Module IV: Sustainable Practices • Green Practices • Ethics to handle VUCA

environment • Importance of sustainability • Sustainable Business practices •

Corporate Social Responsibility • Inclusive development

GREEN PRACTICES TO MAKE YOUR COMPANY MORE

ENVIRONMENTALLY FRIENDLY

The environmental impact of companies is an increasingly relevant issue, both for the
company itself and for its different audiences. In addition to contributing to the well-
being of our planet, it is convenient to have green practices not only to save or
economic incentives, but to go hand in hand with
the social and environmental responsibility, bringing with it even a gain in terms of
reputation.

Green practices for any company

1. Analyze your company's carbon footprint

It is important that you have an overview beforehand when identifying
the environmental impact current of your company One way to do this is by
measuring the carbon footprint, which will allow you to know the greenhouse gas
emissions that your company emits into the atmosphere according to the activities
carried out in it .

Knowing the carbon footprint does not require complicated operations: here we leave
you this tool so that you can make a general calculation of the carbon footprint of
your company.

2. Adopt energy efficient practices

Power consumption, It is one of the main responsible for greenhouse gas emissions.
Here companies are large contributors, because in addition to the great use of
electronic devices for work, sometimes they remain connected and even turned on for
long periods of time when they are not used, even at night.

For this reason, it is important that you adopt energy efficiency practices in your
company, which will also reduce the price of the electricity bill. Every month end.
Implement the use of low energy consumption equipment and technologies, switch to
LED lighting systems, bet on renewable energy, turn off the devices you are not using
and do not forget to unplug them.

3. Recycle and reduce waste

Due to work worries or delivery dates, we can sometimes forget how we use and
spend waste in the office. No matter how eager you are, it is important to always ask
yourself the question: is it really necessary for me to print this on a piece of paper?

Consider what waste you can save and try to implement practices such as separating
waste at source, recycling paper, plastic, cardboard and other materials, reducing
water consumption or implementing composting programs .

4. Encourage teleworking
Telecommuting has become an increasingly popular work option, especially since the
times of the pandemic. Teleworking allows a company’s employees to carry out their
work from their homes, thus reducing costs, optimizing the use of resources and
reducing waste production.

It is also worth mentioning that teleworking is a way to reduce the emission

of greenhouse gases by avoiding trips with private vehicles, and the consumption of
energy in the company’s facilities.

5. Promotes the use of sustainable means of transport

If your company requires travel, meetings and face-to-face work, it is important that
you promote the use of sustainable means of transport such as bicycles or electric
vehicles. Generate incentives for employees who decide to use them.

You can also encourage the use of public transport or promote vehicle sharing (a
practice also known as carpooling ), to reduce the amount of emissions generated by
commuting to and from offices.

6. Share environmental awareness

Without a doubt, sustainability and green practices are all the rage today. Why then
not take advantage of this with the people around your company? If you implement
the practices, it is important to open conversations about it with collaborators and
clients, the seed of the safe environmental care that will be watered.

Examples that we give you for this are implementing awareness campaigns about
caring for the environment, offering prizes for good waste management or offering
sustainable alternatives to your customers, such as the use of reusable bags or
reducing the use of paper.

Topic:Ethics to handle VUCA environment

What Is Volatility, Uncertainty, Complexity, and Ambiguity (VUCA)?

Volatility, uncertainty, complexity, and ambiguity (VUCA) is a framework that

originated from the military sphere to describe the challenging conditions of warfare.
However, it has been increasingly adopted in various fields, including business,
economics, and leadership, to characterize the unpredictable and rapidly changing
environments in which organizations operate.

Understanding how to mitigate these qualities can greatly improve the strategic
abilities of a leader and lead to better outcomes.

Let’s break down each component:

Volatility is the quality of being subject to frequent, rapid and significant change.
Small triggers may result in large changes. In a volatile market, for example, the
prices of commodities can rise or fall considerably in a short period of time, and the
direction of a trend may reverse suddenly.

Uncertainty occurs when events and outcomes are unpredictable. The cause and effect
are not well understood, and previous experience may not apply to the situation. It is
unclear which direction events will go; in an uncertain market, for example, it is not
clear if the price will go up or down or by how much.

Complexity involves a multiplicity of issues and factors, some of which may be

intricately interconnected. The relationships between items and people are difficult to
understand. A change in one place may cause unintended changes to other things
down the line. Cause and effect are obscured by many layers, and it is not clear which
factors are important in the decision-making process. In a complex market, for
example, the changes in gas prices affect the prices of many other items that are not
directly related.

Ambiguity is shaped by a lack of clarity and difficulty understanding exactly what the
situation is. Information may be misread or misinterpreted. During ambiguous
situations, all the facts are not clear. The goal or intended outcome may not be evident
to all parties involved. In an ambiguous market, for example, not all information is
public and unseen factors may be affecting prices.

Why is sustainability important?

At its core, sustainability allows individuals and businesses to address pressing

environmental challenges such as climate change, pollution, and resource
depletion.Climate change, driven primarily by human activities such as burning fossil
fuels and deforestation, poses a significant threat to ecosystems, biodiversity, and
human societies worldwide.

Sustainable business practices play a vital role in mitigating climate change by:

Ø Reducing waste and promoting recycling

Ø Implementing sustainable supply chain practices
Ø Transitioning to renewable energy sources
Ø Adopting other climate change solutions into everyday business practices

In general, there are three key components to sustainability in business:

Economic sustainability: This aspect emphasizes the long-term viability of economic

activities, ensuring profitability while maintaining ethical business practices and
contributing to society.

Environmental sustainability: Businesses committed to environmental sustainability

strive to implement practices that foster healthy ecosystems, reduce finite resource
and raw material consumption, waste generation, and greenhouse gas emissions.

Social sustainability: Social sustainability focuses on fostering equitable and inclusive

workplaces, supporting local communities and Indigenous Peoples, and upholding
human rights throughout the supply chain. It involves initiatives such as fair labour
practices, diversity and inclusion efforts, and community engagement projects.

TOPIC: SUSTAINABLE BUSINESS PRACTICES

1. Partner With Nonprofit Organizations

Many organizations interested in embracing sustainability stop short of implementing

concrete initiatives simply because it’s new to them, and the learning curve can be
extensive. An employee or sustainability board tasked with generating a sustainability
plan for the organization can quickly become overwhelmed, leading to inaction.

One way around this, especially for businesses new to the world of sustainability, is to
form partnerships with nonprofits in the space that interests them. Many such
organizations exist and have the resources and experience necessary to help you get
your efforts off the ground. Even those that can't help you conceptualize or implement
policies in your organization will be happy for support, which can help you make an
impact even while you’re first getting started.
Whether you’re interested in racial or gender equity, labor concerns, environmental
issues, or something else, a nonprofit likely exists that aligns with your organization’s
specific goals.

2. Educate Your Employees

Often, the businesses with the most impactful sustainability initiatives are successful
because they educate their employees about the issues and include them in the
process.

This is important for multiple reasons. First, educating your employees increases buy-
in throughout the organizational chart, making it less likely that you’ll slip back into
old ways. Second, it empowers your employees to do their part, which can go far in
boosting morale and helping everyone realize they have a role to play.

Exactly how you educate your employees about the issues your organization cares
about will depend on your situation. Some options include weaving language around
sustainability into company addresses, organizing webinars, lectures, or lunch-and-
learns for employees to attend, or even purchasing corporate social responsibility
training.

3. Encourage Volunteerism

Another excellent way to involve your employees in the sustainability process is to

encourage volunteerism. There are many strategies you might pursue to achieve this
goal.

For example, you might provide paid time off for employees who wish to volunteer,
sometimes known as volunteer time off (VTO). Even providing as little as one or two
days of VTO per year can go a long way in empowering your employees. Similarly,
you can consider organizing a company-wide volunteer drive or day of giving,
wherein your employees are encouraged to volunteer at local charities or for causes
they’re passionate about.

4. Rethink Your Supply Chain

If your business produces and sells a physical product, analyzing your supply chain
has the potential to illuminate significant opportunities to embrace sustainability, such
as:

• Sourcing materials responsibly: If you source raw materials or individual

components from outside vendors, do you know how these materials are procured?
 The simple act of ensuring that your partners follow fair labor practices, such as
disavowing child labor or embracing fair-trade agreements, can have a lasting
impact on your company’s social footprint.
• Reducing consumption of natural resources: While it may not be obvious at
first glance, there may be significant opportunities to reduce the number of natural
resources your company consumes as a part of doing business. You might, for
example, rethink your packaging or streamline your manufacturing process to
reduce plastic waste.
• Reducing carbon emissions: Likewise, there are many ways you might reduce
your organization’s carbon emissions. Installing smart sensors within your
facilities can ensure that heating, cooling, and electricity are automatically shut off
when it isn’t necessary. Moving the production of physical goods closer to the end
customer can significantly reduce transportation-related emissions. On-site solar-
or wind-power installations can allow you to replace some, if not all, of your
electrical needs.

TOPIC: CORPORATE SOCIAL RESPONSIBILITY

Corporate Social Responsibility (CSR) means the voluntary contributions made by

companies to a better society and a cleaner environment. It is a concept whereby
companies integrate social and other useful concerns in their business operations for
the betterment of their stakeholders and society in general.

However, Section 135 of the Companies Act, 2013(“Act”) provides that certain
companies must mandatorily contribute a certain amount towards CSR activities.

CSR Applicability in India

The provisions of CSR apply to every company fulfilling any of the following
conditions in the preceding financial year: Net worth of more than Rs.500 crore
Turnover of more than Rs.1000 crore Net profit of more than Rs.5 crore The Board of
Directors of every company for which the CSR provisions apply must ensure that the
company spends in every financial year at least 2% of its average net profits made
during the immediately preceding three financial years as per its CSR policy. Suppose
the company has not completed three financial years since its incorporation. In that
case, it must spend 2% of its average net profits made during the immediately
preceding financial years as per its CSR policy.
TYPES OF CORPORATE SOCIAL RESPONSIBILITY

CSR is traditionally broken into four categories: environmental, philanthropic, ethical,

and economic responsibility.

1. Environmental Responsibility

Environmental responsibility is the belief that organizations should behave in as

environmentally friendly a way as possible. It’s one of the most common forms of
CSR. Some companies use the term “environmental stewardship” to refer to such
initiatives.

Companies that seek to embrace environmental responsibility can do so in several

ways:

• Reducing harmful practices: Decreasing pollution, greenhouse gas emissions, the

use of single-use plastics, water consumption, and general waste
• Regulating energy consumption: Increasing reliance on renewables, sustainable
resources, and recycled or partially recycled materials
• Offsetting negative environmental impact: Planting trees, funding research, and
donating to related causes

2. Ethical Responsibility

Ethical responsibility is concerned with ensuring an organization is operating in a fair

and ethical manner. Organizations that embrace ethical responsibility aim to practice
ethical behavior through fair treatment of all stakeholders, including leadership,
investors, employees, suppliers, and customers.

Firms can embrace ethical responsibility in different ways. For example, a business
might set its own, higher minimum wage if the one mandated by the state or federal
government doesn’t constitute a “livable wage.” Likewise, a business might require
that products, ingredients, materials, or components be sourced according to free trade
standards.

In this regard, many firms have processes to ensure they’re not purchasing products
resulting from slavery or child labor.

3. Philanthropic Responsibility
Philanthropic responsibility refers to a business’s aim to actively make the world and
society a better place.

In addition to acting ethically and environmentally friendly, organizations driven by

philanthropic responsibility often dedicate a portion of their earnings. While many
firms donate to charities and nonprofits that align with their missions, others donate to
worthy causes that don’t directly relate to their business. Others go so far as to create
their own charitable trust or organization to give back and have a positive impact on
society.

4. Economic Responsibility

Economic responsibility is the practice of a firm backing all of its financial decisions
in its commitment to do good. The end goal isn’t just to maximize profits, but also to
make sure the business operations positively impact the environment, people, and
society.

Topic: Inclusive Development.

§ Inclusive growth means economic growth that creates employment opportunities

and helps in reducing poverty.
§ It means having access to essential services in health and education by the poor.
It includes providing equality of opportunity, empowering people through
education and skill development.
§ It also encompasses a growth process that is environment friendly growth, aims
for good governance and helps in creation of a gender sensitive society.
§ As per OECD (Organisation for Economic Co-operation and Development),
inclusive growth is economic growth that is distributed fairly across society and
creates opportunities for all.
Elements of Inclusive Growth

Skill Development

§ Harnessing the demographic dividend will depend upon the employability of the
working age population, their health, education, vocational training and skills.
Skill development plays a key role here.
§ India is facing a dual challenge in skill development:

o First, there is a paucity of highly trained workforce

o Second, there is non-employment of conventionally trained youths
§ According to the Economic Survey 2017, over 30% of youth in India are NEET
(Not in education, employment or training).
§ Similarly, UNICEF 2019 reports stats that at least 47% of Indian youth are not
on track to have the education and skills necessary for employment in 2030.
Financial Inclusion

§ Financial Inclusion is the process of ensuring access to financial services to

vulnerable groups at affordable costs.
§ Financial inclusion is necessary for inclusive growth as it leads to the culture of
saving, which initiates a virtuous cycle of economic development.
Technological Advancement

§ The world is moving towards an era of Industrial Revolution 4.0. These

technological advancements have capabilities to both decrease or increase the
inequality depending on the way these are being used.
§ Several initiatives have been taken by the government, eg. Digital India Mission,
so that a digitally literate population can leverage technology for endless
possibilities.
§ Technology can help to combat other challenges too, eg:

o Agriculture- Modern technology can help in making an agro-value chain

from farmer to consumer more efficient and competitive.
o Manufacturing- Technology can resolve the problems of finance,
procuring raw materials, land, and linkages with the user market. GST was
made possible only with the help of sound technology.
o Education- Innovative digital technologies can create new forms of
adaptive and peer learning, increasing access to trainers and mentors,
providing useful data in real-time.
o Health- Technologies could transform the delivery of public health
services - extend care through remote health services
o Governance- Technology can cut down delays, corruption, and
inefficiency in the delivery of a public service
Economic Growth

§ India is among the fastest-growing major economies in the world. However,

currently Indian economy is facing slowdown due to both cyclic and structural
challenges.
§ However, the target of becoming a $ 5 trillion economy by 2024-25 can allow
India to reduce inequality, increase social expenditure and provide employment
to all.
Social Development

§ It means the empowerment of all marginalised sections of the population like

SC/ST/OBC/Minorities, women and transgenders.
§ Empowerment can be done by improving institutions of the social structure i.e.
hospitals especially primary care in the rural areas, schools, universities, etc.
§ Investment in social structures will not only boost growth (by fiscal stimulus)
but will also create a healthy and capable generation to handle future work.