Tbl Issue 2 Eco-efficiency

march-april 2008 issue 02

a specialized csr journal

cover story: tbl and eco-efficiency the feasibility of renewable energy in pakistan leapfrogging past green: can blue be the next green in pakistan? footprints in the air: air pollution prizes? the people-centered model of business the pakistani perspective on sustainability reporting business intelligence: EIU sustainabilitybusiness survey green business sense? energy conservation: collective conscience csr talk: advancementpoverty paradox

Eco-Efficiency – Key TBL Driver A Publication of Asiatic Public Relations Network (Pvt.) Ltd.

contents regulars 8 28

global briefs

Managing Editor Rutaba Ahmed

csr talk

Research, Distribution & Development Raza Tahir Faisal Siddiqi Mehfooz Aleem

csr toolkit PC-MoB

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breather

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social partnership indus earth

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book in focus ethics incorporated

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musings a second life

features 11

Editorial Director Khadeeja Balkhi

people - planet - profits

challenge of the 21st century: advancement-poverty paradox

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Editor-in-Chief Zohare Ali Shariff

Creatives Kamran Rauf Shireen Lotia Reprint In line with our mission, we encourage reproduction of material, provided tbl and content partners are given credit Publisher Asiatic Public Relations Network (Private) Limited Printed at Nikmat Printers, Karachi Disclaimer The views expressed in tbl are the authors’ and not necessarily shared by tbl and/or APR Declaration From the office of District Coordination Officer, City District Government Karachi NO.DCO/DDO/LAW/CDGK/109/2007, Karachi Dated May 22, 2007

cover story tbl and eco-efficiency

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renewable energy the feasibility of renewable energy in pakistan

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leapfrogging past green can blue be the next green in pakistan?

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footprints in the air air pollution prizes?

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business intelligence EIU surveys sustainability impact on businesses

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energy conservation collective conscience

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green perspectives green business sense?

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tbl:

triple bottom-line

Address: A-7, Street 1, Bath Island, Clifton, Karachi, Pakistan. Tel: (92-21)-5837674, 5823334 Fax: (92-21)-5867103 E-mail: [email protected] Web: www.triplebottomline.com.pk

sustainability reporting the pakistani perspective on sustainability reporting

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Subscription, advertising and feedback at:

www.triplebottomline.com.pk

Subscribe to a full year of tbl (6 issues) at the special rate of Rs.1,000 and save the cost of an issue. If you wish to subscribe to tbl, or unsubscribe, please write to us at [email protected]

welcome on board The tbl Team is honoured to introduce our editorial advisory board. Comprised of diverse leaders and practitioners, our goal is that the board will steer our efforts to their highest potential.

Ayesha Tammy Haq Member

Corporate lawyer, legal and media consultant. Concurrently a freelance journalist and host of a weekly current affairs television programme. Based in Karachi.

Anwar Rammal

Habiba Hamid

Chairperson

Member

Chairman of Asiatic Public Relations (Pvt.) Limited, Pakistan’s leading communications and PR agency, affiliated internationally with Hill & Knowlton. Also Chairman of JWT, Pakistan. Based in Karachi.

Founder of Saracen Consulting, a corporate governance and responsibility consulting firm. Currently articulating the Dubai Model of sustainable development. Based in Dubai.

Khadeeja Balkhi

Abrar Hasan

Executive Member

Founder Sponsor Member

Sustainability and CSR consultant and internationally experienced business and gender journalist. Based in Karachi.

Chief Executive of National Foods Limited, Pakistan’s pioneering multi-category food company. Innovative businessman and industry leader. Based in Karachi.

Khawar Masood Butt

Vivian Lines

Founder Sponsor Member

Member

Chairman and MD of English Biscuit Manufacturers (Pvt.) Limited, Pakistan’s leading biscuit company. Entrepreneur and business visionary with a firm commitment to CSR. Based in Karachi.

vision and mission

President and Chief Operating Officer of Hill & Knowlton’s Asia Pacific Region and concurrently President and CEO Southern Asia. Based in Singapore.

Vision: To steadily facilitate the germination of sustainable visions for organisational growth, sharing specific triple bottom-line knowledge and tools Mission Statement: To disseminate triple bottom-line knowledge to a diversified group including corporate, social development and general business groups primarily through a specialised journal, expanding in accordance with organisational capacity and market readiness

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acknowledgement The term ‘Triple Bottom-Line’ (TBL), which translates into “People, Planet, Profits,” captures an expanded spectrum of values and criteria for measuring organisational (and societal) success - social, environmental and economic. Through our masthead we personify the term TBL. Essentially, our ‘bottom line’ is a grey bar with a burgundy border which runs through the masthead, at some points overlapping the letters and running under them at others. Here ‘t’ stands for triple and is represented through the three shades of the letter. The ‘b’ stands for bottom and it sits below our grey line with the line going through it - since this magazine is a below the line activity, the two gel in together. The ‘l’ stands for line and the letter sits comfortably on top of the grey ‘bottom’ line.

The tbl team expresses its profound gratitude to the companies whose names appear below, for their agreement to support this publication. Bringing out a knowledge-based publication like tbl involves considerable effort and costs. It may not have been possible to bring out tbl in its present format without the invaluable support and contribution of our Founder Sponsors. Through their support to tbl our corporate sponsors have confirmed that they share our Mission of disseminating triple bottom-line knowledge to a diversified group including corporate, social development and general business groups. We believe that helping to spread awareness of true CSR is in itself an element of CSR. By becoming our sponsors, the following companies have taken that vital first step with us in our journey to facilitate awareness and understanding of true CSR in our country.

mr tbl National Foods Limited Founder Sponsor

English Biscuit Manufacturers (Private) Limited

Mr. Tanveer B. Lone is indeed a busy man, laden with his struggle for the truth in the Sustainability industry. His first name, Tanveer, according to our wonderful Ferozsons Urdu-English dictionary means 'illuminating'. We feel he is sometimes the seeker of enlightenment, and at others, the seemingly lone bearer. Driven towards his destination – the true light of CSR – he sometimes feels like a lone voice buried amidst the complex factors he confronts on the way. Yet as he sets forth, oft-alone on this journey, he knows he will meet companions along the sub-paths his journey takes, merging at destinations common with him. There will be occasions where we can all relate to him. At times, though his capitalist-training-bred financial focus may fluster us and his understanding towards disseminating the true implications of the triple bottom-line. Feel free to share ideas with Mr. TBL that might help clear the oft-murky waters he'll encounter in his expedition at [email protected]

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Founder Sponsor

Engro Chemical Pakistan Ltd. ENGRO CHEMICAL PAKISTAN LIMITED

Co-sponsor

editor’s note

beyond the basics

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s businesses expand and become more accountable, the crucial link between higher levels of corporate transparency, accountability and sustainability performance of businesses becomes more stark. Eco-efficiency must be seen as a vital area for both improvement and for reporting. Indeed, one can even say that there is a direct co-relation between growth (which invariably entails a larger environmental footprint) and the need to leverage eco-efficiency. We at TBL see eco-efficiency as a key driver of the triple bottom line and hence have chosen it as the theme of our publication's second issue. Management Best Practices require recording and reporting of various business functions. When companies begin to pursue the triple bottom line - ecoefficiency being one important aspect of this reporting must be a mandatory exercise. One significant indicator of the growing importance of CSR is the number of companies, even in our own country, who have started bringing out an annual report on their CSR activities. For some this may be little more than a public relations exercise. There are others who see this as an opportunity for introspection and self-analysis, leading to improvements in systems and practices for the growth of the company and for delivering even better products and services to the public. Whatever the motivation, the fact that companies are increasingly willing to report on their CSR or sustainability practices is a good omen. It implies that there is an awakening in the corporate sector to be accountable to their audiences. The Global Reporting Initiative or GRI has emerged as the world standard for reporting on CSR and sustainability. A large multi-stakeholder network of experts in dozens of countries worldwide participate in GRI's working groups and contribute to the development of the GRI reporting framework in other ways - both formally and informally. Its vision is that reporting on economic, environmental, and social

performance by all organizations should be as routine as and comparable to financial reporting. Included in this issue is an article especially written for TBL by Katherine Miles Hill, Communications Coordinator of GRI and entitled, Putting the Value of Sustainability Reporting into Perspective in Pakistan. It should serve as a tailor-made introduction to reporting practices for those among TBL readership who wish to tread this path. We're also delighted to share with you Salman Abedin's trail-blazing thoughts on the new corporate colour, philosophy and change-catalyst. The PeopleCentered Model of Business, in our CSR Toolkit Section meanwhile gives thought-provoking insight on a practical tool which organizations can use to examine the reality of their markets by focusing on human activity - written by the author herself. We hope there will be plenty of food for thought (and for action!) for our readers in the various articles in this issue on eco-efficiency and other CSR subjects. Finally, on behalf of TBL's Editorial Advisory Board and the management, I would like to thank all of our readers who gave us invaluable feedback on our first issue. Taking this feedback into account we have brought about certain improvements in the publication's layout and design, which are reflected in this second issue. TBL aims to maintain a high standard in both presentation and content and your continuing feedback will be invaluable and greatly appreciated. Sincerely,

Zohare Ali Shariff Editor in Chief

This publication is being sent complimentary to 1500 decision-makers and opinion-formers in the corporate sector, the government, NGO sector, international institutions and academia. Recognising that your sphere of work has the potential to compliment and reinforce the essence of our mission, we have taken the liberty to present tbl to you. It is also available at selected outlets. We would love to hear from you. Please do contact us at [email protected] with your thoughts, feedback and input from your corporate or social practices. tbl strongly believes in knowledge dissemination and sharing. Please feel free to share tbl contents with your peers and teams - of course we know you’ll give tbl the credit when you share our work.

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letters to the editor

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verall I found the magazine useful in helping to refine an understanding of the role of the corporate sector in contributing towards the wellbeing of a balanced society, which includes improved social services and the environment. While I found the opinion features such as the one about not using csr as a superficial buzz-word very useful, one would welcome a section of the magazine dedicated to share certain trend data analysis, such as the number of private companies registered under the ISO 14000 environment standard, the number of companies producing separate reports on their environmental performance, and the number of banks that have signed up to the "Equator Principle" environmental standards. Wishing the magazine success for the future.

Ali Habib Director General WWF-Pakistan Lahore

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hank you for sending me a copy of the first issue of tbl. It is indeed a very admirable venture and initiative in highlighting CSR as an opportunity. My congratulations to you for taking the initiative and being among the pioneers. Fasihul Karim Siddiqi Director & Board Advisor Human Resources Progressive Manufacturing and CSR Hinopak Motors Limited Karachi

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wanted to share with you my excitement at receiving my copy of TBL. It's finally made it's way to me in Geneva, after travelling through London and who knows where else! The publication looks fantastic and I can see there was a lot of hard work put into it by all of you. The standard is very impressive and I am very proud to be a part of such work. Flavia Thome Programme Administrator Trade Knowledge Network International Institute for Sustainable Development Geneva

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t is heartening to see the realisation of profound social and environmental impacts businesses have and that is fast catching up in a country like Pakistan. The changing balance of power between the political and economical forces in the present age of globalisation, with retreat of traditional left, has put additional responsibility on businesses to assess their social and environmental footprints and also to improve upon them for the greater good of society. TBL can play a leading role in creating awareness and offer solutions to businesses in this regard. My felicitations to the TBL team for coming up with this platform. It would be nice to see some coverage on various anti-capitalism movements worldwide to better understand the context of evolving social accountability of businesses. Favad Soomro Karachi

Dear Readers, Thank you for taking the time to share your valuable input with TBL. Mr. Siddiqi and Ms. Thome, thank you for your warm encouragement. The TBL journey has been a rewarding, yet challenging one. Our goal to add value to the knowledge base of our diverse readership remains an endeavour that will require our concerted efforts and we look forward to input, suggestions and initiatives for action from our readers. Mr. Habib, you’ll be happy to see that we have incorporated your valuable suggestion and have included in this issue a business intelligence survey, which we hope will be an informative and telling read. We are also working with local universities to do ground research similar to the topics you have shared and look forward to your ongoing feedback, and moreover support from organizations such as WWFPakistan. Mr. Soomro, thank you for candidly sharing your interests with us. We are all keen to learn more about the evolution that we hope will balance and neutralize interests towards the realization of an inclusive triple bottom line approach - instead of the traditional single bottom-line foci that unregulated capitalist environments often result in. In the next issue, we expect to publish material that would be insightful to all our readers. We hope that tbl will continue to serve as a platform and change agent through our readers’ active participation and debate. Editorial Team

PEOPLE

global briefs

Increasing Demand for CSR Jobs Outpaces Supply: CSR Job Report A multi-year study on CSR jobs was published by Net Impact, an international nonprofit organization which helps TBLminded companies connect with top MBA talent, and the Californiabased CSR Recruiting firm, Ellen Weinreb. The CSR Jobs study found that there has been a growing interest in MBAs looking for CSR jobs and although there are more CSR jobs available to business school graduates now than ever before, their supply (and hence serious CSR implementation?) is not enough to meet the demand. Does this indicate a dreamier crop of new capitalists, as the current capitalist core may label them? Or a more responsible group, ready to tackle real world problems, with real business solutions? The study found that environmentally focused jobs are one of the fastest growing areas, especially in clean-technology, consumer products, and public relations. The survey found a 37% annual growth in the number of CSR jobs over the past 3.5 years, with specific growth in positions combining environment and business. The study looked at 3.5yrs of 1,255 CSR job listings posted on two of the leading sources for CSR-related jobs: Business for Social Responsibility's (BSR) jobs page and CSR-Chicks, a listserve for CSR professionals based out of London. A survey conducted by Net Impact in 2006 of MBA student opinions on the relationship between business and social and environmental 8

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issues found growing interest in CSR jobs. About 80% of students surveyed wanted to find CSR jobs; 60% said they were interested in finding them jobs right after graduating. The submitted number of resumes of interested MBA students increased 46% since 2005, to 1126 from 796. Also, active membership of business students and professionals joining Net Impact to access career resources has almost doubled to about 5,000 in 2007 from 2,600 three years ago. As the demand for CSR implementation expertise increases at a rapid pace, graduate schools are recognizing the need for both environment and business expertise and knowledge, and are focusing on developing related programs. An example: the recent $10M gift from Dow Chemical to UC Berkeley, to develop a Sustainable Products and Solutions Program. "An increasing number of MBA students hope to find a career that blends business acumen with positive contributions to society and the environment," said Karin Cooke, Net Impact's Career Program Director. "We advise members to not only look for traditional CSR jobs, but also look for functionally mainstream positions within companies with strong CSR and environmental values". So do these numbers indicate that true CSR practice in the business world is not even sufficient to supply jobs to meet the fledgling demands of the limited business education elite who can afford an MBA? Or, do they simply indicate that someone did something right to inculcate this budding batch of triple bottom-liners from elite, capitalist education systems.

Annual Sustainability Conference: Globe Forum The Globe Forum 2008 business conference will be held on May 7-8, 2008 in Stockholm. This year's theme: Business Innovation for Sustainable Growth.

1500 European business leaders, entrepreneurs, academics and political leaders from dynamic growing markets, including China, India, Europe and the Gulf region, all sharing a common goal: to do sustainable business. The Forum features such diverse leaders as Yulia Tymoshenko, Prime Minister of Ukraine who was named the third most powerful woman in the world by Forbes in July 2005. This conference will address technology and consumer perspectives and the broader energy areas, including energy availability and usage, transport and environmental issues. The platform creates business opportunities, develops clear strategies and helps connect multinational service providers, growing companies and brilliant minds. The Globe Forum Business Network, a hub for sustainable business innovation in fast growing markets organizes the event. The network identifies trends and captures sustainable and prosperous business opportunities, particularly between Europe and fast growing markets.

Once More for Gore? You might want to sit down for this: Al Gore will announce his candidacy for president this week, knowledgeable sources tell our content partner, Grist. Now there's an inconvenient truth for Hillary Clinton and Barack Obama. Gore believes the two Democrats and Republican John McCain aren't giving climate change the urgent attention it deserves, so he's decided to go for the job himself, say Gore advisors anonymously. A lifelong Democrat, Gore will run as an independent this time around. Gore's Alliance for Climate Protection launched a new public education campaign aimed at convincing Americans that climate change is both urgent and solvable. We're guessing that will be the thrust of Gore's presidential campaign as well - if indeed he runs.

Globe Forum brings together over Shared by Grist, an online environmental news magazine

PLANET Biofuels Boom Raises Environmental Concerns A recent UN Report states that the biofuels boom is hurting poor consumers in Asia by driving up crop prices. It is hurting the poor rural farmers who have not seen the benefits of biofuel production and have not been able to adapt their production to cash in on the boom. Small rural farmers lack the means and resources to extend their lands and adapt to new crops. "The impetus for large-scale farming can push the poor off their land, excluding them from biofuels," a United Nations report said. The rise of biofuels has raised considerable criticism against countries like the United States for diverting farm products to produce biofuels, saying this had led to soaring global food prices. The United States is the world's biggest producer of biofuels, derived mostly from corn. "Several questions have arisen on even the emissions implication of that route, and the fact that this has clearly raised prices of corn," said Mr. Rajendra Pachauri, Nobel Peace Prize winner and climate change scientist. There is a growing controversy over using food crops to make biofuels as an alternative to fossil fuels; some environmentalists and politicians assert it has raised food prices, distorted government budgets and also led to deforestation in South-East Asia and Brazil. The world must take care when developing biofuels to avoid perverse environmental effects and higher food prices.

the only renewable alternative to fossil fuels and do generally result in greenhouse gas emission savings. Scientists say some kinds of biofuels generate as much carbon dioxide as the fossil fuels they replace, and a lot of caution is needed when coming up with biofuel solutions that have a major impact on production of food grains and an implication for food safety.

Uniform Carbon Pricing is Crucial: IMF Report The International Monetary Fund said in a report released today that sharply reducing the world's carbon emissions will cost relatively little economically if a carbon-pricing scheme is adopted soon that includes all the majoremitting countries. The report didn't endorse one specific pricing mechanism, but said that either a carbon tax or a cap-and-trade system could work if it gradually increased the price of carbon. "There are significant risks from climate change; damages could be severe," said IMF economist Natalia Tamirisa. "The costs of mitigation could be moderate provided that policies are well designed." Meanwhile, at the ongoing United Nations climate conference in Bangkok, the IMF's partner institution (and fellow predatory lender) the World Bank floated proposals to combat climate change that proved unpopular with developing nations. Instead of funneling cash through the U.N. climate program to aid developing countries, the World Bank suggested it should administer a $10 billion clean-technology fund, and possibly other such funds. Critics of the proposal said the World Bank is too closely controlled by G8 countries and has a shady history of shafting poorer nations.

Clean Wave Technology has Potential for Wider Applications Japanese sailor Kenichi Horie set sail for Japan from the Hawaii Yacht Club in Honolulu on March 17, 2008 on his latest solo adventure at sea, on what he says will be the world's longest voyage in an innovative wave-powered boat. He will travel nearly 4,000 miles aboard a 3-ton, 31 foot-long wavepowered catamaran, the Suntory Mermaid II, at a speed of up to 5 knots. The journey, which would take a diesel-powered boat about a month to complete, is expected to take Horie two to three months. This voyage aims to prove that wave propulsion is viable. Whereas oil is a limited source, there is no limit to waves as a power source. Wave energy, the greenest nautical propulsion system since the sail, has high development potential and wide commercial viability. The vessel is made of recycled aluminum alloy and has fins mounted side by side beneath the bow, which generate dolphin-like kicks that propel the boat forward, making it the world's first boat to be powered by the motion of waves. “The Suntory can transform wave energy into propulsive power regardless of where the wave comes from,” says Yutaka Terao, an engineering professor at Tokai University in Japan who designed the boat’s propulsion system. Marine energy is still in its early stages. According to Roger Bedard, ocean energy leader for the Electric Power Research Institute, U.S., “widespread use of marine energy is about a decade away”. Several projects have been launched mainly in the U.S. and Europe to harness marine power and convert the ocean or river movements into electricity - to create the world's newest form of renewable energy.

Shared by Grist, an online environmental news magazine

Supporters claim that biofuels are march-april 2008

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PROFITS

Value-based Approach Measures Sustainability Performance of Automobile Manufacturers A recently published study "Sustainable Value in Automobile Manufacturing” is the first in the world to assess the corporate sustainability performance of 16 automobile manufacturers worldwide using the Sustainable Value approach. The study examines the sustainability performance of the companies BMW Group, Daihatsu, DaimlerChrysler, FIAT Auto, Ford, GM, Honda, Hyundai, Isuzu, Mitsubishi, Nissan, PSA, Renault, Suzuki, Tyota and Volkswagen Group over the period 1999 – 2005. This project was undertaken by researchers working at the Institute for Futures Studies (IZT) and Technology Assessment in Berlin and Queen’s University Belfast This is the first value-based method that links corporate sustainability performance and the value-based approach that is traditionally used in management practice and company financial analysis. This method establishes whether a company is successfully using its economic, environmental and social resources to create value, in relation to its peers. For example, the report found that, in 2005, Toyota generated an absolute Sustainable Value of €6.5 billion, followed by BMW with a Sustainable Value of €2.93 billion, i.e. Toyota generated €6.5 billion more profit than the average automobile producer would have achieved with the same set of resources. So far the debate has mostly focused on the usage phase of automobiles and related CO2 fleet emissions, rather than the environmental burden created during the production phase. This

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study closes this gap as it enables a company’s efficiency gains to be expressed in monetary terms through benchmarking a company's production resource efficiency against its competitors. The Sustainable Value approach is a practical and significant tool for generating an in-depth, transparent assessment of corporate sustainability ratings and performance trends in the automobile industry.

Recycling and other Measures Undertaken to Reduce Waste: Japan "Japan is home to the overwhelming majority of the world's incinerators", which is a major source of dioxin, according to The Japan Times. The amount of garbage produced in Japan is increasing every year. About 90% of the dioxin released every year is created during waste incineration - 2,900 grams in 1998, according to a government study. Nearly half of this is believed to come from municipal waste alone, almost 80% of which is incinerated. Stores in Japan use plastic and paper bags, and elaborate gift packages and wrappings. Furthermore, disposable wooden chopsticks are widely used in the country. By 2015, Japan aims to reduce the total amount of garbage produced by industries and individuals to 23 million metric tones - 40% of the amount produced in 2000. The government target for individuals is a reduction of 20%. Japan aims to achieve this target through recycling and other measures such as less packaging. A set of plans to promote recycling and halve the garbage it produces was launched by the Cabinet recently. Japan will urge citizens to avoid using disposable chopsticks and instead carry their own, and go shopping with their own bags instead of using plastic ones. The adopted plans also encourage the obvious: that people use public transportation and ride bicycles.

Office Equipment EcoImpact Calculator A new sustainability calculator developed by Xerox can help companies calculate the environmental impact of office devices and reduce the energy wastage of printers, copiers, and other newfangled technology. The calculator is designed to consider factors including type of print cartridge, print colour, speed, number of pages printed per month, and Energy Star rating, and creates bar graphs demonstrating energy consumption, greenhouse gases, and solid waste produced from use of the office device. The "Sustainability Calculator" uses proprietary algorithms and research to suggest ways to reduce energy and paper consumption from office devices, regardless of manufacturer. The calculator has two sets of fields. After the first basic set, an office manager can describe how he would like to see the machines perform in the second. The calculator shows bar graphs covering energy consumption, greenhouse gases and solid waste produced by the machine. Defense manufacturer Northrop Grumman decreased the number of printers and copiers in one of its divisions from 2,000 to 1,100 after using the calculator, Xerox states. As a result, the company’s energy consumption fell 27%, greenhouse gases by 26% and solid waste by 33%. There is an increasing awareness of the eco-impact of office devices. On the lighter side, a American education institutions have observed a strange, contagious disease striking photocopy machines. Symptoms of this disease include “a propensity to chew up trees at an amazing rate, all while using tremendous amounts of energy in the process.” This has raised great concern in several schools in New York and Florida, for instance. A national day of action will be observed on April 17 to stop global warming by putting copiers under quarantine. Compiled by Rutaba Ahmed

cover story

tbl and eco-efficiency: where to start? by khadeeja balkhi for tbl

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he spirit of eco-efficiency? To combine economic value creation or enhancement while continuously mitigating environmental resource usage and impacts.

Eco-efficiency is a key driver for overall business performance because it helps companies understand that they can produce better goods and services while using fewer resources, and lowering ecological impact: Thereby improving both, their environmental performance and their bottom line. The World Business Council on Sustainable Development (WBCSD) coined the term in 1992. The idea of eco-efficiency as a major driver of corporate excellence, according to them, was perhaps introduced by Swiss industrialist Stephan Schmidheiny in the same year, through his book ‘Changing Course’. This article aims to introduce the eco-efficiency concept, some of its key manifestations, and perhaps most importantly, how companies can become more ecoefficient. Identifying the positive link between environmental improvements and economic benefits, is eco-efficiency's first base and taps the potential for enhancing savings from environmental improvements.

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Key Considerations for Eco-Efficiency At the heart of eco-efficiency is creating -or delivering- more, with less. And at the heart of CSR or the triple bottom line is creating, instead of perhaps simply relocating, honest value addition. The Geneva-based WBCSD, a coalition of about 125 leading, international companies that share commitment to the environment. economic growth and sustainable development has identified a handful of key action-areas of a basic eco-efficiency mandate. Perhaps most relevant to companies functioning in economies such as Pakistan's is the combined gist behind the components: that businesses must harness their creativity to deploy new technologies, initiate improvements along the entire value-chain and bring new, valueadded products to the market.

Eco-Efficiency Along the Value Chain: LCVA The eco-efficiency concept has now expanded to include the exploration of business opportunities to be gained from sustainable development strategies, an idea which gained popularity with Harvard Professor, Prahalad's Bottom of the Pyramid (popularly called BoP) theory. The BoP movement is now in full-swing with everyone clamouring to serve the billions of 'consumers' at the bottom of the income pyramid. This, in a country often perceived to be sliding towards the BoP, is old news. Eco-efficiency though, can work throughout the supply chain, endusers included - hence an increased focus on minimalistic packaging that is driven by the understanding that post-consumer processing is a part of the cost of production. In developed markets, companies are already developing products and services that allow customers to cut

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their consumption of resources and reduce their individual and collective environmental impact. All while satisfying their needs often more effectively, and at a better price. Budding entrepreneurs from developing countries can offer all of the above - but the catch sometimes is that quality becomes a victim. Without consumer demand for rigorous standards, why supply them? This is where downstream consumer empowerment in the form of information is vital for leading companies who have firm faith in the value chain that went into producing their products. They must help consumers understand and demand ethically produced, quality goods. It is a tough line to walk - but only if a company's business strategy lacks ingenuity. (Please note: the existence of a robust, long-term business strategy is assumed). However, companies that have invested their time and energy into honest creativity towards valueaddition are already reaping the benefits. For instance, offering services in a manner that meets the environmental, economic and social (triple bottom line) expectations of all stakeholders will create a solid foundation for increasing shareholder value over the long term. Not rocket science. Canada-based Suncor Energy for instance, uses the Life Cycle Value Assessment tool to facilitate "integrated decision making that takes into account long-term triple bottom- line benefits and impacts, not just short-term paybacks". Managers or business unit heads can often become too focused on cost-cutting measures, which can actually hinder both the realization of the triple bottom line and the long-term financial bottom line. Proactive application of triple bottom line or life cycle based

thinking, claims Suncor, makes it a more sustainable energy company that continuously improves the performance of its operations and products. Like many companies who've treaded these warm waters, Suncor believes that this thinking specifically enables more rewarding decision making given its triple bottom line parameters such as societal concerns and priorities as they impact project design and implementation, including safety and community perspectives. It also facilitates the development of an eco-efficient "design of processes and operations based on opportunities to reduce costs and environmental impacts and improve net value". The benefits? A reduced risk of unintentionally shifting the burden or environmental impacts created by company decisions in direct operations to upstream or downstream activities - for starters. Want more? A "reduced business risk from hidden socio-economic or environmental liabilities, and/or regulatory or stakeholder expectations" - now for a traditional energy company that is not only serious baggage potentially unloaded but a massively enhanced 'license to operate'.

Private Sector: Living the Wake up Call The good news, at least from the perspective of the eco-efficiency journey, is that the corporate sector has woken up to realize that ecoefficiency is the only way forward. Although many may have different names for it, several companies are in fact rigorously implementing measures towards their own ecoefficient future. For instance, over a 15-year period, Engro Chemical has actually reduced its energy intake by 32% per ton of urea produced - while production has actually increased. Within this period, the plant's production capacity increased more

than two-fold in 8 years: to 850,000 tons per year in 1999, from 268,000 tons per year in 1990. Additionally, the company also consistently improves its feed: fuel ratio, producing more urea, with less natural gas input. This means that by streamlining its plant and power operations, the company has been consistently able to shift its main operational input: natural gas, towards actual urea production as opposed to consumption in the shape of power generation.

Evolution of Layering Concepts: Industrial Ecology One of the most promising manifestations of the eco-efficiency movements is that of industrial ecology (IE). Sweden's Royal Institute of Technology, for instance defines it simply as an interdisciplinary study of technology, society and ecology. "Industrial Ecology sees industrial systems (for example a factory, an ecoregion, or national or global economy) as being part of the biosphere," says Dr. Getachew Assefa of the Institute's Department of Industrial Ecology. "It considers such systems as a particular case of an ecosystem, but based on infrastructural capital rather than on natural capital," Dr. Assefa adds. It is essentially the shifting of industrial processes from open loop linear systems to closed loop systems, meaning that no outputs are considered waste, they become the inputs of another industry hence an ecology emerges. Instead of resources and capital investments moving through systems to become waste, IE shifts to systems where wastes become inputs for new processes. Dr. Assefa asserts that natural systems have no waste - hence proposes modeling human-made systems after natural ones, thus rendering them sustainable. He

calls this a form of biomimicry, using the biological organism as a basis for designing industrial systems, thereby closing the material cycles. But, these zero-waste targets require intensive, proactive and oftwrinkled cooperation between industries. The basic tools he recommends include tools such as the life cycle assessment tool described above. For industrial ecology, a life cycle energy analysis to assess the environmental impact is more meaningful still. He also outlines four key considerations to Sustainable Design, which he defines as "the art of designing physical objects to comply with the principles of economic, social, and ecological sustainability": 1. Energy efficiency: this mainly entails lower overall energy usage in manufacturing processes 2. Low-impact materials: nontoxic, recycled sustainablyproduced materials usage 3. Quality and durability: better quality and long-lasting products, lengthening positive product life cycles 4. Design for reuse and recycling: design for performance in a commercial 'afterlife' The fourth is a venture that developing countries seem especially well-positioned to explore. Our indigenous, informal recycling systems catalyzed by BoP-based entrepreneurs are a living example of this in fact. For instance, the organic waste of a food company becomes input for a cattle feed company; the waste steam of its plant air conditioning units is channeled to power its industrial cooking appliances and so on.

Ways to Become EcoEfficient? The hope is that this article has helped unravel how eco-efficient

measures are among the highest impact ways to live the triple bottom line. In the language of six sigma, the 'low-hanging fruit' are here; this is where creativity and commitment combined with oftminiscule financial input synergize to offer almost immediate financial gain can be realized. The WBCSD and Dr. Assefa reinforce the following starting points below for companies to chart eco-efficiency into their business strategies - as many are already forced to do given dizzying fuel costs. So while we still have room, let's try to be proactive by: reducing the material intensity of goods and services - using less to make a product or deliver a service; reducing the energy intensity of goods and services; enhancing the recycling possibilities and options of all materials used; choosing a TBL-criteria based method for production, service, disposal or recovery; increasing mineral recovery, using fewer inputs such as energy and water and recycling more while reducing emissions; using new technology, fewer inputs per unit of product such as energy and water; recycling more and reducing toxic emissions; maximizing the use of renewable and recycled resources, particularly strategic geographical resources - for instance, in Pakistan, wind and solar energy are abundantly available - and wasted. The bottom-line of eco-efficiency? Fully and honestly integrate it into your business strategy (and national strategies to neutralize your own competitiveness in the short term) - before it integrates its own way in as natural resource prices sky-rocket. And continue to advocate and support policy measures which reward ecoefficiency, as Pakistan's National Conservation Strategy so wisely recommended, way back in 1992.

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renewable energy

the feasibility of renewable energy in pakistan by miriam katz for tbl

O

ver the last thirty years, Asia has become a major player on the global scene. Many economies have become tigers while China and India are developing more rapidly than anyone had expected. Because of these developments, electricity demand is expected to increase 8% every year until 2015. As the world wakes up to the reality of climate change, electricity will increasingly have to come from renewable sources such as wind and solar. Pakistan is in a good position to exploit these because it has abundant wind and sun. This article will look at this potential, the barriers that exist to further development - and of course reasons why it must follow the course to a greener energy future.

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Origins of Wind Power Many people do not realize that wind energy first came about in Asia. Between 500 and 900 AD, a vertical axis turbine was developed in Persia to grind grain and pump water. These wind turbines were made from bundles of reeds or wood. During the 11th century, the Crusaders brought back the concept of the windmill to Europe where it was first used by the Dutch to grind corn and to drain wetlands in order for people to settle and build homes. In recent years, Europe and North America have led in terms of installed wind capacity. Asia is now -again- making its presence felt. India and China currently have the fourth and fifth largest number of wind turbines installed, respectively. It is interesting to note however, that while India has 45,000 megawatts (MW) of wind energy potential and a much larger surface area, Pakistan has at least 50,000 MW of potential.

The Viability of Wind Power in Pakistan Pakistan is fortunate to have something many other countries do not, which are high wind speeds near major centres. Near Islamabad, the wind speed is anywhere from 6.2 to 7.4 metres per second (between 13.8 and 16.5 miles per hour). Near Karachi, the range is between 6.2 and 6.9 (between 13.8 and 15.4 miles per hour). Pakistan is also fortunate that in neighboring India, the company Suzlon manufactures wind turbines, thus decreasing transportation costs. Its turbines start to turn at a speed of 3 metres per second. Vestas, which is one of the world's largest wind turbine manufacturers, has wind turbines that start turning at a speed of 4 metres per second. In addition to Karachi and Islamabad, there are other areas in Pakistan that receive a significant amount of wind. In only the Balochistan and Sindh provinces, sufficient wind exists to power every coastal village in the country. There also exists a corridor between Gharo and Keti Bandar that alone could produce between 40,000 and 50,000 megawatts of electricity. Given this surplus potential, Pakistan has much to offer Asia with regards to wind energy. In recent years, the government has completed several projects to demonstrate that wind energy is viable in the country. In Mirpur Sakro, 85 micro turbines have been installed to power 356 homes. In Kund Malir, 40 turbines have been installed, which power 111 homes. The Alternative Energy Development Board (AEDB) has also acquired 18,000 acres for the installation of more wind turbines. In addition to high wind speeds near major centres as well as the

Gharo and Keti Bandar corridor, Pakistan is also very fortunate to have many rivers and lakes. Wind turbines that are situated in or near water enjoy an uninterrupted flow of wind, which virtually guarantees that power will be available all the time. Within towns and cities, wind speeds can often change quickly due to the presence of buildings and other structures, which can damage wind turbines. In addition, many people do not wish for turbines to be sited near cities because of noise, though these problems are often exaggerated. Wind turbines make less noise than an office and people comfortably carry on conversations while standing near them.

Solar Energy - a Feasible Alternative for Pakistan As is becoming painfully evident with summer around the corner, Pakistan is an exceptionally sunny country. If 0.25% of Balochistan was covered with solar panels with an efficiency of 20%, enough electricity would be generated to cover all of Pakistani demand. In all provinces the AEDB has created 100 solar homes in order to exploit solar energy. Solar energy makes much sense for Pakistan for several reasons: firstly, 70% of the population lives in 50,000 villages that are very far away from the national grid, according to a report by the Solar Energy Research Centre (SERC). Connecting these villages to the national grid would be very costly, thus giving each house a solar panel would be cost efficient and would empower people both economically and socially. In many Pakistani villages, wood and animal dung is used for cooking fuel; however, this is causing widespread

deforestation. Women are also forced to walk for many miles each day to gather wood. Then, their health suffers from the smoke emitted from cooking on wood fires. The AEDB completed a project whereby villagers that received solar panels were also given solar cookers. During the project, deforestation decreased by 80% near the villages and the cookers were also made in Pakistan, which generated local economic growth.

Coal Power and Hydroelectricity In addition to wind and solar, Pakistan has the fifth largest coal deposits in the world. However, the negative impacts of coal have been well documented. When power is produced from coal, sulfur dioxide and nitrous oxides are produced as well, which cause an increase in smog, ozone depletion and acid rain. Nitrous oxide is also a very powerful greenhouse gas. Even before the power is produced, the transportation of coal also impacts health due to the coal dust and the emissions from the vehicles. Lastly, the heavy metals from coal mine waste can seep into groundwater and rivers, of which there are many in use Pakistan. Pakistan also has some deposits of natural gas in the Potwar Plateau region and near the border between Balochistan and Sindh, but these are likely to disappear within 20 years. Because of the presence of many rivers and lakes, it may be tempting to go down the route of large hydroelectric dams, but this may not be the answer for Pakistan. There are many examples of hydroelectric projects in India and China that show the detriments of hydroelectricity. In China, one million people are being

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relocated as part of the Three Gorges Dam project and 62,000 acres of farmland will be flooded. The reservoir for the dam will contain one billion tons of sewage, states Diana Biggs in her case study on the Three Gorges Dam. In Pakistan, the Kalabagh dam was put on hold for environmental reasons in the 1980s and since then, there has been very little activity in this area. Due to the publicity that large dams have gained in recent years, it looks unlikely that Pakistan will take this route.

Financial and Policy Incentives Despite the fact that Pakistan is so well endowed with wind and solar potential, only a few projects such as those mentioned above have been completed. One of the reasons why this has occurred is that Pakistan does not have major financial incentives available for those who want to install wind turbines or solar panels. Let us look at the case of India, Pakistan's neighbour. Despite having less potential for wind, India now has the world's fourth largest number of wind turbines installed at 7,093 MW, according to ‘India: Renewable Energy Market’ report. In front of India are Germany at 21,283 MW, Spain at 13,400 MW and the US at 12,934 MW. In Germany, Spain and India, those who install wind turbines and solar panels are guaranteed a certain rate per kilowatt hour. In India, this varies according to the technology and the area. The Ministry of New and Renewable Energy, India reports that in most areas, between 2500 and 4800 rupees are guaranteed for solar panels, and for wind turbines, between 250,000 and 300,000 rupees are awarded. Because of the above incentives, the cost of wind in India is between 2 and 2.5 cents per

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kilowatt hour while in Pakistan, the cost is 7 cents. In December 2006, President Musharraf announced a national renewable energy policy. This policy means that small projects do not need approval and that any person can put up their own project. However, there are no financial incentives for doing so. At the moment, all renewable energy equipment has no sales or income tax and is free of custom duty, but these incentives do very little to stimulate growth in the renewable energy market where RoIs and other financial ratios have a long gestation or breakeven period.

1. Diana Biggs, "Three Gorges Case Study" http://www.arch.mcgill.ca/prof/sijpkes/arch374/winter2001/dbiggs/three.html 2. GLOBE-Net, "India: Renewable Energy Market" http://www.globe-net.ca/market_reports/ index.cfm?ID_Report=1069 3. Ministry of New and Renewable Energy Sources, "CFA Provided Under Various Renewable Energy Schemes/ Programmes" http://mnes.nic.in/cfa-schemesprogrammes.htm

about the writer Miriam Katz is a freelance writer based in London. She currently writes for the Environmental Peace Review. Her areas of interest include environmental issues, renewable energy, biofuels and climate change. She holds a Bachelor of Arts in Political Science and Environmental Studies from the University of Toronto. She can be reached at [email protected]

Conclusion It is starkly evident that Pakistan is a suitable country for the installation of wind and solar: due to high winds near cities; the presence of rivers and lakes as well as the availability of wind turbines from nearby India. There are also other reasons for installing renewable energy. In 2006, the government reported that Pakistani economic growth reached 8.4 percent and will most likely grow for the foreseeable future. It is quite normal for power outages to happen on a daily basis in the country, but this cannot continue if the Pakistani economy is to grow. In March 2007, President Musharraf stated that renewable energy should be part of the push to increase energy supplies by 10 to 12 percent every year. The government has also set a target of 10 percent of energy to come from renewables by 2015. If it does follow through with aggressive capacity enhancements, Pakistan could be an Asian leader in renewable energy given its strategic endowments.

leapfrogging past green

can blue be the next green in pakistan? by salman abedin for tbl

paint factory catches fire. All the city's fire brigade is involved in trying to put out the fire. Still, the burning chemicals continue to burn throughout the night. The firm puts out an ad in the papers soon after telling the world that they are back to business as usual. An insurance company puts out a press release telling the world that they have made the insurance payment in record time.

A

Life moves on in Pakistan. Was any question asked as to who will bear the environmental cost? Did any spokesman for the company even verbally accept the company's shortcomings - perhaps in the shape of shoddy standards of safety that resulted in the inferno? This seems to be a perfect example of a company that is solely and soullessly treating profits as their only motive to exist. No higher goals here. No triple bottom line considerations. HSE? Green practices? Stakeholder analysis? These seem like high flying ideals in the world where black and red seem to be the only colours we can see.

International Context This concept was introduced by international advertising firm JWT, as one of their predictions for 2008. Blue is the New Green: Climate change has quickly become the driver of Environmentalism 2.0, and people worldwide understand that climate is all about the seas and the sky-both blue. Our effluents, our emissions, both impact these blue bodies. Trend Alert: Watch for "green" to become a subset of "blue," which is coming to denote the much larger emerging spirit of good-citizen ethics. Back to basics we learnt in our KG primary colours art class.

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How to leap frog ahead to blue? Pakistan today

"The key driver of Environmentalism 2.0 is the climate, and most people understand that the climate is all about the seas and the sky, both of which are blue," shared Ann Mack, Head of TrendSpotting at JWT. Mack who goes so far as to claim that blue will overtake green as the environmental movement's main hue: "Blue is the new green."

The Blue>Green Equation With CO2 emission capping now being a global priority, blue is easily more important than green in terms of generating hype and action towards the environment. This is now being seen in a whole gamut of steps that companies are taking, including calculating and reducing their carbon footprint. Countries are also being cornered by activists for being slow on carbon reductions. Interestingly enough blue is also the colour of power and strength, and hence, the corporate world's reluctance to turn green may be finally overcome (with a subliminal start at least).

Turning Pakistan Blue Having missed the whole "green" part of the developmental cycle, Pakistan

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The world in the 90’s

may be able to leapfrog ahead to the Blue Zone. Although it seems quite unlikely. Both because an ill-informed populace cannot begin to demand its own rights, much less its rights in relation to the integrity of the environment it lives in. Also because regulations are tightening: developing countries after all, are being punished for the acts of the developed world, or so the argument swerves. Companies, irrespective of the government's stand on the issue, can start with the following: As a first step, companies must to take a longer term view which some do, and many don't, particularly regarding the external environments. Corporate entities generally take the view that they are passive participants in the larger environment. However, this is not always the case, and through industry groups, and other forms of lobbying, they can influence policy on a much larger scale. Secondly, companies need to make an assessment of the CO2 or other greenhouse emissions they are responsible for. This is easily begun by using a website like liveneutral.org, which has calculators for individuals, companies and communities with the journey beginning for

The developed world today

'the price of a petrol tank' (depending on where you live of course). Thirdly, Sustainability, which used to be a word bandied around by a group of 'tree huggers', is now the buzz word, and since corporate entities need buzz words, let the new Word with ensuing policy and action, of course- be…: Bluing(!)

1. http://www.jwt.com/pdf/news/trends2008.pdf) 2. (http://www.chicagotribune.com/features/lifestyle/chi0124blueisgreenjan24,0,2901237,full.story)

about the writer Salman Abedin is currently Executive Director at Contract Advertising. He welcomes input and discussion on the model briefly inserted for TBL readership and can be reached at [email protected].

footprints in the air

air pollution prizes? by ainul abedin for tbl

I

t is now a well known fact that we, humans, are systematically ruining our planet by disregarding the damage done by industrial pollution and our wasteful life style. An average car, with a 1000 cc petrol engine, produces about 160 grams of greenhouse gas carbon-di-oxide (CO2) per km, besides many other pollutants. Our inefficient power plants tend to ensure that we produce more than 1 kg of CO2 whenever we use only 1 kW (power) load for one hour (typically, a single 1.5 tons air conditioner uses 3 kW). And this

is not taking into account the very high line losses of our utilities which would increase CO2 and other pollutants further by 30%. (Line losses are power transmission and distribution losses mainly due to overloading of power cables and transformers).. In November 2006, the thenGovernment had taken a bold step in approving Energy Efficiency and Conservation Laws, by acceptance of the fact that energy efficient applications would be given priority when sanctioning our heavily subsidized Sui gas supply. Even though these were approved in

the Economic and Co-ordination Committee of the Cabinet (ECNEC), no notice was taken by anyone and the authorities continued to sanction gas for extremely inefficient installations. We cannot remain oblivious to the basic need of reducing our CO footprint, especially when emitted from industries and commercial buildings. Concerned publishers on the other hand are printing books (even Harry Potter) on certified paper made from well-managed forests while large stores are asking suppliers to reduce packaging material.

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Our entrepreneurs cannot afford to continue to ignore even the most basic, common-sense approach to environmental awareness. We use the world's most polluting sources, furnace oil and coal as an economical source of energy, without calculating in the real costs to ourselves and the society we live in. Though coal is basically used by most cement plants, furnace oil is used by most WAPDA/PEPCO and private power producers, accompanied by some industries that have not been able to get gas supply. Worse still, these highly polluting fuels are used in extremely poor efficiency processes, thus compounding the problems of environmental degradation - and resulting in considerable health costs and loss of production due to poor health and absenteeism.

Biggest Polluters: Furnace Oil Power Plants? The biggest polluter prize could perhaps be given to power plants fired by furnace oil. Most of our local furnace oil based power plants are of a lowefficiency type with high CO2 emissions, in addition to other pollutants. Most of our furnace oil in use is imported, which often has a high sulphur content. However, in Pakistan, these plants tend to lack desulphurization units. The result is enormous damage to the environment, with really no solution in sight since these power plants have been designed with a disregard of even minimum environmental protection. All low-efficiency furnace oil power plants will have to be 'repowered' to accommodate a combined cycle design, with a change of fuel to gas if the

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pollution levels are to be controlled in the long term (and short term). This gas, in turn could be sourced from our nation's planned pipeline gas or future 'coal-gas' from Thar coal.

Thar: Must Be Pivotal Point of Our Energy Planning The solution to our energy dilemma has been with us for many years but various lobbies with seemingly vested interests in the import of furnace oil have ensured that till now our own vast coal deposits at Thar are ignored. As a side - had Thar coal been developed with sensible technologies, all talks of huge hydel power projects (involving enormous environmental complications and very high costs) would have become redundant. Now that Thar must become the pivot of our future energy planning, we have to be careful how we use our low-quality coal since both coal mining and coalbased conventional steam power plants could very well materialize into a nightmare for anyone concerned with the ensuing high pollution levels. Real progress towards energy security and environmental protection can come only when both the government and private investors confirm the development of environmentally acceptable coal-bed methane for power plants. For those aware of the gas supply network in the UK in the 1960s (when North Sea gas fields had not been discovered), the base was "coal gas" - which met their requirements for many decades. The advantage of coal-bed methane for power plants is that

they provide energy security from our own vast energy source, early initial power plant installation at the best location with minimum requirements of water (very scarce resource in this area at present) and a possible up-gradation to combined cycle power plant operations when an on-site economic water source becomes available.

Second Place: In-house Power Plants Average at 1/3 Utilization Not lagging behind in environmental damage are the hundreds of in-house power plants being operated by many industries and large commercial buildings, all over Pakistan. Although it is difficult to estimate the number of in-house generators installed in various industries and large commercial buildings throughout the country, the writer believes it is safe to state that these are producing around 1000 MW of power. Almost all of these power plants are, again, low-efficiency types, with only one-third fuel energy being utilized. To top that off, they spend further, considerable energy and scarce water to get rid of the remaining two-thirds of waste heat. How can an energy-deficient country and its struggling economy sustain these power plants? The results are there for everyone to see: exorbitant costs of production despite heavily subsidized gas supply, making our products uncompetitive. Just as importantly, they cause serious environmental damage, which again in turn begets significant health-related costs.

Third Runner Up: Industrial Steam, Hot Water Production Installations Similarly, inefficient production of steam and hot water in industries and large commercial buildings is another major source of air pollution - and increased costs. The American Society of Heating, Refrigerating & Airconditioning Engineers (ASHRAE) estimates that a typical gas-fired fire-tube boiler for a 10 ton-per-hour steam output consumes the same amount of gas as a Cogeneration System would use for the production of a 10 ton-per-hour steam output - but, with an additional 3 MW of power generated, 'free' of any extra fuel costs. Since no data is available specifying the availability of Sui gas to conventional boilers for steam and hot water production, it is difficult to quantify how much total power (free of additional gas, and thus free of additional pollution) could become available, but this figure could be estimated at around 1000 MW. Investments for additional power (free of gas costs) would normally have a simple payback period of 3-4 years. In some cases, especially in composite textile units operating 24 hours, 7 days a week, this period could be as low as 2 years. Our latest grandiose living philosophy has resulted in acceptance of chilling indoor environments in summer as opposed to perhaps sensible airconditioning in essential areas only, resulting in a magnitude of wastage which even rich countries can not afford. Even the country-of-plenty is ensuring energy and water efficiency. Moreover, green buildings are often the norm for new industrial construction in developed economies, based on basic feasibility analyses.

However, almost all Pakistani air-conditioning applications are based on inefficient technologies. This applies to industrial process requirements or large commercial buildings for offices, hotels, hospitals, airport terminal buildings and so on. Most of these airconditioning applications use very low efficiency systems and these cause environmental havoc, besides exorbitant costs of energy - costs that are still rising, beyond currently unacceptable levels. All is not lost though; there are some examples of responsible environmental behavior that can match the very best anywhere. When a major car assembly plant in Karachi decided to add indoor environment temperature and humidity controls in their paint shop, they did not follow the "norms" by adding over a thousand tons of cooling, using inefficient chilling and heating processes which would have wasted considerable Sui gas supply, besides resulting in increased pollution levels and costs. They insisted that the entire indoor environment conditioning should be achieved through utilization of waste heat from the planned power generators and this cogeneration system should ensure CO2 depression in considerable quantities compared to conventional KESC supply and gas-based central airconditioning system.

economics and environmental protection were addressed, perhaps beginning with commitment at the highest corporate level. While soaring energy costs were arrested in these examples, the consequent pollution and social costs were mitigated simultaneously: the inherent, big-picture harmony that CSR is all about.

about the writer Mr. Ainul Abedin has over 46 years experience in Building Engineering Services and is presently an Engineering Consultant specializing in Energy Conservation. He holds two international Engineering Patents. He is Fellow, ASHRAE and the co-author of the Cogeneration chapter in ASHRAE Systems Handbook for the last 12 years, as well as a contributor to ASHRAE GreenGuide 2006. He has been teaching Green Building Concepts at the Indus Valley College for 8 years.

Similarly, a large Pakistani bank chose to install an efficient cogeneration system in their main office in Karachi to ensure economic generation of power and production of chilled water for central airconditioning in an efficient manner and thus considerably reduced their CO2 footprint. These are excellent examples of CSR since both positive

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business intelligence

EIU surveys sustainability impact on businesses report by The Economist Intelligence Unit 2008

The Economist Intelligence Unit (EIU) conducted a wide-ranging survey of over 1,200 executives worldwide to investigate and assess the impact of sustainability on business. EIU conducted numerous indepth interviews with leaders of business and non-governmental organizations (NGOs) as well as other sustainability experts.

A georgraphically diverse sample of executives.

S

ustainability is a change in attitude that aligns financial, social and environmental goals. Fortunately, businesses rarely need to establish clear values for themselves. Instead, they need to apply the ones they have. In practice, companies are defining sustainability widely, looking at a range of relevant environmental and social goals. The specific form that sustainability policies take, however, will inevitably be shaped by differing drivers and needs-economic and regulatory, as well as environmental and social- around the world, leading to a bewildering range of activities involving every function within business. Although a few companies have a long history of addressing sustainability issues, business as a whole is still, as Mr Potter of Coca-Cola puts it, at the "baby steps stage", scrambling to address the issues and experiencing the pains inherent in learning to master a new area. Four key areas currently receiving too little attention within business are: leadership; supply chains; reporting and metrics; and the transformation of values into processes. At present, weaknesses in one or another of these will condemn too many companies to poor performance in this area. This presents more than a social or environmental problem. The financial benefits of sustainability remain unclear, but an understanding of where the economic advantages are-in particular cost reduction and a range of untapped market opportunities-can be very helpful to profits. Perhaps more important, as the social and environmental forces driving sustainability reshape the global economy, an inability to understand and perform in this area could be fatal for businesses.

A diverse group of industries.

C The Economist Intelligence Unit 2008

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Neither business, nor government, nor any other stakeholder, can meet these challenges on its own. If they are to be addressed, however, it will be through a messy period of redefining, among other things, business's relationship with the world around it, as well as the legal and regulatory framework in which it operates. Companies must, at the very least, be part of that debate, for their own sakes as well as for that of society as a whole. Businesspeople have long realised that the image of an immoral private sector motivated only by greed is a caricature, and a poor one at that. Most think that their economic activity serves the public good. Moreover, the executives interviewed for this study held that corporate values were not window-dressing, but at the core of what their firms did. The innovation that sustainability demands is to integrate these values into the structures, processes and incentives that mould behaviour inside companies. Social and environmental initiatives should become a central part of the strategy for corporate prosperity. This report suggests that companies are at an early stage in developing such an understanding. While 53% of firms worldwide surveyed by the EIU claim to have a coherent sustainability policy, only half of these extend this beyond internal operations to encompass their supply chains. Key findings from the study include the following:

Business Knows that it Needs to Raise its Game… Out of a list of 16 sustainability policies, encompassing issues ranging from energy consumption and carbon emissions to diversity and

C The Economist Intelligence Unit 2008

governance, companies surveyed for this report had implemented an average of just 4.8 globally. Quantity aside, many executives also rated the quality of their company's efforts poorly. More respondents say that their organisation's performance has been poor in individual areas of sustainability, than those who believe their firms are doing well. Just 6% rate their companies as outstanding when it comes to the reduction of greenhouse gases, waste and pollution, compared with 15% who describe themselves as poor.

…But is Often Confused by Such New and Poorly Defined Demands The research shows that companies have difficulty devising useful targets, and aligning social and environmental objectives with financial ones. Moreover, management frequently lacks an understanding of what sustainable development means for the organization. "Sustainability, at different times, can mean all things to all men," says Dr James Suzman, Director of Corporate Citizenship at De Beers.

The Supply Chain is the Weakest Link Extending sustainability policy to suppliers is the area where companies gave themselves the worst marks: about one-fifth say their companies have performed poorly in setting stronger supplier standards on both environmental and human rights issues. About the same proportion have only implemented supplier controls in the last five years. The problem is not new, and examples of disastrous consequences from socially or

environmentally damaging supply chains abound. "This is not charity: it is pure business. We create a better long-term relationship with suppliers, have better products, and better control over volume and price," says Roland Waardenburg, Director of Corporate Social Responsibility at Ahold.

A Lack of Clear Leadership on Sustainability Tony Juniper, an Executive Director at Friends of the Earth, says "senior management or chief executive buy-in to the agenda is absolutely crucial" for real change to occur. Most firms understand that senior leadership is critical here. But at many other firms sustainability responsibilities are dispersed throughout the organization. "Sustainability needs a strong seat at the table like procurement and finance," argues Francesca DeBiase, VP for Worldwide Supply Chain Management at McDonald's. "It is the way everyone should be thinking."

TBL Reporting Needs More Work Although companies rate their performance on communication highly, efforts regarding formal reporting are less advanced. Only 22% of executives say their firms have formal Triple Bottom Line reporting, although a further 40% say they will adopt it within five years. There is, in Mr Juniper's words, "a huge level of disengagement" from sustainability reporting.

Sustainability Pays Most executives (57%) say that the benefits of pursuing sustainable practices outweigh the costs, although well over eight out of ten expect any change to profits to be small. Specifically, sustainable practices can help reduce costs

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(particularly energy expenditure), open up new markets and improve the company's reputation. The costs of implementation, however, are not to be ignored: respondents view this as the most formidable barrier to expanding sustainability practices.

Strong Link between Corporate Sustainability and Share Price Performance In our survey, companies with the highest share price growth over the past three years paid more attention to sustainability issues, while those with the worst performance tended to do less. The companies that rated their efforts most highly over this time period saw annual profit increases of 16% and share price growth of 45%, whereas those that ranked themselves worst reported growth of 7% and 12% respectively. In general, these high-performing companies put a much greater emphasis on social and environmental considerations at board level, while the poorly performing firms are far more likely to have nobody in charge of sustainability issues.

Business Leaders are Open to More Regulation on TBL Issues

regulation. Not here. Forty percent of those in our survey believe additional regulation is necessary to tackle social and environmental challenges. Another 50% say that voluntary action is generally more effective, but that additional regulation may be required in some areas. However, this openness to new rules is combined with the desire for clearer guidance about what government expects from business. The social and environmental issues facing companies today are not going away-and are likely to involve a redefining of relations between business and society. This often involves fundamental political and even moral questions. A good sustainability policy needs to know when, and why, to say "no" as well as "yes" to stakeholders' innumerable demands. Companies need to adjust by integrating best practices in these fields into their operations and by joining the broader debate on the responsibilities of business, government and individuals in addressing these challenges. If firms do not get involved in the latter, it will hurt their own finances, as well as the environment and social conditions worldwide.

Eco-efficiency alert: More than half of the sample has implemented policy changes to reduce energy consumption, and to improve governance in relation to the organization's environmental and social performance.

Executives in our surveys are often opposed to increased

80% respondents report that in the next five years, board-level meetings will allocate almost 10% more time on the company's social and environmental impact.

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The TBL-adoption impact on financial performance: Over 30% believe that among the biggest benefits of sustainable practices is manifested in shareholder value and profitability.

C The Economist Intelligence Unit 2008

43% of the respondents agree that it is critically important that a corporate sustainability strategy meets the company's objectives of increasing revenues. Enhancing brand reputation and compliance with regulatory and legal obligations also rank highly among the defined criteria.

More than half of the respondents report that their companies formally report on philanthropic activities, at least.

Interesting to note: Almost 60% correspondents adopt different standards for working hours and pay, given local laws.

C The Economist Intelligence Unit 2008

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Half of the respondents say voluntary business action is more effective, but additional government regulation may be required in specific areas.

Reinforced: It is critical that the top management, especially CEOs take interest in sustainability performance of the organisation.

The need for consumer education highlighted: Repondents believe that almost 40% of customers would not pay more for ethical sourcing, carbon offset schemes or SRI practices.

Less than one in three executives (29%) say their company has a coherent strategy that covers the whole business and its supply chain.

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Only 22% of executives say their firms have formal Triple Bottom Line reporting.

C The Economist Intelligence Unit 2008

csr talk

challenge of the 21st century: advancementpoverty paradox HUSSAIN DAWOOD Chairman The Dawood Group

by khadeeja balkhi for tbl

n your opinion, what is true CSR? Or what is an understanding of sustainable practices within your sphere?

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CSR has been made synonymous with corporate philanthropy (CP) in peoples mind whereas it is about sustainable development in the key areas of social, environment and economic well-being of organizations and societies at large. As economies globalize, new opportunities to generate prosperity and quality of life are developing but these positive improvements are accompanied with new risks to the stability of our environment and the continuing burden of poverty and hunger on millions of people. This paradox of advancement and poverty is the challenge for the 21st century.

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The key challenge of sustainable development is that it demands new and innovative choices and ways of thinking. While developments in knowledge and technology are contributing to economic development, these developments also have the potential to help resolve the risks and threats posed to the sustainability of our social relations, economies. New knowledge and innovations in technology, management, and public policy are challenging organizations to make new choices in the way their operations, products, services and activities impact the earth, people and economies. These emerging challenges are forcing organizations to maintain transparency in their operations.

With developments like the FTSE Sustainability Index, language which 'corporate types' understand, will, in time lead to people rewarding companies with their purchasing power. The investor of the future will look for companies who, besides giving them profit, are also transparent in their operations and plan to grow in a sustainable manner.

What is the logical / valid connection between corporate philanthropy and strategic CSR, in your opinion? Corporations can use their charitable efforts to improve their competitive context: for example the quality of the business environment in locations where they operate.

Using philanthropy to enhance competitive advantage aligns social and economic goals and improves long-term business prospects. Attending to surroundings enables a company not only to give money but also to leverage its capabilities and relationships to support development causes.

What specific examples can you share from your companies of successful CSR implementation? In these examples, what are some ways, creative and otherwise, that ROI's (returns on investments) on CSR initiatives have been measured? Under our business-integrated, corporate philanthropy banner, we are now integrating CP into new businesses, at their inception. Also, we've developed a water conservation system through the use of PVC lining and drip irrigation initiatives that are linked to Engro Polymer's core products. In the same category, related to Engro Foods' core business, we are developing the capacity to enhance milk production in rural Sindh through extension services that focus on improving hygiene, and animal health initiatives. Under our environment-based initiatives, at the Engro Chemical plant for instance, we have a continuous effort to reduce our environmental footprint. Additionally, we have developed a 2015 sustainability vision for reducing water use, waste generation and reduction of green house gases emission. We have eliminated the use of CFC's in compliance with the Montreal protocol. We are also actively working on carbon trading opportunities under the Kyoto protocol. As part of our economic transparency and efficiency drives, our project implementations are open to public scrutiny through

environment impact assessment studies. As far as the ROIs are concerned; for the economic and environment initiatives just shared, the investments are business decisions, and are strictly ROI-based.

For the development sector, social responsibility is an end in itself. It sees its role as one of reacting and responding directly to human conditions. Development sector organizations are therefore at the vanguard of bringing about change in society's attitude and (in the West) have an acute understanding of the power of the media and celebrities to accelerate social change.

What might be your input to the community on effective ways to implement result oriented CSR programmes On the other hand, it is the social that are aligned with a environment that prompts and educates acceptable corporate company's core business? If CP has to take roots in corporate Pakistan, the alignment with core business is a must. Businesses have to see a gain from the initiatives in the form of expanded markets, brand build-up, supply chain strengthening and so on.

behaviour. Trend-setting corporations now view CSR as a way of differentiating themselves from the competition and are keen and proactive participants in it. They use the media to validate their social responsibility credentials.

Microsoft and CISCO offer clear examples of integrating CP with their core businesses by investing into human capital through training and development in core IT skills not only to become product users but also to develop skills to sustain themselves in emerging job markets.

Hence, what began as a movement to ensure that corporates managed risk adequately and thus had a license to operate -after catastrophic incidents like Bhopal and Exxon Valdez- is now about attracting human resources and discriminating customers who value social responsibility.

I can share a few examples for instance, from Engro on what business alignment could entail. Engro Chemical is investing in agriextension services and balanced fertilization initiatives. Or Engro Energy is exploring energy conservation projects.

The process is similar in Pakistan as well but is not as advanced or evident on a large scale. There is greater understanding of the issues and hence learning on both sides, which gives rise to collaborative efforts towards the common good.

Our challenge as a conglomerate: we are now evaluating how all the above can be combined in a single initiative for synergistic intervention in rural areas.

As chairman of the PPAF, how do you think CSR is viewed (in similarity and in opposition) by the development sector, and by the business sector? I think trends relating to Social Responsibility are coalescing, but of course, the business and the development sector are approaching it from different directions.

To me, examples of some of the emerging similarities include: the need for implementing change in a sustainable manner; the use of micro credit as a developmental tool; the use of technology to impact development: telemedicine, and so on; a more 'business like' attitude towards accountability and efficiency in social interventions, and; a greater orientation towards results.

about the writer As a Sustainability Consultant, Khadeeja Balkhi helps organisations embed and document sustainable practies into their core business models. march-april 2008

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csr toolkit

the people-centered model of business by ramla akhtar for tbl

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"Our way is not of feats of action, but feats of perception." E Schuitema, author of "Intent" & "Leadership." Teacher of the "Care & Growth Model"

The Four Life Zones

The Dilemma Sometimes, we refuse to change not because we don't want to, but because we don't know how to - and what to change to. Consider the dilemma of contemporary corporations within which kind souls wish to create a better world through business - but are caught in a world-view where business is equated with "not doing good." Business is based on economics, and that, at its crude core is based on price and quantity. No wonder businesses only factor in Profits - not People and Planet. What if we had a model that looked at the bigger picture?

PC-MoB: See The Big Picture The People-Centered Model of Business (PC-MoB) is a practical tool through which organizations (businesses and others) examine the reality of their markets by focusing on human activity. It has multiple application modules including: Market Insight, Trend-Forecasting, Entrepreneurship, Creativity, Organizational Leadership, and Social Business - the last is detailed in this article.

1. Spiritual (S) Zone This Life Zone deals with people's beliefs, ideologies, and life outlook - or the lack of them. Closely related to the faith system of individuals is their heart, their intellectual mind and free will. To understand a person or culture, it is important to understand their belief and spiritual system. A belief can be true, false, completely wrong, or absent. S zone is the primary PC-MoB zone, as it determines a person's behavior in the respective life zones.

2. Personal-Familial (PF) Zone The family is the basic unit of society. A person will always be an individual, in the context of their family whether it's joint, nuclear, or dysfunctional. Personal beliefs shape family dynamics and families shape society. In Maslow's terms, the PF zone is where a person seeks emotional and physical security and stability. This determines the level and quality of peace in society, and its creative energy.

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3. Socio-Economic (SE) Zone A person interacts with the larger community for economic and social purposes. This is where a transaction occurs between personal-familial values of individuals and household units as they begin to interact with one another. A shared vision that governs these social contracts is created out of those dynamics. These in turn determine society's collective behavior. In the SE zone, a person rises above the self-development and family care needs to communicate with society at large. Help is given and taken. A person is both an employer and an employee in the economic system. Information is traded; people earn, save and build; and money becomes a medium of exchange. Technology emerges to facilitate the speed and beauty of transactions between people and resources. A person chooses their SE zone behavior in line with how they have developed in the S and PF zones. Societies that have accessible information and open communication, where transactions are facilitated, and social contracts are honored become creative and foster open opportunity. Else, they are unfair and transgressive. The latter are marked by confusion, resentment, violence and warped employment dynamics - as the case of Pakistan could be interpreted.

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4. Ecological-Political (EP) Zone Finally, a balanced human being, or society, progresses enough to participate in the larger universe - of law, politics, ecology, and cosmic philosophy. "Balanced" describes experiencing, learning, and evolving from the previous three zones. Some groups try to short-cut the first three zones, and jump into the universal zone perhaps as a means to avoid their duties and establishment of rights in the S, PF, and SE zones. That results in a perpetual futile conflict between these wishful idealists and society, which rightfully needs able persons. In mature societies, the EP zone represents universal love, art, entertainment, travel, and discovery. Media is the child and the lifeblood of this zone - because by definition, media is media between the real products and people who already exist. A media that exists out of harmony with its own society heralds its own disabling through frustration. The institutions of charity, establishment of good and prevention of evil, collective prayer, the judicial system, defense, foreign affairs, and struggle are in the EP zone. These are higher level societal institutions that cannot be imposed on/by immature people.

The Cyclic Relationship of the Four Life Zones The Four Life Zones are not strictly separate. Some roles overlap boundaries, others can fit into other zones. In a way, the

four Life Zones are connected in a cycle: "The Circle of Life". When each zone reinforces the other, it's a progressive cycle. When each zone leads to spillover, ill effects on the next, it's a vicious cycle.

Business = Busy-ness Picture the Four Life Zones in movement. Where an ill person is being treated, a household manager is preparing food, one is building homes, or requires safety, travel, or learning - it is "the busy-ness of life." Since these actions require a deep web of "helpers" who are paid in money, business is created. Business is thus a part of the society, if it is based on the real needs and understanding of the society. Whoever was trying to sell refrigerators to Eskimos was a true conman, and died unpopular. The key is that our businesses cannot prosper without adding true value to their own consumers: an issue that is easily skirted -and hard to tackle- in a society as oft-ill-informed as Pakistan's.

PC-MoB: The Social Business Module "Social-izing business" is one of the most profound emerging global trends of the 21st century. This concept has various meanings, one referring to businesses whose primary aim is to serve social needs profitably. Business thinker C K Prahalad has built a case for doing profitable business for "bottom of the pyramid (BOP) markets" which are the over 4 billion consumers of the world with modest but real spending powers. They represent a largely untapped market which can be served - and profitably so. Using PC-MoB to study the lives of the BOP market would reveal a

multitude of niches that can be filled by small local businesses and create tremendous employment opportunities. This role has been typically relegated to NGOs and charities. We need a new construct that balances people + planet + profits; the imbalance of one shakes another

Application Scenarios In Pakistan, food stock fluctuations can be better managed by improved warehousing and transport leading to decrease waste in produce, and hence market prices. [SE-zone] Tele-medicine services have seen an opportunity in sending mobile medical teams to otherwise inaccessible areas. [SE-zone] In India, Unilever has a program called "Shakti" literally meaning "power" that empowers poor women by turning them into Unilever sales representatives - which in turn gives the women better lifestyles and expands the company's reach. [PF-zone]

Business Realizes Human Potential Business is not a cancer. It is an integral, legitimate part of a healthy social organism. The condition is that the business is empathetic to the society/societies it operates in and helps legitimate "busy-ness". The entrepreneur affects change when s/he accepts the society as is, and does not create products and markets for a make-belief group. Then the entrepreneur is in a very powerful position to mobilize change. A business cannot effectively live in denial of the society and environment around it. Understanding this fine point will save many businesses a lot of heartache and headache.

The PC-MoB makes it simpler to understand the fabric of society and hence the dynamics within which all organizations function. It also establishes the social context of the business so that unnecessary conflict is avoided. In fact, business becomes a pleasure - both for the markets being served, and for the entrepreneur who can use their innate potential for issues that are relevant to their own environment.

Characteristics of the PC-MoB Questions, Not Answers The PC-MoB is a template. These roles are questions, not answers. The role of "ill," for instance, asks the studier: what ailment does this group of people suffer from? For instance, poor people suffer lesser from heart disease (often the result of overindulgence), more from infection (the product of filth). Thus, North American markets need obesity control as Africa or Pakistan might need disinfectants.

Realistic, Not Fictional The PC-MoB demands reality, not fiction or desire. Facts lead to insight. How will we know the answers to these questions? With research. With unstoppable curiosity and fact-finding. With determination to really know the people we market to. To envision their needs, so needed solutions can be served and waste is prevented. That's the higher purpose of business.

Empathetic Empathy is elicited as a reader identifies the truth of the people being studied. It also gives perspective to consumer study and consumer insight.

Accommodates Diversity

cannot be projected reasonably onto another's - owing to the variety of human nature and culture. Drawing up a PC-MoB profile for each group of markets will lead to rich insights about their unique lives, tastes, aspirations.

Welcome Back Home! The PC-MoB is an integral tool; it puts things together into the "big picture," where one thing is related to another - as is the case in our daily lives. This is the reality of life that traditional single-disciplinary models could not perceive nor incorporate. The simple PC-MoB liberates organizations from the guilt of feeling "external" to the human life by weaving them back into the social fabric where they are active, healthy participants in human activity. This ends the fictional divide between "the good" and the necessity of "just doing my job/ business." This, in short, is the beginning of the end of secluded, incomplete thinking patterns which is the root of why modern businesses compulsively act solely profit-centered as if there's no other way.

about the writer Ramla Akhtar runs a consultancy, "NEXT>". She works with emerging ideas, global change agents and organizations and enjoys creating intra-disciplinary, technology-neutral designs for the realization of innate human potential. Ramla has experience in talent management, television media management and brand strategy. http://nextbyramla.blogspot.com

There is a strong implication that one consumer group's life profile

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breather

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sustainability reporting

the pakistani perspective on sustainability reporting

t's true that with 73 percent of the population living on below US$ 2 a day and 17 percent of the population living on less than US$ 1 a day (UNDP), the sustainability performance of Pakistani businesses is not the primary concern of the majority of the country's population.

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by katherine miles hill for tbl

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But it should be a concern of the business community, especially those who want to compete on the international market or tempt multinationals to choose them as suppliers boosting the economic development of the country. At the same time it should also be the concern of those who want fairer, more sustainable development both within Pakistan and throughout the wider world. Awareness of sustainability has significantly changed in recent years. Sustainability is rightly now high on the international agenda. It is in part due to the dawning reality of climate change but also as a result of unprecedented economic growth of emerging economies such as China and India. Driven by the desire to alleviate poverty, this amazing growth has successfully reduced poverty levels but resulted in severe unintended consequences. This has caused the global community to sit up and address the tension between the need for development and its negative impacts. In this context, there is a growing understanding among the international community that a different approach to development is needed, a sustainable approach, an approach that allows the needs of the present to be met, without compromising the ability of future generations to meet their own needs. As such, financial performance is no longer the exclusive driver for businesses. Economic, environmental and social factors are now recognized as also playing important roles. Consequently the competitive international marketplace increasingly rewards those that go beyond the legal requirements in terms of managing their economic, environmental and social impacts. This recognition has led

to companies being encouraged by internal and external stakeholders to demonstrate their performance in these areas, which has resulted in the emergence of sustainability reporting.

WWF Best Sustainability Reporting Company in 2007), the Pakistan Tobacco Company and the Pakistan Refinery Limited. The question is what is the benefit of reporting for companies like these?

Internal forces (such as employees, investors, senior management) within organizations have also begun to recognize the value of sustainability reporting and the business case behind communicating their progress towards reducing their social, economic and environmental impacts, and innovating around new opportunities provided by a commitment to a more sustainable future.

Besides reducing the organization's sustainability footprint, there are many reasons for reporting. Already touched on is the competitive advantage in the international marketplace, whether that be Pakistani companies investing overseas, directly selling their products abroad or supplying multinational companies. Customers, particularly those in European markets, increasingly reward companies which disclose their sustainability impacts. Consumers buying from Pakistani companies want to be sure that they do not contribute in exacerbating the widespread poverty and instead contribute to eradicating it.

Sustainability reporting is sometimes also called triple bottom-line, non-financial, or corporate social responsibility reporting and it refers to organizations formally disclosing information on their social, environmental and economic impacts. For example disclosing how much water they use as part of their operations, whether they respect the human rights of their employees, and if they pay them fairly. It is about a company making clear the positive and negative effects of its operations on the local community and environment, how it intends to enhance those positive aspects, and how it will endeavour to eradicate or improve on the negative aspects of its business on the community in which it operates. In essence, it's about reporting on how the organization is contributing to sustainable development. Within Pakistan, sustainability reporting is in its infancy but steadily growing. Current Pakistani reporters include the likes of Engro Chemical Pakistan Limited (winner of the ACCA-

Reporting using a standardized framework is a way to show that a company is transparent and accountable and so can build trust between the customer and the business or the purchasing company and the supplier. If companies disclose information following a standardized approach, it enables the comparability between organizations both within Pakistan and internationally. Customers can use this information to evaluate the performance of one company against another with respect to certain indicators, such as the total number of employees by age which shows a company is not relying on child labour. They can also use this sustainability information to benchmark organizations' performance with respect to laws, norms, codes, performance standards and voluntary initiatives. Disclosure can also improve a company's access to capital because the

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investment community trusts companies who openly present sustainability information. A sustainable approach to business can also enhance the brand value of the company. It develops an association with good virtues and values, attracting customers in whatever shape or form, as well as talented employees. A study conducted by PricewaterhouseCoopers of 3000 graduates in the UK, US and China found that 87 percent of respondents said that they would deliberately seek to work for employers whose corporate responsibility reflect their own ethics and values. There are also internal benefits as the process of gathering sustainability data is a useful internal management tool. The process of producing reports enables businesses to internally identify operational inefficiencies, cut waste and save money for the company. For listed companies this helps deliver shareholder value. Just as an external stakeholder can benchmark company performance from the information disclosed in these reports; this benchmarking information can also be helpful for the internal management of a company and driving improved performance. But sustainability disclosures are only useful for all parties in as far as companies disclose information that is relevant to the organization and their stakeholders. If companies, based in Pakistan or elsewhere, fail to present comprehensive and comparable information about their economic, environmental and social impacts, and gloss over the material issues, then it's not much use to internal as well as external stakeholders.

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What is needed is a global standardized framework for disclosure and the Global Reporting Initiative (GRI), a multi-stakeholder network and a collaborating centre of the United Nations Environment Programme, has pioneered just that. The GRI's Sustainability Reporting Framework facilitates transparency and comparability among companies that use it and play a vital role in enabling a standardized approach to disclosure. First issued in 2000, then 2002, the third iteration, the G3 Guidelines, was released in 2006. The GRI Guidelines set out the principles and indicators that organizations can use to measure and report their economic, environmental, and social performance. In order to ensure the highest degree of technical quality, credibility, and relevance, these guidelines have been developed and are continuously improved through a consensus-seeking process with participants drawn globally from business, civil society, the labour movement, and professional institutions. A cross section of global stakeholders who share the vision that reporting on economic, environmental, and social performance by all organizations should become as routine and comparable as financial reporting develop this standard. The resultant G3 Guidelines are a free global public good and have been translated into many languages. In addition to the universally applicable core guidelines, the framework also contains Sector Supplements. These are specialized reporting guidance for companies in a range of industry sectors - such as mining and metals, automotive, and retail and apparel, which caters to the unique sectoral sustainability challenges. This

guidance is also created using a balanced group of geographic and sectoral representatives including Pakistani nationals. Over 1250 companies in over 60 different countries have selfdeclared the use of the GRI Guidelines as a framework for their sustainability reports, while a multitude of other companies use the GRI Guidelines on a more informal basis without selfdeclaration. The benefits of reporting outlined are clear to these companies, including the likes of Engro Chemical Pakistan Limited. As more businesses and other organizations in the country start to recognize the benefits of sustainability reporting and the contribution of this practice to the Pakistani population's economic and social development, sustainability reporting in the country is set to increase. The GRI Guidelines can be downloaded for free at www.globalreporting.org If you are interested in supporting the translation of the GRI Guidelines into Urdu, please contact GRI at [email protected]

about the writer Katherine Miles Hill works in communications for the Global Reporting Initiative. She has over five years experience in communications and strategy, she began her career at international healthcare company BUPA. Katherine holds a MSc (Cum Laude) in International Development with a specialism in Education and Development, from the University of Amsterdam and a BA (hons) Anthropology, from the University of Durham.

social partnership

the challenge of poverty alleviation in the coastal areas of pakistan by uzma taimoor trustee, indus earth for tbl

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n a small fishermen village, at nightfall, off the coast of Sind, children gather around a solar powered LED light pole to read; women gather to sow; and men gather to discuss the day gone by. This is a village which has never seen electricity. In the same village a wind turbine harnesses the coastal breeze to produce electricity that powers a motor that pulls up potable water. This is a village where women would dig a well themselves - often at great risk to their lives - and then wait for hours for their turn to gather water. In the same village women, dressed in colourful, traditionally embroidered kurtas learn the art of masonry and of low-cost construction for a school of bamboo and mud for their children's education. Their children observe their mothers as they learn to use newly acquired tools to lay the foundations for the bamboo structure of the school. Later this same school served as a life-saving shelter when a cyclone hit their village and tore down their thatched huts. The newly constructed school was the only structure in the village to survive the gale force. Pit latrines for men and women are constructed at the corner of the same village for greater hygiene. A green patch nearby, using drip and clay-pot irrigation techniques, demonstrates how fruit trees and other vegetation can grow with the least amount of sweet water - a scarce, essential resource. This village is Abdullah Goth, Kemari Town, Karachi District, Sindh with a total population of 1,200 inhabitants where the founder and CEO of Indus Earth, Shahid Sayeed Khan drove me in his Suzuki jeep at dawn. There are many other villages

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- in hundreds - like Abdullah Goth along the coastal areas of Sind and Balochistan in Pakistan. Each has a community organization that works together with Indus Earth in an effort to improve the quality of life for their people. Financially supported by partner institutions such as PPAF [Pakistan Poverty Alleviation Fund], WWF [World Wildlife Federation], CIDA, and the Japanese government, Indus Earth took up the challenge of poverty alleviation for the

poorest of the poor in 2001 with the simple, and matter-of-fact slogan: 'It needs to be done!' and a mission statement "To facilitate a movement to raise living standards by enhancing the quality of socioeconomic conditions through an integrated development approach." Other than the Village Rural Development Programme, Indus Earth is involved in other projects which include building check dams for irrigation, drought mitigation, technological innovations and smokeless stove project among others. The programme of using alternative irrigation techniques in a water-starved area is an interesting example of Indus Earth's participation and contribution in fishermen communities. Income from the sea is on the decline owing to over fishing and pollution. Indus Earth suggested 40

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that as an alternative source they should look to the land. For example just by growing a coconut tree, an income of Rs. 5,000 can be achieved after the tree bares fruit. However, understandably, they were reluctant to undertake this exercise as the sea has for generations provided for them. So the Indus Earth team built a "demonstration" farm on four different locations of one acre each, planting chico, baire and coconut trees. Chico and baire began to bear fruits after three years. Coconut trees typically need two years to mature and bear fruit. All of the above used a drip irrigation system to minimize water utilization. Pitcher irrigation is a very old method used mostly throughout areas where water is scarce. A clay pitcher, before it is finally prepared for carrying water, is buried in the ground. This 'immature' form allows water to pass through its porous sides, thus keeping the ground moist all around it for a radius of 3-4 feet. Any plantation within this moist ground will grow prolifically. The great advantage of this is not only its simplicity but also that "dirty' water can be used, such as washing up soapy water. The pitcher allows only moisture to go through thus acting as a filter. In a country like Pakistan such a mission is nothing short of a daunting challenge. Political instability, rising costs of living, and religious strife are just some of the factors that create hurdles in the achievement of Indus Earth's goals. Nonetheless it is a challenge that has been taken up with a spirit that says there is no other option. Shahid Khan, an architect by profession, returned to Pakistan around fifteen years ago after having lived in the United Kingdom for most of his life. He came back with the dream of setting up such a development organization. Having been involved with developmental work in Africa, he had strong conviction that the same can be done for the poor of Pakistan. With steely determination and perseverance, and a hands-on method of working,

Shahid divides his time between soliciting funds for Indus Earth, catching up with his team, and overseeing project delivery on the field. Working round the clock, the Indus Earth team is looking to focus on the coastal areas of Pakistan and thematically focus on potable and clean drinking water while also working with the fishermen community to help them build a better quality of life for themselves and future generations. Indus Earth has also developed low-cost housing options for the earthquake affectees in Kashmir in 2007 in collaboration with other international organizations. They also distributed essential food and clothing to the cyclone affectees in Sind and Balochistan in the same year. Indus Earth is also a member of the International Union for the Conservation of Nature and Natural Resources (IUCN) Pakistan, where Shahid Khan is currently the honorary Pakistan National Committee Chairperson. All its projects are environmentally friendly and promote a greater awareness of environmental issues. In an age where people aspire to afford a ticket to the next shuttle to the moon, the poorest of the poor in Pakistan are being given a chance to overcome paucity of resources to give themselves and their children the basic necessities of life, appropriately. For more details, please visit www.indusearth.org. or visit the office in Karachi, Pakistan.

energy conservation

collective conscience by fouzia ishaque for tbl

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hances are you may have been reading about conserving energy in the wake of prolonged load shedding exercises by the government. Blame the think tanks for overlooking this critical utility for business and households alike and curse the KESC for coming up with power cut plans every now and then. To top it all, you must be wondering why the summers become hotter every year. The Ministry of Water and Power maintains that "the power crisis in the country was primarily a crisis of investment and not a rises of planning." While we are at it, there is no denying that we are hit by the worst power crisis ever. Electricity shortage, natural gas resources depletion and looming increase in petroleum prices calls for collective careful efforts by all stakeholders.

With capital investment, we can develop new dams, nuclear power houses and adopt alternate bio-fuel technologies. The subject matter is too vast to be discussed here, however, to sum it all up the United Nations says: "Human activity particularly the burning of fossil fuels - has made the blanket of greenhouse gases around the earth thicker." The resulting increase in global temperatures is altering the complex web of systems that allow life to thrive on earth, such as cloud cover, rainfall, wind patterns, ocean currents, and the distribution of plant and animal species. It is crucial to use our resources conscientiously as fuel and energy technologies have multitude effects on the climate. Global warming and climate change are a rising threat to everyone. The Australian government plans to gradually phase out incandescent light bulbs and replace them with more energyefficient compact fluorescent bulbs across the country. Environment Minister Malcolm Turnbull says that this could help reduce carbon emissions by 4 million tons by 2012 and cut household power bills by up to 66%.

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Shared by Philips, Pakistan

A commercial Jumbo Jet has recently been tested by Virgin Atlantic to fly on a mixture of bio-fuels extracted from the nuts of babassu tree and coconut oil, in an effort to reduce their carbon footprint. The initiative has been praised by some analysts as a potentially useful experiment. It takes great commitment and perseverance to launch such an experiment amidst contradicting views by environment experts and scientists about the environmental benefits of biofuels. Nonetheless, such experiments and initiatives give a big boost to efforts to find environmentally- friendly energy and fuel resources. One might argue that countries such as Australia and companies like Virgin Atlantic can afford to engage in such experiments because they are a part of the developed economy. However, let us not forget that Cuba's Fidel Castro launched a similar programme whereby youth brigades were sent into homes to switch off regular bulbs in an effort to save energy and help battle electrical blackouts around the island.

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The responsibility of sustainable development does not lie entirely with the government; it requires collective efforts and collaboration to bring about a significant positive change and the state plays a key role as a facilitator to organizations and other stakeholders. The corporate sector, with its resources, has an important role to play by adopting eco-friendly ways of doing business.

and effort, and if as a bank we can make a difference towards the safety of our environment, then we can do wonders as a nation. Hence, a message for all professional and working people: we can, and should promote such initiatives and actively participate as a team, group or an industry."

Lighting accounts for 19% or nearly one-fifth of all electricity usage in the world. That is because much of the lighting currently installed is technology that dates back over a century. On March 29th, 'Earth Hour', an annual event to symbolise collective efforts to make a positive impact on climate change, was observed. ABN AMRO bank, Pakistan observed the day by sending out prior email communication to all employees to shut down their PCs, monitors and all office lighting except for critical lights, across all branches and departments.

Irfan Saeed, who works at a technology firm in Maidenhead, UK says, "When I was in Pakistan, I never knew such initiatives existed. When I received a communication from my office that some of the servers and lights would be switched off, I was taken by surprise. In fact, my colleague was telling me that she had been anxiously waiting for this event to train her daughters about conserving energy and she made them switch off all the lights in their house. I now realize the importance of such initiatives as being critical to spreading awareness. I hope that more and more organizations back home participate in such much-needed initiatives."

Shaiza Aslam of ABN AMRO bank says, "This is a great cause

With inefficient lighting, 95% of energy is wasted in heat, with a

mere 5% generates light. Some 75% of all lighting is used in professional applications like street lighting and buildings, while 25% is used in homes. The initiative taken by the government to promote the use of "Energy Savers" and to educate the masses through media campaigns about proper utilization of electricity is a step in the right direction. The 'Turn the Tide' project of the New America Dream captures this by replacing four standard bulbs with CFLs; one can prevent the emission of 5,000 pounds of carbon dioxide and reduce electricity bill by more than $100 over the lives of those bulbs. If only a thousand of us each replace four standard bulbs with CFLs, collectively we can prevent the emission of five million pounds of carbon dioxide and reduce our electricity bills by more than $100,000 over the lives of those bulbs.

as scrap metal, glass can be reused for making other glass products and the mercury can be utilized for new bulbs or other devices. The need however, is to create a recycling mechanism through which domestic and commercial users can easily get rid of the diffused bulbs. One thing that comes to mind instantly is utilizing the 'raddiwalas' (junk and wastepaper collector). An incentive discount scheme should be launched by the companies to promote purchase of new CFLs for a deposit of used CFL bulbs. The corporate sector makes bulk purchases and should liaise with vendors for proper disposal of used bulbs.

Having said that, most people are unaware of the precautions which need to be taken for the disposal of CFLs.

The lighting solutions have improved with tremendous energy savings. Philips Pakistan gives an overview of the solutions available to buyers for making sensible purchase decisions (see illustration).

CFL lighting fixtures, like all fluorescent lamps contain small amounts of mercury. Broken CFLs pose a threat to health and environment as they release mercury content in the environment. That is why it is critical that these bulbs are properly disposed of and recyclyed. The Environmental Protection Agency, United States maintains that landfill and "disposal methods can lead to a release of elemental mercury into the environment through breakage and leakage and ultimately contaminate the food chain". The good news is that virtually all parts of a CFL can be recycled after its commercial usage life. Its metallic end cap, glass tube, mercury and phosphor powder can be separated and recycled. The metallic portion can be used

Organizations should train their maintenance staff about proper handling of CFL's. If a CFL bulb breaks, it is important to follow a proper procedure to avoid inhaling or being in contact with the mercury.

Energy conservation goes beyond just lighting solutions with longstanding environment effects. Organizations as responsible citizens have a major role to play by being the early adopters of eco-friendly technologies and standards which have a positive impact on the environment. A solid commitment by organizations to environmental standards can go a long way in benefiting the organizations and sustaining the environment.

Environmental Protection Agency and the Department of Energy. While buying electrical appliances for offices and homes, one should consider and support products that offer the ENERGY STAR® rankings. Philips Pakistan offers a range of green products in Pakistan, including lighting solutions and televisions built with Eco-Design and Sustainable Technology at subsidized rates to encourage consumers to buy products bearing environmental labels. Initiatives to conserve energy have merit, but they only address the tip of the iceberg. To begin with, companies must invest in the development of human resources with the necessary set of skills and development of long-term strategies to encourage research and development of efficient, environmentally-friendly energy alternatives.

about the writer Fouzia Ishaque works with Habib Bank Limited (HBL) in HR & OD. As a Project Manager, she has participated in crucial change initiatives of the bank. She began her career at an international software company Clarus Technologies, gave it a new brand identity and strengthened strategic alliances. Fouzia has a diverse educational background with a BCS in Software Engineering and an MBA in Finance from SZABIST.

At present, the Pakistani market offers ENERGY STAR® products to buyers. These products use less energy and prevent greenhouse gas emissions by meeting strict energy efficiency guidelines set by the U.S.

march-april 2008

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green perspectives

green business sense? by glenn schloss for tbl

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usiness is turning green globally. From cars to credit cards to light bulbs, and even potato chips, environmentally-friendly versions of products and services loved by consumers for decades are hitting the market. Driving the trend are two key factors: consumer demand for green alternatives and increasing stakeholder scrutiny of companies' environmental footprints.

for green cars, HSBC's green credit card launched in Hong Kong made from recyclable plastic and donating a portion of purchases to an innovative programme providing schools with green rooftops, and Walker's potato chip packets stamped with Carbon Trust logos indicating the company is working to reduce its carbon emissions. Every major light bulb brand now offers an energyefficient alternative.

Recent examples include Toyota's stunning success with the Prius hybrid car which has prompted all major automotive manufacturers to launch plans

These products and services are underpinned by a nascent yet budding green awareness among consumers, at least in developed market segments. It is a

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movement which is in full bloom in developed Western markets such as the US, Europe as well as Australia and already shifting into wealthier developing economies in Asia such as Hong Kong, Singapore and even China. In the next phase, over coming years the "green as a lifestyle" trend will transition and take firmer hold in South Asia including Pakistan. The trend is important because consumers are making behavioural changes based not only on responses to growing environmental threats but because it is developing a fashionable appeal, making it hip to be green. Already leading Hollywood celebrities such as Leonardo DiCaprio and Brad Pitt are championing environmental issues in a serious but sartorially-appealing manner - not to forget Mr. Schwarzenegger with his hydrogen-powered Hummer. It won't be long before more Bollywood stars take up the green cause. It all makes good business sense. Green products are often sold at a premium, both for the added value cycle and to compensate for the higher costs associated with mitigating environmental impact and complete life cycle considerations. Market research suggests that consumers are willing to pay a higher price for socially-responsible products; however, this can only be quantified through in-market testing. A BBC poll of 22,000 people in 21 countries (of which Pakistan was not one) found that people in developed economies are willing to make lifestyle changes to support green products and green taxes to tackle environmental problems such as climate change. The survey, carried out by GlobeScan, found high levels of support for green taxes. Furthermore, the survey found that "83% of respondents accept

they will definitely or probably have to make lifestyle changes to help tackle climate change, while a majority in US and Europe are resigned to increased energy costs as a primary means of limiting global warming". Such attitudes are increasingly effecting consumers purchasing decisions, due to the rise in public concern and activism around climate change. Companies must proactively adapt to these blatant realities the sooner they do, the more competitive they become. With this ever-growing focus on climate change, consumers are also examining energy efficiency as a product attribute or as a factor in their purchasing criteria. According to a ReputationZ study conducted by Hill & Knowlton and market researchers Millward Brown in late 2006, climate change headed the list of issues consumers in the UK have heard a lot about recently. It is in this environment that companies and brands recognise the opportunity in seeking to build or enhance their bonds with green consumers. The greening trend is not just occurring at the brand or product level, it's increasingly being viewed by companies as a responsibility - and an expectation of stakeholders, including a growing group of financial investors. Amid concerns about global warming, NGOs, media, the public and some governments even are putting pressure on corporations to reduce their carbon emissions. At the same time, executives are realising that a green corporate positioning can actually be good for the bottom line. The benefits are twofold: long-term cost savings from lower energy consumption and increased goodwill among stakeholders including consumers and government. This trend is

driving investments in energy efficiency, and innovation towards the path of creative solutions. Awareness of the need for action is strong but when it comes to eco-efficiency there is much work to be done. A Hill & Knowlton survey of 420 senior executives from China, the US, Canada and the UK in 2007 found that while a majority of senior technology leaders from around the globe (82%) closely monitor the issue of global warming, most do not have a defined energy strategy to deal with it (65%). The risk is clearly evident and winners will be those who seize the opportunity while it remains an opportunity it is already an undeniable risk for many players.

about the writer Glenn Schloss is Hill & Knowlton's Regional Director of Corporate Communications, Asia Pacific. [email protected]

march-april 2008

45

book in focus

ethics incorporated top priority and bottom line by fariha rashed for tbl

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Business Ethics is quite simply applying the basic principles of ethics in the realm of business where profit is the key consideration

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By Dipankar Gupta Publisher: HarperCollins India 216pp. Rs. 395

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lobally, Business Ethics has been a much talked about term recently and efforts have been made to even incorporate it in the syllabus of business administration courses. What is the concept behind Business Ethics? It is a practice which should be perceived by employees as something which they can incorporate in their everyday routine - it should not be constituted as a means of control by management. When a company stresses on conformity rather than principles, it does more damage than healing. These are some of the underlying concepts explored in detail in the book "Ethics incorporated - Top Priority and Bottom Line" authored by KPMG's Dr Dipankar Gupta. It demonstrates how ethical business practices are not only good for the bottom line, but also for employee morale and productivity. This book inspects business ethics from an organizational perspective and will do well as an introductory book on the subject for students, executives, managers and leaders. The author, Dr Dipankar Gupta, heads the business ethics and integrity services practice of KPMG in India and has been associated with the practice since its inception in 1999. Dr Gupta has been influential and active in setting up business ethics systems in domestic and multinational companies in India. He has also taught at the Jawahar Lal Nehru University

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and Delhi School of Economics. Dr Gupta has also been a researcher and teacher abroad. He acted as the Visiting Leverhulme Professor at the London School of Economics and as the first occupant of the Visiting Asia Chair at Institut D'Etudes Politiques de Paris in 2004. Dr Gupta has written over 10 books on various social and political issues and is also the author of articles that have been printed in scholarly journals in India and abroad. His book "Ethics Incorporated Top Priority and Bottom Line" gives a keen insight on the basic principles of corporate accountability and ethics. It carries practical and interesting

examples drawn from European, U.S and various Indian companies. Dr Dipankar Gupta has done a praiseworthy job in discussing issues such as corporate governance, corporate social responsibility, as well as the connection between business ethics and social reform. Even though he writes specifically for Indian companies, the lessons that surface are globally relevant. In general, elevating the standards of business and bringing business ethics to the forefront is what books such as Gupta's will help do in the long run. The book speaks in depth about the strains of contemporary competition that make it vital for top executives to secure popular acceptance to norms and practices within an organization. Several useful guidelines are also included in the book, to help executives on a number of significant issues ranging from how to design a mission and vision statement, to the making of a Business Ethics manual, as well as to the mapping and calibration of existing attitudes, feelings and values of co-workers within the organization. The book emphasizes that the context of corporate leadership has altered enormously in modern times. Leadership in today's day and age requires skills which were not standard in the past. Thinking in terms of ethics is equal to thinking leadership and therefore it is vital that business ethics programmes be driven from, and at the top level. KPMG's support to this book shows their commitment towards incorporating strong ethical values within their own organization as well as in organizations on a global front. This book strongly promotes that Business Ethics be clear and effective - there are illustrations on how norms and values can and should be made practical and usable on an everyday basis. Dr Dipankar Gupta, explains, "Business leaders today need to

actively give thought to the content and operational aspects of their ethics programmes. Ethics programmes need to be 'live' and not be weighty and cumbersome pieces of paper behind which their purpose is lost." Gupta further adds, "A corporate unit is not just a site where profits are made and jobs are performed, it is also a culture producing unit." "Ethics Incorporated - Top Priority and Bottom line" is a valuable read for decision-makers in organisations of any size wanting to design and implement a business ethics programme based on global standards. The book highlights and extends on the fact that business ethics helps organizations to run cohesively by substituting surveillance and fright with leadership and contribution. However, it would have been helpful if the book would have been slightly more user friendly in terms of its structure and pace. The reader is overwhelmed by an abundance of information right from the start. The author argues in favor of Business Ethics at two levels in this book. The first is the analytical and conceptual one, and the second is to show how Business Ethics can be put to work as a standard and lasting device for business executives. Ranging from the creating of an ethical manual, to the resolution of ethical dilemmas, to corporate social responsibility and governance, to questions of vendor monitoring and child labour, the book reveals how Business Ethics can help in every circumstance to add to corporate efficiencies and to the bottom line. The importance of the stakeholder perspective has been well explained and it has been rightly stated that the most admired companies today have swung their concern from shareholders to stakeholders. Comparing ethics in sport to that in business is another interesting and clever insight. The author says that

we would do better if our business was run like sport - an easy admission of one's error usually slides away without leaving distasteful recollections. Transparency has been stressed upon in making the practice of ethics effective. The "red flags" as the author terms it, are early warnings useful in detecting problems. The only way citizens can protect themselves from corporate frauds is to be able to read red flags when they spring up. Ethics does best when it is initiated at home, at the workplace, and with colleagues - business leaders are team leaders who recognize that talent is not located just at the top. The book illustrates how if top management has a clear focus on ethics, it instigates more competitiveness, creativity, cohesion and direction in business practices. At times it seems as if the author is a little too cynical and comes across as someone who believes that adopting corporate ethics will solve all business problems. This perspective may be slightly naïve. Corporate Ethics is just one aspect that could certainly lend a hand at making the business environment more effective. The author finally concludes that having little ethics is a hazardous thing and an organization should go the whole way. Appealing subtitles and eye-catching highlights in bold print make the book easily readable. Carrying a lot of direction on ethics, the book is a bit short on illustrations. The language is simple and easy to understand. Students and practitioners of management are likely to find the book useful in the current context.

march-april 2008

47

musings

a second life by praetor for tbl

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f one was to be given a second life with all the experience of the first at one's disposal upon rebirth, would one live differently? And if so, how differently? There would perhaps be a handful of people who will say that they would live the second life no differently. Fortunate beings who had it all in the first life and are ready to have it all again given the chance. A huge number, probably the vast majority of people on this planet would come up with a thousand things they would want different the second time round. Then, possibly there would be a precious few who too would want it different; but more in terms of a more holistic lifetime achievement than in terms of worldly wealth or material comfort alone. Now apply this second life possibility to countries instead of individuals and see what comes up. The countries who would perhaps want it no different might mainly be from the northern hemisphere countries in Scandinavia, Western Europe and North America. And may be Australia and New Zealand in the southern hemisphere. Then, an overwhelming number of countries who would want it quite different in every which way, would probably come from Asia and Africa mainly. South American and Eastern European countries would possibly opt for some changes, although not as many as the Asian and African ones. Then you will have to look very hard to find countries who too want it different the second time, but in a spiritually uplifting sense. To live the good life themselves and at the

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same time do good for others. One can argue that indeed such countries do exist and the grants in billions of dollars that some Western countries pour into the third world every year is evidence of the altruism we speak about. This is a fact that is difficult to deny. While aid, governmental or institutional, bilateral or multilateral, invariably has strings attached, grants need to be taken at face value. Grants at the country level are akin to corporate philanthropy at the company level. Cynics will doubt the purity of motive and attach any of a number of possible hidden agendas for the philanthropy, both at the individual and at the country level. But who are we to say whether such philanthropy is inspired by some sense of guilt or atonement, or inspired by true compassion and a finer sense of justice? If Warren Buffet can just wake up one morning and give away to charity a sum of about $ 37 billion in one stroke (that's about our total export revenues for 2 years), must we be insecure enough to doubt or question his sincerity? Let's go further and apply the second lifetime opportunity model to the corporate sector. Things change dramatically here. One would be hard pressed to find a company who would want it no differently a second time round. Even the biggest multinationals with assets more than those of dozens of countries accumulated would probably want to change several things in the second life, to be even bigger and even more powerful. Certainly most middletier companies would relish a

second chance to avoid making all those mistakes they did make or avoid losing all the opportunities they lost, stunting their growth and perhaps even driving some into irreversibly into the red. Would there also be companies who would use a second chance to do better for themselves and for the larger society at the same time? I believe yes, there would be such corporate entities. More so later than now. A herald to this belief is that while still in the first life, so to speak, the phenomenon of corporate philanthropy is present. I believe this is an indicator even if the surveys tell us again and again that corporate philanthropy is in large part driven by certain individuals in companies practicing philanthropy, rather than because of a strategic company policy. And like most other aspects of doing business today, corporate philanthropy too is evolving. Evolving for the better, from pure charity (that often may or may not be good for the recipients or even for the company itself) to true CSR or corporate social responsibility. This, is the good news. If the corporate world was to be given a second life, there will be a larger number of companies who will use the opportunity to do better for themselves, and do better for others. These will be the companies who have awakened in the second life to the pursuit of the triple bottom line of people, planet and profits as the logical, the ethical and the profitable way forward.