Topic Corporate social responsibility an

Gujarat

National

Law

University

Gandhinagar, Gujarat
GNLU Indian Business & Commercial Laws
Academy Summer School -2017
Research Assignment

Topic: “Corporate social responsibility and
environment protection – An Analysis”

Presented by: Sheikh Hilal ahmad
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Department of law, university of
Kashmir

Table of Contents
 Introduction.
 Significance of the Study.
 Objective of Study.
 Research Question.
 Scope of the Study.
 Research Methodology.
 Scheme of Chapterisation.
 CONCLUSIONS AND SUGGESTIONS.
 Bibliography.

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"Let us be good stewards of the Earth we inherited. All of us have to
share the Earth's fragile ecosystems and precious resources, and each of
us has a role to play in preserving them. If we are to go on living
together on this earth, we must all be responsible for it." Kofi Annan
Introduction
The emerging concept of corporate social responsibility goes beyond

charity and requires the corporations to act ethically and morally in the
company’s business affairs. The triple bottom line approach to corporate
social responsibility emphasizes the company’s commitment to operate in
economically, socially and environmentally sustainable manner. CSR is
based on the idea that successful profitable corporations should take the
responsibility for social issues and manage their business in such a way
that maximises profit and stockholder wealth while also contributing to
the resolution of the social problems. The concept involves notions of
human welfare and emphasizes a concern with the social dimensions of
the business activity that have direct connection with the quality of life in
the society. The word responsibility implies that business organisations
were believed to have some kind of obligation towards the society in
which they functioned to deal with the social problem s and contribute
more than just economic goods and services. It is a concept whereby the
companies integrate social and environmental concern in their business
operations and in their interactions with the stakeholders on a voluntary
basis. The main function of an enterprise is to create value through
producing goods and services that society demands, thereby generating
profit for its owners and shareholders as well as the welfare of the
society, particularly through the on going process of job creation. Social

responsibility implies the acceptance of a moral imperative to recognise
the duties and obligations arising from a company’s relationship with
customers, suppliers, employers, shareholders and society at large
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beyond consideration of profit. It refers to business decision making
linked to the ethical values, compliance with the legal requirements and
respect for people and communities and environment.

All economies depend on the abilities of business to manufacture
produce, make available services and carry out other economic activities.
In pursuance of this, they generate employment and several other
benefits. Despite the numerous benefits, they also contribute to the
destruction of the environment by contaminating and depleting natural
resources. Globalization, besides offering opportunities for economic
development, has also resulted in a number of concerns in the social and
environmental realms. In the wake of these concerns, numerous attempts
are being made in the field of corporate social and environmental
responsibility to induce the companies to act in a socially responsible
manner by abiding to laws, rules and regulations, self-regulation and

other voluntary initiatives.

Although the philanthropic approach is still widespread, the Indian
attitude to corporate social responsibility shows a slight shift from
traditional philanthropy to sustainable business. Nevertheless, Indian
corporate Social responsibility agenda is dominated by community
development activities which although considered to be important by the
corporate is criticised by several stakeholders. The criticism focuses on
the aspects that a company's community development approach lacks
transparency and specific standards and must be compared to violations
of social and environmental standards within companies. The Bhopal Gas
tragedy provided the much needed jolt to the Government of India,
judiciary and the corporations; as it brought to the fore the fact that a
huge

amount

of

work

on

corporate

environmental

and

social

responsibilities in India was the need of the hour. In the light of the above
background, the present paper deals with the evolution of reforms in
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governance

in

respect

of

corporate

environmental

and

social

responsibilities in India, legislative and otherwise.

Significance of study
Right to clean and healthy environment forms part and parcel of right to
life, this has been declared as one of the fundamentals of the right to life.
The right to wholesome environment must be understood in a manner
that the corporate must be so functioning in socially responsible manner
so as not to harm the rights of the people. It must give back the society
from where it derives its resources be it natural or human resources.

Corporate Social Responsibility (CSR) with regard to Environment
sustainability, ecological balance, protection of flora and fauna, agro
forestry, conservation of natural resources and maintaining quality of
soil, air and water provides an opportunity to a company to play an
important role in helping to further the cause of conservation and

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sustainability thereby it will help to reduce the ill effects and destruction
caused to the environment.
The topic is of great significance also because as today the whole world is
debating to find out the measures and means to protect the environment
at the global level. Therefore it is the need of the hour to find out that
how the corporations across the globe will also have to play their key role
in achieving the goal of sustainable development. It is also necessary to
find the grim areas in the field of environment where the corporations
have to focus. All human beings and other living creatures are dependent
upon environment in which we live. A safe, healthy, clean and sustainable
environment is vital for the fullest enjoyment of wide range of human
rights which include right to food, health, water, and sanitation. Without

a healthy environment it is difficult to fulfill the aspirations of life or to
live with minimum standard of human dignity.
There is constant and increasing need towards the greater environment
performance which needs greater and proactive environmental setup and
self regulation which is indeed a step ahead from traditional approach of
command and control. Agenda 21 lays down greater emphasis on
corporations to act in such a manner as to minimize the ill implications to
the environment.

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Objectives:

1. To examine the corporate social responsibility in the light of
environment protection.
2. To discuss the impact of organisation’s activities on the environment.
3. To study why the corporate social responsibility principle needs to be
adopted
4. To study the legislative & judicial perspective relating to corporate
social

responsibility

in

relation

international level as well as in India.

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to

environmental

protection

at

Scope of study

The scope of the study is as follows:-

 The study is restricted to corporate social responsibility with regard
to environmental protection.

 The study revolves around the concept of sustainable development
which came into light in the United Nations conference on
environment and development.

 The study is also aimed at as to how Indian judicial system
developed the concept of corporate social responsibility before any
legislative enactment.



The study clarifies the present position of mandatory corporate
social responsibility under the provisions of Indian law

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RESEARCH METHODOLOGY
As per the requirements of the research objectives of the present study,
descriptive research design is used. This research design is used to have
greater accuracy and in depth analysis of the research done in the same
area. Secondary Data and information were extensively used for the
study for research including books, articles, research papers, periodicals,
journals, reports of international conventions, legislations etc

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Scheme of Chapterisation
CHAPTER

1

1. Concept of Sustainable development and international
agreements
2. Role of business in Sustainable Development milestones at
international level
3. How the Paris Climate Agreement Impacts CSR and the
Private Sector
CHAPTER

2

1. Business engagement key to achievement of climate change
objectives
2. Corporate reporting and alignment of business practice with
the climate change schedule
3. Corporate climate change-related
introduced by G20 governments
4. Use and force
information

of

reported

reporting

climate

schemes

change-related

CHAPTER 3
1. Elements of Environmental Protection and Sustainability
under CSR
2. Environmental aspects of Corporate Social Responsibility
(CSR)
3. Environment protection and corporate social responsibility:
Reality or a myth
4. Gearing up for responsible growth: India’s top companies
for Sustainability and CSR 2016 – Report
5. Implementation of CSR initiatives
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CHAPTER 4
1. CSR and sustainable development: Do Indian companies care
about the environment?
2. Focus on sustainable projects with long-term impact
3. A shift from philanthropy to responsible business and
strategic CSR
4. Mainstreaming sustainability into business operations and
the rise of share value projects
5. Environment protection is still not mainstream among a
majority of companies
CHAPTER 5
Conclusions and Suggestions

CHAPTER 1

Concept of Sustainable development and international agreements

Sustainable development is a broad, dialectical concept that balances the
need for economic growth with environmental protection and social
equity. The term was first popularized in 1987, in Our Common Future, a
book

published

by

the

World

Commission

for

Environment

and

Development (WCED). The WCED described sustainable development as
development that met the needs of present generations without
compromising the ability of future generations to meet their needs. Or, as
described in the book, it is “a process of change in which the exploitation
of

resources,

the

direction

of

investments,

the

orientation

of

technological development, and institutional change are all in harmony
and enhance both current and future potential to meet human needs and
aspirations.” Sustainable development is a broad concept in that it
combines

economics,

social

justice,

environmental

science

and

management, business management, politics and law. It is a dialectical
concept in that, like justice, democracy, fairness, and other important

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societal concepts, it defies a concise analytical definition, although one
can often point to examples that illustrate its principles.
In Our Common Future, the World commission on environment and
development (WCED) recognized that the achievement of sustainable
development could not be simply left to government regulators and
policy makers. It recognized that industry had a significant role to play.
The authors argued that while corporations have always been the
engines for economic development, they needed to be more proactive in
balancing this drive with social equity and environmental protection,
partly because they have been the cause of some of the unsustainable
conditions, but also because they have access to the resources necessary
to address the problems.1
Industry’s response to the WCED’s call came in stages as everyone
wrestled with what sustainable development in action should look like.
The first serious sign of support came from the International Chamber of
Commerce

when

it

issued

its Business

Charter

for

Sustainable

Development in 1990. This was followed in 1992 by the book Changing
Course,

by

Sustainable

Stephen

Schmidheiny

Development

World

and

the

Business

Business

Council

for

Council

for

Sustainable

Development. Both publications focused on the role of corporations in
sustainable development, and the authors argued that supporting
sustainable development was as much an economic necessity as it was an
environmental and social necessity. Since then, many business leaders
and corporations have come forward to show their support for the
principles of sustainable development.

1 Report of the World Commission on Environment and Development: Our Common FutureTransmitted to the
General Assembly as an Annex to document A/42/427 - Development and International Co-operation:
Environment

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Role of business in Sustainable Development milestones at
international level

 1972
United Nations Conference on the Human Environment
(Stockholm Conference)
• Focus on states' duties, only reference on responsible conduct by
individuals,

enterprises

and

communities

in

protecting

and

improving the environment in its full human dimension (United
Nations, 1972, Principle 19).
 1987
Report on the World Commission on Environment and
Development - Our Common Future(Brundtland Report)
• Reference on responsibility of private enterprises, from the oneperson businesses to the large multinational companies, which
have more economic power than that of many countries (United
Nations General Assembly, 1987, p 8).
 1992
United

Nations

Conference

on

Environment

and

Development (UNCED), Earth Summit (Rio de Janeiro)
• Emphasis on the role of major groups. Business and industry,
including transnational corporations, large and small enterprises
play a crucial role in the sustainable development (United Nations
Sustainable Development, 1992, p 289).
 1994
Barbados Programme of Action (Barbados)
• Engagement and active participation of business and industry is
required. Sustainable development activities should be supported

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by micro-enterprise loans at the community level (United Nations
General Assembly,1994, XV. 68, 75).
 1997
Special Session of the General Assembly to Review and
Appraise the Implementation of Agenda 21 (New York)
•

Corporate

responsibility

and

involvement,

including

large

corporations are important. They should promote more sustainable
consumption,

apply

sustainable technologies

(United Nations

General A.,1997, II.12; III. 28 (b); IV. E (iii))).
2002
 2002
World

Summit

on

Sustainable

Development

(WSSD),

Johannesburg Summit
• Focus on collective responsibility. Both large and small companies
have a duty to contribute to sustainable development. Corporate
social responsibility and accountability are needed (United Nations,
2002, p 10).
2012
 2012
United Nations Conference on Sustainable Development,
Rio+20 (Rio de Janeiro)
•

The

"Future

We

Want"

requires

involvement

and

active

participation of all major groups at all levels. Importance of
Corporate Social Responsibility and responsible business practices.
(United Nations G. A. , 2012, p 9).
2015
 2015
United Nations Sustainable Development Summit 2015 (New
York)
• Business sector must contribute to Sustainable Development and
achievement of SD goals within the Global Partnership framework
(National General Assembly, 2015, p 8, 28-29
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How the Paris Climate Agreement Impacts CSR and the Private
Sector
The 2030 Agenda for Sustainable Development

climate change and

corporate sustainability into mainstream news channels. Most years,
these agreements alone would constitute a banner year for climate
policy, but 2015, by most accounts, was hardly a conventional year. The
aforementioned measures, while important, paled in comparison to the
hype,

scale

and

media

attention

of

The

Paris

Agreement,

a

comprehensive climate accord signed by 195 countries at the conclusion
of the Conference of the Parties 21 (COP21) in December. The agreement
was the culmination of years of negotiation between governments, the
private sector, NGOs, UN agencies and intergovernmental organizations however, the real undertaking, especially for businesses, is only just
beginning.2
The Paris pact will enter into force in 2020, once 55 nations that account
for at least 55% of the world’s emissions ratify the agreement at the UN
in New York. Four years may sound like an eternity in today’s business
landscape, where many companies form decisions that appease investors’
short-term approach, and quarterly performance often triggers stock
volatility. With the Paris Agreement on the horizon, businesses in all
sectors have begun to realize the urgency and magnitude with which
they must integrate corporate sustainability targets with long-term
financial goals. In fact, the private sector’s presence during negotiations
and its significant commitments to combat climate change were among
the key factors that contributed to COP21’s success, experts say.

2 https://sustainabledevelopment.un.org/post2015/transformingourworld

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Forward-thinking corporations have already formed sustainable, lowcarbon strategies, which will further align these plans with nationally
determined

contributions

(NDCs)

and

industry-specific

regulations. Procter & Gamble, for example, recently published its 17th
annual sustainability report to update its progress toward reaching selfmandated

sustainability

multinational

goals.

corporations

conference, pledged to

P&G

is

also

that,

leading

its

greenhouse

reduce

among
up
gas

to

the

several

the

emissions.

Paris
The

company joined more than 150 other signatories on the American
Business Act on Climate Pledge.3
If some companies had yet to realize the inevitability of the business
community shifting to a more sustainable, low-carbon environment, the
Paris Agreement should, at a minimum, encourage top executives to
discuss long-term sustainability. Though the climate pact won’t be
available for signature until April 22, 2016, and will enter into force even
later,

businesses

risk

falling

behind

if

they

don’t

consider

the

agreement’s impact on their sustainability strategy. So what actions, if
any, should the private sector examine to align corporate strategies with
the Paris legislation?
It’s of crucial importance for stakeholders to first understand the Paris
Agreement’s basic components, including which elements are legally
binding. According to the official compact, the major objectives of the
agreement are:


To curb the global increase in temperature to 2 degrees Celsius
compared to pre-industrial levels. Ideally, to reduce potential negative
consequences of climate change, all parties should aim to restrict the
rise in temperature to 1.5 degrees Celsius.



To expedite the peaking of greenhouse gas emissions, and begin in
the second half of the century to achieve a balance between GHG
emissions and “removals by sinks of greenhouse gases.” Experts have

3 http://www.un.org/ga/search/view_doc.asp?symbol=A/RES/70/1&Lang=E

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called this language a “net-zero goal,” and acknowledged that
realizing this balance will likely involve using technologies capable of
removing carbon from the atmosphere.


To require all signatories to publish NDCs - official climate plans every five years. Most governments submitted intended nationally
determined contributions (INDCs) prior to COP21 and these blueprints
may be used as their first official NDC.

Despite these unprecedented, ambitious goals, it’s important to note the
limited ability with which the agreement can enforce its stipulations.
Under the terms of the Paris Agreement, countries are legally required
only to submit NDCs, and to report their progress toward achieving
specific NDCs. This is a positive development, but it’s potentially
problematic that the UN will have no legal authority to mandate
penalties against those which fail to meet their self-established targets.
There is also language regarding countries’ funding to assist developing
nations transition to clean energy, but this commitment of at least $100
Billion per year is not legally binding. Given the lack of legal authority,
some experts question whether the agreement is enforceable. But that
might not matter.

For those companies that have yet to view sustainability as a mandatory
business practice, there are several approaches each should consider.
For starters, executives must examine these questions:


As governments, investors and consumers shift to a more
sustainable, clean and carbon-free environment, what impact, if any,
will this have on our core business products, services and investments?



Have

similar

companies

in

sustainability goals and strategies?

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our

sector

launched

corporate



What sustainability practices can we institute to align with
domestic regulations, NDCs and the more global targets of the
Sustainable Development Goals and The Paris Agreement?



In what ways can we better integrate corporate sustainability with
profitability?

The 21st session of the Conference of the Parties (COP21) to the United
Nations Framework Convention on Climate Change (UNFCCC) took place
in December in Paris has the potential to be one of the most
transformative in recent years, as the international community attempts
to reach a new, global climate change agreement.

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Business engagement key to achievement of climate change
objectives
Engagement

with

business

and

the

private

sector

has

been

acknowledged by many agencies preparing for COP21 as being crucial to
the successful design, financing and implementation of measures to
address climate change and to achieve the transition to a low carbon
economy whilst meeting sustainable development goals and achieving
economic growth. In its New Climate Economy Report, the Global
Commission on the Economy and Climate concludes that tackling the
risks of climate change whilst achieving economic growth is dependent
on structural and technological changes, flow of investment for
innovation, strong political leadership and credible, consistent policies.
The first of the report’s proposed ten point action plan is to accelerate
low-carbon transformation by integrating climate into core decisionmaking processes at all levels of government and business. 4 The supply
by business of reliable climate change related information is crucial to
that process. Corporate climate change-related information. There is no
universally agreed definition of “corporate climate change-related
information”, but generally it includes details of some or all of the
following:
 The scheme, governance practices and policies implemented by
companies to mitigate, adapt to and manage climate change impacts
including extreme weather events, resource shortages and changing
market conditions
;  Resource consumption that affects climate change, including of fossil
fuels;

4 Better growth better climate report: The global commission on economy and climate.
This programme of work was commissioned in 2013 by the governments of seven
countries: Colombia, Ethiopia, Indonesia, Norway, South Korea, Sweden and the United
Kingdom. The Commission has operated as an independent body and, while benefiting
from the support of the seven governments, has been given full freedom to reach its
own conclusions.

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 Manufacture of waste and pollutants that affect the climate including
greenhouse gas (GHG) emissions;
 The principal risks and opportunities expected by the company as a
result of climate change, for example, demand for new products,
regulation related to climate and supply chain resilience.
Corporate reporting and alignment of business practice with the
climate change schedule
The relationship between business activity and climate change is
therefore reflected, inter alia, in the increasing demand for corporate
climate change-related information. Corporate climate change reporting
has featured in discussions at several high-profile, international events
including COP20, the UN Climate Summit 2014 and the World Economic
Forum’s January 2015 annual meeting, signifying a growing desire for
greater awareness and understanding of the relationship between
business activity and climate change. Corporate reporting approaches
are therefore being developed as part of the infrastructure necessary to
align business practice with climate change mitigation and adaptation
plans and with sustainable development goals, one of which, under the
UN’s Open Working Group Proposal is to take urgent action to combat
climate change and its impacts. In an effort to build that infrastructure
and strengthen the drive towards greater corporate transparency and
effective

management

of

climate

change,

growing

numbers

of

governments are developing both mandatory and voluntary schemes
involving the corporate disclosure of climate change related information.
5

5 Conformance, reporting period, threshold, framework and methodological trends
among mandatory G20 climate change-related reporting schemes

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Corporate climate change-related reporting schemes introduced
by G20 governments
Since the 1990s the majority of G20 countries have introduced some
kind of active or potential mandatory corporate reporting scheme that
requires disclosure of some or all of the climate change related
information described above:
Multiple policy routes for the introduction of schemes - The multidisciplinary nature of climate change means that corporate climate
change-related reporting requirements can be introduced through
multiple legislative and voluntary routes. The requirements may be
introduced through specific law on greenhouse gas reporting or
embedded within wider environmental, climate change, sustainability,
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corporate social responsibility, governance or company law. For an
increasing number of governments, corporate climate change reporting
requirements and guidance are part and parcel of wider climate and
sustainability

policies

and

an

integral

element

of

market

based

mechanisms including greenhouse gas (GHG) emissions trading schemes.
Corporate climate change–related reporting schemes do not therefore
follow a uniform pattern. Each scheme’s description depend on the policy
route(s) through which it has been introduced.
High-level trends - High-level trends amongst mandatory corporate
reporting schemes introduced by G20 member countries can however be
observed. In particular, there are trends in the approach to conformance
(i.e.: the applicable penalty and enforcement measures), the reporting
period for which information is requested, the reference to enabling
frameworks, guidance and tools and the requirement for reported
information to be verified or assured.
Reference to enabling frameworks, guidance and tools There is
evidence that many G20 member country schemes prescribe or prefer to
specify the methodology that should be used for the preparation of
reported information. In some cases where enabling guidance is
referenced, it has been prepared by governments specifically to support
reporting practice and conformance with the requirements of reporting
schemes. In other cases, schemes state that information should be
prepared based on enabling guidance produced by other organisations,
including non-governmental organisations. In practice, a wide range of
reporting frameworks and calculation methods are referenced.

Use and force of reported climate change-related information
Climate change-related information is reported to a wide range of
audiences

such

as

governments,

investors,

large

purchasing

organisations, support groups and civil society. The information can be
used for multiple purposes including informing consumer decisions, for
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appraisal of performance against policy objectives, investment analysis
and risk analysis. Companies themselves also use the information to
derive benefits, including those listed above.
Investors

Through the work of CDP, who provide the only global

environmental disclosure platform for companies to report climate
change and GHG emissions information to institutional investors with
assets of US$95 trillion, and others, there is significant evidence of
investor demand for climate change-related information and evidence of
investors using information for a range of purpose including:
 Monitoring GHG emissions trends;
 Engaging with companies on their approach to management of climate
change risks and opportunities;
 Reduction of exposure to carbon-intense holdings;
 Investment research;
 Ranking and comparing companies on climate change leadership,
operations

management,

supply

chain

management,

product

development and innovation and governance.

Purchasing organisations i.e.: companies that procures from and
manages supply chains to secure goods and services use information
from their suppliers to identify risk and to work with suppliers to manage
climate risks and increase efficiencies. There is evidence that purchasing
organisations work with their suppliers to:
 Agree GHG emissions reductions targets for suppliers;
 Develop climate risk metrics for monitoring and reporting risks;
 Develop data collection systems that support carbon management
programmes operated by purchasing organisations; and
 Devise and apply purchasing group strategies on climate change to the
whole value chain.
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CHAPTER

3

Elements of Environmental Protection and Sustainability under
CSR
Out of ten major areas of CSR activities, the item iv) refers to activities
directly relevant to environment and environmental sustainability. The
broad areas include ‘ensuring environmental sustainability, ecological
balance, protection of flora and fauna, animal welfare, agroforestry,
conservation of natural resources and maintaining quality of soil, air and
water’. This is the most positive feature among other scheduled activities
under the CSR. These activities are going to contribute in a significant
way for the betterment of environment. Different listed areas appear
distinct but in fact are interrelated and thus the benefit of good
performance in one area may contribute to others. Various elements of
environmental protection and sustainability are elaborated in following
sections of this article for a better understanding and implementation of
CSR provisions.
Environmental Sustainability: Environmental sustainability is a broad
term and is a key pillar of sustainable development. It is about meeting
human needs without compromising the ability of the environment to
support life and render goods and services on a long-term basis. Morelli
(2011) defines environmental sustainability as a condition of balance,
resilience, and interconnectedness that allows human society to satisfy
its needs while neither exceeding the capacity of its supporting
ecosystems to continue to regenerate the services necessary to meet
those needs nor by our actions diminishing biological diversity.
Environmental sustainability involves making decisions and taking
action that are in the interests of protecting the natural world, with
particular emphasis on preserving the capability of the environment to
support human life. Everything which is done to keep the integrity of the
environment comes under environmental sustainability however there is
no common guidance about what it means at an operational level
(UNDAF, 2009). Dimensions of environmental sustainability may vary
from place to place and with time. Hence, while undertaking CSR
activities there is need for identification of issues that are relevant to the
area and working on those. Currently issues such mitigation of adverse
effects of climate change, generation and supply of clean energy,
augmentation of water resources and its supply, public health,
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sustainable consumption and production of resources, environment
friendly transport facility, conservation and management of natural
resources etc. are some of the issues relating to environmental
sustainability. CSR can be of great help in ensuring environmental
sustainability, also by developing the knowledge and skills of people,
helping in implementation of programs promoting environmental
innovation, monitoring the environmental impacts and actions for
mitigation of impacts, promoting an environmentally sustainable and
responsible culture etc.
Ecological balance: Ecological balance is a state of adaptation,
harmony and unity between organisms and their environment. Ecological
balance is essential for proper functioning of various ecosystems and
maintenance of healthy environment. It facilitates uninterrupted flow of
environmental goods and services for the welfare of human beings, flora
and fauna. If ecological balance is somehow disturbed the normal
functioning of ecosystems is disrupted leading to different types of
environmental problems. Overexploitation and utilization of resources,
environmental pollution, and inappropriate management of waste,
population growth are some of the major causes of disturbance in
ecological balance
Protection of Flora and fauna:
Flora is basically the plant life that is present in a particular region or
habitat

whereas

Deforestation,

fauna

refers

environmental

to

different

forms

degradation,

of

habitat

animal

life.

loss

and

fragmentation, infrastructure development, logging and poaching, illegal
trade and unethical practices of human beings are some of the important
factors affecting the existence of flora and fauna. As a result, many
species of plants and animals are threatened and at the verge of
extinction. Various in-situ and ex-situ conservation measures are required
to protect flora and fauna. Identification of site specific activities for
protection of flora and fauna in terrestrial and aquatic ecosystems and
their implementation can be a priority area of CSR.
Animal welfare: Animal welfare refers to the physical and mental wellbeing of animals. An animal is in a good state of welfare if it is healthy,
comfortable, and well nourished, safe, able to express innate behaviour,
and if it is not suffering from unpleasant states such as pain, fear and
distress. Good animal welfare requires disease prevention and veterinary
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treatment, appropriate shelter, proper food and nutrition, humane
handling and humane slaughter/killing. Thus, the activities such as
constructing shelter houses, providing ambulance services for distressed
animals, birth control and immunization of stray animals, relief to
animals during natural calamities etc. can be undertaken under this
broad activity.
Agroforesty: Agroforestry is a land use system which integrates trees
and shrubs on farmlands and rural landscapes to enhance productivity,
profitability, diversity and ecosystem sustainability. Agroforestry provides
opportunity for employment and income generation and offers food and
fodder, timber, fuel wood and various other natural resources to local
population. It also has the potential to mitigate the effects of climate
change through carbon sequestration and regulating microclimatic
conditions. Thus, agroforestry is important in meeting the ever
increasing demand of timber, food, fuel, fodder, fertilizer, fibre, and other
agroforestry products; increasing the tree cover; conserving the natural
resources and forest; protecting the environment and providing
environmental security. CSR activities can encourage tree plantation in
rural areas by establishing nurseries and developing the capacity of the
people in related activities.
Conservation of Natural Resources: Natural resources (NR) are
materials or substances which in its basic form are found in nature. Wide
range of NR, both non-renewable and renewable such as water, soil,
forest resources, plants, animals, fossil fuels, minerals etc. are needed to
ensure the survival of human race and support its various activities. It
has taken many thousands and millions of years to form and accumulate
these resources in nature. However, unprecedented growth of human
population, industrialization, urbanization, modern way of life based on
consumerism, and degradation in ethical values are putting severe
pressure on our natural resource base. Unsustainable use of some
natural resources have degraded and depleted them to a serious level.
Thus, there is need for conservation of NR in order to make the resources
available for present and future generation. Some of the measures to
conserve natural resources include promoting judicious use and
prudence management of natural resources, protection from degradation
and depletion, augmentation by involving technology, encouraging the
use of environment friendly products and practices saving energy and
others resources, and minimization of waste and its proper disposal.
These can be achieved by strengthening institutions and policies for
natural resource conservation, by developing the operational and
management capacities, raising awareness on importance of natural
resources and its conservation, developing technologies for
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Maintaining quality of air, water and soil: Maintenance of
environmental quality is essence of requirement for improving quality of
life leading to sustainable development. Unprecedented population
growth, industrialization, urbanization, expansion of agriculture and fast
rate of resource consumption have resulted in deterioration of quality of
air, water, soil and other environmental components. Most of our air,
water and soil have become contaminated with different types of
pollutants. In air we have added unprecedented amount of carbon
dioxide and other GHGs by burning fossil fuel and industrial activities.
During last two hundred years the level of carbon dioxide in our
atmosphere has increased from 280 ppm to more than 400 ppm. Pollution
of air has resulted not only different human health problems but also is
responsible for global warming and climate change leading to rise in
temperature of the globe, melting of glaciers and ice in polar region, rise
in sea level, increase in frequency of natural disasters, reduced
agricultural productivity, spread of new diseases, extreme weather
conditions etc. Deterioration of water quality is another major problem of
modern society. Factors affecting water quality include release of
untreated sewage in our water bodies, agricultural activities and
industrial processes, human activities such as open defecation and
disposal of waste and other materials, interaction of water with polluted
air and soil etc. The polluted water negatively affects human health, flora
and fauna, ecosystems and environment, and agriculture and industrial
activities. The quality of soil has also deteriorated in many parts of the
country. Contamination of soil with toxic chemicals, acidification,
depletion of top soil by erosion, loss of soil flora and fauna, loss of
nutrients and fertility are some common problems of soil. Intensive
agriculture and use of agrochemicals, combustion of fossil fuels, dumping
of waste, mining, flooding, contamination with sewage and polluted
water etc. are major causes of deterioration of soil quality. This has
resulted in decrease in agricultural productivity, pollution of water and
degradation of aquatic resources, and also overall degradation of the
environmental quality. Pollution of water and soil has threatened the life
of millions by contaminating the water and food chain and the
environment (Singh, 2006). Some of the areas which can be covered
under CSR to achieve above mentioned goals include migration and
control of pollution, harnessing renewable energy, supporting R&D
activities in environment, making people environmentally sensitive and
by imparting environmental education, awareness and communication,
reduction of waste and waste management, treatment of water and
wastewater, saving energy and its efficient use, conservation of natural
resources, supply of safe drinking water, rainwater harvesting and

27 | P a g e

construction of reservoirs such as pond, tank, check dam and cleaning
and rejuvenation of water bodies.

Environmental aspects of Corporate Social Responsibility (CSR)
are the duty to cover environmental cost of a particular company’s
operations, products and facilities.
The major ingredients of environmental CSR are elimination of waste and
emissions, maximizing energy efficiency and productivity and minimizing
practices that may adversely affect use of natural resources by coming
generations. Sustainability and carbon footprints occupy an increasingly
important position on the corporate agenda around the world. Many
companies are realizing the importance of environmental initiatives in
business development. As one of the most serious effects of outside
economic activity is detrimental impact on the environment, the
environmental issues are of great importance in the company. Corporate
social responsibility means here ecological management. This includes
activities in accordance with the adopted law, supports environmental
awareness in the given surrounding, and also creates its own solutions to
minimize the harmfulness of core business. All these elements do not
function in isolation – they interlace to create a model of economic
management which is responsible for the natural resources.
Decrease in energy and raw material usage combined with reduced
emissions and waste generation can tackle the environmental challenges
facing the world. Leading IT companies, like Microsoft, Adobe, Apple and
Google, are investing in renewable sources of energy that can generate
power directly on-site. Clean manufacturing practices and energyefficient design of equipment are also hallmarks of environmental
sustainability.
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Let us take a close look at some of the major aspects of environmental
sustainability.
Role of Packaging
Packaging is an important concern for consumers, particularly those who
are interested in converting to eco-friendly buying behaviours. Packaging
plays a great role in environmental sustainability by protecting products,
preventing waste and enabling efficient business conduct. Reduction in
the amount of packaging and use of eco-friendly packaging material
provide

an

attractive

opportunity

to

promote

environmental

sustainability.
Sustainable packaging is a relatively new addition to the environmental
considerations

for

CSR.

Companies

using

environment-friendly

packaging materials are reducing their carbon footprint, using more
recycled materials and minimizing waste generation. Companies that
highlight their environmental initiatives to consumers can increase sales
as well as boost product reputation.
For example, Cisco outsources all of its manufacturing and has over 600
suppliers. To avoid any problems, Cisco’s packaging team undertakes a
painstaking process to create more effective and environmentally friendly
packaging. In 2012, the company eliminated 757,000 pounds of paper
and plastic waste for one product line alone. For its total shipments
during 2012, Cisco reduced its use of cardboard, plastic and paper by as
much as 466 metric tons.6
Role of Clean Energy
Deployment of renewable energy systems can make a big impact on CSR
activities of companies as clean energy is one of the best methods to
mitigate

climate

changes.

Decentralized

6 Cisco 2012 CSR Report: Packaging, Supplier Diversity & Governance
http://www.triplepundit.com/author/leon-kaye/

29 | P a g e

power

generation

using

renewable resources is rapidly gaining popularity among world’s top
companies.
Most of the world’s largest companies, like Microsoft, Apple and Google,
are adopting renewable energy as it makes good business sense to lower
emissions, diversify energy supply, mitigate fuel cost and above all
portray a green image. Major IT companies are rushing to develop
renewable energy projects to power their giant data centers.
Google has entered a 10-year deal with utility company Grand River Dam
Authority to supply 48 MW of wind power to its Oklahoma data center.
Apple’s data center in Maiden (North Carolina), which draws staggering
20MW power, will run entirely on solar energy and biogas.
Role of Environmental Reporting
Environmental reporting, voluntary as well as mandatory, is also getting
prominence

in

Environmental

the

context

information

like

of

corporate

greenhouse

social
gas

responsibility.

emissions,

waste

generation, energy consumption, use of transport can improve the
transparency of industrial activities, thereby, providing a powerful tool to
fight environmental degradation.

Environment

protection

and

corporate

social

responsibility:

Reality or a myth
Tall claims are made by the corporations that they are making their
industries environment friendly but it always becomes only to say, never
30 | P a g e

comply with. The corporate houses claim that they are incorporating the
CSR agenda for making their corporations environment and human
friendly but the reality is somewhat altogether different. Actually
corporations wants there shareholders benefited financially. There are
various reports which shows that main source of environment pollution is
made by the industries. Industries for maximizing there profits, degrade
the environment and pollute it, in the following ways7
a) Use of natural resources by industries, as it destroys nature and
affects the natural environment. Cotton, textile, paper, iron, coal, oil,
fodder, plywood, food processing, etc all need natural products as raw
materials. Thus increasing needs of industries have resulted in over
exploitation and stress on natural resources.
b) Residues of industries known as effluents are released in water and
land without any treatment which pollutes the water and land, effecting
the aquatic life and underground water.
c) Fossil fuel used by industries like coal, kerosene, diesel, and atomic
energy also pollutes the air in the form of smoke and radioactive
particles.
d) Noise, also a major by-product of industries and industrial products
causes noise pollution.
e) Industrial wastes – particularly hazardous waste and radioactive
waste- have also become a major environment pollution problem. There
are variety of cases has been occurred which shows that due to over
exploitation of natural resources and industrial wastes, the human
generation was in danger.
The Bhopal Holocaust (1984), where more than 3000 person died and
about 2 lakh were affected by the leakage of MIC gas, Love Canal
7 S.C. Shastri, Environmental Law, (2nd Edn.), Eastern Book Company, Lucknow, 2005
{Chapter 6}

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Incident of USA (1978) where residents of an area were evacuated and
the US Government spent more than $30 million in a clean up operation,
Seveso Incident in North Italy (1976) where contaminated debris,
contained in steel drums, were disposed of innocuously with 5 barrels of
vinegar in a pickle factory and it played havoc later on. Methyl-mercury
poisoning in the Minamata Bay (Japan, 1956-80) caused by the industrial
release of Methyl and Mercury compounds resulted in several deaths and
several types of diseases including pre-natal brain damage, nuclear
accidents at The Three Mile Island, nuclear power station of the USA in
1979 and Chernobyl in the then USSR are representative sample of the
works kind of threat to the present generation and to posterity by the
industrialization. Studies of these incidents reveal various kinds of shortterm and long term effects on human beings, flora and fauna. A complete
list of the various kinds of ailments and reversible and non-reversible
effects is still to be drawn up. Some ill effects have been identified and
evaluated and some have not been realized. The evaluation is not easy. In
an unpublished report of NEERI, it is estimated by NEERI that 60
percent of Calcutta's residents suffer from some kind of respiratory
disease due to air pollution done by industries and factories. The burning
of coal as an industrial and domestic fuel accounts for a significant
proportion of pollutant emissions, especially SPM. Suspended particulate
matter from coal combustion is clearly a major problem throughout
Calcutta and should be the main focus of immediate control efforts.
Surprisingly, SO2, concentrations are relatively low (within WHO
guidelines) which is due to the low sulphur content (0.3 percent) of the
local coal.

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Gearing up for responsible growth: India’s top companies for
Sustainability
and CSR 2016
KEY FINDINGS
1. Only the Top 33% companies believe in taking the long term view on
responsible business:
For the longest time Indian companies have focused on market access,
customer acquisition and compliance. There is now however a shift
towards a more responsible form of growth because taking a long term
view of sustainability and social responsibility is creating long term
competitive advantages and helping in managing risks. Top companies
have a deeper focus on Governance, Disclosure, Sustainability and CSR.
However, the lower ranked companies have not seen a significant
change.8
2. Governance for business responsibility sees improvement: Governance
was in general good across both manufacturing and service industries,
except for policy on biodiversity and participation in global agreements.
Although manufacturing companies had higher participation in both
these parameters relative to service industries, the average proportions
were still poor at 27% and 35% respectively, signifying huge scope for
improvement. The average governance score is the highest of the four
8 http://blogs.economictimes.indiatimes.com/ResponsibleFuture/gearing-up-for-responsible-growth-indiastop-companies-for-su