Encore March 2007 - The Energy and Resources Institutecbs.teriin.org/pdf/EnCore/4.pdf · ·...

2 Volume 4 • Issue 1 • April 2007

EnCoRE

Coordinator, T E R I –BCSD India

Annapurna VancheswaranAssociate Director, SustainableDevelopment Outreach, T E R I<[email protected]>

Editorial Board

R K Pachauri, Director-General, T E R I ;Chairman, T E R I –BCSD IndiaR K Narang, Distinguished Fellow, T E R I ;Convener, T E R I –BCSD IndiaMarcel Engel, Director, World BusinessCouncil for Sustainable DevelopmentRegional Network

Editor

Satyajeet SubramanianResearch Associate, T E R I –BCSD India<[email protected]>

Associate Editors

N Deepa, Associate Fellow, T E R IJaya Kapur, Information Analyst, T E R I

1 ABN Amro Bank (India)

2 Air India Ltd

3 Alcatel- Lucent

4 Alcoa Asia Ltd

5 Apollo Tyres Ltd

6 Areva T&D India Ltd

7 Ashok Leyland Ltd

8 Ballarpur Industries Ltd

9 BASF India Ltd

10 BG Exploration and Production

India Ltd

11 Bharat Heavy Electricals Ltd

12 Bharat Petroleum Corporation Ltd

13 BP India Services Pvt. Ltd

14 Cairn India Ltd

15 Chambal Fertilizers and

Chemicals Ltd

16 Chennai Petroleum Corporation

Ltd

17 Coca-Cola India

18 Container Corporation of India Ltd

19 Continental Construction Ltd

20 DCM Shriram Consolidated Ltd

21 Dow Chemical International Pvt.

Ltd

22 E I DuPont India Ltd

23 Ecosmart India Ltd

24 Forbes Gokak Ltd

25 GAIL (India) Ltd

26 Hindalco Industries Ltd

27 Hindustan Lever Ltd

28 Hindustan Petroleum Corporation

Ltd

29 Hongkong and Shanghai Banking

Corporation Ltd (HSBC India)

30 IBP Company Ltd

31 Indian Farmers Fertiliser

Co-operative Ltd

32 Indian Metals and Ferro Alloys Ltd

33 Indian Oil Corporation Ltd

34 Industrial Development Bank of

India

T E R I–BCSD Indiabcsd@teri . res. in • www.ter i . res. in/core •www.ter i in.org • www.wbcsd.org

T E R I–BCSD (TERI–Business Council for Sustainable Development) India – initiated

by T E R I – is a regional network partner of the WBCSD (World Business Council of

Sustainable Development), Geneva. It provides an independent and credible

platform for corporate leaders to address issues related to sustainable development

and to promote leadership in environmental management, social responsibility, and

economic performance. Membership is open to organizations. The following are its

current members.

C O N T E N T S

Editorial•

Point of viewTowards operationalizing a responsible

supply chain•

FocusImplementing CSR programmes in the

supply chain: efforts ofTERI–BCSD India member companies

•Feature

Ethical issues in supply chain managementof Indian companies

•Partners in change

Mobility for development•

International initiative•

On the moveNokia–WWF–TERI stakeholder seminar

•Resources

PublicationsInternet resources

New arrivals at T E R I library•

Calendar of events

35 Ispat Industries Ltd

36 ITC Ltd - Paper Boards and

Specialty Papers Division

37 Jaypee Cement Ltd

38 Kerala Minerals and Metals Ltd

39 Lafarge India Ltd

40 Mahanadi Coalfields Ltd

41 Mahindra & Mahindra Ltd

42 National Thermal Power

Corporation Ltd

43 Numaligarh Refinery Ltd

44 Oil and Natural Gas Corporation

Ltd

45 Oil India Ltd

46 Petronet LNG Ltd

47 Power Grid Corporation of India

Ltd

48 Power Trading Corporation of India

Ltd

49 Rabo India Finance Pvt Ltd

50 Rallis India Ltd

51 Reliance Energy Ltd

52 Reliance Industries Ltd

53 Seshasayee Paper and Boards Ltd

54 Shell India Pvt. Ltd

55 Shree Cement Ltd

56 SREI Infrastructure Finance Ltd

57 Steel Authority of India Ltd

58 Sterlite Industries (India) Ltd

(Vedanta Group)

59 SUN Group

60 Suzlon Energy Ltd

61 TATA Chemicals Ltd

62 TATA Motors Ltd

63 TATA Steel

64 The Andhra Pradesh Paper Mills Ltd

65 The Associated Cement

Companies Ltd

66 The TATA Power Company Ltd

67 Toyota Kirloskar Motors Pvt. Ltd

68 Usha Martin Industries Ltd

69 YES Bank Ltd

3Volume 4 • Issue 1 • April 2007

EnCoRE

R K Pachauri

Director–General

T E R I

Editorial

T his edition of EnCoRE deals

with ‘responsibility in the

supply chain’. Often, proactive

measures for ensuring

sustainability in the operations

along the supply chain are seen as

actions distanced from the

recipient organization downstream.

In actual fact, such measures would

really be a reflection of enlightened

self-interest. It is now becoming

increasingly clear that any

enterprise which functions on the

principle of sustainability is better

equipped to respond to changes in

the social environment, and in

respect of laws and regulations,

likely to be implemented to ensure

that corporate bodies minimize the

negative externalities from their

operations. A proactive approach

towards greening the supply chain

or ensuring that the principles of

sustainability run through this

entire system also creates better

relationships between buyers and

suppliers, which would lead to

productive and mutually beneficial

business.

Any organization dealing with

the supply chain is in a unique

position to influence business

behaviour and actions upstream.

There are several success stories of

organizations that have provided

technical expertise and guidance in

the development of new products

and designs to supply downstream.

In a number of industrialized

countries, innovation, for instance,

in the automobile component

sector has been driven by the

automobile industry, which is the

main buyer. If guidance and support

can be extended to actions that

protect the environment and ensure

sustainability of natural resources

used in a process, then major

benefits accrue to society, which, at

some stage, would also reflect

benefits to an organization itself.

For this reason, any organization

buying on a regular basis from its

supply chain owes it to society to

influence actions upstream as part

of its responsibility as a corporate

citizen.

TERI is organizing the annual6th Corporate Awards Presentation

function on 23 May 2007

Awards will be presented for environmental excellence, commitment toCSR (corporate social responsibility), and business response to HIV/AIDS.

The Hon’ble Finance Minister, Government of India, will be the chief guest andhas kindly consented to present the awards.

Join us at 10.00 a.m. at the Stein Auditorium, India Habitat Centre,Lodhi Road, New Delhi.

For further details contact <[email protected]> or register online at <www.teriin.org/awards>


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POINT OF VIEW

TTowards operationalizing a responsible supply chain

Proagro Seed Company Pvt. Ltd

Satyajeet Subramanian, Research Associate, TERI–BCSD India, spoke with Ms UVL AnandaManager–India, Public Affairs and Communication, and Mr Suhas Joshi Manager, Strategic Initiatives, ProagroSeed Company Pvt. Ltd, a part of the Bayer Crop Science Group, on the company’s supply chain programme.

What was the motivation forthe company to initiateactivities in the supply chain?As a founding member of theUnited Nation’s GlobalCompact, Bayer respects andfully endorses the ten principlesof the initiative relating tohuman rights, labour standards,environmental protection, andanti-corruption. It supportsprojects worldwide in line withthese principles and accepts theOECD (Organisation forEconomic Co-operation andDevelopment) guidelines formultinational companies and the

ILO (International LabourOrganization) TripartitePrinciples concerningmultinational enterprises andsocial policies.

Consequently, Bayer follows aclear ‘zero child labour’ policyand neither Bayer CropSciencenor its subsidiaries employchildren. Bayer CropSciencedoes also not tolerate childlabour in its supply chain andtakes action against known casesof company policy violations.

However, when in 2002 BayerCropScience bought Proagro aspart of the global acquisition of

Aventis CropScience, thecompany found that while thisformer Aventis operation did notemploy children, it was commonpractice to do so among farmersin its cotton seed supply chain.In an effort to protect the rightsof children, Proagro initiated acomprehensive child-careprogramme in the cotton seedsupply chain.

How do you communicateyour performance in theseareas to the investmentcommunity and otherstakeholders?

Bayer CropScience activelycommunicates the performancein these areas to stockholders,rating agencies, stockholders’associations, the media,multilateral organizations,government agencies, and thegeneral public on regular basis.At the end of 2004, Bayerbecame an organizationalstakeholder of the GRI (GlobalReporting Initiative), establishedby the United Nations. Here, thecompany participates in themulti-stakeholder process aimedat establishing globally acceptedguidelines for sustainabilityreporting.

Accordingly, Bayer publishesan annual Sustainable developmentreport, which focuses not only onenvironmental data, but also onA Proagro-supported cotton seed farmer that does not use child labour

his section captures the views of leading companies that have incorporated supply chainethics as part of their overall corporate strategy. They share their views on their experiences

and challenges in implementing a complete programme to encourage social and environmentalstandards in their supply chain.


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what Bayer is doing to balanceeconomic, ecological, social, andsocietal requirements. Thecompany believes it is importantto publish sustainabledevelopment objectives as ayardstick against whichperformance can be measured.Bayer regards that as animportant part of its dialoguewith the general public.

In addition to the company’sregular reporting through theSustainable development report,stockholders’ newsletter, and theInternet, Bayer issues newsreleases and ad-hoc statements onthe developments in this area andgives presentations to stakeholdersand interested target audience.

What have been yourlearnings and challengeswhile executing such aninitiative?Child labour monitoring in thecotton seed supply chain is verydifferent from similar monitoringactivities conducted in a limitednumber of fixed or enclosedplaces of activity such asproduction or manufacturing

sites. Effective field monitoringand evaluation schemes in cottonseed production must, therefore,take into account thedecentralized nature ofagricultural production which,for the cotton seed industry,takes place on thousands ofsmall plots scattered over a largearea with an equivalent numberof small farmers organized incountless village communities inrural India.

In view of this, thedevelopment of the child-careprogramme required aninnovative approach which ledProagro to specifically tailor itscampaign to the challenges ofagricultural cotton seedproduction in Andhra Pradesh.While lessons could be drawnfrom the experience oforganizations in other ruralcommunity initiatives, Proagrohad to still go through a steeplearning curve adapting its effortsto new events and challenges. Thisway, the company has continuedto improve and further develop itsprogramme within the originalconceptual framework, a

demanding process which isongoing.

What advice would you giveto your other peer companieswho would want to initiatesimilar interventions?Management commitment is aprime prerequisite to successfullyimplement such initiatives. Theseinterventions require substantialamount of management time andresources. Moreover, tangibleresults cannot be expected in ashort term, meaning the companyhas to adopt a long-termperspective. Also, in some cases,immediate business needs may beoutweighed by the needs of theprogramme, ensuring sustainablesuccess in pursuit of ethicalstandards.

Senior management’scommitment also plays animportant role in the ethicalorientation of the employees.Defining and clearlycommunicating company valuesand positions significantly helpto ensure the necessary mindset,which is imperative for thesuccess of such initiatives.

Maruti Udyog Ltd

Maruti Udyog Ltd, a subsidiary of Suzuki Motor Corporation of Japan, has been the leader ofthe Indian car market for about two decades. Its manufacturing plant, located in Gurgaon about25 kilometres south of New Delhi, has an installed capacity of 350 000 units per annum, with acapability to produce about half a million vehicles. As a responsible corporate citizen, Maruti hasalways believed in following highest standards of corporate governance and sustainability. Thecompany has initiated several activities with their suppliers in the area of environmentalmanagement and social responsibility.

Mr Ranjit Singh, Manager (Corporate Planning), MUL (Maruti Udyog Ltd), in an e-mail interview, sharessome of the details of their supply chain programme.

What was the motivation forthe company to initiatesustainable developmentactivities in the supply chain?The programme for sustainabledevelopment activities wasinitiated in the supply chain withthe following objectives.

P To strengthen the processesand capabilities at thesupplier end

P To minimize the businessrisks associated withenvironmental issues

P Resource conservation andwaste minimization(packing waste)

P Improvement in theenvironmental performanceof suppliers

◆◆◆◆◆


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What have been yourlearnings and challengeswhile executing programmesrelated to improving socialand environmental standardsamong your suppliers?Some of the major challengesand learning from thisprogramme includeP lack of willingness to share

environmental issues relatedto business,

P investment for environmentmanagement not identified asa priority area,

P lack of awareness regardingenvironmental issues and legalrequirements at theoperational level, and

P as a learning it is found to bebeneficial to implement theprogramme in clusters withsimilar manufacturingprocesses.

What advice would you give toyour other peer companieswho would want to initiatesimilar interventions?Based on our experience in theinitiation and implementation ofthese activities in supply chain, itis suggested thatP commitment of top

management of suppliers’towards implementation shouldbe ensured,

P suppliers must be selectedbased on their capabilities andprocesses,

P it is much more beneficial toimplement these initiatives inclusters, and

P regular auditing afterimplementation must becarried out.

Enlist the steps which havebeen taken by the company inorder to help the suppliersand distributors (as part ofcompany’s value chain)become more socially andenvironmentally responsibleand also improve efficiency ofoperations.(a) Conservation of natural

resources and energyP Yield Improvement:

reducing scrap for sheetmetal, forging, and castingcomponents

P Training of vendors forproductivity improvementand energy conservationbased on Maruti’sproduction system

(b) Prevention of wastegeneration or pollution

P Implementation of 100%reusable packing for all localsuppliers

P Monitoring PUC (pollutionunder control) certification ofincoming suppliers’ trucks.

Intel Technologies Pvt. Ltd

Intel takes a proactive approach to addressing issues that arise in the supply chain. In countrieswhere there are concerns about EHS (environmental, health, and safety) standards, the companyclosely examines the EHS policies and practices of its suppliers.

Mr Kinnar Ghiya, Emerging Markets Manager, Greater Asia Region, Global Indirect Procurement, IntelTechnologies India Pvt. Ltd, shared his views in an e-mail interview on Intel’s CSR (corporate socialresponsibility) and supply chain initiatives in India and globally.

(c) Helping vendors for EMS(Environment ManagementSystems)

P Awareness and trainingprograms conducted forvendors on EMS

P Green supply chainmanagement: a uniqueprogramme started for fewsuppliers’ where EMS weredeveloped along with CII(Confederation of IndianIndustries) and USAID(United States Agency forInternational Development)

(d) Social initiativesP Adoption of ITI (Industrial

Training Institute) by MUL(Rohtak, Gurgaon) and MULjoint ventures – Sona Koyo(Nagina) and JBML(Faridabad) – in January 2006for raising the level oftechnical training bymodernizing them

(e) MACE (Maruti Centre forExcellence): MUL set upMACE in April 2004 inpartnership with 21 MULsuppliers as lifetime membersto help member organizationsreach and sustain world classlevels of performance in termsof quality, cost, andtechnology orientationthrough the development ofhuman resources, consultancy,training, and support services.

◆◆◆◆◆


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What are some of Intel’sCSR initiatives in India?As a socially responsiblecorporate citizen, Intel India isfocused on enhancing lives andempowering individuals byenabling access to education,providing improved healthcare,and undertaking variouscommunity welfare initiatives.India forms a critical part ofIntel’s World Ahead Program,launched in May 2006, which isaimed at making technologyavailable to the next billion peopleby driving technology accessibility,Internet connectivity, andeffective education. A substantialportion of Intel’s $1 billioninvestment in this programme isaimed at growing the company’seducation and communityprogrammes in India during thenext five years.

In keeping with the company’sworldwide initiatives, Intel Indiais committed to empoweringrural communities throughvarious initiatives in education,including the Intel TeachProgram, which is aimed attraining teachers in the use oftechnology to improve teaching,and working with stategovernments to donatecomputers to classrooms. In thearea of accessibility, Intel India isworking towards enablingwidespread computer ownershipby increasing access to fullycapable and affordablecomputers, tailored to regionalneeds and by helping to developthe local ecosystems that willsustain this access. In the area ofconnectivity, Intel Indiacontinues to expand wirelessbroadband Internet access byleading industry effortsworldwide in ecosystemdevelopment and WiMAXdeployment.

Intel India also focuses ondeveloping the environmentthrough various initiativesincluding recycling drives, waterconservation programmes, parkrenovations, and clean-ups, toname a few. The company’scommitment to enhancingsocietal welfare is clearly reflectedthrough its 75% employeevolunteer participation in variouscommunity initiatives. Throughits outreach initiatives – such asthe Volunteer Matching GrantProgram, Centers for EconomicEmpowerment of theIntellectually Challenged, and theTsunami Village DevelopmentPrograms – Intel has reached outto a wide range of communities inIndia. By actively engaging withcommunities at grassroots leveland seeking to improve theirwelfare, Intel India plans totransform lives through theeffective and widespread use oftechnology.

What was the motivation forthe company to initiateactivities in the supply chain?Intel is a strong supporter,practitioner, and believer incorporate responsibility in andaround the communities weoperate in. Intel is an activeEICC (Electronics IndustryCode of Conduct)1 member thathas participated in establishing aconsistent approach for supplierperformance in many areas,including labour andemployment practices, healthand safety, ethics, protection ofthe environment, and amanagement system thatoversees the above areas. At allour sites in India where thesuppliers provide services for thepurpose of construction,facilities maintenance, etc., weensure that the contract workers

have working conditions that aremeeting our code of conduct. Wehave control mechanisms,checks and balances in place todrive supply base compliance tolocal law, and other guidelines.

How do you communicateyour performance in theseareas to the investmentcommunity and otherstakeholders?Our performance iscommunicated through manyavenues, such as our annualcorporate responsibility report2

supplier business reviewmeetings, through our workwith the EICC coalition, ourmeetings with various NGOs(non-governmentalorganizations), and annualsupplier day forums in severalcountries across the globe(including India) that cover avariety of topics with suppliers,like the EICC and businessethics. Reports of such meetingsare submitted to our globaloffice.

What have been yourlearnings and challengeswhile executing awarenessin the supply chain?The key learning has been thatby having a consistent approachEICC in the industry withcollaboration, establishingcommon tools and practicesreduces duplication of effortand cost for all involved andincreases effectiveness andefficiency and it is doing theright thing. These initiativesoften appear to be above andbeyond normal job scope orresponsibilities’, but, as youcommit to them, there is a greatdeal of satisfaction. We workwith a diverse supply baseacross the globe. We, however,

1 For further information on the EICC, see <http://www.eicc.info/>2 Available at <http://www.intel.com/intel/finance/social.htm>


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The Adidas Group

The Adidas Group began its operations in India in the year 1995. It recently acquired Reebok and today, Indiais the fourth biggest country in sales for the Adidas Group in Asia Pacific. The company follows a model forsourcing their products-shoes, sportswear, and accessories-from across the globe through a large supply chainnetwork, including 60 suppliers in India. The Adidas Group ensures that each of their suppliers meets globalsocial and environmental standards that are not only good for business but also for a large workforce.

Satyajeet Subramanian, Research Associate, TERI–BCSD India, met Mr Aziz Ur Rehman, Social andEnvironment Affairs Department, Adidas India, on his experiences of ensuring compliance at Adidas Groupmanufacturing sites across South Asia.

What is the Adidas process ofensuring compliance withyour suppliers in India?The Adidas Group has a globalWorkplace Standards guided byInternational Labour Standardsand Environmental requirements.These workplace standards haveguidelines categorized in the areaof employment, health, safety,and the environment.

Our local sourcing officeidentifies suppliers and shares thisinformation with the head ofsourcing for examination. At thisstage, the capacity of the supplier,past records, and other details areexamined. Once completed, thesedetails are shared with the head ofSEA (Social and EnvironmentalAffairs), who then notifies thelocal SEA staff to review thesupplier by conducting an audit.The audit examines severalaspects including worker–management relations, wages andworking hours, contract labour,and HSE (health, safety, andenvironment) conditions. Theseaudits are conducted for bothnew and existing suppliers.

Is there a difference in yourmethodology when approachingnew and existing suppliers?While the methodology ofauditing and reporting may

remain the same, we do havedifferent parameters for assessingthe performance of new andexisting suppliers. For newsuppliers, scope of complianceassessments is to assess zerotolerance and any thresholdissues.

Zero tolerance implies thatthere are certain issues – such asprison labour, life threateninghealth and safety conditions ofthe workplace, and repetitiveworker abuse – that the companywill not accept under anycircumstances. The Adidas

Group will not establish anybusiness relationship withsuppliers that present suchproblems. Threshold issues couldbe aspects related to minimumwages, overtime, social security,etc. Suppliers can work uponthese issues, and the AdidasGroup gives three months toprepare and implement acorrective action plan. After this,we review the improvementsonce again and only if thesuppler has been able to meet allof expected standards of theAdidas Group Workplace

Use of personal protective equipment

◆◆◆◆◆

use this as an advantage tolearn and share at the sametime. However, at all times,there is no change in ourexpectations with regard to thesupplier code of conduct.

What advice would you giveto your peer companies inIndia who would want toinitiate similar interventions?We encourage companies to investtime and energy in supporting

and joining the EICC. Complyingwith the EICC and having allglobal supply chains comply withit, will allow us to continuouslyimprove in the area of corporateresponsibility.


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Standards, do we engage inbusiness.

For existing suppliers, theAdidas Group has adoptedenforcement guidelines ensuredthrough regular audits. In thecase of threshold issues, thesupplier is expected toimplement changes in the timeperiod mutually agreed upon; ifthe problem continues to persist,warning letters are issued. In theunlikely event that a case of zerotolerance is encountered at anyexisting factory, we would issuewarning letters immediately andinitiate a process of terminationof manufacturing agreement. Allof our suppliers have beenbriefed and trained about ourenforcement policy, hence, theyare fully aware of the descriptionof zero tolerance, thresholdissues and the warning letterprocess.

How often do you audit yoursuppliers?We try and visit them at leasttwice a year. There may be caseswhere we need to visit somesuppliers more than the othersdepending on the groundsituation.

Does the company alsoprovide any handholding onhow can suppliers improvetheir social andenvironmental standards?We provide advice at every stageof the process. However, it is notalways possible to providetraining or development ofmanagement systems for oursuppliers. We would, however,like to arrange for consultants toprovide this technical assistance.

What are some plans for thefuture?The company will be rolling outtheir sustainable complianceguidelines this year in India.These guidelines comprise sixcriteria that are aimed atensuring sustainable complianceat factory level.

These are1 management commitment

and responsiveness;2 management systems;3 worker–management

communication (labour andindustrial relations);

4 compliance training forworkers and management;

5 transparency in communica-tion and reporting; and

6 compliance performance.

The success of the criteria isassessed through KPIs (keyperformance indicators). InIndia, the company plans tobegin this programme with fivesuppliers and eventually reachout to the others. The company’sfocus will also be onstrengthening environmentalassessments in the coming year.

With such enforcementguidelines, what have beenyour experiences withsuppliers?Suppliers have been able tounderstand the need formaintaining compliance at alllevels. With our involvement andregular auditing, we have seen achange in the mindset of manysuppliers that were previouslyunaware of the concept of ethics,good business practices, and theneed for well-developedmanagement systems.

However, an assessment ofhow auditing has actually helpedtheir business would be a goodlearning for all.

How do you report theperformance of suppliers?All SEA offices generate monthlyreports that will be consolidatedand distributed to the seniormanagement team and otherdepartment within Adidas Group.These reports follow a templatethat covers topics related to high-risk areas found, worker contacts(if any), KPI ratings, etc. There isalso a general database where allfactory assessment reports can beviewed by company staff,sourcing departments, andsuppliers. It is called the FFC(Fair Factories Clearinghouse),and industry-wide datamanagement system. By usingthis data system, there will be ahigher level of transparency in thefuture: for instance, complianceinformation in the FFC databasecan be shared with othercompanies and third parties.

Workers on the shopfloor


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F O C U S

What was the motivation forthe company to initiatesustainable developmentactivities in the supplychain?At Apollo Tyres, we haveconstantly looked at, and havebeen implementing variousinitiatives that allow us tostrengthen our relationship withour business partners and allowus to learn and share bestpractices across industries. As acompany, we believe that all ouractivities in the social spherehave the potential to minimizebusiness risks—if undertakenaccording to stakeholder needsand on a sustainable basis.

Beyond business, the latestjourney we have embarked uponin this area, is a continuation ofthis concept where – bypromoting best practices inenvironment, health,community development, andlabour – we, along with ourbusiness partners, couldcollectively take positive steps inrisk management, while makingmeaningful contributions tosociety.

We also wanted to share withour business partners thethought that communityactivities or CSR (corporatesocial responsibility), as we callit today, needs to be seen

Implementing CSR programmes in the supply chain: efforts ofTERI–BCSD India member companies

through a strategic perspective,to ensure long-term businessgains and programmesustainability. One of the keyfeedbacks that we got from ourbusiness partners was the fact

The focus section highlights the efforts of two TERI-BCSD India member companies—ApolloTyres Ltd and HLL (Hindustan Lever Ltd).

Apollo Tyres Ltd recently organized a major workshop for all its national and internationalsuppliers and business partners to inform them on possible social and environmental risks in thesupply chain. The company has plans to build on this initiative in the year ahead.

HLL has been encouraging its suppliers to adopt CSR (corporate social responsibility)practices by providing them with training and relevant information that would help suppliersunderstand the Unilever CoBE (Code of Business Principles).

Apollo Tyres Ltd

According to the last global ranking undertaken based on sales figures of 2005, Apollo Tyres Ltdranks as the 16th largest tyre manufacture in the global tyre industry. The company has a strongexport presence across the globe. With a capacity of 900 TPD (tonnes per day) across its sevenplants in three countries, Apollo is one of the four major players in South Africa, and the only tyremanufacture in Zimbabwe.

Along with these achievements, Apollo Tyres Ltd believes in the core idea of serving each of itskey stakeholders and in creating value in areas beyond its products and services. The companyrecently organized a day-long conference titled Beyond business for some of their largest rawmaterial and machinery suppliers, or business partners. The forum allowed suppliers tounderstand the importance of a green supply chain.

Mr Neeraj Kanwar, Joint Managing Director and Chief Operating Officer, Apollo Tyres Ltd, shares hiscompany’s experiences to address the emerging areas of addressing social and environmental issues in thesupply chain in an e-mail interview with TERI–BCSD India.

Mr Neeraj Kanwar, Joint ManagingDirector and Chief Operating Officer,Apollo Tyres Ltd addresses his company’ssuppliers


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that they really had not seenCSR in a strategic light, andhad not looked at direct or ‘soft’business gains to be harnessedfrom such initiatives. This leadsus to believe that we are on theright track in undertaking thisinitiative.

I also believe that all theseactivities will eventuallystrengthen Apollo’s brand. Weneed to continue to take suchinitiatives, if we are looking tobuild a company that cansustain itself beyond theimmediate.

What have been yourlearnings and challengeswhile executing programmesrelated to improving socialand environmental standardsamong your suppliers?A key area of learning is theinsight gained from what someof our business partners aredoing in this area and theprocesses they are following.While HIV/AIDS has been amajor area of focus for us, thereis a lot to be learnt from whatother companies are doing. Thelearning also lies in our abilityto integrate these into our waysof working and look atpossibilities of working together.

One lesson that we havelearnt over time is that whencompanies undertake activities

that are relevant, beneficial, andsustained over a long period oftime, they can have anenormous impact on the corebusiness of the company, theway it is perceived, and the waywe think and act. Examples ofthese are around us in some ofthe best and oldest Indiancompanies.

One other learning has beenthat, as we work with the Tier IIcompanies in this area, wewould together be able toharness better businesspractices, products, andservices; thereby creating a realwin-win situation.

I would say that there reallyare two big challenges ahead.It’s great to ideate, but it’s acompletely different world whenwe talk about implementation.Making a difference on theground is the biggest challenge.The second is in mutuallyagreeing to and adhering to thestandards we set in each of theareas of labour, health, safety,environment, and community.As always, the challenges lie inimplementation.

What advice would you giveto your peer companies whowould want to initiate similarinterventions?The only aspect I would stresshere is the value that

community activities – the right,well-thought out, and relevantones – can bring to our corebusiness. However, we shouldnot expect immediate results.The results will be apparentonly over the long-term. Theother point to make here is thevalue of following a process,method, or system, as opposedto undertaking ad hocphilanthropic activities.Planning CSR like we tend toplan the rest of our business canpay high dividends and harnesslong-term gains.

How do you communicateyour performance in theseareas to the investmentcommunity and otherstakeholders?We include our activities in thisarea in each of the corporatepublications that we bring outon an annual basis. Thisincludes our website, annualreport, corporate brochure,marketing publications, internalnewsletter, intranet, and thepresentations we make to thefinancial and othercommunities. We do not,however, have a targetedcommunication devised solelyfor the investment community.Over time, we will undertakethis too, as and when the needarises.

◆◆◆◆◆Hindustan Lever Ltd

HLL is India’s largest fast moving consumer goods company, with leadership in home andpersonal care products, and foods and beverages. It believes that success requires the higheststandards of behaviour towards employees, consumers, societies, and to the world in which welive. Its programme to make its supply chain ethical and responsible is an example of this verysame spirit.

Mr Ravi Puranik, Manager, CSR, HLL, shares details about the company’s programme.


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1 COBP describes the operational standards that everyone at Unilever follows <http://www.unilever.co.uk/ourvalues/purposeandprinciples/ourprinciples/>.

HLL is implementing aprogramme to encourage itssuppliers to adopt CSRpractices. The companyeducated its suppliers aboutthe Unilever COBP1 and thiswas included in the agreementbetween HLL and thesuppliers. HLL took thisinitiative for two-fold reasons:because it believes that itsreputation is a directconsequence of the principles itfollows, and because it isconcerned for its stakeholders,which include consumers,employees, business partners,etc. Although HLL talks to allits suppliers about the COBPin the business agreement, itpays closer attention to thosesuppliers that have regular,ongoing relationships with thecompany. This relationship issignificant for both theenterprises.

The primary motivation forthe supplier to engage in thisinitiative is the inclusion of theCOBP in the contract withHLL. The supplier is visitedand inspected by HLL. A copyof the COBP is provided, towhich the supplier mustcomply. In due course, thispractice builds a reputation forthe supplier as well andeventually, the relationshipmoves beyond that of a meresupplier – customer, to one ofshared values and beliefs. Sincethe COBP has been included in

the agreement, deliberate andestablished breach of theprinciples will lead totermination of the contract.

HLL monitors complianceto the COBP through a PAR(Positive Assurance Review),which is carried out every year.This plays a major role inensuring continuity of thepractice. There is no formalunderstanding on the sharingof the costs involved, but thecosts for compliance are builtinto the product/servicecosting by the supplier. HLL,on its part, has mademanagerial resourcesavailable to the supplier forquality training,implementation of variousquality initiatives, andtechnical support. As far asstatutory obligations areconcerned, the humanresources department of thelocal HLL unit providesguidance and assistance toarrange regular monthlystatutory audits. These arecarried out in the prescribedformat provided by thecompany’s legal department.The company says that theintensity of managerialsupport will reduce with timeas the supplier builds upcapabilities and systems getestablished. However, it willcontinue to extend activesupport for the implementationof the COBP.

There is a role for CSRmanagers, as well as supplychain personnel, in thisexercise. CSR managers areinvolved in developing thebroad framework andmonitoring compliance from acommunity perspective byworking with or through NGOs(non-governmentalorganizations). They will takethe feedback from thecommunity and make itavailable to the supply chainmanagers, who will, in turn,check the implementationduring formal and informalinteractions. They will alsomake this one of the keycriteria for selecting partnersin the supply chain.

HLL feels that over a periodof time, smaller enterprises willstart to value these practicesand graduate to a level wherethey take them to other partsof their businesses that do notdirectly deal with HLL. InHLL’s experience, there is lackof knowledge and awareness onimplementation methods insmall enterprises. HLL’sengagement fills this gap. Moreimportantly, smaller businessesare quick to realize that there isa sustainable positive correlationbetween business growth andethics, and social responsibility,and that it makes goodbusiness sense from a long-term perspective to be ethicaland socially responsible.


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F E A T U R E

S

Ethical issues in supply chain management of Indian companies

Prabir Sengupta, former Director, Indian Institute of Foreign Trade, and presently Distinguished Fellow, TERI

CM (supply chainmanagement) essentially

involves coordinating andintegrating the flow ofmaterials, information, andfinances, both within andamong companies, and withconsumers. In recent times,companies are underincreasing pressure to tacklethe issues of workingconditions within theorganizations that make uptheir supply chains. Thesource of this pressure rangesfrom the general public(because of increasedawareness) to investors(because of the call for SRI[socially responsibleinvestment]).

Managing supply chain issuesis increasingly being seen as oneindicator as to how well acompany is run. The media isalso becoming more interestedin stories about malpractice, asare campaigning groups orNGOs (non-governmentalorganizations) as they targetnew sectors and harness publicopinion with increasing degreesof success. Issues taken up incurrent times range from poorworking conditions through tocorporate purchasing practices.This demands a review of theexisting labour standards,employment policies, labourrelations (paternalism versusformalization of labourrelations), and environmental

standards. Companies that aretaking these issues seriouslyare at various stages of theprocess. Some are getting toknow their supply chains,developing andcommunicating their codes ofconduct, or implementingtheir policies throughmonitoring suppliers andencouraging progress. Othersare building capacity forsuppliers, factory managers,and local organizations, orundertaking collaborativeprojects with other companies,NGOs, and multi-stakeholdergroups.

Some of the importantprinciples set out in theInternational LabourOrganisation Conventions andUnited Nations UniversalDeclaration of Human Rightsprovide certain guidelines for anethical approach to supply chainmanagement. There are alsolegislations and rules withregard to basic conditions ofemployment issues,occupational health and safetyissues, compensation foroccupational diseases andinjuries, unemploymentinsurance issues, skilldevelopment issues, labourrelations issues, employmentequity (gender) issues,environmental standards, etc.

Concerns about childlabour, discrimination,conditions of work

environment, etc. have ledmany corporations such asMarks and Spencer to evolve aglobal sourcing strategy thatincludes social audit andverification, continualimprovements and sanctions,etc. The environmentalimplications, similarly, wouldinclude treatment plants forwater, treatment of solidwastes, gas, etc. The recentcontroversy about Coca Colabottling activities and theimpact on groundwater inKerala highlights theincreasing concerns of thesociety about the ethical issuesin SCM related to theenvironment. Effluenttreatments in chemical plantsare another majorenvironmental concern.

Health and safety has alsobeen a major ethical issue inSCM. The use of pesticides,fertilizers, or even seeds areincreasingly under the scannerbecause of the closerelationships between the foodindustry and farming sectorwhen primary products, withor without value additions, arebrought to organized retailmarkets. Gender equity andsafety of women in theworkplace is a phenomenonthat has attracted wide publicattention with the growth ofBPO (business processoutsourcing) sector andincreasing employment of


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◆◆◆◆◆

women at night. Companiesare now forced to give muchmore attention than in thepast to attend to the social andethical issues concerning thisgroup of employees. Whilechild work can be seen asimportant in developingresponsibilities andindependence, as well ascontributing to householdeconomy, increasingworldwide concerns of childlabour, however, have obviousimpacts on the practices andcost structures of certainindustries.

The future challenges forcompanies engaged in ethical

supply chain managementincludeP aligning commercial and

ethical agendas by examiningpurchasing practices,

P building suppliers’ capacityto manage the issues forthemselves,

P engaging with localgovernments andorganizations to widen theimpact of activities,

P improving the impact ofaudits by focusing oncontinuous improvement andproviding effective follow up,

P finding appropriateapproaches for informal and‘flexible’ workers, and

P boosting the quality ofaudits through stafftraining and increasing theuse of confidential workerinterviews.

The underlying challenge isfor companies to regain andmaintain the trust of theirsuppliers and the generalpublic. To do this, theymust develop credibleethical SCM programmesthat work towards makinggenuine improvements tothe life of workers in theirsupply chain, as also to theimpact on the society in abroad sense.

Training workshop on sustainability reportingIn collaboration with the International Finance Corporation and SustainAbility, UK

Venue: T E R I, India Habitat Centre, Lodhi Road, New Delhi – 110 003Date: 21–22 May 2007Timing: 9:30 a.m.–5:30 p.m.

TERI invites committed corporate organizations to join us at the first sustainability reportingtraining workshop in the series. A hand-holding exercise with one company to help develop itssustainability report will follow the two-day training programme.

Workshop modules includeP information on internationally-accepted principles of transparency and reporting processes,P guidance on creation and maintenance of management systems, andP effective reporting.

Please submit your expressions of interest latest by 12 May 2007.

Entry will be on a first come first basis.

For registration details, contact:

Ms Swetha DasariResearch Associate TERI–BCSD IndiaE-mail: [email protected]. 2468 2100

Highlight your successfulpractices througheffective reporting


EnCoRE

P A R T N E R S I N C H A N G E

Mobility for development

obility is almostuniversally acknowledged

to be a key prerequisite towardsachieving improved standards ofliving. Enhanced personalmobility increases access toessential services, as well as toservices that can improve thequality of life. People are,however, increasingly aware thattheir enhanced mobility comesat a price with negativeexternalities and tends to beassociated with increasedpollution; emission ofgreenhouse gases; congestion;risk of death; and serious injury,noise, and disruption ofcommunities and ecosystems.

Mobility 20301 sets out avision of ‘sustainable mobility’and defines it as, ‘the ability tomeet the needs of society tomove freely, gain access,communicate, trade, andestablish relationships withoutsacrificing other essentialhuman or ecological valuestoday, or in the future.’ It alsoidentified 12 indicators –ranging from access tomobility to equity implications– to measure sustainablemobility. The report alsonoted that individual andpublic mobility is expected toincrease significantly in future,and the highest growth ratesare expected in developingcountries. By 2050, it is

estimated that worldpopulation will rise to ninebillion, of whom six billionwill be poor2 . Unless ways arefound to link business with thepoor, two-thirds of the world’sfuture population will beexcluded from the globalmarket. This level of inequityrepresents an enormous riskto global stability.

Most of these people live inIndia, China, Latin America,and Africa. The future qualityof life for these people, andthe economic prospects forthese regions and thecompanies that operate withinthem, will be highly dependenton how all sectors of societyengage to resolve the issues ina sustainable way. Thechanges in urban livingpatterns are adverselyimpacting the mobilityopportunities of thedisadvantaged. The mobilityneeds of the disadvantagedcan never be addressed unlesspublic policy focusessustainable transport,including public transport.Public transport has a majorrole to play in increasing itspenetration and winning themarket share by making itaccessible, acceptable andaffordable.

Given this background, theExecutive Committee of the

WBCSD (World BusinessCouncil for SustainableDevelopment) has endorsedM4D (Mobility forDevelopment) as one of thefive work-streams with theTMC (Toyota MotorCompany) as a member of theDevelopment Focus Area tolead the work-stream. TheM4D focuses on the pathwaysthat enable transport to growin a sustainable way. Theobjectives of the M4D projectareP to raise awareness of the

importance of mobility as adriver for economicdevelopment, includingmobility-related supplychains from the developingto the developed world,

P the need to close themobility divide throughbusiness initiatives forinnovative companiesconcerned about the divide,and

P the need for sustainablemobility solutions forrapidly growing cities in thedeveloping world, includingactive participation ofbusinesses, governments,and policy-makers.Bangalore has recently

decided to establish a rapidtransit system in the form of ametro along with high-capacitybus service in select corridors.With Bangalore being the homefor the IT (informationtechnology) industry and a

1 Mobility 2030. World Business Council for Sustainable Development, 2004.2 Today, three billion people – half the world’s population – live on less than US$2 per day and are termed as ‘poor’.

M


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O N T H E M O V E

Nokia–WWF–TERI stakeholder seminar

O n 26 February 2007, theNokia Corporation,WWF (World Wildlife

Fund), and TERI organized aroundtable in Delhi to discussMeeting stakeholder expectationson environmentally sustainabledevelopment in India.The meeting objectives wereP to discuss trends,

initiatives, and policydevelopments in India totackle the challenge ofenvironmentallysustainable development;

P to identify, discuss, andshare best practices fortake-back and recycling ofproducts in India; and

P to explore possibilities forjoint initiatives.

The workshop engaged 35 keyexperts from diverse areasrepresenting a wide variety ofviews, including government

representatives such as theMoEF (Ministry ofEnvironment and Forests) andMAIT (ManufacturersAssociation of InformationTechnology); industryassociations and NGOs (non-governmental organizations)including WWF, Toxic Links,GTZ-ASEM, Swiss Agency,Indian Cellular Association; andcorporations like Nokia, Alcatel-Lucent, Unicore, Aspocomp,Elcoteq, etc.

The discussions mainlyfocused on e-wastemanagement and led to abetter understanding of thesituation, with the followingconclusions.P Need to actively define

‘e-waste’P Need to create a system

(of market incentives),building on the existing

strong education and servicecentre, the demand for world-class transport facilities hasgrown exponentially. Bangalorehas also a vast rural hinterlandand satellite towns, which haveraised demands for connectivity.The demand for connectivity isfurther accentuated by thegrowth of agriculture and agro-processing around Bangalore.TERI proposes to work alongwith the WBCSD, keeping inmind the overall objectives setabove for Bangalore, to gain a

better understanding of thecircumstances and challenges ofthe city. The steps of the studyentail, first, thoroughlyunderstanding issuesurrounding Bangalore; second,to propose issue-specificsolutions; third, to developstakeholder dialogue to discussissues and solutions; and finally,to modify the proposal andfinalize the report.

The study will commencein April 2007 and will becarried out in Bangalore over

a time span of six calendarmonths.

For further details contact:Mr Ranjan Bose

Senior FellowCentre for Urban Systems and

InfrastructureRegulatory Studies and

GovernanceT E R I

Email: [email protected]

situation, blending formaland informal entities in thechain

P Need for a legal frameworkP Need to raise awareness

among people creating thewaste (take-back) andpeople treating the waste(masks, gloves, etc.)

P Infusion of technology(hazardous waste); bringingnew technology to India

For more information contact

Mr Pratik GhoshArea Convenor

TERI–BCSD [email protected]

◆◆◆◆◆


EnCoRE

International initiatives

Sustainable Supply ChainManagement PlatformFunded by State Secretariatfor Economic Affairs ofSwitzerland, BSD (Businessmeets Social Development) isleading the development of theSustainable Supply ChainManagement Platform. Thefirst stage included research,inventory, and rating ofrelevant internationalstandards and practices. Inter-sectoral principles andelements of sustainable supplychain management strategieswere also created. Theplatform providesP orientation on standards,P know-how transfer,P convergence support,P tools for corporate

embedding, andP supplier training and

identification.BSD is an internationalnetwork of professionalsspecialized in CSR (corporatesocial responsibility) and fairtrade. BSD works with leadingmodels and internationalstandards to helporganizations adopt CSR as acentral value present in allmanagement decisions andpractices. It offers solutions toorganizations interested indifferentiated managementand long-term competitiveadvantages through theintegration of sustainabilityinto their strategies, processes,and organizational culture.BSD’s services aim to balanceinternational standards andbest practices with localneeds, based on transparency,

and ethics in its relationshipswith all involved actors. BSDdevelops and appliescustomized social verificationindicators and systems with aspecial focus on suppliers.http://www.bsd-net.com/SSCM_e.htm

Supply Chain Management,Business for SocialResponsibilityBSR (Business for SocialResponsibility) providescounsel to companies to helpthem develop policies andestablish implementationapproaches that addresslabour, environmental,transparency, and other issuesin their global supply chains.BSR’s extensive experienceworking with multinationalcompanies and their suppliersin more than 25 countriesacross the world positions itwell to assist them in thedevelopment of successfulstrategies. BSR works onsupply chain managementissues with companies fromeach of BSR’s six industryfocus areas: consumerproducts, energy andextractives, food andagriculture, information andcommunications technology,pharmaceutical andbiotechnology, andtransportation. The primaryareas of expertise include thefollowing.P Supply chain strategy: BSR

helps companies identifyand prioritize the primarysocial and environmentalissues arising fromoperation of their global

supply chains, and helpsthem develop structures formanaging these issueseffectively.

P Policy and code development:BSR helps companiesdevelop and/or refine theirsupply chain policies,including overall codes ofconduct, as well as policiesaddressing specific andemerging issues areas suchas hazardous materials,HIV/AIDS, migrant labour,living wage, water use,water quality, and others.

P Programme implementation:BSR provides strategiccounsel, tool development,trainings, and workshops onthe full range of supplychain implementationissues.

P Supplier workshops: BSR hasconducted dozens ofsupplier trainings onspecific company policiesand/or geographiccompliance issues.

http://www.bsr.org/AdvisoryServices/ServiceOfferings/SupplyChain.cfm

Supply chain programmes,Hewlett-PackardHP (Hewlett-Packard)operates the IT (informationtechnology) industry’s largestand most complex globalsupply chain. HP was the firstelectronics company toestablish its Supply ChainSocial and EnvironmentalResponsibility Policy and HP’sSupplier Code of Conduct toextend HP’s commitment tocorporate social andenvironmental responsibility


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to their supply base. Investingin supply chain social andenvironmental responsibilityand supplier diversity reflectsthe global citizenshipprinciples of HP and meetsstakeholder expectations. Thespecific commitment of thesupply chain programmes atHP is toP integrate supplier social and

environmentalresponsibility into sourcingoperations;

P protect worker rights;P improve suppliers’ working

conditions, and health andsafety;

P reduce suppliers’environmental footprint;

P collaborate with NGOs(non-governmentalorganizations) andstakeholders to validate,inform, and improve efforts;and

P participate in industry-wideinitiatives to leverage effortsacross the electronics sector.

According to the Hewlett-Packard Supply Chain Socialand Environmental

Responsibility Policy (http://www.hp.com/hpinfo/globalcitizenship/environment/pdf/suppolicy.pdf), HP’scommitment to CSR extendsto its global supply base, andall HP suppliers are expectedto conduct their worldwideoperations in a socially andenvironmentally responsiblemanner.http://www.hp.com/hpinfo/globalcitizenship/environment/supplychain/index.html

◆◆◆◆◆

FORM IV(as per Rule 8)

Statement regarding ownership and other particulars about Newspaper: EnCore

1. Place of Publication: New Delhi

2. Periodicity of its Publication: Quarterly

3. Printer’s Name: Dr R K PachauriWhether Citizen of India: YesAddress: TERI , Darbari Seth Block, IHC Complex

Lodhi Road, New Delhi – 110 003

4. Publisher’s Name: Dr R K PachauriWhether Citizen of India: YesAddress: TERI , Darbari Seth Block, IHC Complex


5. Editor’s Name: Mr Satyajeet SubramanianWhether Citizen of India: YesAddress: TERI , Darbari Seth Block, IHC Complex


6. Name and address of individuals T E R Iwho own the newspaper and Darbari Seth Blockpartners or shareholders IH C Complexholding more than one per cent Lodhi Roadof the total capital: New Delhi – 110 003

I, R K Pachauri, hereby declare that the particulars given above are true to the best of myknowledge and belief.

Signature of Publisher(Sd/-)

Date: 31 March 2007 Dr R K Pachauri


EnCoRE

R E S O U R C E S

Publications

Operationalizing a responsiblesupply chain

TERI–BCSD India. 2007New Delhi, India: TERI. 24 pp

The supply chain of an Indiancompany generally consists of alarge number of SMEs (smalland medium enterprises) with asizeable workforce. It alsoincludes the unorganized sectorworkforce, which accounts foralmost 90% of nationalemployment. Essentially, thesupply chain of a companyextends from raw material andservice providers to distributors,dealers, and retailers, reachingthe remotest corners of thecountry. As a result, this chainhas considerable potential forimplementing HIV/AIDSawareness initiatives because ofits reach as well as size. Thisreport documents a set ofstrategies that companies canadopt in order to make theirsupply chains sociallyresponsible. The suggestedmethodologies can be used inimplementing CSR (corporatesocial responsibility) and HIV/AIDS programmes.

The supply chain imperative

Neef D. 2004New York, USA: AMACOM. 312 pp.

The book helps companies avoidcostly litigation and potentiallydevastating injury to reputationbrought on by violations of lawand ethical norms. The authorhas created a framework anybusiness can use for monitoring,reporting, and improving theperformance of suppliers onenvironmental, social, and other

issues. It ensures that thecompany’s ethical mandate isunderstood and implementedalong the entire length of thechain.

Global Logistics: Newdirections in supply chainmanagement

Water D. 2007UK: Kogan Page. 436 pp.Price: US $60

The contents of the bookrepresent the current trends, bestpractices, and latest thinking inglobal logistics, including up-to-date analysis of China andEastern Europe. The topicscovered include formulatinglogistics strategy, agile supplychain operating environments,developing supply chainrelationships, demand flowleadership, supply chainmanagement, informationtechnologies for supply chainmanagement, risk in the supplychain, and deliveringsustainability through supplychain management.

Essentials of Supply ChainManagement

Hugos M. 2006New Jersey, USA: Wiley, 304 ppPrice: US $23.95

The book focuses on operationaland tactical aspects of supplychain management. The authorstarts off by explaining theobjectives of supply chainmanagement; the drivers thatgovern a supply chain; theconflicting demands of‘efficiency’ versus‘responsiveness’; the variablesthat the supply chain managerwould constantly need to jugglewith and optimize, keeping in

mind the market segment thatthey are serving. The book alsodiscusses the business operations(plan, source, make, and deliver)that constitute a supply chainand the technology choices thatare available. The real-lifeconcerns of performance targets,budgets, and ROI (return oninvestment) are also discussed.

Supply Chain Cost ControlUsing Activity-BasedManagement

Kumar S and Zander M. 2006Auerbach. 224 pp.Price: US $44.99

The book discusses thecompetitive advantage that costanalysis and management canbring to the companies within asupply chain. This book addressesa number of strategies forevaluating the total cost inherentin a customer-supplierrelationship, using total cost ofownership, activity-based costing,and activity-based managementfor analysing and controllingsupply chain costs. It combinesgame theory with survey resultsto suggest cost reductionstrategies in competitiveenvironments, and predict theoutcomes of these strategies. Thistext shows the importance ofpartnerships in applying activity-based management principles tosuppliers.

Ecosystem Challenges andBusiness Implications

Earthwatch Institute, WorldConservation Union, WorldBusiness Council for SustainableDevelopment, and WorldResources Institute. 2006Geneva, Switzerland: WBCSD. 20 pp.

Companies use ecosystemservices, and this use alters the


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Internet resources

Global e-SustainabilityInitiative

http://www.gesi.orgGeSI (Global e-SustainabilityInitiative) is an initiative ofinformation and communicationstechnology service providers andsuppliers, with the support ofUNEP (United NationsEnvironment Programme) andthe InternationalTelecommunication Union. GeSIaims to influence thesustainability debate, inform thepublic of its members’ voluntaryactions to improve theirsustainability performance, andprompt information andcommunicate technologies thatfoster sustainable development.Apart from information aboutresources in the form ofpublications and events, the pilotversion of Global Reporting

ecosystems and their ability toprovide services. Thepublication discusses thechallenges inherent in the useof ecosystem services and theimplications for business, andwarns that companies musttransform business models andoperations if they are to avoidmajor economic losses causedby the current degradation ofecosystems and the vitalservices they provide. Thispublication is based on globalscientific facts and projectionsfrom the United Nation’smulti-year MillenniumEcosystem Assessment, andinterviews with a range ofbusiness leaders to assess theimplications and strategiesneeded to respond toenvironmental challenges. Theresearch indicates that manycompanies recognize the risks

associated with degradingecosystems and are trying toadapt accordingly, but most failto associate healthy ecosystemswith their business interests. Acollective business response istherefore needed to address thescale of environmental changecurrently taking place.

The Business Guide toSustainability

Hitchcock D and Willard M.2006London, UK: James & James /Earthscan. 272 pp.

The manual has been writtenby top business consultantsspecifically to help managers,business owners, organizationalleaders, and aspiringenvironmental managers/sustainability coordinators to

Initiative TelecommunicationsSupplement: Sustainabilityreporting can also be accessedfrom the website.

CSR Networkhttp://www.csrnetwork.com

The organization supportsclients in six main areas:benchmarking CSR (corporatesocial responsibility)management, performance, andreporting; strategy and systemsdevelopment; stakeholderengagement; responsiblesourcing; CSR communication;and independent assurance ofsustainability reports. The CSRNetwork helps organizationscreate CSR strategies anddevelop underlying social andenvironmental managementsystems. CSR risks and

opportunities facing a companyare analysed, and the networkhelps them set clear goals andtargets for CSR performance anddevelop systems to collectreliable data.

Accountability Rating

http://www.accountabilityrating.com

The Accountability Rating is aproprietary tool for measuring theextent to which companies havebuilt responsible practices into theway they do business and howwell they account for the impactof their actions on theirstakeholders. The AccountabilityRating evaluates companies acrosssix areas or ‘domains’. Thesemirror the AA1000 framework fororganizational accountability. In

lower their environmentalimpact and improve thebottom line. The authorsdemystify ‘sustainability’;untangle the plethora ofsustainability frameworks,tools, and practices; and makeit easy for the average person inany organization to movetowards sustainability.Organized by sector(manufacturing, services, andgovernment) and function(senior management, facilities,human resources, purchasing,environmental affairs andcompliance, marketing andpublic relations, and financeand accounting), the authorsshow how organizations canincorporate sustainability intheir everyday work throughthe application of useful toolsand self-assessments.


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each domain, the rating evaluatesstakeholder engagement;strategy; governance;performance management;public disclosure; and assurance.Together, these domains are thefoundations of corporateaccountability. They set out thebasic ingredients companies needto adopt if they are to createlong-term economic value whilealso playing their part insustainable development.

ClimateBiz.com: the BusinessResource for ClimateManagement

http://www.climatebiz.com/index.cfm

The web-based resource isaimed to help companiesunderstand and addressclimate change in a way that

aligns environmentalresponsibility with businesssuccess. The mission is toprovide hands-on tools, actionsteps, and other resourcescompanies can use tounderstand the underlyingissues, assess their climatefootprint, and devise andimplement a plan tosignificantly reduce theirclimate impacts throughouttheir operations and supplychains. Tools and resources onthe website cover audits,workbooks, calculators, relevantwebsites, and publications onthe topic. Best practices onexamples of how leadershipcompanies, governmentagencies, and others haveaddressed the topic are alsoincluded. The sectors ofindustries covered are aluminium,food and agriculture, forestry,

small business, steel, andtransportation.

Cleaner ProductionInternational LLC

http://www.cleanerproduction.com

Cleaner ProductionInternational LLC offerssustainable business training andconsulting services around theworld, with specialization inpractical tools for increasingenvironmental performance,organization sustainabilitymanagement, developingcountries, and design ofgovernment programmes topromote sustainable business.The website provides access tothe CD ROM library withpublications on how to manageand promote sustainablebusiness, with a focus onoperations management.

◆◆◆◆◆

• News • Articles • Case studies• Announcements • Technical notes • Suggestions

All members are requested to send latest company annual reports; environment, corporate socialresponsibility, and sustainable development reports

EnCoRE invites contributions from T E R I–BCSD India members on themes related to

sustainable development in the form of

For details on advertising and contributing in EnCoRE, please contact

The Editor, EnCoRE Tel. 2468 2100 or 4150 4900

T E R I, Darbari Seth Block Fax 2468 2144 or 2468 2145

I H C Complex, Lodhi Road India +91 • Delhi (0) 11

New Delhi – 110 003, India E-mail [email protected], [email protected]

Contributions invited


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New arrivals at T E R I library

Mentzer J T. 2004New Delhi, India: Response

books. 291 pp

Esty D C and Winston A S.2006

New Haven, USA: YaleUniversity Press. 366 pp

Barrow, C J. 2006New York, USA: Routledge.

454 pp

GEO Year Book 2007UNEP (United Nations

Environment Programme).2007

Nairobi, Kenya: UNEP. 86 pp.

Fundamentals of supply chain management: twelvedrivers of competitive advantageThe book has been developed as a supplemental text for any coursedealing with strategy and supply chains. The book identifies twelvedrivers of competitive advantage as clear strategic points managerscan use in their companies. Research from more than 400 books,articles, and papers, as well as interviews with over fifty executivesin major global companies inform these twelve drivers. The roles ofall of the traditional business functions – marketing, sales, logistics,information systems, finance, customer services, and management –in supply chain management are also addressed. Complete withcases and real-world examples from corporations around the world,the book’s exemplars will help students and practising managers tomore effectively understand, implement, and manage supply chainssuccessfully.

Green to gold: How smart companies use environmentalstrategy to innovate, create value, and build competitiveadvantageThe book explores what every executive must know to manage theenvironmental challenges facing society and business. The bookshows how companies generate lasting value – cutting costs,reducing risk, increasing revenues, and creating strong brands – bybuilding environmental thinking into their business strategies. Theauthors provide advice and examples from companies like BP,Toyota, IKEA, GE, and Nike that are achieving both environmentaland business success.

Environmental management for sustainable developmentThis updated second edition explores the nature and role ofenvironmental management, covering key principles and practice,and offers a comprehensive and understandable introduction. Thebook reflects the rapid expansion and evolution in the filed ofsustainable development. The themes covered are proactiveapproaches, the precautionary principle, the ‘polluters-pays’principle and the need for humans to be less vulnerable and moreadaptable.

GEO Year Book 2007The GEO (Global Environment Outlook) Year Book 2007 is thefourth annual report on the changing environment produced bythe UNEP (United Nations Environment Programme) incollaboration with many world environment experts. The YearBook includes global and regional overviews of significantdevelopments over the past year. It highlights linkages amongecosystem health, human well-being, and economicdevelopment; examines new thinking on the value of ecosystemservices and the threat from ecosystem degradation; anddescribes recent research findings and policy decisions thataffect our awareness and response to global change.


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C A L E N D A R O F E V E N T S

Water Markets WorldwideMr Marek, Helmut Kaiser Consultancy Sigwartstr. 20 72076Tübingen, Germany

Tel. +49 (0) 7071 67001 • Fax: +49 (0) 7071 68086Email [email protected],[email protected], [email protected] http://www.hkc22.com/watermarketsworldwide.html

Business-NGO Partnerships London 2007Conference Director, Ethical Corporation, 7-9 Fashion St,London E1 6PX, UK

E-mail [email protected] www.ethicalcorp.com

Corporate Climate ResponseGreen Power Energy Conferences

E-mail [email protected] http://www.greenpowerconferences.com

Eco Summit 2007Sophie Peters, Eco Summit 2007, Elsevier Ltd, The Boulevard,Langford Lane, Kidlington Oxford, OX5 1GB, UK

Tel. +44 (0) 1865 843958Website http://www.ecosummit2007.elsevier.com

Integrating Corporate ResponsibilityAshridge Consulting Limited, Hertfordshire, HP4 1NS, UnitedKingdom

Website http://www.ashridge.org.uk/icr

Managing Ethics in OrganizationsEthics and Compliance Officer Association, 411 Waverley OaksRoad, Suite 324, Waltham, MA 02452

Website http://www.theecoa.org

The European identity in business and social ethicsCentre for Economics and Ethics K.U.Leuven, Naamsestraat69, Room 01.27,3000 Leuven, Belgium

Website http://www.kuleuven.be/cee/index.php?LAN=E

Sydney, Australia30 April 2007

New York, USA9–10 May 2006

London, UK29–31 May 2007

Beijing, PR China22–27 May 2007

Ashridge, Berkhamsted, UK30 May–1 June 2007

Massachusetts, USA11–15 June 2007

Leuven, Belgium18–20 September 2007

◆◆◆◆◆

Printed and published by Dr R K Pachauri on behalf of The Energy and Resources Institute, Darbari Seth Block, I H C Complex,

Lodhi Road, New Delhi – 110 003 and printed by him at I G Printers and published at New Delhi.

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