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Future of green management & sustainability in India

Future of green management & sustainability in India Indian economy is on a growth trajectory and one after another study is projecting India among leading economies of future. Whereas the focus of the world on emerging markets is for growth rates and related aspects, India has its own environmental concerns and the environmental scenario is not very good. This paper studies the future of green management and sustainability in the top companies in India. Out of the total 91 companies that we analyzed, we found that 27 of them were not doing green management and sustainability and had no plans of doing it in future. 37 of the 99 were doing it and will continue to do the same. The remaining 27 were planning to do even more in future. We also found that green management and sustainability initiatives by a company depends a lot on which industry the company is in and is independent of it being a private or public enterprise. The study shows that more and more big companies are making future plans for green management and sustainability in India. This is significant development in context of the growing concerns on sustainability in India and globally. Key words: green management, sustainability, India, top companies. JEL Classification: M1 1. Introduction Historically, the goals of economic growth and environmental quality have often been in conflict. However, over the course of the past decade, a growing number of companies have pioneered new strategies for integrating the environment into their overall business strategy and for simultaneously improving their environmental and business performance (Florida, and Davison 2001). There are a growing number of studies suggesting that organizations have begun tentatively to focus greater attention on environmental issues (Harris, and Crane 2002; Menon, and Menon 1997; Post, and Altman 1994). Environment has gained centre stage in the global discussions. There are genuine concerns and dialogue on environmental degradation and future of earth (Pillania 2007). Whereas the focus of the world on emerging markets is for growth rates and related aspects, India has its own environmental concerns and the environmental scenario is not very good .Government needs to take steps in partnership with civil society and industry to improve the situation. Though there are international treaties and national strategies and plans in place, the implementation needs much more focus (Pillania 2008). This paper studies the future of green management and sustainability in top 100 firms in India. This paper consists of four parts including the introductory part. The next part elaborates the research methodology. The third part presents the findings and discussions on the practice of strategy in Indian context. The last part is conclusion of the chapter. 2. Research methodology This study explores the presence of the green management and sustainability in top 100 companies. The question is namely, what are the future plans of the companies for green management and sustainability? The selection of the top companies for study is based on the Corporate Database Prowess of the Center for Monitoring Indian Economy (CMIE). CMIE is India's largest and most comprehensive database on firms operating in India. Prowess is a database of large and medium Indian firms containing detailed information on over 20,000 firms. The database comprises all companies traded on India's major stock exchanges and several others including the central public sector enterprises and covers most of the organised industrial activities, Banking and organised financial and other services sectors in India. The companies enclosed in Prowess account for 75 per cent of all corporate taxes and make up 95 per cent of excise duty collected by the Government of India (CMIE 2009). The top 100 companies are selected based on total revenue over 1990-2008 time period. We have taken ten year time period which is reasonable long for business performance. Only those companies are selected which were there each year among the top companies and absence for a year leads to rejection. Some new companies started recently could not make into the list as they were not present over the ten year time period. The list of companies is given in Table 1 in Annexure 1. This work is based on secondary data collected from the annual report and websites of companies. 3. Findings and discussion The research paper focuses on the future plans of the Indian companies in relation to Green management and sustainability. Using the annual report information, we have tried to group the companies into following five categories: Companies that are neither doing green management and sustainability now nor will do it in future Companies that are not doing green management and sustainability currently but are planning to do it in future Companies that are doing green management and sustainability and will continue to do it the same way Companies that are doing green management and sustainability but will change course of action in future Companies that are doing green management and sustainability presently and are planning to do more in future If we found that the companies are making newer investment or have capital work in progress related to green management and sustainability, we concluded that they will do more of green management and sustainability in future. If the annual report stated about a company's continued commitment towards green management and sustainability, we took it as an indication that they are doing it and will continue doing the same. The absence of anything related to green management and sustainability was taken to be an indicator of a company not doing it and will not do categorization. For nine companies out of 100 companies, no concrete conclusion could be made as to their future plan about green management and sustainability. These companies are Indian Potash Ltd., Indian Bank, Honda Siel Cars India Ltd., State Bank of Patiala, Tata Sons Ltd., Bhushan Steel Ltd., National Fertilisers Ltd., Century Textiles and Inds Ltd., and Godrej and Boyce Mfg. Co. Ltd. In the analysis that follows these companies are not considered. Figure 1. Future of green management Figure 1 summarizes the findings. Out of the total ninety-one companies that we analyzed, we found that twenty-seven of them were not doing green management and sustainability and had no plans of doing it in future. Thirty-seven of the ninety-nine were doing it and will continue to do the same. The remaining twenty-seven were planning to do even more in future. We also found that green management and sustainability initiatives by a company depends a lot on which industry the company is in and is independent of it being a private or public enterprise. Banking & Finance, Trading, and IT companies are not that keen on green management and sustainability. These are the sectors that don't pollute the environment as much as other sectors. In Auto, Capital Goods, Metal, Power, FMCG, and Oil and Gas sector, the percentage of companies who were planning to do more green management and sustainability in future was equal to more than fifty indicating that the concept of green management and sustainability in catching up in these sectors of Indian economy. Auto Sector Six companies from auto sector were analyzed to identify the future plans of Indian companies towards Green Management. We found that the first three companies i.e. Hero Honda, M&M, and Ashok Leyland are already doing it and plans to do even more in future. The other three companies i.e. Tata Motors, Maruti Suzuki, and Apollo Tyres are also doing Green Management and will continue to do it the same way in future. The conclusion that the first three companies will do more of Green Management was drawn from the fact that these companies are planning additional investments in green management and energy conservation practices. The annual report of M&M for the year 2007-08 insinuated that they will take up green management more vigorously in the years to come. Banking and Finance It was found that most of the companies (21 out of 29) in this sector are not doing green management and are not even planning to do it in future. There was no mention of any green management practices or even any environmental protection or energy conservation initiative in their annual report. Their indifference towards environment stems from their conservative belief that green management is only for those firms that directly impacts the environment their ignorance towards the impact green management can have on the bottom line. Seven of the twenty-nine firms were found to be doing some form of green management and though there was no indication that they will do it more aggressively in future. We have put them in the 3rd category. Bank of India was the only firm that could be categorized in the 5th category. Bank of India has implemented the use of nonconventional sources of energy in areas of acute power shortage. It installed Solar Power Systems in 65 Rural / Semi urban branches and is planning to extend this in another 100 branches during 2008-09. Capital Goods A majority of the companies (3 out of 5) are committed towards using more environmentally friendly product in construction in future. We didn't find anything specific to green management in Punk Lloyd's annual report. We classified it into not doing and will not do category. BEL was classified into doing it and will continue to do it in the same way category on the basis of annual report data. Chemicals Five out of the eight companies were classified into doing it and will continue to do it the same way category. The three companies which we think will do it more aggressively in future are Tata Chemicals, Gujarat State Fertilizers & Chemical Ltd., and Indian Farmers Fertilisers Co-Op Ltd. The first two want to avail carbon credit benefits. Tata Chemicals plans to continue R&D efforts to attain objectives of cost reduction, energy conservation, waste minimization/ recycling & reuse, value addition, environmental improvement and efficient management of water. IFFC has 50 crore worth of capital work in progress related to investments in energy conservation. FMCG While ITC plans to increase its investment towards green management, Ruchi Soya plans to continue striving for lower energy consumption so as to earn carbon credits as they are doing now. IT Five companies from IT sector were analyzed to ascertain their future plans towards Green Management. While HCL seems completely indifferent towards green management and has no plan to take it up in future, Wipro seems committed towards ecological sustainability and plans to increase its efforts. Infosys, and Satyam will continue their green management initiatives. Metal We categorized Ispat, Sterlite, HINDALCO, and NALCO as companies that are doing green management and will continue to the same in future. These companies are already quite aggressive in taking environmental protection measures and will continue to be like that. The remaining seven companies will take it up more aggressively in future. Rashtriya Ispat Nigam Ltd. intends to go beyond statutory norms. SAIL is poised to make its mark globally in the years to come with the implementation of clean and green technologies. Continuous and improved monitoring of environmental impact is part of NMDC's company policy. BALCO will strive for zero effluent discharge in future. The annual report of Essar mentions about the additional Investments and proposals being implemented for reduction in consumption of energy: Metallic blades of eight cooling tower fans will be replaced with FRP blades. Power saving of about 42500 units per fan per year. To generate 19MW power from flue gas waste heat recovery by power plant. Removal of heavy hydrocarbon by PSA system to avoid carbon deposition in catalyst tubes. This will avoid carbon burnout requirement, which consumes both natural gas and power during each carbon burn out without production. Use of Corex gas and VPSA system: Corex gas consumption saves natural gas which can be used for reformer burner. Oil and Gas Reliance, Hindustan Petroleum, ONGC, Chennai Petroleum, and GAIL will increase its efforts towards environmental protection while the other five companies will continue their efforts towards green management as they are doing now. Chennai Petroleum plans to use to more bio fuels and bio lubricants in future. Power While NTPC Ltd. is doing a lot of R&D to ensure that they don't harm the environment, Tata Power Co. Ltd. has setup a Sustainability Council to continuously improve sustainability. We have classified these two companies as those that will do more green management in future. Nuclear Power Corporation of India Ltd. and Power Grid Corporation of India Ltd. will continue its current efforts towards environmental protection. Trading The companies in this sector are usually not doing green management and we believe that they are not going to take it up in near future. The absence of any such initiative in the annual report forms the basis of our beliefs. It is not clear from the 2007-08 annual report of Adani Enterprises Ltd. that they are doing it or not but as their vision states their responsibility towards environment, it can be inferred that they are taking some measures and will continue to do so. Transport Two companies from transport sector were analyzed to ascertain their future plans towards Green Management. Both of these companies intend to continue their efforts towards green management and environmental protection. Telecom, Realty and Pharma We analyzed just one company from each of these sectors. The companies, the corresponding sectors, and their future plan are summarized in the Table 1. Table 1. Future Plans in Telecom, Realty And Pharma Sectors Company MTNL Cipla Reliance Infrastructure Ltd. Telecom Pharma Realty Sector Future Plan Not doing it and will not do Doing it and will continue doing the same Doing it and will do more in future Mining These companies are doing green management mainly to meet statutory norms. Hence it is unlikely that they will increase their effort in near future unless the regulations itself gets enhanced. We have categorized them into the 3rd category. PSU Vs Private Sector We found that the future plan of companies in relation to green management is not dependent on their being a private sector enterprise or public sector unit but is dependent more on which industry they belong to and what their competitors are doing as shown in Figure 2 and Figure 3. Figure 2. Green management in private sector Figure 3. Green management in Govt owned companies (PSU) The difference in Figure 2 and Figure 3 for private and public sector mainly arose from the fact that the sector wise distribution of PSU and privately held companies for the companies chosen by us were not the same. For e.g. most of the companies in the B&F sector were public enterprises and very few were private enterprises. As the companies in B&F sector don't normally engage in green management, the pie chart for PSU shows a large chunk of companies that don't participate in green management. This large chunk is mainly because of the presence of many public sector banks in our analysis. Table 2 shows the findings. Table 2. Private Vs Public Sector Comparison Not doing it and will not do 18 9 Not doing it but will do 0 0 Doing it and will continue the same way 17 20 Doing it but change course of action 0 0 Doing it and will do more 10 17 PSU Private Conclusion Indian economy is on a growth trajectory and one after another study is projecting India among leading economies of future. Whereas the focus of the world on emerging markets is for growth rates and related aspects, India has its own environmental concerns and the environmental scenario is not very good. This paper studies the future of green management and sustainability in the top companies in India. Out of the total ninety-one companies that we analyzed, we found that twenty-seven of them were not doing green management and sustainability and had no plans of doing it in future. Thirty-seven of the ninety-nine were doing it and will continue to do the same. The remaining twenty-seven were planning to do even more in future. We also found that green management and sustainability initiatives by a company depends a lot on which industry the company is in and is independent of it being a private or public enterprise. Banking & Finance, Trading, and IT companies are not that keen on green management and sustainability. These are the sectors that don't pollute the environment as much as other sectors. In Auto, Capital Goods, Metal, Power, FMCG, and Oil and Gas sector, the percentage of companies who were planning to do more green management and sustainability in future was equal to more than fifty indicating that the concept of green management and sustainability in catching up in these sectors of Indian economy. The study shows that more and more big companies are making future plans for green management and sustainability in India. This is significant development in context of the growing concerns on sustainability in India and globally. Directions for Future Research This study tried to answer the future plans related to green management and sustainability in Top 100 companies from India. Future studies can undertake more in-depth analysis across sectors and emerging economies. References [1] Centre for monitoring Indian Economy (CMIE). 2009. CMIE PROWESS Database. [2] Florida, R., and Davison, D. 2001. Gaining from green management: Environmental management systems inside and outside the factory. California Management Review. 43(3):64-86. [3] Harris, L.C., and Crane, A. 2002, The greening of organizational culture: Management views on the depth, degree and diffusion of change, Journal of Organizational Change Management. 15(3): 214-235. [4] Menon, A., and Menon, A. 1997.Enviropreneurial marketing strategy: the emergence of corporate environmentalism as market strategy. Journal of Marketing. 61 (1): 51-67. [5] Post, J.E., and Altman, B.W. 1994. Managing environmental change process: barriers and opportunities. Journal of Organizational Change Management. 7(4): 4-14 [6] Pillania, R.K. 2008. Growth and Environment: BRIC Scenario. Business Review. 3(1):1-9. ANNEXURE 1 Table 1: List of Top 100 companies Indian Oil Corpn. Ltd. Reliance Industries Ltd. Bharat Petroleum Corpn. Ltd. Hindustan Petroleum Corpn. Ltd. Oil & Natural Gas Corpn. Ltd. State Bank Of India Steel Authority Of India Ltd. N T P C Ltd. I C I C I Bank Ltd. Mangalore Refinery & Petrochemicals Ltd. Tata Motors Ltd. Chennai Petroleum Corpn. Ltd. M M T C Ltd. Larsen & Toubro Ltd. Bharat Heavy Electricals Ltd. Tata Steel Ltd. I T C Ltd. Hindalco Industries Ltd. Maruti Suzuki India Ltd. G A I L (India) Ltd. Wipro Ltd. Infosys Technologies Ltd. Canara Bank Punjab National Bank State Trading Corpn. Of India Ltd. Bank Of India Sterlite Industries (India) Ltd. Bank Of Baroda Mahindra & Mahindra Ltd. Hero Honda Motors Ltd. H D F C Bank Ltd. H C L Infosystems Ltd. Indian Farmers Fertiliser Co-Op. Ltd. Grasim Industries Ltd. Essar Steel Ltd. Adani Enterprises Ltd. Indian Potash Ltd. Rashtriya Ispat Nigam Ltd. Ruchi Soya Inds. Ltd. Union Bank Of India Ispat Industries Ltd. I D B I Bank Ltd. Hindustan Zinc Ltd. South Eastern Coalfields Ltd. Jet Airways (India) Ltd. Ashok Leyland Ltd. Indian Overseas Bank Central Bank Of India Housing Development Finance Corpn. Ltd. Syndicate Bank Axis Bank Ltd. Citibank N A. Satyam Computer Services Ltd. Indian Oil Corpn. Ltd. Oriental Bank Of Commerce Uco Bank Reliance Infrastructure Ltd. Allahabad Bank Standard Chartered Bank Hongkong & Shanghai Banking Corpn. Ltd. Northern Coalfields Ltd. Bongaigaon Refinery & Petrochemicals Ltd. Oil India Ltd. Indian Bank Tata Power Co. Ltd. National Bank For Agriculture & Rural Development N M D C Ltd. National Aluminium Co. Ltd. Mahanagar Telephone Nigam Ltd. Rashtriya Chemicals & Fertilizers Ltd. Corporation Bank Power Grid Corpn. Of India Ltd. State Bank Of Hyderabad Power Finance Corpn. Ltd. Andhra Bank Honda Siel Cars India Ltd. State Bank Of Patiala Tata Chemicals Ltd. Tata Sons Ltd. Bharat Aluminium Co. Ltd. H C L Technologies Ltd. Bhushan Steel Ltd. Punj Lloyd Ltd. Vijaya Bank Crompton Greaves Ltd. Cipla Ltd. Bharat Electronics Ltd. Eastern Coalfields Ltd. Apollo Tyres Ltd. Aditya Birla Nuvo Ltd. United Bank Of India Nuclear Power Corpn. Of India Ltd. National Fertilizers Ltd. Asian Paints Ltd. Shipping Corpn. Of India Ltd. Century Textiles & Inds. Ltd. Bank Of Maharashtra Godrej & Boyce Mfg. Co. Ltd. Coromandel Fertilisers Ltd. State Bank Of Travancore Gujarat State Fertilizers & Chemicals Ltd. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Environmental Management and Tourism de Gruyter

Future of green management & sustainability in India

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de Gruyter
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2068-7729
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10.2478/v10260-012-0002-0
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Abstract

Indian economy is on a growth trajectory and one after another study is projecting India among leading economies of future. Whereas the focus of the world on emerging markets is for growth rates and related aspects, India has its own environmental concerns and the environmental scenario is not very good. This paper studies the future of green management and sustainability in the top companies in India. Out of the total 91 companies that we analyzed, we found that 27 of them were not doing green management and sustainability and had no plans of doing it in future. 37 of the 99 were doing it and will continue to do the same. The remaining 27 were planning to do even more in future. We also found that green management and sustainability initiatives by a company depends a lot on which industry the company is in and is independent of it being a private or public enterprise. The study shows that more and more big companies are making future plans for green management and sustainability in India. This is significant development in context of the growing concerns on sustainability in India and globally. Key words: green management, sustainability, India, top companies. JEL Classification: M1 1. Introduction Historically, the goals of economic growth and environmental quality have often been in conflict. However, over the course of the past decade, a growing number of companies have pioneered new strategies for integrating the environment into their overall business strategy and for simultaneously improving their environmental and business performance (Florida, and Davison 2001). There are a growing number of studies suggesting that organizations have begun tentatively to focus greater attention on environmental issues (Harris, and Crane 2002; Menon, and Menon 1997; Post, and Altman 1994). Environment has gained centre stage in the global discussions. There are genuine concerns and dialogue on environmental degradation and future of earth (Pillania 2007). Whereas the focus of the world on emerging markets is for growth rates and related aspects, India has its own environmental concerns and the environmental scenario is not very good .Government needs to take steps in partnership with civil society and industry to improve the situation. Though there are international treaties and national strategies and plans in place, the implementation needs much more focus (Pillania 2008). This paper studies the future of green management and sustainability in top 100 firms in India. This paper consists of four parts including the introductory part. The next part elaborates the research methodology. The third part presents the findings and discussions on the practice of strategy in Indian context. The last part is conclusion of the chapter. 2. Research methodology This study explores the presence of the green management and sustainability in top 100 companies. The question is namely, what are the future plans of the companies for green management and sustainability? The selection of the top companies for study is based on the Corporate Database Prowess of the Center for Monitoring Indian Economy (CMIE). CMIE is India's largest and most comprehensive database on firms operating in India. Prowess is a database of large and medium Indian firms containing detailed information on over 20,000 firms. The database comprises all companies traded on India's major stock exchanges and several others including the central public sector enterprises and covers most of the organised industrial activities, Banking and organised financial and other services sectors in India. The companies enclosed in Prowess account for 75 per cent of all corporate taxes and make up 95 per cent of excise duty collected by the Government of India (CMIE 2009). The top 100 companies are selected based on total revenue over 1990-2008 time period. We have taken ten year time period which is reasonable long for business performance. Only those companies are selected which were there each year among the top companies and absence for a year leads to rejection. Some new companies started recently could not make into the list as they were not present over the ten year time period. The list of companies is given in Table 1 in Annexure 1. This work is based on secondary data collected from the annual report and websites of companies. 3. Findings and discussion The research paper focuses on the future plans of the Indian companies in relation to Green management and sustainability. Using the annual report information, we have tried to group the companies into following five categories: Companies that are neither doing green management and sustainability now nor will do it in future Companies that are not doing green management and sustainability currently but are planning to do it in future Companies that are doing green management and sustainability and will continue to do it the same way Companies that are doing green management and sustainability but will change course of action in future Companies that are doing green management and sustainability presently and are planning to do more in future If we found that the companies are making newer investment or have capital work in progress related to green management and sustainability, we concluded that they will do more of green management and sustainability in future. If the annual report stated about a company's continued commitment towards green management and sustainability, we took it as an indication that they are doing it and will continue doing the same. The absence of anything related to green management and sustainability was taken to be an indicator of a company not doing it and will not do categorization. For nine companies out of 100 companies, no concrete conclusion could be made as to their future plan about green management and sustainability. These companies are Indian Potash Ltd., Indian Bank, Honda Siel Cars India Ltd., State Bank of Patiala, Tata Sons Ltd., Bhushan Steel Ltd., National Fertilisers Ltd., Century Textiles and Inds Ltd., and Godrej and Boyce Mfg. Co. Ltd. In the analysis that follows these companies are not considered. Figure 1. Future of green management Figure 1 summarizes the findings. Out of the total ninety-one companies that we analyzed, we found that twenty-seven of them were not doing green management and sustainability and had no plans of doing it in future. Thirty-seven of the ninety-nine were doing it and will continue to do the same. The remaining twenty-seven were planning to do even more in future. We also found that green management and sustainability initiatives by a company depends a lot on which industry the company is in and is independent of it being a private or public enterprise. Banking & Finance, Trading, and IT companies are not that keen on green management and sustainability. These are the sectors that don't pollute the environment as much as other sectors. In Auto, Capital Goods, Metal, Power, FMCG, and Oil and Gas sector, the percentage of companies who were planning to do more green management and sustainability in future was equal to more than fifty indicating that the concept of green management and sustainability in catching up in these sectors of Indian economy. Auto Sector Six companies from auto sector were analyzed to identify the future plans of Indian companies towards Green Management. We found that the first three companies i.e. Hero Honda, M&M, and Ashok Leyland are already doing it and plans to do even more in future. The other three companies i.e. Tata Motors, Maruti Suzuki, and Apollo Tyres are also doing Green Management and will continue to do it the same way in future. The conclusion that the first three companies will do more of Green Management was drawn from the fact that these companies are planning additional investments in green management and energy conservation practices. The annual report of M&M for the year 2007-08 insinuated that they will take up green management more vigorously in the years to come. Banking and Finance It was found that most of the companies (21 out of 29) in this sector are not doing green management and are not even planning to do it in future. There was no mention of any green management practices or even any environmental protection or energy conservation initiative in their annual report. Their indifference towards environment stems from their conservative belief that green management is only for those firms that directly impacts the environment their ignorance towards the impact green management can have on the bottom line. Seven of the twenty-nine firms were found to be doing some form of green management and though there was no indication that they will do it more aggressively in future. We have put them in the 3rd category. Bank of India was the only firm that could be categorized in the 5th category. Bank of India has implemented the use of nonconventional sources of energy in areas of acute power shortage. It installed Solar Power Systems in 65 Rural / Semi urban branches and is planning to extend this in another 100 branches during 2008-09. Capital Goods A majority of the companies (3 out of 5) are committed towards using more environmentally friendly product in construction in future. We didn't find anything specific to green management in Punk Lloyd's annual report. We classified it into not doing and will not do category. BEL was classified into doing it and will continue to do it in the same way category on the basis of annual report data. Chemicals Five out of the eight companies were classified into doing it and will continue to do it the same way category. The three companies which we think will do it more aggressively in future are Tata Chemicals, Gujarat State Fertilizers & Chemical Ltd., and Indian Farmers Fertilisers Co-Op Ltd. The first two want to avail carbon credit benefits. Tata Chemicals plans to continue R&D efforts to attain objectives of cost reduction, energy conservation, waste minimization/ recycling & reuse, value addition, environmental improvement and efficient management of water. IFFC has 50 crore worth of capital work in progress related to investments in energy conservation. FMCG While ITC plans to increase its investment towards green management, Ruchi Soya plans to continue striving for lower energy consumption so as to earn carbon credits as they are doing now. IT Five companies from IT sector were analyzed to ascertain their future plans towards Green Management. While HCL seems completely indifferent towards green management and has no plan to take it up in future, Wipro seems committed towards ecological sustainability and plans to increase its efforts. Infosys, and Satyam will continue their green management initiatives. Metal We categorized Ispat, Sterlite, HINDALCO, and NALCO as companies that are doing green management and will continue to the same in future. These companies are already quite aggressive in taking environmental protection measures and will continue to be like that. The remaining seven companies will take it up more aggressively in future. Rashtriya Ispat Nigam Ltd. intends to go beyond statutory norms. SAIL is poised to make its mark globally in the years to come with the implementation of clean and green technologies. Continuous and improved monitoring of environmental impact is part of NMDC's company policy. BALCO will strive for zero effluent discharge in future. The annual report of Essar mentions about the additional Investments and proposals being implemented for reduction in consumption of energy: Metallic blades of eight cooling tower fans will be replaced with FRP blades. Power saving of about 42500 units per fan per year. To generate 19MW power from flue gas waste heat recovery by power plant. Removal of heavy hydrocarbon by PSA system to avoid carbon deposition in catalyst tubes. This will avoid carbon burnout requirement, which consumes both natural gas and power during each carbon burn out without production. Use of Corex gas and VPSA system: Corex gas consumption saves natural gas which can be used for reformer burner. Oil and Gas Reliance, Hindustan Petroleum, ONGC, Chennai Petroleum, and GAIL will increase its efforts towards environmental protection while the other five companies will continue their efforts towards green management as they are doing now. Chennai Petroleum plans to use to more bio fuels and bio lubricants in future. Power While NTPC Ltd. is doing a lot of R&D to ensure that they don't harm the environment, Tata Power Co. Ltd. has setup a Sustainability Council to continuously improve sustainability. We have classified these two companies as those that will do more green management in future. Nuclear Power Corporation of India Ltd. and Power Grid Corporation of India Ltd. will continue its current efforts towards environmental protection. Trading The companies in this sector are usually not doing green management and we believe that they are not going to take it up in near future. The absence of any such initiative in the annual report forms the basis of our beliefs. It is not clear from the 2007-08 annual report of Adani Enterprises Ltd. that they are doing it or not but as their vision states their responsibility towards environment, it can be inferred that they are taking some measures and will continue to do so. Transport Two companies from transport sector were analyzed to ascertain their future plans towards Green Management. Both of these companies intend to continue their efforts towards green management and environmental protection. Telecom, Realty and Pharma We analyzed just one company from each of these sectors. The companies, the corresponding sectors, and their future plan are summarized in the Table 1. Table 1. Future Plans in Telecom, Realty And Pharma Sectors Company MTNL Cipla Reliance Infrastructure Ltd. Telecom Pharma Realty Sector Future Plan Not doing it and will not do Doing it and will continue doing the same Doing it and will do more in future Mining These companies are doing green management mainly to meet statutory norms. Hence it is unlikely that they will increase their effort in near future unless the regulations itself gets enhanced. We have categorized them into the 3rd category. PSU Vs Private Sector We found that the future plan of companies in relation to green management is not dependent on their being a private sector enterprise or public sector unit but is dependent more on which industry they belong to and what their competitors are doing as shown in Figure 2 and Figure 3. Figure 2. Green management in private sector Figure 3. Green management in Govt owned companies (PSU) The difference in Figure 2 and Figure 3 for private and public sector mainly arose from the fact that the sector wise distribution of PSU and privately held companies for the companies chosen by us were not the same. For e.g. most of the companies in the B&F sector were public enterprises and very few were private enterprises. As the companies in B&F sector don't normally engage in green management, the pie chart for PSU shows a large chunk of companies that don't participate in green management. This large chunk is mainly because of the presence of many public sector banks in our analysis. Table 2 shows the findings. Table 2. Private Vs Public Sector Comparison Not doing it and will not do 18 9 Not doing it but will do 0 0 Doing it and will continue the same way 17 20 Doing it but change course of action 0 0 Doing it and will do more 10 17 PSU Private Conclusion Indian economy is on a growth trajectory and one after another study is projecting India among leading economies of future. Whereas the focus of the world on emerging markets is for growth rates and related aspects, India has its own environmental concerns and the environmental scenario is not very good. This paper studies the future of green management and sustainability in the top companies in India. Out of the total ninety-one companies that we analyzed, we found that twenty-seven of them were not doing green management and sustainability and had no plans of doing it in future. Thirty-seven of the ninety-nine were doing it and will continue to do the same. The remaining twenty-seven were planning to do even more in future. We also found that green management and sustainability initiatives by a company depends a lot on which industry the company is in and is independent of it being a private or public enterprise. Banking & Finance, Trading, and IT companies are not that keen on green management and sustainability. These are the sectors that don't pollute the environment as much as other sectors. In Auto, Capital Goods, Metal, Power, FMCG, and Oil and Gas sector, the percentage of companies who were planning to do more green management and sustainability in future was equal to more than fifty indicating that the concept of green management and sustainability in catching up in these sectors of Indian economy. The study shows that more and more big companies are making future plans for green management and sustainability in India. This is significant development in context of the growing concerns on sustainability in India and globally. Directions for Future Research This study tried to answer the future plans related to green management and sustainability in Top 100 companies from India. Future studies can undertake more in-depth analysis across sectors and emerging economies. References [1] Centre for monitoring Indian Economy (CMIE). 2009. CMIE PROWESS Database. [2] Florida, R., and Davison, D. 2001. Gaining from green management: Environmental management systems inside and outside the factory. California Management Review. 43(3):64-86. [3] Harris, L.C., and Crane, A. 2002, The greening of organizational culture: Management views on the depth, degree and diffusion of change, Journal of Organizational Change Management. 15(3): 214-235. [4] Menon, A., and Menon, A. 1997.Enviropreneurial marketing strategy: the emergence of corporate environmentalism as market strategy. Journal of Marketing. 61 (1): 51-67. [5] Post, J.E., and Altman, B.W. 1994. Managing environmental change process: barriers and opportunities. Journal of Organizational Change Management. 7(4): 4-14 [6] Pillania, R.K. 2008. Growth and Environment: BRIC Scenario. Business Review. 3(1):1-9. ANNEXURE 1 Table 1: List of Top 100 companies Indian Oil Corpn. Ltd. Reliance Industries Ltd. Bharat Petroleum Corpn. Ltd. Hindustan Petroleum Corpn. Ltd. Oil & Natural Gas Corpn. Ltd. State Bank Of India Steel Authority Of India Ltd. N T P C Ltd. I C I C I Bank Ltd. Mangalore Refinery & Petrochemicals Ltd. Tata Motors Ltd. Chennai Petroleum Corpn. Ltd. M M T C Ltd. Larsen & Toubro Ltd. Bharat Heavy Electricals Ltd. Tata Steel Ltd. I T C Ltd. Hindalco Industries Ltd. Maruti Suzuki India Ltd. G A I L (India) Ltd. Wipro Ltd. Infosys Technologies Ltd. Canara Bank Punjab National Bank State Trading Corpn. Of India Ltd. Bank Of India Sterlite Industries (India) Ltd. Bank Of Baroda Mahindra & Mahindra Ltd. Hero Honda Motors Ltd. H D F C Bank Ltd. H C L Infosystems Ltd. Indian Farmers Fertiliser Co-Op. Ltd. Grasim Industries Ltd. Essar Steel Ltd. Adani Enterprises Ltd. Indian Potash Ltd. Rashtriya Ispat Nigam Ltd. Ruchi Soya Inds. Ltd. Union Bank Of India Ispat Industries Ltd. I D B I Bank Ltd. Hindustan Zinc Ltd. South Eastern Coalfields Ltd. Jet Airways (India) Ltd. Ashok Leyland Ltd. Indian Overseas Bank Central Bank Of India Housing Development Finance Corpn. Ltd. Syndicate Bank Axis Bank Ltd. Citibank N A. Satyam Computer Services Ltd. Indian Oil Corpn. Ltd. Oriental Bank Of Commerce Uco Bank Reliance Infrastructure Ltd. Allahabad Bank Standard Chartered Bank Hongkong & Shanghai Banking Corpn. Ltd. Northern Coalfields Ltd. Bongaigaon Refinery & Petrochemicals Ltd. Oil India Ltd. Indian Bank Tata Power Co. Ltd. National Bank For Agriculture & Rural Development N M D C Ltd. National Aluminium Co. Ltd. Mahanagar Telephone Nigam Ltd. Rashtriya Chemicals & Fertilizers Ltd. Corporation Bank Power Grid Corpn. Of India Ltd. State Bank Of Hyderabad Power Finance Corpn. Ltd. Andhra Bank Honda Siel Cars India Ltd. State Bank Of Patiala Tata Chemicals Ltd. Tata Sons Ltd. Bharat Aluminium Co. Ltd. H C L Technologies Ltd. Bhushan Steel Ltd. Punj Lloyd Ltd. Vijaya Bank Crompton Greaves Ltd. Cipla Ltd. Bharat Electronics Ltd. Eastern Coalfields Ltd. Apollo Tyres Ltd. Aditya Birla Nuvo Ltd. United Bank Of India Nuclear Power Corpn. Of India Ltd. National Fertilizers Ltd. Asian Paints Ltd. Shipping Corpn. Of India Ltd. Century Textiles & Inds. Ltd. Bank Of Maharashtra Godrej & Boyce Mfg. Co. Ltd. Coromandel Fertilisers Ltd. State Bank Of Travancore Gujarat State Fertilizers & Chemicals Ltd.

Journal

Journal of Environmental Management and Tourismde Gruyter

Published: Jun 1, 2012

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