and governance (ESG) refers to the contemporary concept

of management. It's not just the better management, but rather management
with increased efficiency to reduce the impact and risks of environmental, social
and governance issues. The ESG metrics calls for conscious consumerism; which
in today's challenging world helps the organization to create value and loyalty for
its customers and furthermore assist in drawing investors thus improving the
financial presentation of the company. Value creation, brand loyalty, healthy
balance sheet and willing investors makes the operations of a business
sustainable.

Understanding the framework of ESG; E stands for Environmental criteria which

consider how a company manages the environmental risks. It could further
include its policies addressing climate change, use of natural energy, conserving
natural resources, treatment of animals, waste management etc.

The S stands for Social criteria which examines how a company manages its
relationship with its stakeholders, be it internal or external. These stakeholders
could be the vendors, employees, customers, third party service providers and
the community where it operates. The area of operation being wide and the
society being diverse, the management of the social criteria becomes quite
crucial.

Digital Disruption and Environmental, Social & Governance Page | 151

The G stands for Governance criteria which relates to the company's internal
system of standard operating procedures, its practices and control measures. It
includes a company’s leadership role and rights, the internal controls and the
shareholder rights which are prevalent in the organization being a legal creation
in itself.

Need to ESG

Even though almost two decades have gone by when this term was invented, the
wave of it has gone stronger in the recent years. Not just the companies have
better market value and goodwill but even the investors look for companies to
be efficient on the ESG scale to make their investment venture fruitful in the
long run. Global investors have boarded the ESG bandwagon amidst the
concerns over the global environmental concerns, customer response and
ethical governance.

The benefits of adopting and following ESG, like already mentioned, are cost
reduction, achieving economies of scale, being attractive to investors,
competitive advantage in the industry, higher level of integration of supply
chain, attraction and retention of human resource.

CSR has a narrower focus as compared to ESG as ESG turns out to be more
comprehensive. Thus, it is quite reasonable for the investor to refer to the
related rankings. It certainly has a wider appeal to the customer segment,
investors as well as society on a whole.

Being considerate of the environmental, social, and governance (ESG) concerns

does not make things difficult for the company or compromise their returns
through more time, labour and cost requirement; rather it’s the contrary; it calls
for more sustainability, better international ranking and therefore more willful
investments. More the investment a company is able to cater to, the more it
would be able to expand its operation and better would be the utilization of

Digital Disruption and Environmental, Social & Governance Page | 152

resources. The investors also undergo a detailed study to identify the investing
options. As per various industry reports, the investors look at the ranking to
recognize the best possible option for their investment in the long run.

Identification of the benefits of ESG makes it easier and even attractive

proposition for the companies to adapt ESG. The benefits go hand in hand to
work together in vicious circle to contribute towards the growth and improved
financial position of the company.

ESG Risk Ratings and Investment

Companies following the ESG framework have been doing better considering
various aspects of its operation. ESG risk ratings are used by various investors to
ensure their investment is safe, secure and also promising. The ESG framework
is many times related to investment decisions,and stakeholders refer to the ESG
index funds or listing provided by various investment firms in the respective
industry. Investors or stock analysts use the ESG index to avoid putting money
in those firms which are not responsible for their socio-ecological impact.
Bloomberg evaluates the companies for their ESG performance though data
service after collecting publically disclosed ESG sustainability reports, annual
reports and other public sources.

The essence in today's date is to make the companies see the relevance of ESG
and adapt the same for their growth and financial stability. Working towards
ESG in a proactive manner has now become more important for the growth. A
company having strong ESG frame correlates better with high equity returns,
reduced risk, and higher credit ratings.

ESG and Marketing

As and when the company expands, the social and environmental responsibility
of the company assists the marketing team to ensure it happens effectively and
authentically. It helps to define and foster a wide sense of purpose and values in

Digital Disruption and Environmental, Social & Governance Page | 153

the company.

One of the most transformational problems marketing has ever faced is the
requirement to generate purpose and values that are based on environmental,
social, and corporate governance. Up until recently, marketing's main
responsibility was to build the company's brand and communications in order
to promote growth, profits, and consumer lead creation. It is quite certain that
the companies and brands would be governed by ESG ideals in the near future.

Customers, investors, employees, and members of the public are among the
stakeholders who are growing more doubtful about whether businesses are
living up to their promises about these moral issues. For marketing teams,
persuading them has become a daunting task. Due to the rise in popularity of
ESG practises during the pandemic, has compelled businesses to more closely
examine their own processes. The buss is that it is becoming clearer how to
approach this challenge, and it begins with creating and integrating ESG-related
values and purpose into everything you do.

Conclusion

ESG is the latest tool and trend to build on the goodwill and create affiliation in
the mind of the stakeholders. The value creation of companies and brands
following the path of ESG, marketed right, would bring investors and conscious
buyers. It is well known that investments lead to opportunities of expansion,
research and development, increased goodwill and market standing. Loyal
customer base leads to positive word of mouth and increasing sales line.
Addressing ESG concerns in today's date would be the key to survival.

Digital Disruption and Environmental, Social & Governance Page | 154

References

 Ferrell, O.C. (2021, June). Addressing socio‐ecological issues in marketing:

environmental, social and governance (ESG), AMS Review, Vol 11, 140–144.

 Hendricks, Leeya, (2022, March), How marketing teams can tackle the
challenge that is ESG, Forbes,
https://www.forbes.com/sites/forbescommunicationscouncil/2022/03/21/
how-marketing-teams-can-tackle-the-challenge-that-is-
esg/?sh=42b871fe1841
 Henisz, W., Koller, T. & Nuttall, R. (2019). Five ways that ESG creates value.
McKinsey Quarterly.
 Landi, Giovanni & Sciarelli, Mauro (2019). Towards a more ethical market: the
impact of ESG rating on corporate financial performance, Social Responsibility
Journal, Emerald Publishing Limited, ISSN 1747-1117, VOL. 15, No. 1, 11-27.
 The ESG Risk Ratings Methodology (2019, November), Sustainalytics.

Digital Disruption and Environmental, Social & Governance Page | 155

 17
Sustainable Investment and Innovation: A Case of “Alcatel-
Lucent”
(Converting threat into an Opportunity)

Dr. Amit Kumar

Associate Professor (Marketing), GL Bajaj Institute of Management & Research, Greater

Noida

Dr. Shuchita Singh

Associate Professor (Finance), GL Bajaj Institute of Management & Research , Greater

Noida

Abstracts

The “Sustainable businesses”, or “green businesses”, are the enterprises which

have no harmful influence on the earth’s environment; communities; societies; or
economies. This very report is based upon this central philosophy, highlighting
ALCATEL-LUCENT’S dedication towards “sustainable business” adopting
elevated benchmarking in fields comprising ecological protections, growth of
communities and corporate governance.

Alcatel-Lucent’s ecological-sustainability deliberations like that of lowering

energy consumptions, the utilization of substitute forms of power and different
ecological initiatives in the telecommunication sector is driving innovations and
differentiation ultimately giving way for sustainable business.

Keywords: Sustainability, Connectivity, Innovation, Sustainable business.

Digital Disruption and Environmental, Social & Governance Page | 156

Introduction

In earlier days "new economics" implied “Keynesian economics” that was

significant as a reaction to the great depression of the 1930s. According to
Amlan Datta (1997), new economics struggling to mature in contemporary
scenarios today is somewhat much more diverse. It comprises our responses
towards a novel mix of issues that was faintly professed previously, however has
progressively developed in necessity over the last quarter of this century. It
strives to present innovative ideas regarding the ways to systematize the bases
of a sustainable economy at the moment when there are apparent indications
depicting that the worldwide economy can’t go a lot further alongside the
familiar pathways of industrial development without winding up into complete
disaster.

Modernization has betrayed progress by averting us from considering, and

addressing the interwoven environmental and organizational issues. While a
very few have accomplished material abundances, resources depletions and
ecological degradations today cause danger to many and terrorize the hopes of
upcoming generations. (Norgaard, Richard B., 1994). Thus the very study of
profitability and welfare stands at a new junction.

Power efficiencies and carbon footprint aren’t tangential issues anymore for
present's organizations. As the amplified attention is increasingly positioned on
sustainable Information Technology and environmental-sustainable solutions,
propelled by not merely the mounting expenses of power, but increasing
ecological consciousness which is driving the telecom sector to dedicate capitals
to develop product/services matching consumer’s eco-sustainable needs.

Communication technologies contribute around 2 % of the worldwide CO2

emission, which is projected to increase twofold till 2020, following the
increasing demands for internet/broadband facilities. The web element of
Information and Communication Technology accounts for 250 to 300 million

Digital Disruption and Environmental, Social & Governance Page | 157

tons of CO2 production which is comparable to emission by 20% of the light
vehicles in the USA. Alcatel-Lucent’s organizational strategies are motivating
sustainable ecological/environmental initiatives to match the business
ecological hurdles (www2.alcatel-lucent.com).

Sustainable Development: Defining A New Paradigm

World Commission on Environment and Development Report (1987), defines

Sustainable development as the developments that congregate the requirements
of the current times without trading off the requirements of upcoming
generations. This comprises three orientations of sustainable development.

 Economic sustainability refers to the system capable of steady production of

goods/services retaining controllable degrees of external and government
debts, avoiding severe sectoral disparities damaging industrial and
agricultural productions.

 Environmental sustainability is defined as the system maintaining a steady

resource foundation, avoiding excessive exploitations of renewable resources,
and exhausting non-renewable resources to the point wherein the
investments are made with enough replacements.

 Social sustainability aims to achieve distributional equities; sufficient

provisions for social services comprising education & health; gender equity;
and political liability and participations (Holmberg ed., 1992).

 Defining Sustainable Investment refers to an investment approach

incorporating enduring ecological, societal, and governance (ESG) principles
into investment and decision-making for producing better risk-attuned fiscal
profits (World Economic Forum, 2010).

Corporate Background

Alcatel-Lucent is incorporated and headquartered in France, offers solutions

facilitating the service providers, organizations and governments globally, for
delivery of voices, data and audio-video communications service to ultimate
consumers. Leading in the area of permanent (fixed), mobile and congregated

Digital Disruption and Environmental, Social & Governance Page | 158

networks (broadband), ‘IP’ technology, application and services; “Alcatel-Lucent”
offers the “end to end” products/services which facilitate persuasive
interaction/communications facilities for customers at residence, at offices and
while traveling in over 130 nations. All the way through its innovative engines,
“Bell Labs”, it has inculcated the capability to “eco-innovate” and leverages its
research & development to discover and execute innovative solutions offering
societal and environmental rewards. (www.alcatel-lucent.com).

ALCATEL-LUCENT’s Environmental Sustainability Motives

The main aim is to eliminate CO2 releases of communication equipment, which

will be around 4% of the entire international discharges till 2022. Alcatel-Lucent
considers broader policies and schemes to have a deeper influence on
international CO2 releases, that’s the reason it has been striving to force elegant
technologies like Products-explicit enhancements as essential part of lifestyle.
Projects like intelligent metering, suave networks in the communication sector,
stylish residences, and modern freeways would assist in creating further
ecological sustainable and competent universal landscapes. (blog.tmcnet.com).

With Key Stakeholders Alcatel-Lucent strives to develop a sustainability plan

which deals with social and environmental impacts and stakeholders concerns.
The company from suppliers and employees to local communities, customers and
shareholders recognize its commitment to nurture and build a local and global
company to address chief Corporate Responsibilities (http://vartips.com).

ALCATEL-LUCENT’S End to End Solutions

Alcatel-Lucent is competent to assist its consumers contributing to its smart

system gears to impel power efficiencies all the way through its “end-to-end”
networks. For example, it successfully decreased CO2 emission from its “CDMA”
and “GSM” support-stations by 40% and 50%, correspondingly. It’s been also
successful in cutting CO2 discharges from its ‘DSL’ contact line by 20%. It’s been

Digital Disruption and Environmental, Social & Governance Page | 159

concentrating on present’s researches on heat administration of constituents,
energy management of apparatus, and topological management of networks, in
the middle of different ecological sustainable variables (www.alcatel-
lucent.com).

ALCATEL-LUCENT’S Green Sustainability Initiatives

Some of the avid evidences of Alcatel-Lucent’s green sustainability initiatives are

as follows-

1) Light Radio™ launched by it, is an innovative, multi-technological service

which entirely alters the look of the radio RAN through which Alcatel-Lucent
strives to decrease power consumptions of cell phone systems up to 50%
(blog.tmcnet.com).
2) “Green-Touch” - a worldwide association structured by Alcatel’s “Bell Labs”
aims to generate the technology required to build communication systems
thousand fold extra power competently compared to current times.
(vartips.com).
3) Eco-Sustainable Switches- Referring to the monthly convenience expenses for
huge data centers which could effortlessly surpass to several million euro,
while in sleep/idle mode, Alcatel-Lucent's Omni-Switches are the most power
competent instruments in the marketplace while in sleep/idle modes
(www.alcatel-lucent.com).

Landmark Sustainable Investments of Alcatel Lucent

Alcatel-Lucent has demonstrated its sustainable efficiencies end-to-end in tracing

appropriate locations, construction, engineering, structure, incorporation, tasks
and maintenance.

Digital Disruption and Environmental, Social & Governance Page | 160

Vodafone and Alcatel-Lucent launched green power-driven base station in
Qatar

Alcatel-Lucent has established the hi-tech power base station in Qatar to produce
and stock power through fresh breeze and solar power, allowing Vodafone Qatar
to enlarge wireless facilities and upsurge income, covering the utmost distant
places devoid of power networks. This novel, green and hi-tech energy schemes
of Alcatel-Lucent in recent times has considerably reduced fuel expenses and
carbon releases out of the generators.

Eco-sustainable wireless service- Through its wireless base-stations it’s proved

to be a boon for a billion individuals all over the sphere who don’t have access to
telecom facilities as maximum living in premise are unequipped with sufficient
electric network to power a telecommunication system. This can aid grid
regulators to serve prospective clients and smooth entry in these untapped new
marketplaces, infeasible and cheaper ways (www.alcatel-lucent.com).

Alcatel-Lucent synergy with “SGIT” of china on elegant grids- Alcatel-Lucent is

working together with State Grids Information & Telecommunications of china
for developing smart-network, implementing and enhancing the abilities to trace
power absorptions data over energy networks. These data could be utilized by
value firms to screen and regulate highest and off-highest wants to efficiently
cope-up with distribution throughout that period helping reduce charges,
brownouts and leftovers (www.greentelecomlive.com).

Alcatel-Lucent collaborates with “United Nations Global Compact-Caring for

Climate” drive:- Alcatel joined "Caring for Climate” of UN Global Compact to
establish control over environment challenges. It’s shaped by applied resolutions
for forming civic view and civic guiding principles, spreading the consciousness
that environment variation is a challenge necessitating instant and broad deeds
over the portion of governments, trade and inhabitants to prevent substantial
injury to universal fortune and security (www.greentelecomlive.com).

Digital Disruption and Environmental, Social & Governance Page | 161

Alcatel-Lucent installed the 200th solar driven transmission/radio base- In the
year 2008 “Alcatel-Lucent” launched its 200th solar transmission base. The
entire microwaves and different electronic constituents are backed by sun,
offering telecommunication facilities to distant societies over the island of
“Bettenty” and adjacent “Saloum islands” devoid of any wire-less interaction
facilities (www.alcatel-lucent.com).

Societal Scanning of Investments

Societal scanning of investments demands not merely for investment policies and
norms, but also for data regarding organizations’ strategies, practices and
performances. The GRI (Global Reporting Initiative) is a network dependent
organization which leads the way the earth's most extensively utilized
sustainable frameworks works. Its main objective comprises the main-torrent of
disclosures on ecological, societal and ascendancy performances. “Alcatel-
Lucent” has geared up the 2010 Corporate Responsibility report employing the
(GRI) G3 norms. Subsequent to the ‘GRI’ reviews, it has recently achieved a ‘GRI’
execution stage (www.springerlink.com).

Analyzing From an Investor’s Point of View

Analyzing from an investor’s point of view Alcatel is finely-placed to facilitate

eco-maintainable incomes forming an appealing investment for a lucrative
venture. Ecological awareness is, indeed, novel guidelines which the mounting
section of customers and industries are requesting the business to perform. The
factual eco-sustainability has not anything to do along adapting apparent costs to
appear decent even though enduring to do trade typically. It doesn’t refer to
forming costs which weaken trade feasibility.

Few fences to applying maintainable commerce can be as (a) absence of

consciousness of the notion, (b) manufacturing inadequacies due to application
of manifold guidelines simultaneously, (c) absence of fiscal and mechanical

Digital Disruption and Environmental, Social & Governance Page | 162

means to apply this sort of practices (mainly relevant for SMEs), (d)
misperceptions which ascends because of variances amongst the domestic labor-
code and codes of conducts, and (e) domestic controls hampering codes of
conduct implementations (www.greentelecomlive.com).

Identifying these difficulties well Alcatel-Lucent considers that ecological

sustainability could be attained economically and it could too force growths and
productivity as services-providers offering ecological-sustainable
products/services could distinguish itself from the competitions, leading to
enhanced market-share and revenues growths.

Sustainability: A Tool for Differentiation and Competitive Advantage

Taking advantage of “green” business opportunities and dealing with the

negative impacts of its current businesses, ‘Alcatel’ is successfully intertwining
the challenges into opportunities.

A research from the “American Council for an Energy-Efficient Economy”

established that execution of entire arrays of novel technology results in a
spectacular augment in energy efficiencies and is in fact a gross saving of power
by a (10:1) proportion crosswise the economies. Researchers established a
straight association among increase in power productivity and investment in ICT.
A key instance of the alignments of ecological-sustainability with business aims
could be traced in the ways data/information centers presently are getting
handled to trim the expenses and CO2 emissions efficiency. Decreasing CO2
emission is in a straight line connected to the enhancing power efficiencies that
eventually assists the ecology whilst decreasing the operational costs
contributing to the base lines. The expenditure on cooling hard-wears accounts
for a great amount of investments in IT infrastructures. Alcatel-Lucent’s, first-
class data-center in Marcoussis, France employs Omni-Switches, a pioneering
cooling system offering 30% reduction in energy consumptions creating 20%
saving in AC systems (www.alcatel-lucent.com).

Digital Disruption and Environmental, Social & Governance Page | 163

Thus at Alcatel-Lucent it’s evident that there exist tough and substantial business
advantages to be obtained by implementation of ecological-sustainable
fundamentals.

Sustainability Myths and Reality

Assumptions like (1) One can't provide higher degree of services while holding
down its own costs; (2) Organization can't function in an unlocked networks if it
desire to safeguard the data veracity and solitude (3) organization can't operate
an eco-sustainable enterprise lacking forfeiting revenues/profits. These above
stated statements are today reduced to mere myth by rising figures of innovation
oriented and fiscally victorious companies like Alcatel, General Electric etc. After
more than a century wherein financial developments and technical
advancements have been perceived by various organizations as approaching at
the cost of ecological shield, “Alcatel-Lucent” considers that presently the
contrary is right. The superior services offered by the organizations of the future
wouldn’t simply be much reactive to marketplace forces; it would be main
recipients of sustainable productivity/profitability (blog.tmcnet.com).

Conclusion

To sum up, the integration of ecological-sustainability deliberations like that of

lowering energy consumptions, utilization of alternative energies and other
ecological factors in entire planning and designing procedures, more willingly
than retrofits ‘eco initiatives’ can give birth to innovations eventually leading to
competitive advantages without risking the growth and security of the future.
Sustainable businesses need more than superior thoughts and novel projects. It
stresses a novel state of mind, new-fangled disciplines and diverse ways of
developments. Therefore sustainability must notify significant choices in the
preliminary designs of organizational procedures, products/services; enveloping
the whole array of innovative organizational operations and consumer’s
solutions.

Digital Disruption and Environmental, Social & Governance Page | 164

References

 Holmberg ed. (1992), “Making Development Sustainable”, Chapter 1; Reed ed.

(1997), Structural Adjustment, the Environment and Sustainable
Development,Chapter 2.
 Norgaard, Richard B. (1994), Development Betrayed: The End of Progress and
a Co evolutionary Re-visioning of the Future, p. 2, Routledge:New York.
 World Commission on Environment and Development (1987), Our Common
Future.
 World Economic Forum (2020), survey among Sustainable Investing Working
Group.
Online Sources
 “Sustainable business” [Online] Retrieved on 24th Nov’ 2022 from
http://en.wikipedia.org/wiki/Sustainable_business
 “Eco-Sustainable Innovation Drives Profitable Business Growth” [Online]
Retrieved on 24th Nov’ 2011 from http://www.alcatel-
lucent.com/enrich/v2i22008/article_c4a7.html
 “Alcatel-Lucent to work with China’s SGIT on smart grid” [Online] Retrieved
on 24th Nov’ 2011 from www.greentelecomlive.com
 “Sustainability approach” [Online] Retrieved on 24th Nov’ 2022 from
http://www2.alcatel-lucent.com/blogs/corporate/2011/04/alcatel-
lucent%E2%80%99s-eco-sustainability-approach-explained/
 “Green Touch – Green Telecom” [Online] Retrieved on 24th Nov’ 2022 from
http://vartips.com/telecom-equipment/alcatel-lucent/green-touch-green-
telecom-1007.html
 “Global Reporting Initiative” [Online] Retrieved on 24th Nov’ 2022 from
http://www.springerlink.com/content/pt53214283574580/
 “End-to-end solutions” [Online] Retrieved on 24th Nov’ 2022 from
http://blog.tmcnet.com/next-generation-communications/2009/11/alcatel-
lucent-turns-focus-to-green-it-launches-eco-sustainability-site.html

Digital Disruption and Environmental, Social & Governance Page | 165

 18
An Incredible Story of ITC's E-Chaupal Initiative
Dr. Piali Haldar

Associate Professor (Marketing), GL Bajaj Institute of Management & Research, Greater

Noida

Abstracts

In India, the agricultural sector contributes 17-18% to GDP and employs more
than 50 percent of the workforce, the return on investment in agriculture is
insufficient; the condition of the farmers is so bad that on average 28 people who
are dependent on agriculture commit suicide. The newly introduced Farm Laws
herald a new era of market freedom that can go a long way in the improvement
of farmer welfare in India. Whenever we hear the news of a farmer's suicide, we
curse the government for the pathic condition of the farmers in India and we feel
sorry about the farmers until news comes in. And in this process of shallow
activism, we never ever tried to understand what the exact problem of the
farmers is. The fact is that the media houses and political parties are using the
state of farmers for their own advantages.

In 1999, the India Tobacco Company (ITC) develop a revolutionized business

model and change the lives of 4 million farmers across 35000 villages in India.
The best part is that they have not any effort to improve the life of farmers by
charity or philanthropy, but the adopting an innovative business model keeping
in mind the challenges faced by the farmers. Although ITC is known for its
tobacco business, they were also into agri-business, they were exporting
soyabeans to various countries for making poultry and cattle feed.

Digital Disruption and Environmental, Social & Governance Page | 166

In this case study, we will try to understand the challenges faced by soyabeans
producers in Madhya Pradesh, this case study will help us to understand how E-
chaupal initiative by ITC tap million-dollar business opportunities in the field of
agri-business space. Today more than thousands of players have entered in agri-
business sector they are using the latest technology to bridge the gaps in the agri-
business sector. The agri-business sector is in a nascent stage in India. In the
recent past, startups like Ninjacart, Waycool, AgroStar, DeHaat, Vegrow etc have
entered in agri-business sector and are not only doing well but they succeeded in
improving the lives of the farmers and the other players in the food business like
Zomato and Swiggy and others players in food sectors are also moving into agri
supply chain, they are procuring fruits and vegetables and supplying them to
hotels and restaurants. This case study will discuss what lessons we can learn
from ITC’s E-chaupal business model.

The story begins back in 1999 when the agricultural export division of ITC was
not performing well. During that time, soyabean was a primary export
commodity of ITC, and in 1999 ITC was exporting 4 million tonnes of soyabeans.
80 percent of the produced soyabeans were procured from rural Madhya
Pradesh.

80 percent of this produce was turned into soya meals that were used in poultry
and cattle feed. And further, ITC was exporting soyabean meals to countries like
China, Bangladesh, Pakistan, and even United Arab Emirates. And remaining 20
percent become edible oil, which again was highly nutritional and high in
demand. So, the soyabean industry overall was supposed to be very profitable
and the farmers are supposed to be rich. But, the scenario was just the opposite.

The soyabean farmers in Madhya Pradesh were leading a miserable life, most of
them struggling in debt and most of the time they did not even have enough
capital for the next season. And at the same time, even companies like ITC that
were procuring these crops were not able to make a healthy profit. So, the
question was, when soyabean was in such high demand in the international

Digital Disruption and Environmental, Social & Governance Page | 167

market, how is it possible that neither the farmer nor the export companies were
able to make healthy profits? Well as it turns out, it was because of a major
inefficiency in the supply chain of soyabeans. There were three major players in
the supply chain, the farmers, the Agriculture Produce Market Committee
(APMC), and then the export companies like ITC and the wholesalers. So, ideally,
the farmers were supposed to produce their crops and they suppose to take the
crops to APMC was nothing but a body of licensed traders set up by the
government to ensure that farmers are not exploited by the open trade. It is also
called mandi. So at the mandi, only government-licensed traders could buy the
produce from the farmer and no other traders were allowed. So, theoretically,
these traders were supposed to auction for crops, and the highest bidders
procure the crops from the farmer, this way the farmers are supposed to get the
best price and were supposed to get rich, but in reality, this was far away from
the truth. For three major reasons:

Firstly, the mandis are 30 to 50 km far away from the farmers and more than 80
percent of the farmers in our country are small farmers. So, most of them neither
have storage facilities nor could afford the transportation facilities, therefore
they either have to rent a truck or had to sell it to junior contractors, who in turn
sold it to the senior contractors, who then took it to the mandi. So, to put that
straight they either have to bear the cost of transportation or they had sold their
produce to the middle-man at an extremely low price.

Secondly, the farmers had no way to find out what exactly was price being
offered at a particular mandi on a particular day. As a result, they only had to rely
on word of mouth and take the risk of traveling 50 km with the hope that the
word of mouth is true.

And lastly, since other traders were allowed to procure crops from the mandi, the
licensed traders form the cartel and instead of the auction for the highest price,
they all quoted the same price which was way below the standard price of the
produce.

Digital Disruption and Environmental, Social & Governance Page | 168

For example, if one quintal of soyabeans was supposed to be sold at a based price
of Rs. 8000 giving the farmer a profit of 25000 per quintal, what the traders
would do is that all of them quote a price of Rs. 6000 only. Because 1700 farmers
have already traveled 30 to 50 km and they cannot go back and they could not
able to sell their produced anywhere else.

So, the farmers had no other option but to sell their crops at a bare minimum
profit of Rs. 500 to the licensed traders. And on the worst case, if the farmer sold
it to the junior contractor, then the profit would go down further low from 500 to
less than 100 to sometimes even at a loss.

And to make matter worse, even after dragging the price down to a mere Rs. 500.
The mandi traders did not pay the farmers right away, and they took the hard-on
produce at an unofficial credit and paid the farmers only when they made the
profits. And this time of credit would range from one week to even one month.
And this pathetic system put the farmers in a very dangerous vicious cycle since
the farmers do not have enough cash, it led to low investment in farming
equipment, and other essential inputs like pesticides, and fertilizer. This led to
low production, leading to low margin, which again lead to a cash crunch, in fact
even today, this is a state of most of the farmers in our country and at the end of
the day, in 1999, the farmers were losing 60 to 70 percent of the potential value
of their crop with agricultural gains of only of 25 to 30 percent of the global
standards. To resolve these challenges, ITC came out with a revolutionary
initiative called E-chaupal initiative, and they installed a super amazing tool
called the computer in the remotest villages of India in 1999 itself.

Under this initiative, ITC supplied a Windows PC and internet connection and a
dot matrix printer to all the village centers in its canopy. To take this forward,
they launched a website called soyachaupal.com, which consisted of three of the
most important information tabs needed for the farmers, data and weather
reports to help the farmers decide what is the best time to sow the seeds and
prevent them from sowing seeds at the wrong time. And the best practices

Digital Disruption and Environmental, Social & Governance Page | 169

section. For example, 18-inch spacing while sowing the seeds was considered to
be the best practice.

However, many farmers were spacing the seed rows nine inches apart, which
eventually resulted in less yield. And thirdly, they had the market information
section that gave the important market metrics. Including the daily price and
volume traded at the mandis and the ITC centres. And this was supported by
other important pages like the question &s answer section, the new section, and
even the crop information section. Secondly, they appointed a lead farmer called
the Sanchalak who was responsible for helping the farmers out with computer
operations. And he was given a commission of 0.5 percent on the basis of the
farmers' productivity. So, because of the incentive, he automatically worked hard
to help the farmers out with the computer operation and to enable them to
improve their productivity. And thirdly, ITC convinced the government to allow
the company to procure the products directly from the farmers with a promise
that they will provide reasonable costs and well built and efficient, and profitable
supply chain. Thus, ITC E-chaupal was implementation begin in 1999. Back then
ITC had five processing units in Madhya Pradesh and 39 warehouses making a
total of 44 touch points and covering 80 percent of the farmers in Madhya
Pradesh, where the farmers could bring the soyabean produce. The best part was
that these points were 20 to 30 km away from the farmers, as compared to the 30
to 50 km range of these mandies. And this amazing setup change the way the
farmers of Madhya Pradesh traded soyabeans and this is how the system worked
out.

First of all, the farmers were given all important information through E-chaupal,
which included everything from weather forecasts, all the way up to the seed
sowing techniques, therefore, the farmers were confidently invested in their
crop, this reduced of spoilage of crop and the same time it increases the yield
after the harvesting was done, they could directly have a look at the website to
see. How much price was being offered at the APMC and the ITC center on daily

Digital Disruption and Environmental, Social & Governance Page | 170

basis? Eventually, they could compare the prices and then decide where to go to
have higher profits. In this case, ITC even reimbursed the transportation cost to
the farmer for which they do not have to depend on the contractors to sell their
yield at the bare minimum profit.

After that, when they arrive at the ITC center the processing facility also included
a soil testing lab, and here’s top grade scientists offered the best
recommendations for fertilizer or additives based on the chemical composition of
the farmer’s soil sample. Lastly, the farmer was given cash on delivery for the
sale of his product immediately and this was a very big deal because it enables
him to buy fertilizer and other essential products that were needed for the next
season. And this wonderful system turns the disastrous, vicious cycle into a
virtuous cycle by which the farmers have good cash flow which led to high
investment into farming equipment that led to high productivity eventually
giving them thicker margin and better cash follow, on top of that in spite of all
these reimbursements, this set up was so amazing that even ITC ended saving $3
per tonne on transportation and at the same time, the farmers are able to earn $8
extra per tonne. Furthermore, this move turned out to be extremely profitable for
ITC because they got raw material from the farmer at a low cost and were able to
use that for their FMCG Div. and today each E-chaupal initiative already has
become the largest initiative among the internet-based intervention in rural
India, reaching out more than 4 million farmers across 35000 villages in 10
different states.

And today, these crops include soyabean, coffee, wheat, rice, pulses, and shrimp.
This is the incredible story of ITC E-chaupal initiatives and this brings to the most
important part of the episode which is a lesson from the case and business
opportunities in arising in the agricultural space.

There are three important lessons to learn from ITC’s E-chaupal initiative.

Digital Disruption and Environmental, Social & Governance Page | 171

1. First, technological accessibility, government regulation, and cash-rich
stakeholders are the three pillars that can catalyze the growth of rural sectors
of India.
2. In this case, the farm bill now legally allows companies to procure the
products directly from the farmers without seeking special permission.
Thanks to Jio Kisaan, farmers can now witness the next level of the E-chaupal
initiative.
3. Secondly, we are seeing the rise of extremely cash-rich and not-so-profitable
companies like Zomato and Swiggy, who are building a B2B supply chain in
order to supply raw materials to hotels and restaurants. This is where
projects like Zomato hyperpure come in. And just like ITC cannot own a
supply chain, but only make it highly efficient and profitable both for
themselves and for the farmers. If this is done by the rest of the companies,
the efficiency caused by the APMC traders will get eliminated resulting in high
profits for Zomato, Swiggy, and other companies. And then lastly, most
importantly, if you’re someone who wants to invest in organic farming or
hydroponics through contract farming, which eventually helps in developing
game-changing business and investment opportunities in the supply chain.

Digital Disruption and Environmental, Social & Governance Page | 172

 Digital Disruption and Environmental, Social & Governance Page | 173

View publication stats