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Impact Factor – 6.261 ISSN – 2348-7143
INTERNATIONAL RESEARCH FELLOWS ASSOCIATION’S
RESEARCH JOURNEY International E-Research Journal
PEER REFREED & INDEXED JOURNAL
February-2019 Special Issue – 150 (A)
This Journal is indexed in : - University Grants Commission (UGC) - Scientific Journal Impact Factor (SJIF) - Cosmoc Impact Factor (CIF) - Global Impact Factor (GIF) - International Impact Factor Services (IIFS)
For Details Visit To : www.researchjourney.net SWATIDHAN PUBLICATIONS
I N T E R N A T I O N A L
R E S E A R C H
F E L L O W S
A S S O C I A T I O N S
Guest Editor: Dr. Anand Lele Offg. Principal, MES Garware College of Commerce Karve Road, Pune, Dist. Pune [M.S.] INDIA
Executive Editor of the issue: Dr. B.S. Vhankate Dr. Ketaki Modak CA. S. D. Ghongate Patil Dr. Rohini Gote Dr. Smita Wadaskar
Chief Editor: Dr. Dhanraj Dhangar (Yeola)
Sustainability : Aspects, Challenges & Prospects in the Global Perspective
‘RESEARCH JOURNEY’ International E- Research Journal
Impact Factor - (SJIF) – 6.261, (CIF ) - 3.452(2015), (GIF)–0.676 (2013) Issue 150 (A)- Sustainability : Aspects, Challenges & Prospects in the Global Perspective
UGC Approved Journal
ISSN : 2348-7143 February-2019
1 Website – www.researchjourney.net Email - researchjourney2014gmail.com
Impact Factor – 6.261 ISSN – 2348-7143
INTERNATIONAL RESEARCH FELLOWS ASSOCIATION’S
RESEARCH JOURNEY International E-Research Journal
PEER REFREED & INDEXED JOURNAL
February -2019 Special Issue – 150 (A)
SWATIDHAN INTERNATIONAL PUBLICATIONS
For Details Visit To : www.researchjourney.net
© All rights reserved with the authors & publisher Price : Rs. 800/-
Guest Editor: Dr. Anand Y. Lele
Offg. Principal, MES’s Garware College of Commerce
Karve Road, Pune, Dist. Pune [M.S.] INDIA
Executive Editor of the issue:
Dr. Anand Y. Lele Dr. B.S. Vhankate Dr. Ketaki Modak
CA. S. D. Ghongate Patil Dr. Rohini Gote
Dr. Smita Wadaskar
Chief Editor: Dr. Dhanraj Dhangar (Yeola)
Sustainability : Aspects, Challenges & Prospects in the Global Perspective
‘RESEARCH JOURNEY’ International E- Research Journal
Impact Factor - (SJIF) – 6.261, (CIF ) - 3.452(2015), (GIF)–0.676 (2013) Issue 150 (A)- Sustainability : Aspects, Challenges & Prospects in the Global Perspective
UGC Approved Journal
ISSN : 2348-7143 February-2019
2 Website – www.researchjourney.net Email - researchjourney2014gmail.com
Editorial Board Chief Editor - Executive Editors : Dr. Dhanraj T. Dhangar, Prof. Tejesh Beldar, Nashikroad (English) Assist. Prof. (Marathi) Dr. Gajanan Wankhede, Kinwat (Hindi)
MGV’S Arts & Commerce College, Mrs. Bharati Sonawane-Nile, Bhusawal (Marathi) Yeola, Dist – Nashik [M.S.] INDIA Dr. Rajay Pawar, Goa (Konkani)
Co-Editors -
Mr.Tufail Ahmed Shaikh- King Abdul Aziz City for Science & Technology, Riyadh, Saudi Arabia.
Dr. Anil Dongre - Head, Deptt. of Management, North Maharashtra University, Jalgaon
Dr. Shailendra Lende - R.T.M. Nagpur University, Nagpur [M.S.] India
Dr. Dilip Pawar - BoS Member (SPPU), Dept. of Marathi, KTHM College, Nashik.
Dr. R. R. Kazi - North Maharashtra University, Jalgaon.
Prof. Vinay Madgaonkar - Dept. of Marathi, Goa University, Goa, India
Prof. Sushant Naik - Dept. of Konkani, Govt. College, Kepe, Goa, India
Dr. G. Haresh - Associate Professor, CSIBER, Kolhapur [M.S.] India
Dr. Munaf Shaikh - N. M. University, Jalgaon & Visiting Faculty M. J. C. Jalgaon
Dr. Samjay Kamble -BoS Member Hindi (Ch.SU, Kolhapur), T.K. Kolekar College, Nesari
Prof. Vijay Shirsath - Nanasaheb Y. N. Chavhan College, Chalisgaon [M.S.]
Dr. P. K. Shewale - Vice Principal, Arts, Science, Commerce College, Harsul [M.S.]
Dr. Ganesh Patil - M.V.P.‘s, SSSM, ASC College, Saikheda, Dist. Nashik [M.S.]
Dr. Hitesh Brijwasi - Librarian, K.A.K.P. Com. & Sci. College, Jalgaon [M.S.]
Dr. Sandip Mali - Sant Muktabai Arts & Commerce College, Muktainagar [M.S.]
Prof. Dipak Patil - S.S.V.P.S.‘s Arts, Sci. and Com. College, Shindhkheda [M.S.]
Advisory Board -
Dr. Marianna kosic - Scientific-Cultural Institute, Mandala, Trieste, Italy.
Dr. M.S. Pagare - Director, School of Languages Studies, North Maharashtra University, Jalgaon
Dr. R. P. Singh -HoD, English & European Languages, University of Lucknow [U.P.] India
Dr. S. M. Tadkodkar - Rtd. Professor & Head, Dept. of Marathi, Goa University, Goa, India.
Dr. Pruthwiraj Taur - Chairman, BoS., Marathi, S.R.T. University, Nanded.
Dr. N. V. Jayaraman - Director at SNS group of Technical Institutions,Coimbatore
Dr. Bajarang Korde - Savitribai Phule Pune University Pune, [M.S.] India
Dr. Leena Pandhare - Principal, NSPM‘s LBRD Arts & Commerce Mahila Mahavidyalaya, Nashik Road
Dr. B. V. Game - Act. Principal, MGV‘s Arts and Commerce College, Yeola, Dist. Nashik.
Review Committee -
Dr. J. S. More – BoS Member (SPPU), Dept. of Hindi, K.J.Somaiyya College, Kopargaon
Dr. S. B. Bhambar, BoS Member Ch.SU, Kolhapur, T.K. Kolekar College, Nesari
Dr. Uttam V. Nile - BoS Member (NMU, Jalgaon) P.S.G.V.P. Mandals ACS College, Shahada
Dr. K.T. Khairnar– BoS Member (SPPU), Dept. of Commerce, L.V.H. College, Panchavati
Dr. Vandana Chaudhari KCE‘s College of Education, Jalgaon Dr. Sayyed Zakir Ali , HOD, Urdu & Arabic Languages, H. J. Thim College, Jalgaon Dr. Sanjay Dhondare – Dept. of Hindi, Abhay Womens College, Dhule
Dr. Amol Kategaonkar – M.V.P.S.‘s G.M.D. Arts, B.W. Commerce & Science College, Sinnar.
Published by –
© Mrs. Swati Dhanraj Sonawane, Director, Swatidhan International Publication, Yeola, Nashik
Email : [email protected] Website : www.researchjourney.net Mobile : 9665398258
‘RESEARCH JOURNEY’ International E- Research Journal
Impact Factor - (SJIF) – 6.261, (CIF ) - 3.452(2015), (GIF)–0.676 (2013) Issue 150 (A)- Sustainability : Aspects, Challenges & Prospects in the Global Perspective
UGC Approved Journal
ISSN : 2348-7143 February-2019
3 Website – www.researchjourney.net Email - researchjourney2014gmail.com
‘RESEARCH JOURNEY’ International E- Research Journal
Impact Factor - (SJIF) – 6.261, (CIF ) - 3.452(2015), (GIF)–0.676 (2013) Issue 150 (A)- Sustainability : Aspects, Challenges & Prospects in the Global Perspective
UGC Approved Journal
ISSN : 2348-7143 February-2019
4 Website – www.researchjourney.net Email - researchjourney2014gmail.com
From the Guest Editor’s Desk ……
It is with deep satisfaction that I write this Foreword to the
volume of research papers that were presented during our
international, interdisciplinary Conference on “Sustainability:
Aspects, Challenges and Prospects in the Global Perspective” on
17th
and 18th
Jan 2019 at Pune, India. The conference was
sponsored by the esteemed Savitribai Phule Pune University.
The conference received a warm response and as many as
76 papers were selected to be presented during the conference in
12 concurrent sessions. The concurrent sessions were planned to take place in a theme-
wise manner and were chaired by a subject expert and a paper reviewer each. Thus, the
central theme of „Sustainability‟ was explored from numerous different angles including
Innovative Entrepreneurship for Sustainable Business Practices, Economics & Banking
for Sustainability, Legal Aspects of Sustainability, Human Resource Management for
Sustainability, Sustainable Lifestyle and Ancient Civilization, Sustainable Tourism,
Green Marketing and Consumer Accountability, Sustainable Environment: Carbon
Credits, Biodiversity, Waste Management, Clean Energy, CSR Initiative for Green
Development etc. We were lucky to have Dr. Ashok Modak, a National Research Scholar,
attending our Conference on both the days. With his years of study and expertise in
world, economy, politics and history, he could give our Conference a broad perspective
and vision. We are happy to publish his monograph on Contemporary World Challenges
and Integral Humanism as the Prologue to this volume of research papers.
We are happy that the ensuing scholarly papers have explored multiple meanings
of the term Sustainability in multiple different contexts, and promise to live up to the
basic goal behind organizing this Conference – that of equipping the Community at large
with the desire and ability to contribute solutions to the serious global challenges our
planet faces. We hope that the readers will discover that both common challenges and
creative solutions emerge from very diverse settings and can yet contribute in unison to
overcome the pressing challenges of Sustainable Development in front of the humanity at
large today.
I trust also that this publication of the conference papers will be an impetus to
stimulate further study and research in all these areas. I take this opportunity to
congratulate all the researchers whose research papers have been selected for the
purpose of this post-conference publication.
May we all have a very sustainable, eco-friendly and healthy Life ahead!
Dr. Anand Lele Offg. Principal
MES’s Garware College of Commerce Karve Road, Pune, Dist. Pune [M.S.] INDIA
‘RESEARCH JOURNEY’ International E- Research Journal
Impact Factor - (SJIF) – 6.261, (CIF ) - 3.452(2015), (GIF)–0.676 (2013) Issue 150 (A)- Sustainability : Aspects, Challenges & Prospects in the Global Perspective
UGC Approved Journal
ISSN : 2348-7143 February-2019
5 Website – www.researchjourney.net Email - researchjourney2014gmail.com
INDEX
No. Title of the Paper Author’s Name Page No
1 A Comparative Analysis of Qualitative Aspects of CSR Practices in India Pre
and Post Implementation of Companies Act 2013 Dr. Shivaji Borhade 07
2 Sustainable Economics and its Applications Dr. Jayshree Pawar 15
3 Private Sector Banks Contribution in an Indian Economy Mr. Prasad Panchal 20
4 Urban Cooperative Banks – Catalysts of Banking for Sustainability
Rewati Paithankar 32
5 A Study of Sustainable Economic Development of Pune City
Dr. Surendra Daware 41
6 A Case Study of JSBL for Mitigating Cyber Threats for Sustainable Business
Practices. Mrs. Padma Nene & Dr. Anita Bhave 47
7 Challenges Before Sustainable Banking in India
Avinash Salve & Prashant Salve 50
8 Challenges to Sustainable Development in India : an Analysis
Dharmaraj Hazarika 54
9 Sustainable Financial Planning is the key for success in investments
Dr. Sunil D. Zagade & Karishma Ghundiyal 60
10 A Study of Logistics Integration in Sustainable food Supply : A Case of
‗Samvad Social Technologies Sushmita Nande & Sandeep Rathod 69
11 Sustainable Development through Planned Agriculture Marketing
Dr. Smita Pakdhane & Dr. Karuna Kushare 78
12 Green Marketing : Green Channel Counter (GCC) An Initiative by State Bank
of India Shailendraprasad Totare 88
13 Green Marketing and Consumer Accountability Ms. Shama Mulla 90
14 An Analysis of Impact of Green Marketing on Consumer Behavior
Major Dr. Ashok Giri & Komal Bodhwani 98
15 New Challenges in Retail Human Resource Mangement
Major Dr. Ashok Giri & Mrs. Kajal Chheda 105
16 Human Resource Management for Sustainability Amit Deokule 110
17 Work Life Integration and Career Pathing of Mid-Career Women and its
Relevance to Sustainable HRM in India Nirupama Patwardhan 115
18 Sustainable HR Practices in Small Manufacturing Companies Mridul Nath 122
19 A Study on Sustainable Human Resource Practices for Organizational
Performance Ms. Srimati Naik & Ms. Vidhya Halarnkar 131
20 Innovative Business Practices for Sustainable Entrepreneurship Dr. Pradip Joshi 137
21 Innovative Entrepreneurship for Sustainable Business Practices
Dr. Sunil Zagade & Ms. Manisha R. Shedge 144
22 Innovative Entrepreneurship for Sustainable Business Practices for Development
of Eco-Friendly Market for Electric Vehicle (EV) in India Surojit Saha 150
23 Green Industry for Sustainable Development Prof. Lata Vitkar 157
24 Pune Metro: A Sustainable Public Transport Option for Pune
Dr. Pradnya Vhankate 165
25 Innovativeness in Karnali Based Microenterprises for Sustainable Growth
Rishi Khanal 176
‘RESEARCH JOURNEY’ International E- Research Journal
Impact Factor - (SJIF) – 6.261, (CIF ) - 3.452(2015), (GIF)–0.676 (2013) Issue 150 (A)- Sustainability : Aspects, Challenges & Prospects in the Global Perspective
UGC Approved Journal
ISSN : 2348-7143 February-2019
6 Website – www.researchjourney.net Email - researchjourney2014gmail.com
26 The Challenge of Women Employment and Sustainable Development Goal
(SDG) Dr. Marcelle Samuel 186
27 A Glimpse in to Sustainableurban Development and Sustainable Urban
Transport Dr. Sheena Mathews 198
28 Corporate Sustainability Policies and Stock Market Performance
Varsha Kshirsagar (Bhujbal) 210
29 Sustainable Job Creation through Plastic Waste Management
Abdul Kadir Nasir Hussain Arsiwala 216
30 Green Marketing and Customer Accountability Shraddha Rahane 222
31 Migration, the Catalyst for Sustainable Development Goals Jyoti Saha 228
32 Human Resource Management Techniques and Employee Performance for
Business Sustainability Prof. Shruti Mangalpalli 236
33 Sustainable Event Management Dr. Sulbha Patole, Rekha Kankariya 243
34 Sustainable Tourism through Music Dr. Sulabha Patole & Kedar Joshi 250
Our Editors have reviewed paper with experts‟ committee, and they have checked the papers
on their level best to stop furtive literature. Except it, the respective authors of the papers are
responsible for originality of the papers and intensive thoughts in the papers. Nobody can republish
these papers without pre-permission of the publisher.
- Chief & Executive Editor
‘RESEARCH JOURNEY’ International E- Research Journal
Impact Factor - (SJIF) – 6.261, (CIF ) - 3.452(2015), (GIF)–0.676 (2013) Issue 150 (A)- Sustainability : Aspects, Challenges & Prospects in the Global Perspective
UGC Approved Journal
ISSN : 2348-7143 February-2019
7 Website – www.researchjourney.net Email - researchjourney2014gmail.com
A Comparative Analysis of Qualitative Aspects of CSR Practices in India
Pre and Post Implementation of Companies Act, 2013
Dr. Shivaji Borhade
Associate Professor
Dr. Patangrao Kadam College, Sangli (Maharashtra)
Abstract:
India is the first country in the world that has made mandatory CSR. According to law,
eligible companies in India must have to spend at least 2% of their average net profit and
disclose the qualitative as well as quantitative aspects of CSR activities in the reports which was
voluntary before implementation of the Companies Act 2013. This study aims to compare the
disclosure of qualitative aspects of CSR practices in India prior to and after implementation of
the Companies Act. This study is descriptive in nature. The findings in the study are: there is a
great change in the disclosures of qualitative aspects of CSR practices in companies after the
Companies Act 2013. However, some companies do not take adequate efforts to disclose the
information in the prescribed format.
Keywords : Corporate Social Responsibility, Qualitative Aspects, Companies Act, Annual
Report,
Introduction
Corporate Social Responsibility (CSR) has come into view as an essential research area
more than a decade when CSR activities are communicated in the form of a report. It helps in
improving business performance. The governments, regulatory authorities and stock exchanges
have been developed CSR reporting guidelines and principles. Therefore, in last few years, there
is an improved discussion about the need to match the structure of such reports globally. Over
the last decade there is a drastic increase in the practice of CSR disclosure around the world. In
the countries like France, Singapore, Vietnam, Malaysia, Denmark, Sweden, Indonesia have
made mandatory to their listed companies and state owned companies for reporting on CSR in
annual reports. On the other hand, in the UK, the USA, Australia, China, Germany and Thailand,
the companies have to report CSR activities voluntarily in their annual reports. India became first
country in the world to have a statutory compliance requirement on CSR spending. In India, all
CSR activities of the eligible companies are governed by Section 135 of the Companies Act
2013 which came into effect w. e. f. 1st April 2014.According to Section 135 of the Act, a
company having net profit of Rs. 5 crore or more; net worth of Rs. 500 crore or more or turnover
of Rs.1000crore or more has to spend at last 2% of average net profit of the last three years.
There are number of activities listed out under CSR that include education, healthcare, rural
development , environment, women empowerment, eradication of extreme hunger and poverty,
contribution to PM relief fund and other funds, child mortality and employment based vocational
skills and others. Companies are allowed to undertake CSR activities either through own
foundations/trusts or NGO. This Act is important as investment made in education, health,
infrastructure helps in enhancing the capabilities of young generation.
CSR in the present day context refers to the overall positive impact on the community,
culture, society and environment. The basic principle of CSR is that both public policy as well as
‘RESEARCH JOURNEY’ International E- Research Journal
Impact Factor - (SJIF) – 6.261, (CIF ) - 3.452(2015), (GIF)–0.676 (2013) Issue 150 (A)- Sustainability : Aspects, Challenges & Prospects in the Global Perspective
UGC Approved Journal
ISSN : 2348-7143 February-2019
8 Website – www.researchjourney.net Email - researchjourney2014gmail.com
companies should be held responsible to tackle social issues. At present, numerous companies
are reporting their CSR activities in annual reports and in official websites. In this present
scenario, CSR can make a valuable contribution in India‘s development. It can supplement the
government‘s efforts in economic development. In this regard, the Ministry of Corporate Affairs,
Government of India revamped the Companies Act 1956 with the new Companies Act 2013.
This new Act also introduced a new section on mandatory CSR for both public and private
companies operating in India with eligible criteria. The CSR activities should not be undertaken
in the normal course of business and must be with respect to any of the activities mentioned in
Schedule VII of the Act. The Act has introduced various new provisions which changed the look
of companies in India. There is an increasing trend in CSR expenditure and disclosure among
companies in India. The Act has made mandatory to disclose both the qualitative and
quantitative aspects of CSR practices. Therefore, an attempt has been made to compare the
qualitative aspects of CSR practices in India.
Objectives
The study is proposed with the following objectives.
1. To take a review of trend of CSR practices before and after implementation of the
Companies Act 2013.
2. To analyse the qualitative aspects of CSR practices of companies before and after
implementation of the Companies Act 2013.
Hypothesis
H0: There is no significant difference in voluntary disclosure (Before Act) and mandatory
disclosure (After Act) of qualitative aspects of CSR practices.
H1: There is significant difference in voluntary disclosure (Before Act) and
mandatory disclosure (After Act) of qualitative aspects of CSR practices.
Research Methodology
This study is an exploratory and descriptive research. A random sampling technique was
employed for the identification of the sample that consisted of only public limited companies
registered with RoC in Pune. Pune is one of the industrially well developed districts in
Maharashtra. A variety of industries have been established in Pune district. Taking into
consideration variety of industries different sectors are covered under the study. Therefore,
overall 20 companies were randomly selected for the same purpose. For the study, both primary
as well as secondary sources were used to collect the data. Primary data were collected with the
help of questionnaire. Due care was taken to make the questions simple and clear to understand
the respondents. Secondary data were collected from the different books, journals, government
reports, , annual reports and websites.
Review of Literature
Ourvashi Bissoon (2018) studied the level of CSR reporting of multinational groups in
hospitality sector in Mauritius and found that the largest part of the CSR information relates to
particular categories and the disclosures were public relations bias. Sai P. V. S. (2017) found that
there was a growth in CSR spending by Indian companies. Which are spending on donations,
renovating village schools, mid-day meals, etc. Najul Laskar and Santi Maji (2016) revealed that
there is an increasing CSR disclosure score. A. S. Babu (2016) studied the CSR initiatives taken
‘RESEARCH JOURNEY’ International E- Research Journal
Impact Factor - (SJIF) – 6.261, (CIF ) - 3.452(2015), (GIF)–0.676 (2013) Issue 150 (A)- Sustainability : Aspects, Challenges & Prospects in the Global Perspective
UGC Approved Journal
ISSN : 2348-7143 February-2019
9 Website – www.researchjourney.net Email - researchjourney2014gmail.com
by a coal company for infrastructure and health facilities in rural areas. The study found that
CSR activities have impacted health of rural communities. However, the company has to take
efforts to generate awareness regarding the facilities provided. Leung Cheng Han (2014) argued
that there is a poor quality of disclosure of CSR data in gambling industry in Macao. According
to Susith Jude Fernando (2013) CSR practices related to environment in Sri Lanka were
disappointing as compared to socially-related practices. Kansal Monika (2012) investigated the
determinants of CSR disclosure considering the size, profitability, risk and other organizational
characteristics which was very low in India. A study conducted by M. Hossain, K. Islam and J.
Andrew (2006) found that very few companies in Bangladesh make available social and
environmental information in qualitative nature voluntarily.
All the above studies related to CSR are based on the data available prior to
implementation of new Companies Act 2013. There was no any study on comparison of CSR
activities before implementation and after implementation of Companies Act 2013. Hence, the
present study is based on the comparison of qualitative aspects of CSR activities prior to and
after Companies Act 2013.
Findings
Before implementing the Companies Act, number of companies were spending and
donating money for environmental conservation and social development. However, SEBI
mandated top 100 companies listed on stock exchanges in 2012-13 to incorporate BRR as a part
of their annual report. The Companies Act 2013 made mandatory to disclose qualitative as well
as quantitative details in annual reports of the company. As per the Act, every company has to
disclose the following qualitative aspects of CSR practices in annual reports.
Table 1: Mandatory Qualitative Aspects of CSR to be Disclosed in Reports
Sr. Qualitative Aspect Sr. Qualitative Aspect
1 Formation of CSR Policy 11 Annual Report on CSR
2 Monitoring Framework in CSR
Policy 12
Details of CSR Spending in Prescribed
Format
3 Reference to the CSR Policy in
Directors‘ Report 13 Schedule VII Focus Areas
4 Web Link of CSR Policy 14 Details regarding CSR areas of
Intervention
5 Disclosure of CSR Vision, Mission,
Philosophy 15 Details of the Monitoring Framework
6 CSR Committee 16 Mode of Implementation in CSR Policy
7 Constitution of Board Level CSR
Committee 17 Reasons for Unspent Amount
8 Composition of CSR Committee 18 Details of Unspent Amount
9 Independent Director in CSR
Committee 19
Disclosure on Reason for Unspent
Amount on CSR
10 Information of Composition of CSR
Committee 20 Responsibility Statement
(Source: Compiled from survey reports of private agencies)
All these qualitative aspects are mandatory to disclose in the reports. Therefore, all these
aspects of CSR practices are considered for the study.
‘RESEARCH JOURNEY’ International E- Research Journal
Impact Factor - (SJIF) – 6.261, (CIF ) - 3.452(2015), (GIF)–0.676 (2013) Issue 150 (A)- Sustainability : Aspects, Challenges & Prospects in the Global Perspective
UGC Approved Journal
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Table 2: Opinions of Respondents regarding Disclosure of Mandatory Qualitative Aspects of
CSR Before and After the Act
Sr. Qualitative
Aspect
Before Companies Act 2013
(Voluntary Disclosure)
After Companies Act 2013
(Mandatory Disclosure)
Mean SD Kurt Skw Mean SD Kurt Skw
1 Formation of
CSR Policy 1.55 0.51 -2.183
-
0.218 4.65 0.489
-
1.719 -0.681
2 Monitoring
Framework in
CSR Policy
1.85 0.489 1.304 -
0.442 4.5 0.513
-
2.235 0
3 Reference to the
CSR Policy in
Directors‘
Report
1.5 0.513 -2.235 0 4.55 0.51 -
2.183 -0.218
4 Web Link of
CSR Policy 1.4 0.503 -2.018 0.442 4.5 0.513
-
2.235 0
5 Disclosure of
CSR Vision,
Mission,
Philosophy
1.1 0.308 7.037 2.888 4.75 0.444 -
0.497 -1.251
6 CSR Committee 1.6 0.503 -2.018
-
0.442 4.6 0.503
-
2.018 -0.442
7 Constitution of
Board Level
CSR Committee
1.85 0.671 -0.548 0.177 3.85 0.745 -
1.043 0.257
8 Composition of
CSR Committee 1.45 0.51 -2.183 0.218 4.55 0.51
-
2.183 -0.218
9 Independent
Director in CSR
Committee
1.15 0.366 2.776 2.123 4.3 0.571 -
0.395 -0.038
10 Information of
Composition of
CSR Committee
1.55 0.51 -2.183 -
0.218 4.5 0.513
-
2.235 0
11 Annual Report
on CSR 1.55 0.51 -2.183
-
0.218 4.7 0.47
-
1.242 -0.945
12
Details of CSR
Spending in
Prescribed
Format
1.35 0.489 -1.719 0.681 4.55 0.51 -
2.183 -0.218
13 Schedule VII
Focus Areas 1.45 0.51 -2.183 0.218 4.8 0.41 0.699 -1.624
14
Details
regarding CSR
areas of
Intervention
1.5 0.513 -2.235 0 4.5 0.513 -
2.235 0
15
Details of the
Monitoring
Framework
1.75 0.639 -0.439 0.253 4.5 0.607 -
0.213 -0.785
16 Mode of 1.75 0.444 -0.497 - 4.6 0.503 - -0.442
‘RESEARCH JOURNEY’ International E- Research Journal
Impact Factor - (SJIF) – 6.261, (CIF ) - 3.452(2015), (GIF)–0.676 (2013) Issue 150 (A)- Sustainability : Aspects, Challenges & Prospects in the Global Perspective
UGC Approved Journal
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Implementation
in CSR Policy
1.251 2.018
17 Reasons for
Unspent Amount 1.25 0.444 -0.497 1.251 4.05 0.686 -0.63 -0.062
18 Details of
Unspent Amount 1.4 0.503 -2.018 0.442 4.45 0.605
-
0.459 -0.583
19
Disclosure on
Reason for
Unspent Amount
on CSR
1.5 0.513 -2.235 0 4.25 0.716 -
0.826 -0.418
20 Responsibility
Statement 1.35 0.489 -1.719 0.681 4.4 0.598 -0.57 -0.393
(Source: Author‘s Calculation based on Field Survey)
It is found from the above table that mean score of all the qualitative aspects before
Companies Act 2013 was in the range of 1.1 and 1.85 which is less than 3. It indicates that all the
respondents had represented disagreed/unimportant attitude. It is also clear from the table that
mean score of all the qualitative aspects after Companies Act 2013 was from 3.85 to 4.80 greater
than 3. It means almost all the respondents were strongly agreed that there is a great change in
disclosure of qualitative aspects.
Skewness of aspect No. 4, 5, 7, 8, 9, 12, 13, 15, 17, 18 and 20 before Companies Act
2013 have positive values which indicate that data are skewed right means right tail is long
relative to the left tail. While aspect No. 1, 2, 6, 10, 11 and 16 have negative values that indicate
data are skewed left means left tail is long relative to the right tail. Skewness of item No. 7 after
Companies Act 2013 is 0.257 indicates that the data are fairly symmetrical. All other values are
either negative or zero. Aspect No. 2, 4, 10 and 14 have zero skewness it means data are
perfectly symmetrical. The aspect No. 1, 3, 5, 6, 8, 9, 11, 12, 13 and 15 to 20 have negative value
of skewness. It indicates data are skewed left means left tail is long relative to the right tail.
All the qualitative aspects before Companies Act 2013 except No. 2 and 5 have negative
kurtosis score means it has less in the tails than the normal distribution.
The values of SD before Companies Act 2013 were in the range between 0.308 and 0.671
which indicate that the individual responses, on average, were away from the mean to that
concerned figure. A low SD indicates that most of the responses were very close to mean value.
Similarly, the values of SD after Companies Act 2013 were in the range between 0.410 and
0.745 which indicate that the individual responses, on average, were away from the mean to that
concerned figure
Therefore, it is concluded form the above discussion that respondents were strongly
agreed that there is a drastic change in the disclosure of qualitative aspects of CSR practices in
annual reports of the companies before and after the Companies Act 2013.
Testing of Hypothesis
a) Statistical Test: Wilcoxon Signed Rank Test
Respondents were asked about voluntary disclosure and mandatory disclosure of
qualitative aspects of CSR practices using five point Likert scales (5-Strongly Agree, 4- Agree,
3- Neutral, 2-Disagree, 1-Strongly Disagree).
Independent Variable: Before and After Situation of the Companies Act 2013
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Dependent Variable: Voluntary disclosure and mandatory disclosure of qualitative aspects of
CSR practices by using five point Likert scales.
Change in voluntary disclosure and mandatory disclosure of qualitative aspects of CSR practices
before and after the Companies Act 2013
W-value 0 Z-value -3.823
Mean Difference -3.21 Mean (W) 95
Sum of Positive Ranks 0 Standard Deviation (W) 24.85
Sum of Negative Ranks 190 Sample Size 19
Test Statistics
Change in mandatory disclosure and voluntary disclosure of
qualitative aspects of CSR practices before and after the
Companies Act 2013
Z -3.823
Asymp. Sig. (2-tailed) 0.00014
The W-value is 0. The distribution is approximately normal. Therefore, the Z-value
should be used. The Z-value is -3.823. The p-value is 0.0001 The result is significant at p ≤
0.05.
The W value is 0. The critical value of W for N=19 at p ≤0.05 is 46. Therefore, the result
is significant at p ≤ 0,05.
b) Statistical Test: Mann-Whitney U Test
Respondents were asked about mandatory disclosure and voluntary disclosure of
qualitative aspects of CSR practices using five point Likert scales (5-Strongly Agree, 4- Agree,
3- Neutral, 2-Disagree, 1-Strongly Disagree).
Level of significance α= 0.05
Particulars Before After Combined
Sum of Ranks 190 551 741
Mean of Ranks 10 29 19.5
Expected Sum of Ranks 370.5 370.5
Expected Mean of Ranks 19.5 19.5
U-value 361 0
Expected U-value 180.5 180.5
SD 34.2527
Test Statistics
Mandatory disclosure and voluntary disclosure of
qualitative aspects of CSR practices before and after
the Companies Act 2013
U-value 0
Z- Score -5.25505
Asymp. Sig. (2-tailed) .00001
The U-value is 0. The critical value of U at p <05 is 113. Therefore, the result is
significant at p <.05.
The Z-score is -5.25505. The p-value is < .00001. The result is significant at p < .05.
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c) Statistical Test: Friedman Test
Level of significance α= 0.05
X2
r = (12/nk(k+1)*(∑R2)- 3n(k+1)
X2
r = 0.105*1805-171
X2
r = 19
The X2
r statistic is 19 (1, N=19)
The p-value is < .00001.
The result is significant at p < .05.
The statistical evaluation of all the three tests reveals the fact that the p-value according
to Wilcoxon Signed Rank Test is 0, p-value as per Mann-Whitney U Test is .00001 while
Friedman Test has calculated p-value as .00001. All these p-values are less than the level of
significance (α=0.05) thus, the null hypothesis is rejected. Hence, it is concluded that there is
significant difference in voluntary disclosure and mandatory disclosure of qualitative aspects of
CSR practices before and after implementing New Companies Act 2013.
Conclusion
From the above discussions, it is likely to conclude that the Companies Act 2013 has
made mandatory to every eligible company to spend at least 2% average net profit for the last
three years on CSR activities. It is also made mandatory to disclose all qualitative aspects
mentioned above in the annual reports of the company every year which was voluntary before
implementation of the Companies Act 2013. The study revealed the fact that almost all
companies have accepted that there is an extreme transformation in the disclosure of qualitative
aspects of CSR practices in reports after the Companies Act 2013. However, some of the
companies do not disclose the required details in the format prescribed by the Act. However, the
Act has pushed the companies to put the information in the report and website of the company
which is a good indication of the disclosures.
References
1. Akkala Surendra Babu (2016) ―Analysis of Impact of Corporate Social Responsibility
Initiatives of Indian Coal Mining Industry on Society-With Special Reference to Korba
Coalfields of Chhattisgarh (India)‖, Unpublished Ph. D. Thesis submitted to ICFAI
University, Jharkhand (India).
2. Borhade Prabodhini (2018), ―A Study of Corporate Social Responsibility Practices
amongst Select Companies in Pune‖, Unpublished Ph. D. Thesis submitted to Bharati
Vidyapeeth University, Pune (India).
3. Kansal Monika (2012) ―Corporate Social Disclosure Practices of Indian Companies‖,
Unpublished Ph. D. Thesis submitted to Punjabi University http://shodhganga.
inflibnet.ac.in/jspui/
4. Leung Cheng Han (2014) ―Corporate Social Responsibility and Gambling Industry: An
Exploratory Study‖, Unpublished Ph. D. Thesis submitted to University of St. Andrews
5. M. Hossain, K. Islam and J. Andrew (2006) ―Corporate Social and Environmental
Disclosure in Developing Countries: Evidence from Bangladesh‖ Conference paper
published in Proceedings of the Asian Pacific Conference on International Accounting
Issues held at Hawaii, October, pp. 1-22
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6. Najul Laskar and Santi Maji (2016) ―Disclosure of Corporate Social Responsibility and
Firm Performance: Evidence from India‖ Asia-Pacific Journal of Management Research
and Innovation, Vol.12 (2), June,
7. Ourvashi Bissoon (2018) ‗Corporate Social Responsibility in Mauritius: An Analysis of
Annual Reports of Multinational Hotel Groups‘, Asian Journal of Sustainability and
Social Responsibility, 3:2 Springer Open, February, pp.1-19
https://ajssr.springeropen.com/ articles/ 10.1186/s41180-017-0017-4
8. Sai P. V. S. (2017) ―A Comparative Study of CSR Practices in India Before and After
2013‖, Asian Journal of Management Research, Vol. 7(3), pp. 242-255
9. Susith Jude Fernando (2013) ―Corporate Social Responsibility Practices in a Developing
Country: Empirical Evidence from Sri Lanka‖ Unpublished Ph. D. Thesis submitted to
the University of Waikato, New Zealand
10. Handbook on Corporate Social Responsibility in India, Confederation of Indian Industry,
www.pwc.in
11. The CRISIL CSR Yearbook, CRISIL Foundation, Mumbai, (2016) January
12. CSR Outlook Report 2017, R & D Centre, Shree Gurukripa Institute of Finance and
Management, Kodambakkam, Chennai
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Sustainable Economics and Its Applications
Dr. Jayshree Pawar
Assistant Professor,
MES. Garware College of Commerce, Pune (Maharashtra)
Email- [email protected]
Abstract:
The paper tries to discuss various economic concepts with its applications in real life and
connects it to sustainable development indicators. Primary data has been collected using non
probability sampling; convenience sampling; where respondents are closest live persons. The
rational behaviour of a person may solve many sustainable issues at micro level. For instance,
when a person selects a combination of two commodities for his welfare, it is assumed that those
commodities are best for him in the light of ordinal analysis. It is propounded that a person
manages his budget and preferences in such a way that the utility derived from commodities
maximizes. It is very close to one of the goal of sustainable development. Thus, there are certain
practices in daily life which can be resembled with economic theories as well as sustainable
development indicators.
Key words- Sustainable development indicator, economic theories and concepts, social welfare.
Introduction:
Adam Smith1, the father of Economics, defines economics as the science of wealth,
Marshall defines it as the political economy which is the study of mankind in the ordinary
business of life and it examines that part of individual and social action which is the closely
connected with the attainment and with the use of material requisites of well being2. Whereas
Robbins3 defines economics as a science of scarcity which studies human behavior as a
relationship between ends and scarce means which have alternative uses. Thus, economics deals
with both science and arts. It is science of wealth and scarcity on one hand and also studies
human behavior on the other. Economic theories try to answer many behavioral aspects like
optimum use of scarce resources, social as well as individual welfare, demonstration effects etc.
These theories show connection with Sustainable Development Goals (SDG). There are 17
SDGs4 which are directly or indirectly connected to some economics theories. For instance, Goal
six ensures availability & sustainable management of water & sanitation for all and Goal Seven
ensures access to affordable, reliable, Sustainable & modern energy to all can be linked to Basic
Economics Problems; one of which is HOW TO ALLOCATE SCARCE RESOURCES. With
optimum allocations of resources availability of resources can be ensured. Goal Twelve ensures
sustainable consumption & production patterns which has connection with consumption and
production theories. As far as Overall sustainability is concerned it can be associated with
Welfare Economics. Thus this paper focuses a light on some of the SDGs and its relation with
economic theories through individual behavior.
Methodology:
To observe general behavior of an individual and to find out the link, primary data has
been collected through questionnaire. Respondents were selected by non probability sampling
was selected in which selected respondents were the closest live persons. Total 178 respondents
were interviewed.
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Objectives:
To observe the resemblance between economics theories, its applicability and its relation
to SDI
To find out various sustainable ways of human behavior.
Research Problem:
How to relate rational behavior of an individual to SDIs?
Limitations:
The understanding of questions by respondents can not be checked.
Lack of direct contact between respondents and interviewer may lead to lack of
observations.
Observations:
Few questions regarding general habits of people were asked. The observations are
distinguished on the basic of cases.
Case one: The basic idea of welfare economics, as Pareto rightly said, that when one
person is better off, no other should be worse off5. The other facet of welfare economics is when
there is an increase in welfare of the society without harming others, the overall welfare
increases. If anyone is harmed then society losses its wefare6. So, the crux is while behaving
rationally an individual must think about the consequences of the same on the others. It is quite
obvious that everyone knows which things are good and which are bad. In the knowledge of that
the particular activity is not good still we perform it, it means that we do not care about the
person next to us. It was asked to the respondents that whether they think that whenever they get
benefits of some activity, others are not harmed. The responses are shown in the diagram.
According to the above diagram 42.7 per cent respondents were sure that they are not
harming others. 28.7 per cent respondents were not sure and remaining 28.7 per cent respondents
thinks that they might be harming others. On the other hand when the question regarding bad
practices were asked and most of the respondents agreed that they perform bad practices
frequently. Graphical representation is as follows.
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According to above bar diagram about 50 respondents agreed that they consume fast food
frequently. Other activities are also performed by respondents in the knowledge that those things
are not good for them as well as their surrounding people. It is not surprising because most of the
respondents think of themselves and their joy. It seems that they are running behind their goals
and achievements. Lack of time, fast lifestyle and personal enjoyments are the major reasons for
this. When question on good habits were asked most of respondents replied that they promote
people to use dustbin which is followed by washing hands. These sanitary habits ensure good
health. But unfortunately total percentage of the performance of these habits is not satisfactory.
Why don‘t 100 per cent respondents agreed to promote these habits. It highlights ignorance of
sanitary habit among people. It is again contradictory to the next observation where 96.1 per cent
respondents are worried about their upcoming generations as well as environmental degradation.
But it seems that respondents also think that it is not their responsibility. An individual
responsibility towards various social as well as personal issues is ignored by respondents. To
generate a sustainable environment individual responsibility is very important. It is an individual
initiative which may result in the big activity towards sustainability.
Case Two: Consumer‘s satisfaction: According to Prof. Samuelson, ―when a consumer is
observed to choose a combination ‗A‘ out of various alternatives combinations opened to him,
then he reveals, his preference for ‗A‘ overall other alternative combinations which he could
have purchased.‖ It indicates that whatever the product is consumed by the person is supposed to
be best for him as he selects it from the various alternatives available to him. According to
observation 44.4 per cent respondents were not sure that whatever the product they were using
were best for them. Following pie chart reflects the observation.
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There are some angles which must be considered while analyzing the data. First,
respondents were not satisfied with the product they are using, still they are forced to purchase
because of low income. Respondents wanted to purchase good quality product but lack of
income does not permit them to do so. Thus, income of respondents must be considered as an
important factor affecting their consumption pattern. Though 39.3 per cent respondents were
happy with the product they were using. To sum up if people use the product which is best for
them, which is describe by Samuelson in his revealed preference theory, the goal of sustainable
consumption will be automatically achieved.
Case Three: Use of scarce resources to fulfill unlimited demand - Optimum and required
use of scarce resources will ensure proper distribution of resources among various economic
agents. Robbins7 defined economics as the study of use of scarce resources to fulfill unlimited
human wants. All economies over the globe is facing the problem of deficiencies of resources.
Technological development has supported the efficient allocation of resources at industrial
sector. But the household sector is also a prominent user of resources and the fact of waste of
resources can not be denied at household sector. Limited resources should be preserved and used
carefully. During the survey it was found that respondents were not serious about the use of
resources and its availability. Following bar diagram show which of the given resources are used
carefully by respondents.
Most of the respondents save water. Food and electricity is also used carefully by
respondents. It is worth noting that instead of spreading awareness regarding water shortage in
coming years only 147 out of 178, which covers 82.6 per cent of respondents, saves water. Even
paper is not used carefully. Use of paper is a common practice. Though this is e-era use of paper
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is still continued which threats tree. Trees are the only source to control environmental
degradation. It is the matter of concern and must be taken care of.
Thus, above three cases tries to establish relation with the rational behavior of an
individual as per assumed by various economic theories and SDGs. The focus of paper was the
rational behavior of an individual and its impact on the person next to us and on the society as a
whole. When an individual decides to behave in a manner where everyone feels better then social
welfare will automatically achieved. It is an individual responsibility first and then it becomes a
global issue to discuss and perform. The reasons which can be pointed out for the irrational
behavior of an individual can be
Every individual thinks of himself not of society.
Everyone wants to run fast to achieve the destination.
No care about people.
No long run thinking.
Though they think but never act.
No consistency in performing good activities.
Ignorance about sustainable issues and its seriousness.
Conclusion:
To conclude, Economics suggests solutions on some of the sustainable issues through its
assumptions. The fact of unrealistic assumptions can not be ignored but rational behavior of an
individual is supposed to be realistic and applicable assumption. A simple positive thinking of an
individual can provide solutions on some of the sustainable issues for instant, use of scarce
resources, optimum selection of products, thinking of social welfare etc. An individual attempt
may be one step ahead on the path of sustainability.
References:
1. H. L. Ahuja, Modern Microeconomics, S. Chand, 2006, pp. 4
2. H. L. Ahuja, Modern Microeconomics, S. Chand, 2006, pp. 7
3. H. L. Ahuja, Modern Microeconomics, S. Chand, 2006, pp. 9
4. The Sustainable Development Goals Report 2018,United Nations, New York,2008,pp. 4-
13
5. H. L. Ahuja, Modern Microeconomics, S. Chand, 2006, pp. 787
6. H. L. Ahuja, Modern Microeconomics, S. Chand, 2006, pp. 789
7. H. L. Ahuja, Modern Microeconomics, S. Chand, 2006, pp. 9
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Private Sector Banks Contribution in an Indian Economy
Mr. Panchal Prasad
Ph. D. Research Scholar
BMCC, Pune (Maharashtra)
Abstract:
Banking plays very crucial role in the country's economy and especially in a country like
India. Banking as a sector contributes to 20% of total GDP. If we segregate Banking into Public
sector Banks & Private sector Banks then we would get very different scenarios in terms of its
lending, deposits, balance sheet size, asset quality, employee strengths etc. If we further drill
down in private sector banks then there are two segments one is old private sector banks and
another is new private sector banks. Here basically we are discussing about new private sector
bank.
There are total 9 new private sector banks in India. If we look at share of new private
sector banks then they are playing very important role to maintain the proper liquidity and credit
requirement in the market. Nowadays whatever lending is happening in the Indian market
whether it is retail lending or corporate lending, it is primarily driven by new Private sector
Banks and NBFC. But if we look at the both formats of lenders then we would see that Private
Banks are well organised, disciplined, digitised, as compared to Public Sector Banks as well as
NBFC.
Hence it becomes very crucial and important from overall financial stability point of view
of Indian market to give more room to private sector Banks so that they would not only provide
proper credit facility to the client but also involve them to increase their involvement in the
financial market of the country. It will help overall economy to track the income if more and
more transactions would happen in organised and regulated Banking sector. Once more and
more population covered by the Banking then there would be good inflow and liquidity in the
money market and overall function of the economy would work smoothly.
Keywords: Non-Performing Assets, New Private Sector Bank, Old Private Sector Bank.
Banking reforms, Prompt Corrective Action, Non-Performing assets, Stressed Assets, NBFCs,
Consortium Lending, Regulator, artificial intelligence, database, etc.
Introduction:
As we are we verse with the definition of public and private sector same applies to Public
Sector / Nationalised Banks (PSB) and Private Sector Banks (PVB). Banks where Government
does not have any stake and those are managed by private shareholders are known as Private
Sector Banks. In the year 1969 there were 14 largest commercial banks which became
nationalized. Those who were able to manage their banking business privately they became Old
Private Sector Banks (OPVB) post nationalization of the public sector banks.
Decade of 90s had been crucial one in the Indian Banking sector and for an Indian
Economy because Narsimham Committee got established during this phase and it also gave birth
to most of the New Private Sector Banks (NPVB), which later changed the face of Indian
Banking sector with their strategy, core banking systems, customer delight, robust processes,
qualified and educated employees and minimum turn around.
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Narsimham Committee got established on 14th
August 1991 and it recommended many banking
reforms such as
1. Reduction in SLR & CRR
2. Phasing out Directed Credit Program
3. Interest Rate Determination
4. Structural reorganisation of the Banking Sector
5. Establishment of the ARF Tribunal
6. Removal of Duel Control
7. Banking Autonomy
Second time Narsimham Committee had submitted few more recommendations in April 1998,
following were the recommendations:
1. Strengthening Banks in India
2. Narrow Banking
3. Capital Adequacy Ratio
4. Bank Ownership
5. Review of Banking laws
Following are the New private sector Banks which were established after Banking reforms
1. Axis Bank Ltd (03/12/1993)
2. Indusind Bank Ltd (31/01/1994)
3. HDFC Bank Ltd (30/08/1994)
4. ICIC Bank Ltd (05/01/1995)
5. DCB Bank Ltd (31/05/1995)
6. Yes Bank Ltd (21/11/2003)
7. IDFC Bank Ltd (21/10/2014)
8. Bandhan Bank Ltd (23/12/2014)
9. Kotak Mahindra Bank Ltd (only one new private sector bank which got incorporated in
80s i.e. 21/11/1985)
When these banks were established and started their commercial operations in the
economy post that these banks had hardly went to back-foot on the lending part. Also whatever
reforms imposed or insisted by Regulators they are the front runners in the array and set bench
marks for Banking industry in different segments that may be customer service, banking
operation, business continuity plan, digitalization / digitization, etc.
Because of healthy competition in these Banks the quality of services which customer
receives has been improved day by day. This also led to tapping of the market segment earlier
same had been dominated by PSBs. Nowadays we have seen that there are total 11 PSBs which
are under Government scanner and Prompt Corrective Action (PCA) plan has been executed on
all 11 PSBs. As per PCA they are not eligible to lend money to any customer hence now the
business of these Banks is completely stagnant and for them it is very difficult to survive and
sustain on existing portfolio.
Mainly from 2007-08 when recession had been hitting to the economy of all over the
world our Indian PSBs had started experiencing some heat due to various reason viz international
market instability, high exposure on infra, construction, mining projects, improper end-use and
tracking mechanism, lack of proper credit assessment, etc. Though our economy and specially
banking system were fundamentally strong we had lesser repercussion compared to other
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European and American countries. While experiencing this heat during recession phase our PSBs
had cut down their pace of lending and had become more wary on an additional exposure.
Here during this recession period PVBs have grabbed the opportunity and basis their better
infrastructure than PSB they started capturing more and more market share. Then FY 13-14
came when Regulator had been insisting all Banks to disclose their actual number of Non-
Performing Assets (NPA) and Stressed Assets (SA). Regulator conducted Asset Quality Review
across the banking sector and discovered huge amount of NPAs from Indian Economy.
Unfortunately PSBs were leading the array with distinction due to all above reasons mentioned
in earlier paragraph.
Following are some of the charts which would speak about the trend in the Banking sector
in alignment with different parameters
Chart 1: It is showing a movement in the advances which are given by the Bank to its
customers. Chart shows many peaks and valleys in the trajectory, it is mainly showing us the
demand fulfillment done by the PSBs-PCA (whose have been controlled by Regulator by Prompt
Corrective Action), PSBs-Non-PCA (Free to lend in the market) and Private sector banks. After
2010 Private sector banks have shown a growth of >=15%, whereas public sector banks have
shown dip after 2013. In fact PSBs-PCA have been showing negative growth rate after 2015, this
is the period when Regulator had asked all Banks to do their AQR and disclose actual figures for
NPAs and stressed assets. Later by looking at the financial conditions RBI has decided to
implement PCA for majorly infected PSBs and compelled them to restrict their lending book size
by not giving any new advances to any customer. It has affected PSBs growth rate drastically.
Chart 2: This chart depicts Gross NPAs of all the three categories of the banks and we could see
that there is consistent and major spurt in the GNPAs of PSBs as compared to PVBs.
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Chart 3: Net NPAs are mainly those assets which are provisioned by the lender or recovery has
been done against those loans. Hence we could see that there is comparative dip in the
percentage of the NPAs but movement of trajectories in both charts is same.
Chart 4: Stressed Assets are those advances which are not regular in repayment of their dues but
still they are in the process of repaying their dues. It means client may delays their monthly
installments due to shortage of sufficient liquidity in the hand and as and when it comes they pay
the installment. In such cases this assets have not stopped generating the income. In fact their
income or rather cash flows are no consistent due to which they delay payment. This chart also
shows the issues face by PSBs in comparison with PVBs.
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Functions of Private Sector Banks:
1. Offering high degree of professional management
2. Create Healthy Competition
3. Encourage Foreign Investment
4. Help to access foreign capital market
5. Help to develop innovation and achieve expertise
Introduction about Non-Banking Finance Company (NBFC)
Definition:
A Non-Banking Financial Company (NBFC) is a company registered under the
Companies Act, 1956 engaged in the business of loans and advances, acquisition of
shares/stocks/bonds/debentures/securities issued by Government or local authority or other
marketable securities of a like nature, leasing, hire-purchase, insurance business, chit business
but does not include any institution whose principal business is that of agriculture activity,
industrial activity, purchase or sale of any goods (other than securities) or providing any services
and sale/purchase/construction of immovable property. A non-banking institution which is a
company and has principal business of receiving deposits under any scheme or arrangement in
one lump sum or in installments by way of contributions or in any other manner, is also a non-
banking financial company (Residuary non-banking company).
Key differentiator between Bank & NBFC:
i. NBFC cannot accept demand deposits;
ii. NBFCs do not form part of the payment and settlement system and cannot issue cheques
drawn on itself;
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iii. deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not
available to depositors of NBFCs, unlike in case of banks.
Comparison between NBFC and Bank:
We compare PSBs and PVBs in the above section now let‘s look at the comparison
between NBFC and Banks. Below chart depicts about the comparison between Balance sheet of
the NBFC and Bank.
Balance Sheet Comparison:
We could see the contents distribution between both lending segment and it can be
understandable that at liability side NBFC has huge borrowing compare to Bank, whereas Bank
has huge source of Public Deposits. This point itself shows that cost incurred by the NBFC is
much higher than Banks.
Asset side of the balance sheet also gives clear outlook on distribution of different
contents viz Loans & Advances, Investments, cash & bank, etc. NBFCs have lent more than the
Banks and they have less proportion of asset contents in terms of investments and liquidity i.e.
cash & bank balances. If we co-relate or compare this with borrowings part then the percentage
of both the contents get varied i.e. they have lent more than whatever they have borrowed. And
to refill this gap of assets & liabilities mismatch they have less provision to invest money as well
as less liquidity in case of any unpredicted market risk. This adverse situation is drying up the
liquidity of NBFCs in faster pace, whereas Banks have win-win situation in terms of their less
borrowings, more public deposits, reasonable lending and optimum use of investment part.
Source: CARE Ratings
Credit Growth comparison:
Chart speaks about the % of the growth different lending segments have shown and PVBs
are leading this array with 17% yoy growth rate in the credit, subsequently it is followed by
NBFC with 13%. If we compare this growth rate with overall banking sector then it is much
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lesser than the NBFC. If we compare standalone part of PSBs and PVBs then we have been able
to see the actual growth rate of the both banking sector.
Source: CARE Ratings
CAGR of top Indian Banks for previous five years
Total Assets (Rs. in Crore)
Sr. No. Top Banks 2012-13 2017-18 CAGR %
1 HDFC Bank Ltd 407,781 1,103,233 22.02%
2 Kotak Mahindra Bank Ltd 115,865 337,720 23.86%
3 SBI 2,136,084 3,616,433 11.10%
4 ICICI Bank Ltd 674,822 1,124,281 10.75%
5 Axis Bank Ltd 340,584 703,843 15.62%
6 Indusind Bank Ltd 73,307 221,626 24.77%
7 Yes Bank Ltd 99,104 312,450 25.82%
8 Bank of Baroda 559,388 747,805 5.98%
9 IDBI Bank 322,717 351,645 1.73%
10 RBL Bank 12,962 61,857 36.69%
11 Punjab National Bank 496,676 780,172 9.45%
In above mentioned table there are total 11 banks out of that 6 Banks are New Private
Sector Banks and all seven banks are showing very healthy CAGR during previous five years.
Only one old private sector bank is there i.e. RBL Bank (37%) but asset size is very small
compare to all other banks. The way these banks have shown growth in their assets it shows that
how fast they have tap the Indian market and it shows their penetration in it.
CAGR of top NBFCs for previous five years
Total Assets (Rs. in Crore)
Sr. No. Top NBFCs 2012-13 2017-18 CAGR %
1 HDFC Ltd 235,289 522,581 17.30%
2 Bajaj Finance 16,592 79,695 36.87%
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3 Indiabulls Housing Finance 36,989 108,849 24.09%
4 L&T Finance Holdings 34,952 76,261 16.89%
5 Indiabulls Ventures 369 6,819 79.20%
6 M&M Financial Services 25,317 58,744 18.33%
7 Shriram Transport Finance 43,187 82,985 13.95%
8 Edelweiss Financial Services 14,035 52,389 30.14%
9 LIC Housing Finance 65,982 135,815 15.53%
10 Cholamandalam Investments & Finance 13,349 30,178 17.72%
NBFCs have shown tremendous growth in their total assets size but comparatively they are
smaller than Banks, HDFC Ltd is the only exception to it.
Objectives of the study:
To understand the importance and contribution made by New PVBs in the Indian
Banking sector and Economy. Hence we did comparison between three major players of Indian
Economy and Financial Sector viz PSBs, PVBs and NBFCs.
Statement of hypothesis & Research Problem:
1. In same adverse market conditions new PVBs have performed well and sustained their
portfolio without compromising their credit growth and asset quality.
2. Indian Economy had been sustained during recession period majorly because of credit
growth provided by new PVBs to Indian money market.
3. After recession era Indian money market didn‘t dry up because of consistent credit
support provided by new PVBs.
4. Maximum Indian population comes under banking umbrella mainly due to new PVBs,
which were always isolated from funding and growth.
Research Methodology:
1. Here we have used data comparison of PSBs with PVBs and NBFCs with PVBs. We
have shown our data in different line & Bar graphs and also in tabular form.
2. In graphical presentation we have compared PSBs & PVBs on different parameters to
check growth in their portfolio as well as asset quality of the portfolio.
3. We compare year on year (yoy) growth rate of advances, Gross Non-performing assets
(GNPA), Net Non-performing assets, stressed assets, etc.
4. While comparing the percentage we have fixed study period of previous 10 years i.e.
2008 to 2018.
5. Comparison between NBFCs and PVBs mainly made after deep diving into their Balance
sheet distribution and contents. It gave us fair idea about the highly leveraged and illiquid
lender.
6. Graphical presentation of NBFCs verses overall Banks and standalone PVBs & PSBs
clearly shows that PVBs have been outperformed on growth perspective.
7. We also compared previous five years CAGR of top Indian Banks and top NBFCs. And
tables have given crystal clear picture on growth consistency in new PVBs and their total
asset size.
Overall Comparison between PSB, PVB and NBFC:
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We have chosen here these key indicators to highlight the returns receive by all three formats of
financial institutions, their consistency on the capital adequacy and their asset quality in terms of
net NPA. And it clearly visible by looking at the chart for last five financial years that red line
which denotes Private Sector Banks (PVBs) is the most consistent legend in terms of all four
parameters / indicators. Rests of the legends are quite volatile and the trajectories are showing
many ups and downs.
Registration & Cancellation of NBFCs in last four FYs.
If we look at the previous four years data then it is observed that there is volatility in the
financial market and it not easy for any new entrant to sustain in the Indian economy hence chart
says that there are many more cancellations than the registration of new NBFCs. There are few
NBFCs which are there in the Indian economy from long stint.
Whereas Banks i.e. PSBs or PVBs are getting merged to get more synergy, to sustain the
portfolio and hence Banking format is more viable than the NBFC.
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Market Capitalisation of PSBs, PVBs and NBFCs:
There are total seven PVBs in the top ten biggest banks of India basis market capitalization.
Third biggest NBFC in the top ten is having Rs.1800.00 crore market capitalizations greater than
serially number tenth Bank in the Indian economy based on market capitalization
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Overall view of world economy:
.
Above mentioned chart shows that there emerging markets & developing economies i.e.
our Indian Economy is performing well and it has room to further explore itself. To make this
happen PVBs and NBFCs are in front to fulfill the liquidity requirement of the market. But again
PVBs are well regulated and managed than NBFCs hence it plays significant role in the growth
of the country.
Findings / Observations:
1. After recession i.e. 2008 new PVBs have done fantastic job to tap their market share and
provide delightful services to their customers.
2. While enhancing growth rate in terms of market cap and advances new PVBs have also
maintained their NPA and stress asset ratios at permissible level.
3. New PVBs have tried different technologies and ideas to tap the market shares.
4. Attractive offers in terms of discounts and returns have catch customer attentions towards
the PVBs.
5. PVBs have always crossed conservative banking method and come out with different
credit facilities and services viz trade advance facility, third party products, cards product
with different features, wallet app, etc.
6. New PVBs have become cost effective and sensitive for preserving their margin and they
got succeeded in it mainly because of technology and artificial intelligence they uses in
their day to day business.
7. New PVBs have become more competitive mainly because they have concentrated well
on their customer database and market database.
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Conclusion:
Here we conclude that new PVBs have been contributing very efficiently for the overall
growth in the Indian Banking sector. Without proper support from PVBs it would be very
difficult rather critical for an Indian Economy to survive in the International market.
Government should also support the PVBs and offer them Government contracts so that that
Government projects which generally elongated due to various reasons would be able to start
well in time.
RBI should also give preference to PVBs while lending to any big corporate in
consortium lending so that proper assessment could be done for the project and it would also
help bank to earn income for the services which it rendered to the client.
If we want to have consistent performance of our economy in terms of growth and sustainability
then to support and nurture PVBs would become need for Indian Banking system.
Regulator should arrange regular interaction and training programme from top executive or
middle management of new PVBs to PSBs and old PSBs so that new technique for an
assessment and new product innovation would be percolate in the behavior of the recipients.
Here we arrive at the conclusion that to sustain the Indian Economy with its basic
sustainability pillars i.e. Economic (Profit-NIM), Environment (Planet-Digitisation), Social
(People-user friendly) and Compliance (within orbit of National and International Standard),
growth of PBVs is inevitable.
.
References & Notes
1) Role of Private Banks in the Growth of Indian Economy, Dr. S K Pole, Principal,
S.B.B. alias Appasaheb Jedhe Arts, Commerce & Science College, Pune.
2) Performance Of New Generation Private Sector Banks In India: A Balanced Scorecard
Evaluation, V.Annapurna, Dr.G.Manchala, Hyderabad.
3) Sustainability in Indian Banking Industry, Urvashi Sahitya, Delhi, VaibhavLalwani,
Delhi.
4) RBI Bulletin-Nov 18
5) Efficiency of Private Sector Banks Performance Comparison Between Old and New
Generation Private Sector Banks, Binish Varghese M, Suman Chakraborty, Bengaluru
6) A Comparative Study On Financial Performance Of Private And Public Sector Banks
With Special Reference To Affecting Factors And Their Impact On Performance
Indicators, Gajera Alpeshkumar Chandulal.
7) Financial Performance of Private Sector Banks in India - An Evaluation, Sathish Kumar
Balasubramanian
8) Post Liberalisation Trend in Indian Banking, Mandira Sarma, New Delhi.
9) NBFCs in India‘s Financial Landscape, Manisha Sachdeva, Darshini Kansara from
CARE ratings
10) BFSI_Companies_2017_Publication_D&B
11) Indian NBFC Sector Report 2018, IBEF.
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Urban Cooperative Banks – Catalysts of Banking for Sustainability
Rewati Paithankar
Research Scholar,
B.M.C.C, Pune, (Maharashtra)
Abstract:
Sustainable economic development of any country is not possible without prosperity of
its people , environment protection and social justice , the three pillars of sustainability . Sound,
efficient and responsive banks having awareness about sustainability challenges and
opportunities can play an important role in sustainable economic development. Banks can
finance businesses which have met environmental regulations, which promote social justice and
equality. Indian banking sector comprises of large number of Urban Coopeartive Banks (UCBs)
, which were formed primarily for catering to the weaker sections of the society, neglected by
other formal financial institutions . UCBs have core competencies in dealing with the equality
and social justice dimensions of sustainability , their competencies can be channelized towards
extending finance to environmental friendly projects. Literature review identified the need,
opportunities, benefits for stakeholders and initiatives undertaken world over in the field of
banking for sustainability . The review also revealed that response from Indian Banks is rather
slow. The researcher did not come across any study identifying potential of UCBs that can be
tapped for addressing sustainability. On this backdrop, this paper aims to study how banks can
assist sustainable development and how UCBs, in particular should deal with the sustainability
aspect, what opportunities are available for the UCBs and how banking for sustainability is
going to benefit banks as well as the economic development of the country. Data for the study
was collected by way of secondary sources, such as reports, articles, published statistics and
websites.
Analysis of collected information revealed that opportunities are available in banking
for sustainability for UCBs to increase their credibility, reputation and brand image by way of
creating long term value for the economy. It is recommended that UCBs should develop
sustainability strategy and add value to the sector and individual brand.
Keywords : Environment, Urban Cooperative Banks (UCBs), Sustainable development ,
sustainability, RBI .
Introduction :
" The future depends on what we do in the present " --- Mahatma Gandhi .
These simple words are the crux of sustainability. The Brundtland report (1987)1
,(
which is often cited for its definition of sustainable development ) defined sustainable
development as" the development that meets the needs of the present without compromising
ability of future generations to meet their own needs" . Developing countries face life-
threatening environmental challenges such as desertification, deforestation and pollution , and
have to face the poverty associated with them .Short sighted ways in which prosperity is often
pursued is one of the major causes of disastrous environmental changes. Sustainability not only
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means preserving the environment and biodiversity for future generations, but it also means
guaranteeing human rights , a life of dignity , free of poverty for all people.2
One may not suspect that banks have any role to play in the sustainable development ,
but that is not true . Banks being providers of finance for all kinds of businesses have a very
important role to play in promoting sustainability across industries, sectors and communities.
Banks do have influence over management decisions of their customers , and it is possible for
them to exert their influence by using interest rate differentiation and other incentives to
encourage sustainability. Not only banks, but entire financial sector, have been somewhat slow
in responding to sustainability issues , beyond minimum statutory compliances. RBI has issued
an advisory dated 20 November 2017 18
to banks advising them to prepare an appropriate plan
of action towards sustainable development.
UCBs , have been assisting social sustainability due to their inherent nature and business
model. UCBs in India have been addressing the human or social side of sustainability by way of
providing small loans to hitherto neglected section of the population. Availability of small
institutional loans is an important and powerful tool for economic growth and fight against
poverty at the grassroots level. Urban Cooperative Banks (UCBs) since their origin , a century
ago , till today , have been mobilizing savings from the middle and low income urban groups and
supplying credit to their members , mostly belonging to weaker sections. (RBI )3 . This study
was conducted for finding out how UCBs can contribute to sustainability challenge given their
purpose of existence, their large number , their core competencies and the regulatory framework.
Literature Review :
Literature available about sustainable banking based on studies conducted in India and
abroad, publications of renowned institutions like RBI , IFC , United Nations Environment
Program(UNEP) and others which are working in this field of banking for sustainability were
carefully reviewed for this paper
IFC (2007) in its report 4 has presented best banking practices followed world over in
sustainability with data and speaks extensively about the benefits of sustainability for all the
stakeholders . This report also speaks about micro credit but Urban Cooperative Banks do not
find a place in this report. FICCI and UNEP (2014) 5 in their study have pointed out India's need
for long term sustainable finance, Guru Prasad Rao et al (2017) 6 in their paper speak about the
environmental impact of the luxuries available to mankind . The paper states that banks in
BRICS economies have realized importance of green initiatives . India as part of BRICS is
rapidly increasing its foray in digital transactions , as its green banking initiative, however
financial literacy is a big challenge . Working paper by SEED and University of Waterloo7 has
studied the origin of sustainability and how financial institutions have explored the ways to
influence sustainable development in a positive manner , Dr Namita Rajput and others (2013) 8
in their paper state that banks can provide important leadership in sustainability however Indian
Banks are rather slow in responding to the need.
After conducting review of relevant literature , it was observed that there is rising consciousness
about the need for sustainable banking. Most of the studies or literature refer to commercial
banks or micro finance institutions, however no study has been conducted about the role of
Urban Cooperative Banks in sustainability. Given the large number of UCBs present in India and
the purpose of their existence , this study was conducted with a purpose of bridging the research
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gap in how the UCBs can act as catalysts of change in the field of banking for sustainability and
for recommending the steps required to be taken in this direction.
Research Methodology :
Data for the present study was collected from secondary sources viz. various journals ,
articles, published data of various international institutions , and other publications available on
internet . Information was also collected from websites of Reserve Bank Of India and e-news
letters.
3.2 Objectives of the study and hypothesis:
On this Backdrop, this study was conducted with following main objectives :
1. To understand meaning and importance of banking for sustainability .
2. To study the sustainable banking practices followed by UCBs.
3. To examine the emerging opportunities and benefits of banking for sustainability for UCBs.
4. To give recommendations for implementation of sustainability practices.
3.2.2 Hypothesis : Following hypothesis was formulated based on the objectives of the study.
1. UCBs are catalysts of banking for sustainability .
2. UCBs can increase their credibility, reputation and brand image by implementing banking for
sustainability.
Meaning and importance of Banking for sustainability :
4.1 Sustainable Development :
As per Brundtland report 1 , economic development that meets the needs of the present, without
compromising the ability of future generations to meet their own needs is sustainable
development. Achieving economic development while maintaining the quality of environment
and social fabric is the crux of sustainable development. Although living within environmental
limits is one of the central principles of sustainable development, it is not limited to just the
environment, it also includes ensuring a strong, healthy and just society, meeting the needs of
existing and future communities, promoting personal wellbeing , social cohesion , inclusion and
equal opportunity for all.
4.2 Sustainability :
Sustainable Development leads to sustainability . Sustainability is about ensuring long-term
business success while contributing toward economic and social development , a healthy
environment , and a stable society . IFC's definition of sustainability 4, encompasses three
dimensions.
Fig. 1 : Balancing of Social , Environmental and Economic factors
The Financial sustainability of the banks and its
customers , so that they can continue to make a
long term contribution to development .
Environmental sustainability through
conservation of natural resources
Social Sustainability through improved living
standards, poverty reduction, concern for the welfare of
communities , and respect for key human rights.
(Source :
http://sustainability.truman.edu/files/2017/03/sustainability-venn-diagram.jpg)
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4.3 Banking for sustainability :
Sustainable Banking has been defined by IFC 10
as a decision by banks to provide
financial capital, risk management products and services only to those customers, who, while
attaining their business goals also promote environmental protection and social justice.
Banks must integrate sustainability policy into their business strategy and decision making
process so as to provide incentives to environmentally or socially responsible projects , while
keeping in mind the basic risks involved in lending .
4.4 Importance of banking for sustainability :
Global population is rapidly increasing . Basic needs of the rising population have to be
met whereas natural resources are scarce and climate disruptions are more frequent. Diminishing
resources and tighter sustainability regulations are impacting certain customers of the banks and
liabilities arising therefrom may hamper ability of businesses to repay debts. Developing basic
understanding and integration of sustainability issues in their own longer term planning and
strategy are essential for maintaining the bottom line of the banks. Banks need to understand
that there is a strong correlation between environmental and social factors on one hand and rising
credit risks and NPA levels on the other hand.
Sustainable banking practices followed by UCBs
5.1 Origin and essence of cooperative movement in India :
The history of Cooperative movement in India dates back to nineteenth century 3 . The
idea of pooling resources to meet common objects gave birth to cooperative movement in the
year 1889. The Maclagan Committee in 1915 reviewed performance of credit cooperatives and
observed that such institutions were most suitable for catering to the needs of lower and middle
income sectors of the society , and for inculcating banking habits in them. RBI in the year 1999 11
commented that cooperative credit attempt was the first attempt in India for giving micro
finance. UCBs have occupied an important position in Indian financial sector. They have
traditionally been providing an important channel for financial inclusion for the middle and low
income sections of the population in urban and semi urban areas. Majority of customers of
UCBs are those who are generally not welcomed by commercial banks as they have no assets to
offer as collateral , do not have any credit history and the costs associated with servicing of
small loans do not make such proposals attractive for commercial banks. Commercial Banks,
therefore tend to neglect small customers . If left with no choice , the small customers borrow
from private moneylenders and fall in debt trap . UCBs play an important role here in bridging
the gap between commercial banks and private money lenders . UCBs play their part of
expanding the outreach and increasing access to institutional credit to hitherto unbanked and
neglected section of population ( Chakrabarty 2009) 12
. Having knowledge and experience
about the local conditions, and firm roots in the areas in which they operate, UCBs assist in
eliminating financial exclusion to a great extent by taking banking to the door steps of small
borrowers, businesses and households. UCBs are thus catalysts of financial inclusion and
banking for sustainability .
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5.2 Presence of UCBs in India : Fig.2
The composition of banking sector in India as on this date as per RBI13
is as per fig 2,
which indicates that out of total 2122 banks currently operating in India , the number of UCBs is
as high as 1562, which constitutes almost 74% of the total number of banks all over India.
Fig 2 :
5.2
Contribution of UCBs to social sustainability through Priority Sector lending :
5.2.1 "Priority Sector Lending " (PSL) forms important part of financial policy of RBI, which
aims at maintaining sectoral balance by channelizing the flow of credit to weaker and neglected
sections . RBI has made it mandatory for all banks to provide certain minimum portion of
lending to specific underserved sectors as indicated Below. :
Fig 3 : Priority Sector Lending by UCBs
Data as of March 31, 2017
(Amt in Rupees Billion)
Particulars Priority Sector Advances
Amount Percentage to
Total
Advances
1. Agriculture [(i) + (ii)] 75.74 2.90
(i) Agriculture (Direct finance) 32.19 1.23
(ii) Agriculture (Indirect finance) 43.55 1.67
2. Micro and Small Enterprises
[(i) + (ii)]
731.85 28.02
(i) Micro and Small Enterprises (Direct Finance) 576.10 22.05
(ii) Micro and Small Enterprises (Indirect Finance) 155.75 5.96
3. Micro Credit 108.19 4.14
4. State sponsored organisations for SC / ST 1.58 0.06
5. Education loans 21.94 0.84
6. Housing loans 252.93 9.68
7. Total (1 to 6) 1192.23 45.64
8. Of which, advances to weeker section 271.02 10.37
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Source : https://dbie.rbi.org.in/DBIE/dbie.rbi?site=publications#!4)
Above chart indicates that 45.64% of the total loans granted by UCBs are to Priority Sector .
Out of total lending to priority sector 10.37% are lent to the weaker section of the population.
Comparison of PSL by UCBs and Commercial Banks : Fig 4
Lending to priority sector is a regulatory
Requirement of RBI which needs to be met
by the banks. Compliance is monitored by
RBI.
As depicted in Fig. 4, the share of UCBs in
lending to Priority Sector has been more than
the public sector banks since F Y 2011-12 to
FY 2016-17
(Source : Report on Trend and Progress of Banking In India 2016-17 published by RBI in 2017)
6. Benefits and emerging opportunities in banking for sustainability for UCBs :
6.1 Benefits :
Research has shown that , sustainability , when integrated into business operations , can
present real benefits for all the stakeholders viz. the society , the UCBs and the customers .
Some of the benefits can be enumerated as under :
Society :
1. Environmental conservation
2. Just and equal opportunities for all
3. Financial inclusion
4. Empowerment of disadvantaged groups.
UCBs :
1. Improved brand image, increased visibility and reputation - Image of a UCB as an institution
committed to sustainable development adds to its visibility in the community, its brand value
and reputation.
2. Reduced risks of NPAs – By creating awareness about cleaner production, customers of the
UCBs can avoid legal liabilities , enjoy uninterrupted business activities thereby better servicing
of loans.
3.Reduced risks of project failures.
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Customers :
1. Incentives from regulators and bankers for implementing sustainability measures.
2. Reduced costs due to incentives, reduction in penalties etc.
3. No disruption in operations due to regulatory issues.
4. Enhanced health and safety of workers and surrounding areas.
5. Better servicing of borrowings .
6.2 Emerging Opportunities for UCBs in Banking for sustainability
Banking for sustainability is presenting new opportunities for UCBs, which can be availed
subject to usual prudent loan sanctioning practices followed by them. Few such opportunities are
as under . (IFC 2007 4)
Financing to Sustainable energy – UCBs can provide finance on concessional terms for
manufacturing or servicing of energy efficient products ,building construction and renovation
with energy saving features, efficient lighting ,switching to less polluting fuel. Development of
renewable energy source such as wind power, solar systems , micro hydro power plants etc.
Cleaner Production –UCBs can incentivize their customers in adopting cleaner
production practices or provide loans to firms to help them upgrade existing equipment and
production facilities , improve and attain certification of production process etc.
Biodiversity conservation – UCBs can find opportunities in financing industries such as
organic agriculture, sustainable fishing , non timber forest products ( such as mushrooms,
berries, honey and medicinal plants) , financing sustainable supply chains , sustainable tourism
that protects environment and conserves bio diversity and other such innovative areas .
Findings and observations :
This study has revealed that the awareness about linkage of economic development with
environmental issues is growing in India . It is now being realized that economic development
causes erosion of environmental resources and degradation of environmental resources hampers
economic development , which is depicted as under :
Fig. 7 The Environmental Kuznets Curve 17
Depletion of Environmental resources ultimately results in poverty . There is , therefore
need to deal with environmental problems, poverty and equality . UCBs can play a major role in
dealing with all the three problems , as catering to weaker sections of the population is embedded
in their systems. Banks hitherto , slow in responding to the sustainability aspect , now have to
get actively involved. The two hypothesis formulated in this study are established, that UCBs
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are catalysts of banking for sustainability and that by consciously adopting sustainability policies
, UCBs can increase their business share in Indian Banking and also improve their brand image
and reputation.
Recommendations for implementation of sustainability practices :
In order to march toward sustainability , following measures are recommended for the regulators
and UCBs :
8.1For Regulators
8.1.1 Regulators need to create awareness and consciousness about sustainability challenges
among all stake holders.
8.1.2 Formal definitions such as "high pollution" or "green " investments need to be included in
the Priority sector lending norms.
8.1.3 A reporting system of the sustainability compliances needs to be developed with
provisions for incentives ,warnings and penalties.
8.1.4 Regulators should recognize the sustainability achievers with prestigious awards such as
"Padm" awards.
8.1.5 In view of the contributions already made and the available potential, the regulators should
encourage UCBs to spread their operations all over India.
8.2 For UCBs
8.2.1 UCBs must develop sustainability strategies, which will add value to their brand.
8.2.2 UCBs should showcase positive efforts made by them through Annual reports and other
publications.
8.2.3While sanctioning business loans weightage must be given to environmental risks and
reduction of human hazards .
8.2.4 Conduct training programs for creating awareness among customers as well as bank staff.
8.2.5 UCBs own branches and offices must be energy efficient and conserve water , electricity
and other diminishing resources.
8.2.6 UCBs must try to shift to paperless environment by shifting to digital means of doing
business.
Conclusion :
It is time for banks in India to respond proactively to banking for sustainability . UCBs ,
now have to leverage their experience in social banking and respond to environmental concerns
and emerging opportunities in banking for sustainability . By thus responding UCBs can create
long term value for the society while achieving their own business goals. UCBs with social
banking embedded in their objectives need to be encouraged to spread their presence across all
states. If we wish to give our future generations a better life, the present generation must march
towards sustainable development , now .
References :
1. Burtland Report by World Commission on Environment and Development ,1987 (
http://mom.gov.af/Content/files/Bruntland_Report.pdf)
2. The Do's and Don‘ts of sustainable banking – A Bank Track Manual,
(ttps://www.banktrack.org)
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3. Brief History of Urban Cooperative Banks – RBI (
https://www.rbi.org.in/scripts/fun_urban.aspx on 13/11/2018)
4. The report "Banking on Sustainability , Financing Environmental and social opportunities
in Emerging markets , a report prepared by International Finance Corporation (IFC) in
2007 .( https://www.ifc.org)
5. "Building a sustainable financial system to serve India's Development Needs " 2014 by
FICCI and UNEP (http://unepinquiry.org)
6. "BRICS banking: Review of Green Banking Initiatives among the BRICS nations by
Guru Prasad Rao" and Sandipm Shenoy, (The Business and Management Review ,
Volume 9 Number 1pp 44-51)
7. Weber, Olaf. (2011). Social Banking and the Future of Sustainable Finance. a working
paper published by Export Development Canada, SEED and University of waterloo.
(https://papers.ssrn.com)
8. Indian Banking Sector towards a Sustainable Growth : A paradigm shift by Dr Namita
Rajput and others 2013 (http://hrmars.com/admin/pics/1464.pdf)
9. Bouma, Jeucken and Klinkers (2001, p101)published in IFC report https://www.ifc.org
10. Genesis and Architecture of Urban Cooperative Banks (1999) , a report by RBI
(https://www.rbi.org.in/Scripts/PublicationReportDetails.aspx?ID=131)
11. Address by Dr K.C.Chakrabarty, Deputy Governor of the Reserve Bank of India, at the
Foundation Day and Inauguration of the ―Core Banking Solution Project‖ of the A.P.
Mahesh Co-op Urban Bank Ltd., Hyderabad, 9 August 2009.
12. RBI website for total number of Banks in India
https://rbi.org.in/commonman/English/Scripts/BanksInIndia.aspx#rrb
13. https://dbie.rbi.org.in/DBIE/dbie.rbi?site=publications#!4
14. RBI Circular RBI/2017-18/175 dated 10 May 2018 regarding Priority Sector Lending
(https://rbidocs.rbi.org.in/rdocs/notification/PDFs)
15. RBI/2007-08/216 Circular DBOD. No.Dir. BC. 58/13.27.00/2007- 08 dated 20 December
2017.
16. Examining Environmental Kuznets Curve for river effluents in India - Scientific Figure
on Research Gate. Available from: https://www.researchgate.net/The-Environmental-
Kuznets-Curve_fig1_227221100 [accessed 20 Nov, 2018]
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A Study of Sustainable Economic Development of Pune City
Dr. Surendra Daware
Assistant Professor
Maharashtra Education Society,
Garware College of Commerce, Karve Road, Pune (Maharashtra)
Abstract:
Sustainability is one of the key aspects of the development process of the globe. India is
ranked sixth in the Global Climate Risk Index 2016. India stood 130th
rank in the Human
Development Index (HDI) out of 189 countries in 2018. Sustainable Economic Development
(SED) module is significant to elevate Pune to the status of world class city. Pune is renowned as
an Educational hub, Information Technological (IT) hub, and Industrial hub. Pune city ranks
sixth in India in terms of Gross Domestic Product. Pune has a cultural, social, political and
economically resonance position in the state of Maharashtra.
Presently, Pune city faces one of the biggest challenges of transportation service. There
is inadequacy of infrastructure as a vital element of the sustainable development of Pune city.
The population of Pune is more than 30 lakhs and is growing more and more due to migration.
City land area is extensively developing and creating environmental problems such as density of
road transportations, density of households, rising demand for water, energy sources like
electricity and petroleum products.
Researcher has tried to discover the dilemma of sustainable economic development of
Pune city. Research has used primary and secondary method for data collection. The essential
result of this research paper is that respondents have revealed 96.4% climate change in Pune
city. 59.5% populace experienced mixture of all seasons.
Keywords: Sustainable Economic Development (SED), Gross Domestic Product (GDP),
Infrastructure, Environment, Population.
Introduction:
India ranks second in the climate change vulnerability index of 2017. Recently,
India experienced flood in Kerala, drought in the middle region of the India. The persisting
drought and heat waves affected over 330 million people1. They were followed by an extreme
monsoon season lasting from June to October in eastern, western and central India. At least 300
people died due to the heavy rainfalls and landslides and millions of people were affected by
washed away crops, destroyed roads or disrupted electricity and phone lines2.
Pune is recognized as educational hub, Information Technological (IT) hub, and
Industrial hub. Pune city ranks sixth in India in terms of Gross Domestic Product. From the post
economic reform period of 1991 onwards Pune is rapidly progressing in terms of per-capita
income, economic growth and economic development. Pune has cultural, social, political and
economically sound position in the state of Maharashtra.
Pune city has one of the biggest challenges of transportation services presently. There is
inadequacy of infrastructure as key aspect of the sustainable development of Pune city. The
population of Pune is more than 40 lakhs and growing more and more due to migration. City
land area is scattered widely and is creating environmental problems such as density of road
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transportations, density of households, rising demand for water, energy sources like electricity
and petroleum products. Pune city‘s sustainable development model depends upon population
growth, road transportation leads to air pollution, noise pollution, water conservation and water
supply, cleanness of the city, garbage collection and waste management, real estate sector
growth.
According to the Environment status report(ESR) for 2017-18, released by the Pune
Municipal corporation(PMC), the ratio of carbon dioxide equivalent to population was 1.42
tonnes per person in 2012 and 1.64 tonnes CO2e per person in 2017 due to private vehicles3.
Statement of Problem:
The sustainable economic development model is really difficult to implement. Pune is a
growing city that is experiencing environmental changes, inadequacy of infrastructure; disperse
enhanced land area, requirements of water, electricity, petroleum products. These are various
problems faces by Punekars. Sustainability is a biggest challenge in front of the local, national
and international level.
Objectives of the Study:
1] To understand the awareness of sustainable economic development model of Pune city.
2] To identify the status of transportation sustainability of Pune city.
3] To know the changes in climate and water supply, water conservation, irrigation facilities, real
estate sector, vehicle availability, land of study area.
4] To find out the living conditions of study area.
Research Methodology:
Researcher has revealed the problem of sustainable development model of Pune city.
Research has used primary and secondary method for collection of data; similarly structured
questionnaire is formed and will gather response from respondents for the data analysis.
Researcher has selected 200 sample sizes from the study area. Researcher has used
simple random sampling method for data collection. Researcher has referred books, journals,
national and international publications and internet for the purpose of analysis. Through web
links official sites of IMF, World Bank and Government of India are referred.
Analysis of Data:
Inclusive Sustainability is more challenging for Pune city. City is growing but without
considering infrastructure and environmental precaution.
1.1 Chart: Awareness of Sustainable Economic Development Model of Pune city.
Awareness of sustainable economic development model
of Pune city.
Yes
No
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Source: primary data
In the city of Pune 50% people are not aware about sustainable economic development
model. Pune Municipal Corporation has to take initiative to disseminate sustainability to localize.
Similarly policymakers, corporate citizens, students, NGO‘s bureaucrats have to involve in
campaign of awareness and precaution, preservation of environmental pollution and cleanliness
of the city.
1.2Chart: Status of Environmental and Infrastructure problems face by
Puneities
Source: primary data
The biggest problem faced by Puneites is road transportation. The 63% respondents said
that roads are essential for the sustainability of the city. Move-ability is crucial for the economic
development of the city. Pune city has density of narrow roads. Road transportation has lead to
intensify the problem of air pollution and noise pollution within and around city. Road
transportation leads to multiple problems air pollution, noise pollution, accidents, trespasser
drivers creating many problems. In the city respondents experienced 22.3% air and 7.1% noise
pollution. Automatically living standards has got affected of Puneites. In general longevity of the
citizens is severely affected in the long term.
.
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Source: primary data
Researcher has studied the status of garbage collection from Pune Municipal Corporation
(PMC). Garbage collection is satisfactorily collected by the urban local body. Almost 51.8%
respondents are satisfied with the collection of garbage. Similarly 16.1% respondents have
experienced good service provided by PMC for garbage collection. But almost 25.9%
respondents said that it is not good. It means that still over cleanliness and garbage collection
needs improvement in the outskirts of the city.
Presently, dry waste and wet waste classification is done by citizens of Pune. This is a
good practice implemented by PMC; to create awareness about waste management. Urali-
kanchan garbage dumping station has created air pollution through smoke, dirty smell,
surrounding location is severely affected. Government organisational bodies like PMC, state
government has to find out permanent solution to this problem.
―Ek Kadam Swachhata ki Aur‖ means ―One step towards cleanliness‖ is the popular
slogan of Swachh Bharat Abhiyan. From this point of view, citizens and government need to go
miles. Sustainability is an essential component of hygiene and regular garbage collection is a
must for the development of Pune city.
Source: primary data
Chart 1.4 investigates the rainfall status of the city. In 2018 48.5% respondents have expressed
rainfall around 500 to 700 mm. Pune city on an average gets normal monsoon. Rainfall is
imperative for city because rainfall ratio will decide how many days water supply will be
sufficient for the people.
1.1 Table: Water supply, conservation, irrigation facilities of Pune.
Water
supply
Water conservation Irrigation
facilities
24 hours 46.80% Satisfactory 51.40% Yes 60.90%
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1 to 2 hours 18.30% Good 25.2% No 39.10%
2 to 4 hours 19.30% Not Good 14.40%
More than 4
hours 15.60%
Source: primary data
Similarly, they have been getting 24 hrs regular water supply. Everyday respondents have
received 2 to 4 hrs water supply. Water supply depends upon the rainfall and water conservation
system adopted by PMC. The researcher asked respondents about water conservation system of
the city. Respondents articulated that the water conservation system was satisfactory and were
happy with water conservation system.
Water supply conservation maintenance is essential for the growing industrial and education hub
in the most fundamental aspects leading to drinkable water for everyone living in the city.
Researcher revealed that core area of Pune city received 24 hrs water supply. The city outskirts
area is having scanty water supply. The status of irrigation facilities are mentioned good for the
city by 60.9% respondents. In contrast 39.1% people are not happy with present irrigation
facilities.
Vehicle 66.70% 10.80% 22.50%
Mixture of all seasons 59.50% 22.50% 10.80% 7.20%
climate change 96.40% 4%
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
Axi
s Ti
tle
1.5 chart:Vehicle ,mixture of all season, climate change of Pune
Source: primary data
In the city 78% people own vehicles. Especially two wheelers are more in number. Near about
66.7% respondents possess their own vehicles. It means that public transportation plays a
significant role in the economic development of the city.10.8% respondents possessed four
wheeler vehicles. The numbers of vehicles have increased. It produces air and noise pollution.
Before pre reform period Pune was known as cycle and retired citizen‘s city but after 1991
onwards, Pune has undergone drastic change of transformation into IT hub, Industrial hub, and
educational hub.
The household survey of Maharashtra state shows 48.8% percentage of two-wheelers in
Pune. This shows the lack of sound and vibrant public transportation system. The city
environmental issues need to be kept under control for a better public transport system of the
city. Automatically sustainable economic development can be achieved smoothly without
hampering the environment.
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The most crucial finding of this research paper is respondents mentioned 96.4% experienced
climate change in Pune city. 59.5% people experienced mixture of all seasons although 22.5%
felt hotter summer season. The climate change is due to globalisation that has adversely affected
the globe.
Pune city land area is rapidly growing. Respondents explained that 68.5% area of city has
expanded. Therefore infrastructure demand will automatically rise. This has reflected on the hike
in the real estate sector. Real estate sector related people have more golden opportunity to grow
their business. The rising population is demanding for real estate. Real estate sector is the
backbone of the city. Builders, developers, workers, artisans, engineers from different industries
like steel, cement, bricks, machinery have huge demand in the city, but precaution needs to be
taken about the norms of real estate laid by PMC and RERA (Real Estate Regulation Act)2016.
To prevent the environmental degradation one has to focus on the real estate industry. Petrol and
diesel demand is on rise in Pune. It is obvious that 78% people possessed vehicles.51.8%
respondents need petrol and diesel energy sources.
Findings: The most crucial finding of this research paper is respondents mentioned 96.4%
experienced climate change in Pune city. 59.5% people experienced mixture of all seasons
although 22.5% felt hotter summer season. The climate change is the outcome of globalisation
that is adversely affecting the globe.
35.4% found the living conditions of Pune city satisfactory, 37.2% people mentioned good
condition and 23.2% respondents expressed excellent. 96% found the overall living conditions
positive.
Conclusion:
Environmental Sustainability is the biggest challenge in front of the International
government agency and community as a whole. Global-warming issue is most imperative to
handle on this planet for survival of all. Similarly each continental and respective countries
action towards control of carbon dioxide; air pollution is most crucial, especially United States
America (USA) and China. Sustainable economic development is not solid in the study area.
Although Infrastructure development is requires urgent reform and preservation of natural
resources such as water, land, air, and trees of Pune city. Climate change is depending upon us of
how to utilize natural resources and make more environment friendly production for betterment
of human beings. The study area has surveyed air pollution, noise pollution, and congested road,
spread out real estate sector, pressure huge demand of public amenities on Urban Local Bodies
(ULB), climatically changes, abundant vehicles especially two-wheelers. Therefore sustainable
economic module for Pune city must be compulsory for achievable targets laid down by
International and National government, State and local bodies. At last every citizen will be
expecting in their mind clean, safe, greener, drivable Pune to live in for them and acknowledge at
the global level.
References:
1. CNN,2017,http://edition.cnn.com/2017/04/24/asia/india-heat-
wavedeaths/index.htmlAccu Weather, 2016,
2. https://www.accuweather.com/en/weather-news/flooding-downpours-threaten-
sr/57437771 The Quint,2016, https://www.thequint.com/news/environment/world-
meteorological-organisation-2016-global-climatechange-effects-in-india
3. Environment status report (ESR) (2017-18); Pune Municipal Corporation
www.pmc.gov.in .
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A Case Study of JSBL for Mitigating Cyber Threats for Sustainable Business
Practices
*Mrs. Padma Nene & **Dr. Anita Bhave
Assistant Professor
M.E.S. Garware College of Commerce, Pune (Maharashtra)
* [email protected] , **[email protected]
Abstract:
The present study is an attempt to understand the current scenario of JanataSahkari
bank Ltd. (JSBL) in Pune region in the purview of mitigating cyber threats.
The threat and impact of cyber-attacks on the urban co-operative banking sector is
increasing day by day. Cyber-related crimes present a high risk to the banking industry. What
types of cybercrimes are risk specific to the banking industry and what can be done to mitigate
them? To deal with such types of situations, this paper will document how JSBL is taking
precautions in order to curtail cyber threats using RBI guidelines. As well as how the bank is
safeguarding their Data against cybercrimes. In this paper, the researchers will look at whether
the operations of JSBL are sustainable in view of security threats in current times, and what is
the level of preparedness by the bank to handle them.
Keywords – Janata Sahkari bank Limited, threats, security, sustainability, etc.
Introduction :
Sustainability of every organisation is significant for the development of the country. To
achieve sustainable development, it is equally essential to secure the organisational structure.
In today‘s modern world, daily changes in technology and its protection becomes essential.
Through cyber-attacks, hackers may disrupt business organisation or gain access to, or
manipulate sensitive or confidential data or may simply steal important information.
The organisation should take precautions to detect, classify and manage security
incidence. Attacks can be Denial of service attack, Distributed Denial of service attack,
Ransomware, Malware, Phishing, Whaling, Vishing, Drive-by downloads, Browser Gateway
frauds, Ghost Administrator Exploit etc. In order to prevent such types of attacks, a number of
counter masseuses can be set up at the organisation level.
Research Methodology:
a. Research Design: - This research paper is descriptive and exploratory in nature.
b.Sources of Data:- Secondary sources of data is used. In this paper, the RBI Guidelines are
referred.
Objective:-
To identify the initiatives taken by JSBL for mitigating cyber threats for safe and sustainable
business practices.
Hypothesis:-
JSBL is taking precautionary measures for mitigating cyber threats as per the RBI guidelines.
In the world scenario, there are different organisations for different purposes but
financial institutes are the most vibrant and economically important organisations. They directly
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deal with cash transactions, online transactions, as well as securities, commodities, derivatives,
investment banks, hedge, pension, Mutual Fund, insurance companies etc. which can occur in
just one click. From the safety point of view, they need to take more precautions.
Nowadays all the financial organisations use different tools. To do such type of
transactions they mostly use online transaction tools such as interactive websites, mobile apps,
ATM machines ( for cash withdrawal and deposit), all purposes machines, etc. Such machines
or websites are the soft targets for any cyber-attack, so it is essential to protect them from any
type of Cyber-attack.
As far as India is concerned, in order to mitigate these cyber threats Reserve Bank Of
India (RBI) as a central bank laid down certain policies for Urban cooperative banks. *
As per the RBI guidelines, use of information technology in banks has grown rapidly and
is now an important part of the operational strategy of banks. The number, frequency, and
impact of Cyber incidents/ attacks have increased manifold in the recent past, more so in the
case of the financial sector including banks. There is an urgent need to put in place a robust
cybersecurity/ resilience framework at UCBs to ensure adequate security of their assets on a
continuous basis. It has, therefore, become essential to enhance the security of the UCB, from
cyber threats by improving the current Defence in addressing cyber risks. It is observed that the
level of Technology adoption is also different.
RBI has issued guidelines to safeguard all the UCB under one platform which will be
used all over India.
In this research paper, researchers tried to discover, a case study of Janata Sahakari Bank
Limited which is one of the leading cooperative Bank in Pune region. we have tried to compare
policy formulated by Janata Sahakari Bank Limited with RBI policy. Accordingly, Researchers
forwarded the questionnaire based on RBI policy guidelines. The answers given by the bank are
disclosed in the tabular format.
Researchers visited Janata Sahakari bank and ask a few questions regarding their customer
database and all.
Information about JSBL
Total Turnover 14,000+ (figures in crores)
Customer base 13,70,000
Total Number of Branches 71
Total Number of ATM (onsite and offsite) 69
As per RBI guidelines following details have been collected about JSBL
Sr.
No
Questionnaire as per RBI guidelines Answers by JSBL
1 Whether Net Banking and / or Mobile Banking is
available with the bank?
Both
2 How many customers are using Net Banking 34500
3 How many customers are using Mobile Banking. 21800
4 How many customers are using Net Banking and
Mobile Banking
56300
5 Does bank have CBS and Data Centre? Both
6 What is the capacity of Data Centre? 25 Lakhs Customers
7 What measures you have taken to safeguard Net Firewall
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Banking & Mobile Banking? Implemented SSL
TLS to secure links
Dual Authentication
8 How do you educate your customers? E-Mail
SMS
Customer Meet
Training
9 Do you have Cyber Insurance? Yes
10 Do the bank have Cyber Security Policy as per RBI
guidelines?
Yes
11 Do you have Cyber Crisis Management Plan? Yes
12 How do you ensure protection of customer
information? VAPT Audit
Information System Audit
Red Team Exercise
13 Do you conduct Vulnerability Assessment and
Penetration Testing Services (VAPT) audit?
Yes
14 Do you conduct Information System Audit? Yes
15 What is the frequency of Information System
Audit?
Yearly
16 Do you conduct Red Team Exercise? Yes
17 What is the frequency of Red Team Exercise? Yearly
18 Do you submit supervisory report to Department of
Co-Op Bank Supervision, Central Office, C-9, 1st
Floor, BKC, Mumbai 400051 on quarterly basis?
Yes
19 Do you have separate network controls for different
facilities like RTGS, SWIFT, CBS, ATM etc?
Yes
20 Has the bank faced any kind of cyber threat so far?
what action was taken?
NO
As per the above data, we can conclude that JSBL is following RBI guidelines
meticulously for the safety and security of customers data and information. JSBL has Cyber
insurance for the bank, Cyber Security Policy, Cyber Crisis Management Plan. This will
safeguard Online Transactions, ATM transactions, and Fund Transfer, etc.
Conclusion:
JSBL as one of the major UCB in Pune region is adhering the RBI guidelines regarding
mitigating cyber threats for sustainable business operations. It is done in order to safeguard the
database of the bank and customers. From the above case study, Researchers conclude that it is
essential for all the banks to follow RBI guidelines for Mitigating cyber threats for sustainable
business practices.
Bibliography:
1. www.rbi.org
2. www.google.com
3. RBI policy letter no – RBI/2018-19/63 ,DCBS.CO.PCB.Cir.No. 1/18.01.000/2018-19.
4. http:// www.usatoday.com
5. http://www.cert-in.org.in
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Challenges before Sustainable Banking in India
*Avinash Salve & **Prashant Salve Assistant Professor
M.E.S Garware College of Commerce,
Karve Road, Pune (Maharashtra)
Abstract:
Today is the era of globalisation, international demand and extreme market competition.
This competition demands quality products and services from every business which could
compete with any rivals throughout the world. Business houses wish to earn maximum revenues
through maximum production, which demands funds from financial intermediaries. Capital and
finance provided by financial intermediaries are blood for every business organisation to
produce quality goods and services.
Banks are the driving force for development of any economy. When a bank before lending
to any business, expects sustainable and socially responsible practices from that business house,
this activity is called as sustainable investment or sustainable banking. Banks directly or
indirectly creates a capital base for the business houses in an economy. If banks plan for
sustainable development of an economy, if they practice sustainable banking, most of the
organisations in the economy would have to go green.
India being a developing nation, and eager to be declared as a developed nation as early
as possible, it becomes more challenging to keep the environment protected. India is full of non-
conventional resources but the technology to use these resources is scarce. The use of green
technologies demand high cost at initial stage. All the stake holders of the society should have
the desire to protect the environment and should be ready to bare the economic, social and
financial burden for the same. The rising Non Performing Assets (NPA‟s) are creating a
pressure on the banks to make profitable investments. Large number of population still practices
traditional banking leading to wastage of papers. Thus, there are various economic, social and
political challenges before sustainable banking in India.
Keywords: Sustainable banking, Investment, Finance, NPA,Sustainable development.
Introduction:
India being a nation on the verge of development, it is in a state of competition with
various nations for being called as an advanced or developed country. Such a high paced
development demands infrastructural growth, large scale production of goods and services,
technical advancement, better standard of living for citizens, advanced and quality education,
better medical facilities, skill development, cleanliness, etc.
Globalisation has contributed towards better life for the common people, but it has also
created an intense competition between the industries for generating revenues. Wide open
markets create an equal opportunity for all to produce goods and services. Further these goods
and services have to be at a competitive price so as to attract more customers.
In a pursuit to produce more and generate revenues, the nation as a whole is becoming
hungrier for the resources. India is a nation having rich sources of natural resources and thus it
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has a greater responsibility to conserve these resources. It is not just the responsibility of the
industries and the government to conserve the environment. Every single element of the society
has to play its own crucial role and contribute towards a better tomorrow. India as a nation
should be known as a super power in the world which is rich in its ecosystem and gives equal
importance towards maintaining its natural environment.
Less than 5% of retail investors have a habit of investing in Indian equity market. Thus
the industries are heavily dependent upon the banking sector for its capital requirements. The
banks can collectively enforce sustainable business practices upon the industries. Banks could
make sustainable business practices as a criteria for providing credit to business houses. If banks
make a habit of investing more funds in green businesses and less in other businesses, it could
motivate the industries to practice green business.
If banks could substantially increase its dependence on non-conventional sources of
energy for its branches and ATM‘s, it could have a big impact on environment in a long run. As
of June 2018, the total number of functioning offices of commercial banks in India was 1,49,891.
If all this branches increase their use of non-conventional sources of energy, it could make a
huge positive impact on environment.
―We want to have one mission and target: Take the nation forward – Digitally, and
Economically.‖ -Shri NarendraModi.
As of March 2017, the total number of current and savings bank account in India were
157.1 crore. Around 36% of account holders in India, make use of digital payments mechanism.
Online transactions helps save papers as well as it saves traveling convenience of the customers.
Digital banking habits among general population could be the best contribution of masses
towards environmental sustainability.
Banks have a potential to bring about a greater change in the resources consumption
patterns in India. Indian banks could indirectly influence industries to accept eco-friendly
methodologies for doing business. But ultimately it is the responsibility of all the elements of the
society to optimistically utilise the resources available and conserve the environment.
Research Methodology:
This research is descriptive in nature. Secondary data was used for the study. The data
was collected from various reference books related to banking and finance. The secondary data
was also collected from various journals and articles. For the research literature was collected
from libraries. Secondary data was also collected from various websites.
Objectives of Study:
1. To study sustainability in banking business.
2. To understand the concept of Sustainable Investment.
3. To study challenges towards sustainable banking.
Sustainable Development:
―Development which meets the needs of the present without compromising the ability of
future generations to meet their own needs‖.
- Our Common Future.
Economic development is the need of mankind, and exploitation of resources is the need
of development. Economic resources like land, labour, capital and enterprise, and natural
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resources like sunlight, water, fossil fuels, minerals, vegetation, etc. are used for the production
and development purpose. Development and exploitation of resources are directly related with
each other. Higher the intensity of development in an economy, higher would be the
consumption of resources in an economy.
Sustainable development refers to utilisation of minimum amount of resources for
maximum level of productivity and development. The resources have to be conserved so that the
next generations could use them effectively for their own needs of development. The
development should satisfy the needs of humans as well as it should maintain the biotic system
of the nature that satisfies the needs of other life forms on the earth.
Sustainable Banking:
Banks act as the custodian as well as resource provider for an economy. Banks form a
financial base for the production houses. These institutions make provision of required capital for
the borrowers and thus contribute towards the national development. Sustainable bank means a
bank that is concerned about environmental and social impact of its business.A bank could be
called as a sustainable bank when it follows socially responsible practices. Its impact of
ecosystem is as minimum as possible. These banks make an impact on borrowing business
houses and motivate them to use green technologies and practice sustainable business. These
banks use paperless technologies for doing business with the customers.
Sustainable Investment:
Businesses need long-term and short-term funds for producing goods and services.
Businesses meet their capital requirements through various investors. The combination of funds
raised from these investors forms the capital structure of the business houses. Banks are one of
the crucial funds providers for the business houses. When banks invest funds to sustainable
business houses, such investment is known as sustainable investment. Banks can make an impact
on the business houses and urge the businesses to practice sustainable production. Banks are
important investors for the industries. Banks can practice an investment habit of investing more
in sustainable industries and less in non-sustainable ones. And thus could indirectly influence all
the industries in an economy to go eco-friendly. Such an investment habit could create a win-win
situation for the banks, depositors, borrowers, environment and the society at large in a long run.
Sustainable Banking Challenges in India:
Pace of Growth: Since 1991, India has been growing at an average 6-7% GDP annually. Even
though India is facing serious challenges like high population, poverty, illiteracy and sanitation,
since 2014 (2017 being exception), India is world‘s fastest growing economy. India is in a state
of high paced growth, which requires huge production of goods and services and thus greater
consumption of resources. As per a report of India Today, the percentage of highly polluting
industries non-compliant with environmental standards has gone up from 10% to 17% between
2010 and 2014. So it becomes very challenging for the banks to make sustainable investments.
Technological Constraints:India has loads of non-conventional sources of energy.
TheTharDesert has huge potential of producing solar energy. India being known for its rivers,
has a potential to explore its hydro energy sources. States of Gujarat, Tamil Nadu and
Maharashtra could contribute more towards generating wind energy. With a coast line of about
7500 kms, India has a potential of generating huge amount of tidal energy. India has good
sources of geothermal and biomass energy too. But the research and development on these
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energy resources has been not up to the mark. The technology to explore such resources is
lagging behind. Moreover, the skilled manpower to effectively utilise such resources is a grey
area. Thus banks have to be heavily dependent upon other conventional sources of energy for its
daily activities.
Cost of Green Technologies: India is a nation with huge population and low per capita income.
The end consumers expect to goods to be less expensive. Due to poverty and low standards of
living, the consumers could not pay higher amounts for eco-friendly products. The cost of initial
installation of green technologies is high for the industries, which could be further passed on to
the end consumers. The consumers won‘t be ready to pay the high prices. So it becomes difficult
for the banks to influence the industries for adopting green technologies.
Pressure of Investments: Indian banks, especially public sector banks are facing issues relating
to NPA‘s since 2008. And the problem of NPA‘s has been rising year after year. The banks are
more focused of profitable investments for its survival rather than environment friendly
investments.
Traditional Banking Habits: With the development of internet and technology, various new
electronic payments mechanisms are available now-a-days. The government is also trying to
infuse digital banking habits among common masses. But still around 64% of account holders in
India practice traditional banking. Traditional banking creates an issue of paper usage, as well as
the customers have to travel to the bank branch and back home, for using its services. Thus the
customers waste papers as well as they utilise fossil fuels for travelling purpose.
Ethos of Common people: The cost of initial installation of green technologies is usually high,
which could increase the market price for the products.Reason being poverty, Indian common
man cannot afford high priced products. If a common person has an option of buying high priced
eco-friendly product and a low priced ordinary product, that person will most probably go for the
low priced good. Thus Indian customers prefer cheap goods rather than high priced eco-friendly
goods. Moreover Indians love physical assets which makes them prefer traditional banking over
paperless banking.
Conclusion:
Sustainable development has become basic need for all the economies throughout the
world. All the socio-economic elements have to strive hard towards creating a better and
sustainable society. The banks have a potential to directly or indirectly influence industries and
society in an economy towards sustainability.
Sustainability goals are very difficult to achieve if only few are making huge contributions. But it
could be relative easier to achieve sustainable development if whole society makes small
contributions.
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Challenges to Sustainable Development in India : an Analysis
Dharmaraj Hazarika
Research Scholar,
Prof. Ramkrishna More Arts, Commerce and Science college,
Akurdi, Pune (Maharashtra)
e-mail: [email protected]
Abstract:
In recent times the developing countries like India are facing a critical dilemma
regarding choice between economic growth and sustainable development. Both of these are
equally important in present day situation. As a developing country, India‟s first priority remains
economic growth. But at the same time the goal of sustainable development cannot be denied.
Thus, while proceeding with both the objectives of economic growth and sustainable
development India is facing some challenges regarding achieving the goal of sustainable
development. The present study is an attempt to analyze the various challenges facing by India in
achieving the goals of sustainable development.
Introduction:
Simply sustainable development is the economic development process that is conducted
without depletion of natural resource. The modern concept of sustainable development becomes
popular basically after the Brundtland Commission (formerly known as the World Commission
on Environment and development) report, 1987. It defined sustainable development as the
development that meets the needs of the present generation without compromising the ability of
future generation to meet their own needs. Thus, it directly mean about the development with
environmental concern. For a balance development in future the concept of sustainable
development is utmost necessary. But, in recent times the developing countries like India are
facing dilemma regarding the choice between economic growth and sustainable development.
Both of these are equally important in present day situation.
After the independence the Indian economy witnessed a great transformation from
traditional rural based economy to modern urban based economy. Basically after adoption of
new economic policy, 1991, India‘s economic scenario has been changed a lot. At present the
main characteristics observed in Indian economy are increase in the rate of industrialization,
adoption of modernize agricultural system, rapid urbanization, high energy consumption,
increase in the use of vehicle,more use of capital intensive techniques in both agricultural and
industrial sector, etc. All of these are said to be positive signs for the economy as these indicate
improvement in both the economy and society.But, at the same time these implies environmental
degradation also. Because all of the above factors directly affect on the environment and thus the
goal of sustainable development. Therefore, India is facing dilemma regarding the choice
between economic growth and sustainable development. As a developing country, India‘s first
priority remains economic growth. But, at the same time the goal of sustainable development
cannot be denied. Thus, while proceeding with both the objectives of economic growth and
sustainable development India is facing some challenges regarding achieving the goal of
sustainable development.
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Objective:
The main objective of the paper is to analyze the challenges faced by Indian economy in
achieving the goal of sustainable development.
Methodology:
The paper is of descriptive type and is based only on secondary data. While preparing the
paper various journals, books, research papers, government reports are used as the sources of
secondary data.
Results and Discussions:
The major challenges faced by Indian economy regarding achieving the goal of
sustainable development are as follows.
(1) Rapid population growth:
Rapid population growth is an important challenge to sustainable development in India.
At present India is the second largest populated country in the world having one fifth of world‘s
population. A scenario of India‘s population growth during last 5 decades is depicted in the
following figure.
Figure 1: India‘s Population growth during last 5 decades
Source: Census data.
From the figure it is observed that India‘s population is increasing at alarming rate. At
present India is the second position regarding population size. On the contrary to population size,
India occupies only 2.4% of the total geographical area of the world. It means within the whole
world only 2.4% geographical area is bearing the burden of about 20% (one fifth) of whole
population in the world. Due to this increased population,Demand for goods and services are
goes on increasing, which in turn results in more productive activities and thereby more
exploitation of natural resources.
(2) Mass poverty:
Poverty is an another challenge to sustainable development in India. Different
committees or reports estimated poverty in different times. According to Tendulkar Committee
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report, the population below poverty line in India during 2010-11 was 269 million, which was
about 21.9% of the total population in India. Similarly, Rangarajam Committee estimated that
India‘s population below poverty line during the year 2011-12 was 363 million, which is about
29.5% of the total population. This huge amount of population cannot think about environment
while finding their livelihood. The major concern of these people is to removing their
requirement in any ways. Thus, for these people the environmental concern is the secondary
matter. Therefore, in the presence of such poverty, attempt to approaching towards sustainable
development is said to be only paradox one.
(3) Urbanization:
In recent times urbanization rate in India is growing fast as compared to earlier. The main
reasons behind increased urbanization are increase in government services, industrialization,
growth of private sectors, growth of employment in cities, infrastructural facilities in urban areas
etc. The urbanization rate in India increased to 31.16% according to 2011 census from 27.81%
percent in 2001. The trend of urbanization in India is shown in the following figure-
Figure: Urbanization trend in India since 1961
Source: Census data.
This increased urbanization leads to deforestation, more use of automobiles and
machineries, industrialization etc. which in turn degrade environment in different ways.
(4) Energy consumption:
Pattern of energy use is another challenge to sustainable development in India. In India it is
observed that the renewable sources of energy are not popularized yet. The energy consumption
pattern in India is depicted in the following figure-
Figure: Energy consumption pattern in India, 2017
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Source: en.m.wikipedia.org
From the table it is observed that India‘s primary energy consumption is basically non-
renewable based. More than 90% of energy sources in India are non-renewable. This is not
appreciable regarding achieving the goal of sustainable development in India. This heavy
consumption of non-renewable resource will be a threat to sustainable development in India in
future. Because, this heavy use of non-renewable resources will reduce the stock of the same. It
will create shortage of resources in future for next generation.
(5) Industrialization:
India‘s industrialization rate is growing faster as compared to other developing countries.
This is a positive sign for the country in global perspective. But the tragedy is that the
industrialization of the country is going on with such technologies which are not environment
friendly. Due to lack of sufficient resources India still cannot use modern technology which has
no negative impacts on environment.
(6) Employment Pattern:
Regarding employment pattern in India, it is observed that among the total workforce a
small number of workers are engaged in organized sector.As per the result of labour force survey
on employment and unemployment conducted in 2011-12 by National Sample Survey Office
(NSSO), Ministry of Statistics and Programme Implementation, the number of estimated
employed persons in 2011-12 on usual status basis were 47.41 crore, of which 82.7% of
workforce (39.14 crore persons) was in unorganized sector. Remaining only 17.3% of
workforces are engaged in organized sector (Press Information Bureau, Government of India,
Ministry of Labour and Employment, 25th
July, 2011). On the other hand, most of the population
belong to this unorganized sector directly and indirectly depends on nature for their livelihood.
They survive their livelihood by using various resources from nature or environment and they
use the resources in an unsustainable manner.
(7) Modernized agricultural system:
In India, after introduction of green revolution, agricultural sector get boost. The
agricultural system is modernized by different ways, such as use of new HYV seeds, multi
cropping in a year etc. All of these are done by using huge amount of chemical fertilizers,
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pesticides etc. These results in degradation of soil quality (or destroy the natural fertility power
of soil), air quality, water quality in many ways.
Thus, these are the major challenges faced by Indian economy in the path of sustainable
development.
Strategies for sustainable development:
The following strategies will be effective to maintain sustainable development-
The 3 R approach:
The 3 R approach, i.e., reduce, recycle and reuse should be adopted as much as possible
in every possible sector. The 3 R approach advocates three aspects of resource use- reduction in
resource uses; using the resources again and again instead of passing it to the waste stream; and
recycling the resources. Practical use of this approach reduces pressure on resources, reduces
waste and reduces pollution.
Energy consumption pattern:
Energy consumption pattern should be changed. Renewable resources should be
popularized. It will prevent the reduction of stock of non-renewable resource.
Adoption of compulsory environmental education and awareness:
Environmental education should be compulsorily included in the curriculums of each
level of education. It will help in changing the thinking pattern and attitude of people towards
environmental protection from early stages of life.
Resource use:
Renewable resources should be used in such a way that resource exploitation rate is
smaller than resource regeneration rate. It will maintain a positive growth rate of renewable
resource. Otherwise, the stock of renewable resources will exhaust.
Reduction in population:
Size of population should maintain to a stable level. Increase in population creates
pressure on environment and which in turn results in over exploitation of resources,
environmental degradation, more pollution etc.
Organic farming:
Organic farming is the farming with no negative environmental impact. In other words, it
is the farming system which is done by using natural components of farming. It helps in
maintaining the natural fertility power of land for a long period.
Conclusion:
In recent time the sustainable development become need of hour. It is utmost necessary
for future generation. At if the concept of sustainable development is not followed, the evils
of development process have to be faced by the future generation. Though, as a developing
country India‘s first priority is economic development, the goal of sustainable development
cannot be denied. Along with the goal of economic development, sustainable development goal
should also be equalized. A balance should be maintained between these two goals. The
economic development process should be adopted in such a way that it creates least pressure
onenvironment as well as resources.
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References:
1. Dhankar, V. (2016): ―India and Sustainable Development‖, International Journal of
Computing and Corporate Research, Vol-6, Issue-2.
2. Patil, J.S. (2014): ―Sustainable Development in Indian Economic Perspective‖, Journal of
Economic an Sustainable Development, Vol-5, No.19.
3. Bahadure, P. &Bahadure S.(2012): ―Sustainable Urban Development in India: Challenges
& Approaches‖, Conference Paper, International Conference on Advances in
Architecture & Civil Engeneering, June, 2012.
4. Bhat, B.J. (2015): ―Sustainable Development Effort in India‖, Proceeding of International
Conference on Global Business, Economics Finance and Social Sciences, February,
2015.
5. www.iynf.org
6. ―India and Sustainable Development Goals: The Way Forward (2016)‖, published by
Research and Information Systems for Developing countries, New Delhi, India.
7. Gupta, K. K. &Chirayath, S (2013): ―Sustainable Development in India- Perspectives‖,
GALAXY International Interdisciplinary Research Journal, Vol-1, No. 2
8. Mandal, P. : ―Sustainable Development in India‖, yourarticlelibrary.com.
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Sustainable Financial Planning is the Key for Success in Investments
Dr Sunil Zagade*, CA Karishma Ghundiyal**
*Research Guide,
Garware College of Commerce, Pune, Maharashtra.
**Academician, MES Garware College of Commerce, Pune, Maharashtra.
Abstract:
Warren Buffet quotes: “Do not save what is left, but spend what is left after saving.” The
research paper is about how the sustainable financial planning can be made with Systematic
Investment Plan (SIP), Systematic Transfer Plan(STP) and Systematic Withdrawal Plan (SWP)
in mutual funds, explaining about the concepts of SIP, STP and SWP, how the model works
including the advantages and disadvantages. It explains the differences between SIP and lump
sum investment in mutual funds. And difference between SIP and Recurring Deposit. A brief
explanation of how to build a financial plan is given considering the investment objectives and
risk considerations. Mutual funds are also subject to market risk and hence careful consideration
is must. A paragraph also explains what the best date is for SIP in mutual funds. The paper also
contains that how the fund manage the cost i.e. explaining the term total expense ratio. Because
someone else i.e. the fund manager who is a qualified professional manages the portfolio and
take decisions according to the scheme objective. Emphasis is also given whether it is a direct
plan or a regular plan. And the most important aspects about how the SIP returns are
calculated. Investors do consider the return being generated by the fund manager as compared
to the returns being generated by the benchmark of the mutual fund.
Key words: Financial Planning, Systematic Investment Plan (SIP), Systematic Transfer Plan
(STP), Systematic Withdrawal Plan (SWP).
Objectives:
1. To understanding the concepts of SIP, STP and SWP
2. To understanding how the model works of SIP, STP and SWP.
3. To understand on how to make a financial plan or model considering the investments risk
and objectives.
Research Methodology:
This research paper is purely based on secondary data. The references are taken from
financial portals, mutual fund companies and asset management companies. Also references are
being taken from various blogs related to investment planning and mutual funds. Articles from
Economic Times Wealth and journals are conceptualised. The primary method adopted is
observation as the author is himself a investor and thus analysis and understanding is adopted by
practical experience.
Scope:
The scope of the research paper is restricted to concepts relating to mutual funds only.
The research paper is not a report of any mutual fund and its performance. The research paper
covers the broad aspect about how investment can be made in mutual funds through options like
SIP and how the financial planning can be made using the tools like SIP, STP and SWP.
Also it does not comment on any specific mutual fund house or fund manager or its performance.
Mutual Funds do invest in stocks, bonds and debentures according to the scheme objective and
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thus the paper does not comment on any stock or bonds in equity market, debt market or money
market.
Content:
Concept of Systematic Investment Plan (SIP)
A systematic investment plan or SIP is a more of regular investments in mutual funds.
SIP allows us to invest a certain predetermined amount at a regular interval (weekly, monthly,
quarterly, etc.) One of the best ways of entering equity market is through Systematic Investment
Plan (SIP) in equity mutual funds, as it brings in an investment discipline for your future cash
flows and helps in rupee cost averaging.
Features of investment through SIP
A SIP is a flexible and easy investment plan. The money is auto debited from the bank
account and invested in to a specific mutual fund scheme.
The investors are allocated certain number of units of mutual fund based on the ongoing
market rate called NAV (net asset value) for the day of SIP. Every time when a investor invest
money, additional units of the scheme are purchased at the market rate and added to account
hence units are bought at different rates and investors benefit from rupee cost averaging which
means one get more units when market is low and fewer units when market is high and hence
market averaging happens.
SIPs are done only in open ended funds in which the investors can invest and take out the
money anytime.
There is no fixed tenure for running SIP. Even if one selectsSIP tenure, if one wishesone
can stop it in between or one could continue it even after the tenure ends by placing a request
with respective mutual fund company. One can also do a perpetual SIP.
Full and partial withdrawal is possible during or after the SIP tenure is over.
SIP is an ideal tool of mutual fund investment for investors owning regular monthly income.
SIP is a method of investment in mutual fund and hence its risk profile is equivalent to the time
to the type of asset you invest in.
Chart:
Reference: Reference: https://www.principalindia.com/learn-mutual-funds/regular-investor-basics/sip-stp-
rwp-triggers
Why should one invest through SIP method?
Pros and Cons
SIP instils a habit of savings –Through SIP an investor saves a part of his income first
and then manages the expenses from what is left over. This habit of savings alone makes SIP
method a winner among all.
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Reduces overall ways of investment - With SIP, one avoids the timing the stock market
investment. Investment is made in each stage of market i.e. the highs and lows of the market
which results in steady capital appreciation.
Power of compounding - SIPs helps in an early start of investment as it can start small.
Also SIPs are mostly done for long term financial goals. These two factors of early start and
long-term investment help to multiply returns due to power of compounding.
Convenience - Investor can send a one-time instruction to his bank to allow auto debit of
the investment amount each month from his savings bank account allowing systematic
investment without worrying about missing out on any monthly investment.
Concept of Systematic Transfer Plan (STP)
STP stands for systematic transfer plan. STP gives a facility to investor by which the
investor can transfer a fixed or variable amount or units of funds from one scheme to other at
regular intervals (weekly, monthly or quarterly).
STP is majorly used to transfer money from debt fund scheme to equity schemes as
during volatile markets one may not feel confident to invest a lump sum amount in equities. So,
in that case good strategy is to invest the lump sum in debt and start an STP to equity, which
spread your investment in selected time frame. This may be a good risk mitigation strategy.
An STP can also be used to transfer funds from an equity fund to debt, when a goal for
which one have been investing for a long term has come within 3 years when one would require
the amount. This way investor can protect corpus from possible market fluctuations.
Key considerations in using STP
STP is a facility for convenience, when transfer happens from one mutual fund scheme to
another it is still considered as selling of the first scheme and then buying another one, so tax
rules apply in the same way.
STP can be done from one scheme to other of the same fund house and hence at initial
investing stage, fund house should be selected based on equity scheme you want to invest in.
For example - one cannot start an STP from HDFC liquid fund to Axis equity fund but an
STP from HDFC liquid fund to HDFC equity fund can be done.
STPs can be done only among open ended Mutual fund schemes.
Chart:
Reference: https://www.principalindia.com/learn-mutual-funds/regular-investor-basics/sip-stp-
rwp-triggers
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Concept of Systematic Withdrawal Plan (SWP)
SWP stands for Systematic Withdrawal Plan. In principal, it is the reverse of SIP concept.
In SIP, one looks at accumulating corpus by making regular investments into a mutual fund; in
SWP, one regularly withdraws a fixed amount of money from the fund. The fund‘s value and
number of units will reduce to the extent of each withdrawal. The amount to be withdrawn and
the frequency – monthly, half yearly, or annually – are set by the investor.
For Example: Mr XYZee has 5000 units in a mutual fund scheme and he wants to
withdraw Rs 4000 every month as SWP:
On January 1, the NAV of the scheme is Rs 10 hence 4000/10=400 units will be
redeemed in the first month giving him Rs 4000.
At this stage, remaining units will become 5000-400 = 4600
On February 1, let us say NAV of the scheme becomes Rs 20, hence 4000/20 = 200 units
will be redeemed in second month to him giving Rs 4000.
This process can go on till all the units get exhausted.
Chart:
Reference: https://www.principalindia.com/learn-mutual-funds/regular-investor-basics/sip-stp-
rwp-triggers
Key considerations in SWP
SWP is a method where investor is assured of getting a fixed amount at the pre-
determined frequency. The problem with other regular money options like a monthly income
plans, which pay dividends, is that the amount and the frequency of payouts is not fixed.
Withdrawals in SWP are treated as normal withdrawals. So, exit load of the fund should
be checked before starting an SWP.
Since each withdrawal is essentially a sale of units, one should remember to check the tax
implications on the redemption. One should start SWP only after remaining invested for at least a
year in equity funds and 3 years in Debt funds to reduce tax implications to the lowest.
Investor cannot run a SIP and SWP in the same fund.
The number of withdrawal one can make from the fund corpus depends on the amount of
withdrawal, size of corpus and the rate of return of the fund.
When to use SWP
SWP should be used when one want a fixed periodic income in retirement years, when
one does have any other income.
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Investoris giving a fixed monthly expense to his child for hostel out of his Education
corpus.
One is planning for sabbatical leave and wants to take care of your expenses from
accumulated investments.
Difference between SIP and lump sum investment.
SIP and lump sum investment are two different methodologies of investment, one for an
investor who has regular future income and another for an investor who has money at hand,
respectively. So, putting it simply, if onehas money at hand or irregular income one should invest
in lumpsum and if one has regular salary income, one can opt for SIP. But things are not so
simple always, the difference is as follows:
Basis SIP Lumpsum Investment
Mode of
investment
Investing the amount in
systematic way i.e. investing a
fixed amount periodically
Investing the amount at once in a mutual
fund.
Risk Comparatively lesser risk as the
investment gets spread over a
period and hence absorbs some
volatility of the market.
Higher risks as markets can move either
way post investment.
Key Benefit Discipline: The biggest benefit of
SIP is that it creates a discipline
of saving and investment every
month.
Can time the market and can also transfer
money systematically. If one thinks markets
are at all-time low, lumpsum investments
can fetch better returns. Also, ifone thinks
market is volatile, still one does have an
option of STP to enter the market
systematically rather than through lump
sum investment.
SIP VS Recurring Deposit (RD)
If one wishes to invest small amounts of money on a regular basis each month, in the hope of
gathering a large corpus after a few years‘ time, one can choose to go either the SIP or RD. Let‘s
see the comparison:
Basis SIP RD
Investment Through SIP, one may invest in equity,
hybrid or debt mutual funds
Through RD, one invest in fixed
deposit schemes of a bank
Frequency of
investment
One can do SIP with frequency daily,
weekly, monthly or quarterly as per
your choice.
Frequency is mostly monthly.
Returns The returns obtained are dependent on
the equity or debt market as per the
scheme chosen by the investor. Over
long run, better performing mutual
funds have given double digit returns
Rate of return is fixed in RD and is
known at the time of the start of RD
account. Currently RD interest rates
between 6 to 7.5%.
Risk Returns in SIP are variable and there
can be a risk returns and capitals as per
markets
RD is very safe investment and the
risk is negligible as money is
deposited into a bank.
Liquidity You can close the SIP anytime and
redeem your investment subject to Exit
load policy of the fund.
With RD, premature withdrawal or
closure will attract penalty charges.
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Taxation SIP, of course are more tax efficient as
they invest in mutual funds eg. Tax
savings funds and Equity Linked
Savings Schemes.
The interest earned on RDs is
usually taxed as per one‘s income
tax slab on accrual basis every year.
Best Date for SIP in mutual funds.
The day after getting salary is the best day for SIP. SIP is less of investing strategy more
of a savings approach. There is no single best date day to run SIP.
Various theories are available, which may give preference towards different dates, but
difference is minor and may not hold in future. So, important is to invest as soon as possible.
Risk in SIP investments? Can there be loss in SIP?
Yes it is an investment methodology where oneinvests in mutual fund periodically. So,
risk factors associated with SIP are same as that of the fund itself, irrespective of the way one
invests.
If SIP is started in an Equity Mutual Fund, then the investment would be prone to high
risk, as the instrument is company shares and if one starts an SIP in debt fund then it would be
prone to low or medium risk as the instruments are government securities and corporate bonds,
etc.
We must know due to structure of SIP i.e. regular investment for long-term, the market
risk reduces by certain level asit invests in both ups and downs of the market. Therefore, one gets
returns which represents overall economy and market direction for the long term which is mostly
positive.
Hence SIP is the best way to invest in volatile equity markets.
Can there be negative returns from SIP?
Of course, yes, there can be negative returns and there is higher chance in short term for
equity funds. SIP returns in Equity are directly linked to stock markets and if they sustain
consistent losses which can be a possibility in the short term due to volatile nature of the stock
market,SIPs will also give negative returns.
SIP works on the principle of regular investments and brings the power of compounding
to forth.It removes tensions and uncertainty from investment plan by making it a mechanical
regular process.It inculcates the habit of regular savings and does not encourage timing and
speculation in the markets. But, remember that SIP is just another method of investing; it is a
vehicle not the destination.
SIP returns calculations
An SIP investment takes place on a particular date at regular intervals. When the
investment is made, one will get a fixed number of units depending on the prevailing NAV of the
scheme at that time.
Over a period of time, you would accumulate a large number of units. That is why it
becomes difficult to find out the total returns you have earned over a period. This is because
every SIP instalment may have fared differently and has a different time period of investment.
XIRR is a function in excel for calculating internal rate of return or annualized yield for
an array of cash flows occurring at irregular intervals.
To calculate XIRR what is needed:
SIP Amount
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Dates of SIP investments
Date of redemption (if you haven‘t redeemed the money but just want to check returns as
of today, then put today‘s date)
Maturity (redemption) amount (if you haven‘t redeemed the money but just to check
returns as of today, then put Today‘s value of investment)
1. Illustration for calculation of SIP returns.
SIP of Rs 5,000 a month with redemption amount of Rs 31,000 Starting date of SIP:
01.01.2018, last SIP date: 01.06.2018. Redemption date of Sip: 01.07.2018
Then CAGR (compounded annual growth rate) will be 11.92%,. Here is the calculation
screenshot
Cost involved – Expense Ratio.
To manage the money, a mutual fund house/Asset Management company incurs some
expenses such as fund management fee, agent commissions, registrar fees, auditor fees,
advertising expenses,etc.
Expense ratio states how much one pays a fund in percentage terms every year to
manageinvestors‘ money.
Example: If you invest Rs. 20,000 in a fund that has an expense ratio of 2%, you have to
pay Rs 400 for managing your money. So basically, if a fund earns 10% and has a 2% expense
ratio, it would mean an 8% return for you.
Always remember, irrespective of whether a fund generates positive or negative returns
expenses are always incurred.
Also, a lower expense ratio does not always mean that it is a better-managed fund or will
give better returns. A good fund is one that delivers good returns with minimal expenses.
It matters where two funds look similar in almost all aspects, but have a sizable
difference in their expense ratio.
Note: all the returns and NAV we see on various mutual fund websites are mentioned are
expense ratio adjusted.
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Direct Plans in mutual funds.
Direct plan schemes are schemes in which the investor invests directly with a mutual
fund house. In such plans, there are no intermediaries or distributors or brokers involved and
therefore expense ratio of these plans are lower than the regular ones as AMC sales and
distribution cost. Thus savings 0.2 to 1% in expense ratio.
However remember the investment objective, investment makes and everything else
accept expense ratio and NAV of the scheme portfolio will be same as regular plans.
The scheme would denote ―Direct‖ in its description at the end of such direct plans.
Example:This is how we will see the name of direct and regular plan when we will
invest: Franklin India Small Cap Fund - Direct plan and Franklin India Small Cap Fund -
Regular plan
Regular plan in mutual funds.
Under regular plans, investor invests through a distributor or an intermediary, whereas in
direct plans investor invests directly with AMC.
Thus, cost (expense ratio) is higher for regular plans. Remember investor does not pay anything
directly to the distributor or any intermediary, AMC does and that results in higher cost i.e.
expense ratio.
Direct or regular plan which one to choose?
Direct plan seem to be a natural answer, as it always give higher returns than the regular
plan which when compounded becomes a good amount after few years.However the answer is
not so simple. It is same as taking a self-medication and not consulting a doctor or filing tax
returns of your own to save CA course.It may work for some and can have adverse impact for
others.
Conclusion:
SIP is the best mode of investment in mutual funds as above all it instils a saving and
investment discipline in you. SIPs are not a commitment but a discipline drive and this discipline
alone can make one a successful investor.
Using SIP and STP, it is important to understand that the more time the investor gives to
an investment, higher would be the amount accumulated since the power of compounding
increased as the time goes by. Investor must understand the relation between the amount
invested, the time invested and the rate of return earned.
Portfolio should be reviewed periodically. Short term bad performance does not mean it is a bad
bet.
One should stay invested for a longer term, unless there is something really wrong with
the fund or you need liquidity.
Bibliography:
News website-
1. Economictimes.indiatimes.com
2. www.financialexpress.com
3. www.businesstoday.in
4. www.hindubusinessline.com
5. www.business-standard.com
6. www.livemint.com
7. timesofindia.indiatimes.com
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Financial Portals
1. Valueresearchonline.com
2. Moneycontrol.com
3. www.bankbazar.com
4. www.morningstar.com
5. www.bigdecisions.com
6. www.amfindia.com
7. www.investopedia.com
8. www.paisabazaar.com
9. www.morningstar.in
10. www.amfindia.com
11. www.karvy.com
Mutual funds companies websites
1. www.icicipruamc.com
2. www.hdfcfund.com
3. www.idfcmf.com
4. Assetmanagement.kotak.com
5. www.utimf.com
Blogs
1. www.quora.com
2. www.jagoinvestor.com
3. cafemutualfund.com
4. www.arthayantra.com/blogs
5. Youtube.com/Invest Yadnya
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A Study of Logistics Integration in Sustainable Food Supply : A Case of
„Samvad Social Technologies‟
*Sushmita Nande & ** Sandeep Rathod Assistant Professor,
MES. Garware College of Commerce, Pune, Maharashtra.
Abstract:
Organizations all over the world are continuously trying to reduce the cost of their
operations. On the other hand, there are millions of people facing hunger. The biggest evil is
wastage, as known in the Japanese concept as „Muda‟. Food wastage is one of an economic,
social and an environmental problem that is faced by the restaurants and hotels all over the
world. Therefore, sustainability is only the answer to this problem. In order to reduce food
wastages and also to add a social contribution, green supply chain concept can be used to solve
this problem by integrating customers, restaurants, NGOs and service providers. The
researchers have studied a Service provider, „Samvad Social Technologies‟, promoting zero food
wastage and how green logistics can be usedin sustainable food supply chains.
Keywords: Food wastage, Sustainability, green supply chain, restaurants, service providers and
integration etc.
Introduction:
Sustainability follows a triangular approach of integrating economic, environmental and
social factors. The importance of sustainability is rising due to a growing concern for the
environment that has forced climate change and other ecological issues. Apart from this factor,
there is a concern about the scarcity of resources, which is the basis for survival of the fittest.
Food wastage in general is a main economic, social and an environmental problem faced
by a country. An estimated 1.3 Billion tons of food is wasted globally (FAO, 2013). In Pune city
alone, around 140 tonne of edible food is wasted every day. The restaurants, eateries, hotels,
households, catering services, etc. contribute to this alarming problem. Waste, also known as
‗Muda‘ in Japanese hampers productivity and lowers the profitability of any business enterprise.
The other challenges are hunger, malnutrition, child stunting which are faced by governments all
over the world. Thus, sustainability is the only key to solve such socio-economic issues.
Logistics integration between efficient participants in the supply chain can be a promising
solution to such problems.
About Sustainability:
Sustainability is the capability to maintain at a certain level. It is the process of
maintaining change in a fashion that is balanced, exploitation of resources, the investments
directions, the orientation of technological development and institutional change are all in
harmony and enhance both current and future potential to meet human aspirations and wants. For
many in the field, sustainability is defined through the following interconnected pillars:
environment, economic and social. Sub-pillars of sustainable development have been considered
also: cultural, technological and political. Sustainabledevelopment maybe the organizing
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principle for sustainability for some, but for others, the two terms are paradoxical. Sustainable
development is the development that meets the needs of the present without compromising the
ability of future generations to satisfy their own needs and wants.
About Integrated Logistics:
Logistics Integration play a vital role in coordination and integration within a supply
chain in order to have collaborative networks not just within the organization but also with the
suppliers upstream and downstream with distributors and customers. Collaboration means many
different things, but basically it refers to joint planning, joint product development, mutual
exchange of information and integrated information systems, cross coordination on several levels
in the companies on the network, long term cooperation, fair sharing of risks and benefits, etc.
One enormous advantage of an integrated logistics is the reduction of the wastages (In Japanese,
‗Muda‘),increase in productivity, improving delivery and customer service. However, as the
process becomes more integrated within a supply chain, the complexity of the logistics decisions
also increases. There are two main aspects involved in the integration of logistics decisions. The
first of these are the information systems. Without integration of information systems between
the different players, there can be no translation or sharing of information, which is the basis for
any possible integration between departments or firms. With today‘s technology, the integration
of information systems is possible and has been implemented by many firms. The second aspect
is the use of optimization systems to achieve an integrated management of the logistics activities.
As more and more industries decide to integrate their information systems, the need for
sophisticated tools to help the decision makers to evaluate possible alternatives, decisions and
their impact in the whole supply chain also increases.
About Samvad Social :
Samvad social is an IT organization which has taken a prudent and altruistic initiative to
get rid of the food wastage through integrating the restaurants, customers and NGOs through
information technology. The main goal was of involving people, by attracting them to take up
this initiative of zero wastage. It is a known fact that there are huge amount of wastages due to
unfinished portions of food by customers worldwide.
The approach to grant incentives to customers when they return the left-over or
untouched food is implemented. Whatever food is left is given back to the NGOs through
integrating them via an IT platform, an application ‗FoodDosti‘ precisely. In the initial stage, the
organization conducted a pilot study to test the same application, and it intends to re-launch in
December. This entire idea was justified by Mr. Sanjay Neve, the CEO, as his ‗Dream‘.
Literature Review:
Petri Helo and Hanne Ala-Harja (2018) Environmental impacts, such as Green House gas
emissions, have been introduced to supply chain management as an additional parameter to
traditional key performance indicators such as cost, lead-time and on-time delivery. This paper
analyses a case example from the food industry on how CO2 emissions are structured in a value
chain. The focus of the analysis covers food factory order-picking operations, transportation and
warehousing and distribution aspects. The paper aims to demonstrate greening and CO2 saving
potential areas of development for thermo-controlled food logistics.
Francesco Zecca and Natalia Rastorgueva (2014) This paper describes conceptual
framework of the contemporary agricultural supply chain processes; examines different
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influencing factors; considers issues of the supply chain sustainability according Triple Bottom
Line concept. Great attention in the article payed to logistics as the most important part of supply
chain. Logistic processes directly related to the three pillars of sustainability. Therefore
sustainable logistics has economic, social and environmental impact (PDF) Supply Chain
Management and Sustainability in Agri-Food System.
Techane Bosona (2013) Logistics related constraints in local food systems could be
tackled through clustering, coordination, integration, and optimisation techniques. The
integration of logistics network in local food supply chains could increase the performance of the
entire chain by reducing overstock, delivery delay, final product price, and by increasing product
value, quality and safety as well as customer satisfaction.
Ingrid Nordmark, David Ljungberg, Girma Gebresenbet, Techane Bosona and Rein
Jüriado (2012) The main objective of this paper was to assess the e-trade integrated logistics
systems, economic benefits and environmental impact of integrated logistics systems, based on
route optimisation analyses and producer data collected using questionnaires. The study revealed
that the introduction of IT-systems for electronic trade had positive and negative economic
effects. Internet-based cloud services designed for electronic business to business trading and
coordinated transport with a common collection centre (CC) were important steps in the process
of integration.
Yan Xiao-hui and Ma Jun (2012) In food companies, the supply chain manager has a
pivotal role in the process from procurement through to managing the reverse logistics, which
can be described as the process of moving goods back through the system with the purpose of
finding another use for the products, or for proper disposal. This requests that food enterprises
develop a sustainable supply chain to realize this process. This paper addresses the concept of the
sustainable food supply chain and the methods and steps to achieve this goal for food industry.
Research Methodology:
The researchers have used a case study and survey method to conduct the research.
Following are the details of research methods adopted and implemented by the researchers for
the completion of the research work.
Objectives:
1. To understand the food wastages happening in hotels and restaurants
2. To know the awareness of food recycling concept in hotels and restaurants
3. To know the use of Information Technology integration in food wastage control
4. To know the awareness among consumer in Pune city about food wastages
Sampling Method:
Researcher had three different sets of questionnaire.
1. The first set of questionnaire was designed for Samvad Social Technologies. It was a
formal interview with the director of the company. The interview was recorded by the
researchers in which pre decided questions were asked. Sampling method was selective
sampling.
2. Second set of questionnaire was designed for the consumers in Pune City to collect the
primary data.
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3. Third set of questionnaire was designed for the hotels in Pune city. Researcher had
visited these hotels to collect the primary data. Convenient sampling method was used.
4. Forth set of questionnaire was designed for the NGOs in Pune. Researcher had visited
these hotels to collect the primary data. Convenient sampling method was used.
Sample Size: The sample size for the consumer‘s data was 200 respondents, Hotels and
Restaurants were 20, couple of NGOs and an IT organisation which works on food wastage
solution was taken for the primary data collection.
Universe: For first set of questionnaire i.e. for the consumer the population of Pune was taken as
a universe, all Hotels and restaurants, NGOs and IT organisation which works on food wastage
solutions in Pune were the universe for other sets set of questionnaire.
Data Collection:
Primary Data: The primary data was collected trough Google forms for consumers and a
structured questionnaire was used for interviewing the hotels and restaurants, NGOs and IT
Organisation.
Secondary Data: It was collected through different published research papers, Reference books,
websites etc.
Data Collection tool: Google form and open ended structured questions in an interview method.
Data Analysis and Interpretation:
Frequency to dine out:
Figure: Dine out frequency
Interpretation:
After analysing the data, it is interpreted that maximum respondents dine out once in a
week. The percentage was 32 and 10 percent f the respondents said that they go out for dine
twice in a week. In all 22% respondents reported that the frequency to dine out is once a month.
21 % respondents reported that the dine out frequency is twice a month and 15 percent
respondents said that the frequency is very high.
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Guest leaves unfinished food on table:
Figure: People leave unfinished food.
Interpretation:
In all 48 percent of people leave the food, which is includes 33% of people leave food
AND 15 % responded leave food occasionally.
Figure: What customer does with unfinished food?
Interpretation:
Maximum customer take parcel of the food with them but not sue they have it later or
not, so not sure whether it is been consumed or goes waste. But still there are people who leave
the unfinished portion of the food, which eventually goes waste.
Approach towards donating the food:
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Figure: Mindset towards donating the food
Interpretation:
The mindset towards donating the food is negative. People do not prefer to donate t food.
In all 88.9% respondents are not willing to donate the food and only 11.1% of the respondents
have positive approach toward the concept of donating the food.
Awareness about food wastage of food:
Figure: Impact of food wastage
Interpretation: In all 60 % respondents are aware of impact of wastage of food on economy,
society and environment and 10% respondents are not aware of the impact.
Awareness of Application like FoodDosti:
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Figure: Awareness of Application like FoodDosti
Interpretation:
In all 78 % of the respondents area aware of the application like FoodDosti which works for
sustainability of restaurants and 22 % of the respondents are still unaware, which states that there
is still the scope for the study to create the awareness.
Findings:
Average of 200 – 400 guests visit the restaurants on weekdays, and 500 – 700 on
weekends. 2 – 5 percent of food is wasted on a daily basis, and the wasted food is worth Rs. 500
– Rs. 2000. Measures taken to reduce food wastage involve suggesting the portions of food to
order, while serving in bulk, cooking less food and in case more food is required then it is
cooked in a very less time.
94% of the restaurants use software to manage the restaurant. It helps the staff to function
with ease and keep a record of every day‘s transactions. Some of the softwares used are Captain
Pan, Hoteline PMS, MMI HOT In, ICC, etc.
In all 35% of the restaurants surveyed by the researchers are in collaboration with
FoodDosti, but the remaining 65% are not aware about FoodDosti or any other similar
applications. The collaboration helps guests in ordering food in half portions, and the untouched
food can be returned back to the kitchen for reward points, which can later be redeemed to buy
food at FoodDosti restaurants. The wasted food which is edible can be sent to an NGO named
‗Robin Hood Army‘, once the NGO is informed, they send a team to collect the food from the
restaurants. An average wastage of Rs. 500 – Rs. 700 worth of food was reduced after the
collaboration, and the zero food wastage initiative taken by the restaurants. More than half of the
remaining 65% non-collaborated restaurants are willing to be connected with such platforms like
FoodDosti, and take up the initiative to reduce the food wastage.
In all 88% of restaurants believe that in today‘s world, information systems, applications
or web existence plays a crucial role in integrating guests with the restaurants. This was not the
case a few years back, now a person can make anything happen right at his fingertips using a
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computing device or a mobile device. And availability of internet services at a substantially
lower price makes it easier for the people to function in this world.
For now, 17% of restaurants are connected with an NGO named ‗Robin Hood Army‘.
The restaurateurs believe that the awareness or motivation of wasting less food should start from
the home itself. Elders should teach the youngsters to only eat the food they can have, leading in
less wastage. On the restaurants‘ side, guests shall allow the restaurant staff to suggest the apt
portions of food sufficient for them, and even if guests do not ask about this, restaurant staff
should suggest the portions of sufficient food. On the guests‘ side, this suggestion of food
portions by the restaurant staff should not offend or upset them, because they are striving to save
food by suggesting the guests enough food. Many restaurants find the FoodDosti application
tedious and less user-friendly.
Certain tax concessions can be availed by the restaurants collaborated with FoodDosti,
but the process for enrolling for such tax concessions is tedious and time-taking.
Suggestions:
1. Restaurants should adopt more sustainable solutions to curb food wastage by use of
integrated logistics that has IT based systems.
2. Restaurants should use efficient inventory management practices to cut down on food
wastages.
3. Consumers should be made aware about the undesirable effects of food wastage and also
should be motivated to use such food wastage solution platform.
4. NGOs in Pune city generally lack logistics network and IT system to connect with food
supply sources and customers. If they use integrated logistics they could supply food to
homeless and needy people in the city which is one of the sustainable goals.
5. Government should provide incentives, property tax concessions and green tax benefits to
the organisations who connect with such food wastage solutions provider.
Limitations;
1. The study is limited to hotels and restaurants only. The same study can be carried out for
other eateries, caterers, canteens and household food waste etc.
2. The study is limited to geographical area of Pune city; it can be conducted for other cities
as well.
3. The study is exclusively focusing on only supply chain integration but other aspects of
logistics integration in Sustainable food supply chain can be considered for the study.
4. The study was limited to only 200 respondents. The number of respondents can be
increased.
5. The study was limited for the period of three months only. The period of the study can be
increased to reach to maximum hotels, restaurants and NGOs in Pune city.
Conclusion:
It organisation should take initiative like Sanwad Social Technologies to integrate food
supply chains and work towards sustainable goals. Restaurants should work towards sustainable
food supply by taking help of integrated logistics concepts and also earn more goodwill from
customers and the needy people. Customers should take social responsibility towards reduction
of food wastage and contribute towards society. After data analysis and interpretation it is
concluded that that there is a huge potential for research to study sustainable food supply that
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aims to cut down wastage food wastage and find various innovative solutions with the help of IT
organisations and other service providers.
Reference:
1. Petri Helo and Hanne Ala-Harja, Green logistics in food distribution – a case study,
Journal, International Journal of Logistics Research and Applications , A Leading Journal
of Supply Chain Management, Volume 21, 2018 - Issue 4, Pages 464
2. Francesco Zecca and Natalia Rastorgueva, Supply Chain Management ans Sustainability
in Agree Food System: Italian Evidence, Juornal of Nutritional Economy and food
research, Volume 2, Page 20, 2014.
3. Techane Bosona, Integration of Logistics Network in Local Food Supply Chains,
Doctoral Thesis Swedish University of Agricultural Sciences, Uppsala, Acta Universitatis
agriculturae Sueciae, 2013
4. Ingrid Nordmark, David Ljungberg, Girma Gebresenbet, Techane Bosona and Rein
Jüriado, Integrated Logistics Network for the Supply Chain of Locally Produced Food,
Part II: Assessment of E-Trade, Economic Benefit and Environmental Impact, Journal of
Service Science and Management, 5, 249-262, 2012.
5. Yan Xiao-hui and Ma Jun, Development of Sustainable Food Supply Chain, IACSIT
International Journal of Engineering and Technology, Vol. 4, No. 2, April 2012.
6. Bowersox and Closs, Logistics Management,
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Sustainable Development through Planned Agriculture Marketing
Dr. Smita Pakdhane* & Dr.Karuna Kushare**
*Assistant Professor,.
K.S.K.W. Arts Science and Commerce College, Nasik, Maharashtra
**Associate Professor,.
L.B.R.D. Women‘s College, Nasik, Maharashtra.
Abstract:
Dr. Philip Kotlerthe father of marketing says that the marketing is not only science but
also the art of exploring, creating, and delivering value to satisfy the needs of a target market
that is customer at a profit. Marketing identifies unfulfilled needs and desires. It defines
measures and quantifies the size of the identified market and the profit potential. It pinpoints
which segments the company is capable of serving best and it designs and promotes the
appropriate products and services.
Marketing in AGRICULTURE SECTOR means all the activities which are involved in the
flow of the agricultural produce from the production point start from the stage of harvest to the
ultimate customers which includes grading, processing, storage, transport, channel of
distribution all other functions which are necessary for the completion of production process.
Agriculture marketing is mainly related with marketing of agriculture produce. Agriculture is
performed to satisfy basic food needs of human being so earlier there is no need of marketing for
agriculture produce but when the other professions developed post industrial revolution and
agriculture got commercialized with surplus production for sale by the farmers, agriculture
marketing became a necessity.
In India and in Maharashtra, the present condition of agriculture is in almost worst.
After 70 years of independence the 70 percent farmers are marginal and totally depend on others
for each and every activity of agriculture in spite of all these 90 percent of working population is
directly or indirectly depend on the agriculture but the contribution of agriculture in GDP is less
than 15 percent. Thus there are tremendous opportunities in development and especially in
agriculture marketing sector so that the development will possible and farmers also get the
reasonable return for his produce.
Key words: Agriculture, agricultural marketing activities, research work, human resource
development, changing environment, marketing agencies, middleman, channel of distribution,
Sustainable Development through Planned Agriculture Marketing(with special Reference to
North Maharashtra)
Introduction:
Today Indian agriculture sector is facing multitude of problems. Significant proportion of
these problems is related to the marketing of agricultural commodities. There is no proper system
for marketing of agriculture products and giving assurance to the farmer for the sale of product
and provide them with a reasonable price. Biggest issue is orderly and organized marketing
functions are not followed in most of the agriculture marketing activities. Another problem is
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losing goods in warehouse and in transit. It is estimated that 7 percent of grains, 10 percent of
vegetables and 30 percent of fruits are lost in transit while moving the goods from the farm to the
market and this is due to non-availability of cold chainsand lack of an efficient goods transport
system. Cold chains, including pre – cooling facilities, cold storages, refrigerated warehousing
etc are not available or available with bad quality services.1
Agricultural marketing includes all activities which are necessary for the supply of farm
inputs to the farmers and movement of agricultural products from the farm to consumers. They
are:
Buying and assembling
Selling
Transportation
Storage/ warehousing.
Cleaning, Standardization and Grading
Branding, packaging and labeling
Insurance
Financing
Market information, Market Risk and Market Research
Collection of all surplus items from the farmers.
Making necessary arrangement for transport to the market.
Processing whenever needed.
Negotiate with consumer
Exchange of goods with the ultimate customers.
Making an assessment of the disposable surpluses of agricultural production.
Finding the markets to dispose of the surpluses.
Supply chain management2
The Indian council of Agricultural Research defined, ―Agriculture Marketing involves
the three important functions, namely (a) assembling (concentration) (b) preparation for
consumption (processing) and (c) distribution.‖ 3
Objectives of Study:
1. To identify the importance and contribution of agriculture marketing and related services
in agriculture development.
2. To evaluate the current status of agricultural marketing in North Maharashtra.
3. To understand a holistic approach and concept to improve agriculture marketing system
for sustainable development.
Research Methodology:
This is a descriptive and conceptual paper based on primary and secondary data. The
primary data is collect from the farmers of Nasik, Jalgaon, Dhuliaand Nandurbar districts by
taking personal interviews.The secondary data is collected from various published newspapers,
journals, books and various government‘s websites on different perspectives.
Scope of the study:
The study is planned for the general working of agriculture marketing for discuss the
issues involved in agriculture marketing and the difficulties faced by the farmers while selling
their produce in regulated market (APMC).
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Limitations of Study:
The scope of study is clearly limited up to agriculture marketing from Nasik,, Jalgaon,
Dhulia and Nandurbar districtsAPMC. The findings and conclusion may be relevant to the
selected area.
Government participation in Agriculture Marketing
Indian ministry of agriculture runs 3 main departments that are linked to various public,
private and cooperative agencies. DAC (Department of Agriculture and Cooperation), DARE
(Department of agriculture Research and Education) and DADF (Department of Animal
Husbandry, Dairies and Fisheries) are the 3 main departments through which all the work is
carried out. In addition various other organizations have been set up in the following categories
cooperatives, research, financial, warehousing and exports to provide special attention to these
areas.
At the state level Maharashtra government has organized the Department of Agriculture
under 3 main divisions i.e. Agriculture & marketing, Horticulture and resource management
mainly water (Irrigation facilities).These 3 divisions are then sub-divided into another 6
categories for agriculture sector. These 6 sectors look after 8 zones in the state that are
responsible for the districts within their zone. District level officers are responsible for collecting
the tahsils and rural data and statistics within their districts.
Govt. Organization involved in Agriculture sector At State Level- (2018):
MSAMB (Maharashtra State Agricultural Marketing Board)
A.P.M.C.(Agriculture Produce Marketing committee)
NIPHT(National Institute for Post-Harvest Technology)
MSWC (Maharashtra State warehousing Corporation)
NAFED (National Agricultural Cooperative Marketing Federation of India)
APEDA (The Agricultural and processed food products export development Authority)
NABARD (National bank for agriculture and rural development)
FCI (Food Corporation of India)
CWC (Central Warehousing Corporation)
Various Agriculture Autonomous Agencies
DMI (Directorate of Marketing and Inspection)
NIAM (National Institute of Agricultural Marketing)
SFAC (Small Farmers Agri-business Consortium)
AGMARKNET and other online portals
Literature Review:
Dr.Smita Diwase:A professor in the Agribusiness Management Institute, Pune, writes a book
on, ―Indian Agriculture and agribusiness management‖. In this book the author discuss on the
various topics related with the agriculture and agribusiness. In this book she explained and
discuss about the various factors related with the agribusiness and how they affect the
agribusiness environment. She also explain about the various management activities necessary
for the successful agribusiness.
Dr. Atul Bansal: Principal ofC.Z. Patel College of Business and
managementVallabhVidyanagar, wrote an article on ―Agribusiness in India – vision 2020‖ in
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ZENITH International Journal of Multidisciplinary Research Vol.1 Issue 2, June 2011, ISSN
2231 5780 (www.zenithresearch.org.in). He discussed regarding the position of agribusiness of
India in the year 2020. As India has 60% youth population, to avoid unemployment among
population it is necessary to develop the entrepreneurial skill in youth and proper utilization of
the natural resources.
Nilabja Ghosh, (2013) ―India‘s Agricultural Marketing, market reforms and emergence of new
channels‖, the writer evaluate the present agricultural marketing system of India and discuss
about the necessity of reforms in the agriculture marketing. She also discuss on the hot topic of
the elimination of middleman, which is really impossible. Before considering or discussing on
the Indian Agriculture marketing, the writer collect and analyses the information of world
agriculture marketing specially of develop countries.
Dr. Satish Bongane, (2009) A Ph. D thesis on ‗A study of Fruit cultivation and its Marketing
Cost in West Maharashtra with special reference to Pune District‘ due to the Employment
guarantee scheme connected with Horticulture programme there is lot of fruit cultivation in the
Pune district. Out of total fruit cultivators 88.77 percent are educated. The author studied their
marketing problems then he found that 86.05 percent cultivators feel the commission of agents is
too high, unauthorized deduction is also one problem in the marketing, 79.25 percent cultivations
found labour problems, there is uncertainty about the availability of the labour at proper time, 63
percent cultivator are not found expert labour for fruit farm, 49.32 percent cultivators says that
the packing material cost is very high and 20.75 respondent feel that payment of fruits not
received in time, its take some time or delayed payment from commission agents. Such types of
marketing problems are faced by fruit farmers in the Pune district.
Importance of agriculture marketing in agriculture development:
Agricultural marketing as a whole can be categorized into three different Categories; the
Functional Category where marketing process can be broken down into functions such as
Exchange Function (buying, selling, pricing, anticipating demands and supply, decision making
planning on marketing channels, packaging, advertising , promotions ); Physical Function (
handling, movement, storage, transport, processing e.g. wheat into bread, processing adds value
to the original commodity) and Facilities function ( financing, insurance, market information
data, risk management, regulations, standardization ). Second category is the Institutional
Infrastructure category which deals with various agencies and the business facilities that perform
marketing activities, these agencies include wholesalers, retailers, and agents/brokers,
speculators, facilitating organizations (banks, research agencies, standardization agencies,
machinery agents, and trade associations). Last category is the Advantage Decision making or
the Behaviors category where the players in marketing activities such as farmers, middleman,
transporter, processor, retailer, consumers all make day-to-day profit based decisions in order to
strengthen its own market position and achieve the economic targets. Various parties also
establish effective communication linkages in the marketing chain from producer to consumer
creating a network of all participants with a strategic goal of adapting to new market trends and
practices.
Agricultural marketing helps to use the optimum natural resources and contribute in the
market surplus.
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Efficient marketing system ensures to increase the income and provide employment
along with reduce the wastage.
It helps in the development of agro base industry.
The efficient marketing system helps the farmers in planning of the production according
to the needs of the economy.
The effective Agricultural marketing helps to adopt the new technology due to the
assurance of remunerative prices.
It helps to earn foreign exchange and improve standard of living and increase
employment and develops process industry.
Features of Indian Agriculture
The land holdings of majority farmers are small and marginal, which is the main reason
for reduces the average farm size along with the productivity then the requirements of
getting maximum output from these small land holdings.
Another feature of Indian agriculture is large number of farmers reside in a remote areas
that are not adequately connected with markets resulting in lack of proper services and
infrastructure.
There is no system as of today for the major number of farmers in India to study or get
an idea of domestic and international consumption of commodities, even though they are
competing both with local and international producers for better prices and quality of
products.
Considering the changing nature of agriculture and the evolving challenges, producers
currently need a wider range of support, including organizational, marketing,
technological, financial, entrepreneurial, training and guidance.
To be a successful entrepreneur in agriculture sector, farmers require a wide range of
knowledge from different sources and support to integrate these different bits of
knowledge in their production context.
Current status of agricultural Marketingin North Maharashtra:
Age of Farmers
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It is observed that very few farmers i.e. 3.57% are belonging to 20-30 years age group. It
means that very few young stars are into the farming from Nasik, Dhule, Jalgaon and
Nandurbar District.
Area of Land Holding (in acers)
From the above graph, it can be said that majority of famers are holding 0-5 acers of land from
Nasik, Dhule, Jalgaon and Nandurbar District.
Various difficulties faced by farmer during the marketing of crops
Researcher has interacted with farmers to understand various difficulties faced by farmer
during the marketing of crops. Following are the some major responses from the farmers about
difficulties faced during the marketing of crops
―Finance‖
―Skilled Labour‖
―No guarantee of product sale and reasonable selling price‖
Non availability of Market and weather information
Facilities expect from Agricultural Produce Market Committee (A.P.M.C)
Researcher has interacted with farmers to knowthe expectation from APMC especially
regarding Facilities from Agricultural Produce Market Committee (A.P.M.C). Following are the
responses from farmers
Grading facility
Guidance Facility
Change in sales method ( any method which is beneficial to farmers)
Cold Storage Facility
Expect any other marketing method for agriculture products
Researcher has interacted with farmers to know the farmers expectation about marketing
method for agriculture products. All the farmers have responded that ―Direct Selling to
customer‖ is expected by farmers for the marketing.
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After considering the above bottlenecks, the researcher has developed a planned
agriculture marketing strategy so that maximum problems would be solved and the farmers
would also get the reasonable price for his produce and his dependency on the others will be
reduce. Moreover integration of transportation means and provision of necessary marketing
platforms and instruments would add to effective marketing and distribution.
Future Concept of Agricultural Marketing (All stakeholders planned
farming):
Highlights of proposed Agriculture Marketing strategy:
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Aim is to extend and improvise existing system of agriculture commodities marketing
and related processes in an attempt to find solution to the various problems highlighted in the
beginning of this research work.
Can be used and implemented in the field either on a small scale or a larger scale as the
case may be in real practical physical world.
Main player is the formation of a new organization called AEKG (Agro Expert
Knowledge Group) in a joint venture with the existing state level APMC‘s and Agri-Universities
and Colleges (a public-private firm) consisting of highly qualified professionals with a clearly
defined functions of forecasting domestic Agri-commodity demands taking into account various
economic and generic factors such as geographic population census data, population food habits,
age groups of people, past agricultural goods trade data on buying, selling and exports; previous
agriculture market activity data, agriculture yield growth for the area, income projections in the
area, import- export of Agri-commodities and other socio-economic factors.
AEKG‘s three main functions would be
1. To forecast crop-wise domestic demands;
2. To generate Yearly Crop Plans for its clients and
3. To support implementation of these Crop Plans.
AEKGs should be setup at tahsils level comprising of group of tahsils in one AEKG firm.
Farmer population in area should be governing factor in deciding how many tahsils should come
under one AEKG. Grouping or aggregation of farmer-producers under one umbrella to bring the
total cultivation unit size to around 500 to 1000 acres and help bulk quality production, I have
named this group as Farmer-Producer-Group or FPG (a private enterprise-membership fees
applicable)
Each FPG would be provided its own independent plan for crop production by AEKG.
Each FPG is responsible for its plan implementation by carrying out input procurements, field
production work and selling goods in markets.
I want also establish a LAM (Local Area Market) in local geographic area at a distance
of every 15 to 25 km circle; A LAM could be made of an APMC type infrastructure, a rural basic
market, a Collection center or a private market. I would allow the flexibility on market
implementation to the local agricultural authorities working with existing APMC s in the state.
Close proximity of LAM to farmers would require less transportation time on the
producers side which in turn reduces the cost of production.
LAM should allow for buying or selling of agricultural commodities with a pricing
system based on MSP (Minimum Support Price) system as the guideline or some other
benchmark system. Price could be built on these benchmarks with a computerized system
algorithm that takes into account various factors such as historic price data, market volatility,
crop yield growth numbers, weather and several such relevant parameters.
LAM should use a computerized system to record transaction data in a data repository
with all the participating member details.
LAM must provide category based storage facility for perishable and nonperishable
products. (The size, scale and capacity must be decided on commodity dealing volumes)
Post production and marketing function, data obtained on the production such as crop
quality, quantity, market prices, issues or risks faced and mitigated during production phase etc
could be fed back to AEKG systems in order to fine tune the forecasting and planning functions
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for next year.
I suggest to control and only produce need-based and soil suitable crops and commodities
aims to facilitate higher Agri-commodity prices for farmers along with faster, efficient and
reduced wastage production and marketing of goods.
The whole setup of AEKG, FPGs, LAMs and inter-connectivity makes a smooth
operational chain for all participants in the agriculture sector and allows for traceability of goods
and faster issue resolution as at every step a record is being maintained in the automated systems.
The focus of this model has been to get active participation of APMC, fair prices to
farmers, reduction in wastage of perishable goods, more connectivity, deeper level of automation
of functions, generate employment, develop processing industry and optimum utilization of
resources, stake holders such as farmers, Producers, Consumers, Commission agents, Traders
(buyer, sellers), Processors, Research Institutes, Exporters, Commodity Boards, Various
Government Departments, Private sector firms, Agri-experts active participation for
development and progress, value for money of end user products and fair, transparent operations
to generate public trust.
Conclusion:
After analyzing the above information, it is observed that in practice a professional way
of production and marketing is not applied and the APMC (Agriculture Produce Marketing
Committee) also not properly implemented the marketing functions for the farmers, not
achieving or fulfilling the objective of establishment. Thus after considering all the points, the
researcher would like to suggest the professional and planned system for agriculture production
and marketing which will definitely help to solve the various problems of this sector. The
following are few highlights of the new process plan:
This plan would effectively increase the productivity of agriculture and thus optimum utilization
of natural resources should be possible.
1. This plan would definitely contribute towards reducing the percentage of farmer‘s
suicides.
2. It will effectively increase the economic development pace of country.
3. It should provide the proper and systematic method of marketing for agriculture produce.
4. It should reduce the unemployment and improve the standard of living at rural level and
possible to develop irrigation facilities to maximum agriculture area.
References:
1. Mr. Y.H. Gharpure, Agriculture can boost India‘s GDP: Gujarat Shows the way,
Anarticle in sampada, Feb. 2012.
2. Philip Kotler, 2007, Marketing Management, XI edition, Prentice Hall of India (Pvt) Ltd.,
New Delhi.
3. Agricultural Marketing in India, 2009, Fourth Edition, S. S. Acharya and N. L. Agarwal,
Oxford and IBH Publishing Co. Pvt. Ltd. New Delhi.
4. Dr. Diwase Smita, 2014 ―Indian Agriculture and Agri-business Management‖ 2nd
edition, Scientific Publishers (India) Jodhpur ISBN No. 978-81-7233-870-1.
5. Dr. Atul Bansal, ―Agribusiness in India- vision 2020 ZENITH International Journal of
Multidisciplinary Research Vol.1 Issue 2, June 2011, ISSN 2231 5780
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6. Nilabja Ghosh, India‘s Agricultural Marketing, Market reforms and emergence of new
channels, Agricultural economics Research Unit, Institute of Economic Growth, New
Delhi, India. ISBN 978 - 81 – 322 -1572 -1(e- book), Springer India, New Delhi, 2013.
7. Ph.D. thesis, University of Pune, 2009 by Dr. Satish Bongane on ‗A study of Fruit
cultivation and its Marketing Cost in West Maharashtra with special reference to Pune
District‘ .
Websites:
1. www.mrunal.org
2. http://agmarknet.gov.in/
3. www.agriexchange.apeda-gov.in
4. http:// apeda.gov.in
5. http://Farmer.gov.in Portal
6. www.indiancommodities,com/Agri Commodities in India
7. http:// indiaagronet.com/India Agro Net
8. http://fmc.gov.in/Forward Markets Commission
9. http://agropedia.iitk.ac.in/content/list-indian-agricultural-portal
10. http://www.enam.gov.in/NAM/home/about_nam.html#
11. http://apeda.gov.in/apedawebsite/about_apeda/About_apeda.htm
12. www.msmb.in/ Profiles of APMC:
13. http://agmarknet.nic.in/
14. http://www.krishisewa.com/
15. www.wikipedia.org/wiki/History_of_agriculture
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Green Marketing : Green Channel Counter (GCC)
An Initiative by State Bank of India
Shailendraprasad Totare
Research Student
Sant Ramanand Tirth Marathwada University,
Nanded, Maharashtra. [email protected]
Abstract:
The Bank launched its „Green Channel Counter‟ on the 1st July 2010, at select branches
across the country. This is an innovative step taken by the Bank towards changing the traditional
paper based banking to the card based „Green Banking‟ focusing on reduction in paper usage as
well as saving of transaction time. The Bank is attempting to change the behaviour of customers
from voucher based banking to card based transactions. This facility, an innovative initiative,
was introduced to make paperless transactions like deposits, withdrawal and remittance.
Apart from the three main transactions – cash deposit, withdrawal and fund transfer – a
customer can withdraw more cash here than an ATM. Also, unlike the ATM, here he/she can
choose the denomination of notes, something that is not available to ATM customers in the state.
Similarly, customers can deposit cash using the cash deposit option. How does it work? A POS
machine has been placed at Single Window Operators (SWO) desks. When a customer walks in
to a branch, he/she swipes the debit card and is offered three choices: cash withdrawal, cash
deposit and funds transfer. After the customer selects the type of transaction, a message “enter
the amount”, displays. Here the customer is asked to confirm the transaction amount followed by
“please enter your pin”. After the required inputs are fed manually by the customer, the SWO
with this transferred information at the terminal then enter the denomination of the cash to be
paid, received, pays, receives and the transaction is over. Normal banking charges is applicable.
GCC per transaction limit is up to Rs. 40,000 and daily withdrawal limit is a part of ATM
withdrawal limit (card variant wise).
Green Remit Card (GRC) SBI Green Remit Card is a deposit card through which an
individual can remit money in a specified account of SBI. This is especially useful for the
migrant depositors. Money can be deposited using GRC through GCC, CDMs and Recyclers.
The per transaction limit is of Rs. 25,000/ with a monthly cap of Rs. 1 lakh per remitter. On a
daily average, over 1.50 lakh transactions are being routed through GRC.
GCC aims at providing Customers with a simple, secure and quick way of executing daily
Banking transactions. It enhances Customer ease as there is no need to remember the 11 digit
account number or carry passbook, fill in pay in slips / withdrawal forms, etc. Only the ATM
cum Debit Card and PIN is needed to identify a Customer and his / her Bank Account.
Such innovative and customer friendly service of GCC has huge implications to make
normal banking services easy to all type of customers. On an average 9.35 lakh transactions are
being routed through GCC per day. With no paperwork the banks as well as customers are
content with the GCC service which is an environ-friendly win-win situation for both.
Other Green Banking Initiatives:
As part of the Bank's on going 'Green Banking' initiatives, windmill project has been
successfully commissioned and power thus generated is being consumed by our branches/offices
in the States of Maharashtra, Gujarat and Tamilnadu. This reduces dependence on polluting
thermal power to the extent of renewable power generated by the Bank's windmills.
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The imperatives of sustainable usage of resources, including energy and efficient disposal
of wastes have been effectively propagated amongst the stakeholders, in the form of adopting
energy efficiency measures, efficient usage of paper and water, installation of Solar ATMs,
introduction of Green Channel Banking (Paperless Banking).
The Bank has been encouraging customers by extending project loans on concessionary
interest rates to reduce Green House gases (GHGs) emissions; by adopting efficient
manufacturing practices through acquisition of latest technology. The Bank also arranges
consultancy services by roping in the services of empanelled CDM consultants in CDM (Clean
Development Mechanism) registration process. The Bank has also launched a loan product to
facilitate upfront finance to the project developers by way of securitisation of Carbon Emission
Reduction (CER) receivables.
The Bank has initiated a pilot project to determine its Carbon footprint levels, which will
help in determining the Bank's resource consumption pattern and enable the Bank to take
effective steps to implement various measures for sustainable usage in a cost effective way.
Special drive for fruit bearing tree plantation during monsoons was taken up across all
Circles, which has been very successful and sustained efforts are being made to ensure the
survival of the plants as well.
The Marketing & Communications (M&C) department developed and rolled out ‗The
Green Marathon‘ in collaboration with Bank‘s sustainability department. This initiative will raise
consciousness among the Bank‘s staff and public at large. This activity was conducted in six
cities in two months.
Environment And Sustainability:
Bank is committed to environment protection and contributes positively to reduce the
carbon footprint. Responsible interaction with environment to avoid depletion and degeneration
of natural resources and maintain long term quality of the environment is a priority for Bank.
Bank has contributed Rs. 2.05 crore towards the following:
• Acquiring solar power plant, solar water heater and solar street lamps
• Tree plantations
• Maintenance of parks and gardens
• Donating battery operated vehicles
Bank has shown its commitment in the renewable energy space not only by taking up
renewable financing but also by building its own captive renewable capacity through wind
energy and solar roof tops. Bank has so far installed 151 solar roof top sites with a capacity of
6.23 MW.
Awards And Recognitions For Green Initiatives:
Best IT Implementation Awards 2010 by PC Quest: SBI‘s Project ‗Green IT @ SBI‘ was
rated as the Best Green IT Project for its GREEN ATM installation.
The Banker – Innovation in Banking Technology Awards 2010 – State Bank of India was
declared Winner in ‗Innovation in Eco-IT‘ category for its GREEN ATM installation.
Objective Of The Research The research objectives to be studied in this research are as follows:
1. To study status of the daily transactions routed through GCC out of total transactions at
the target branch (SBI Unkal) and the District (Dharwad, State Karnataka)
2. To study customer‘s response about the GCC facility at the target branch.
3. To study the USP (Unique Selling Points) to market the GCC facility and limitations
also.
4. To present the findings/conclusion and suggestions.
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Green Marketing and Consumer Accountability
Ms. Shama Mulla,
Research scholar, S.B.P.M. College, Pune (Maharashtra)
Abstract:
Nowadays green is a new evolving concept to furnish marketing with image branding and
marketing spin. If we look beyond, we found how ethical or green it is (product/services). This is
real/true rather than rational. After stripping, we explore the product; who made or grew- this
information or using this, we can develop our ideas to connect with people. Originality of brand
(branding) comes with image marketing to create sustainable brands (John Grant). This looks
like a challenge for today‟s generation, how they tackle the problem of consumer accountability
w. r. t. green marketing. This is a huge challenge, but isn‟t it giving a life a meaning? And we
really don‟t have plan B (perform or perish situation). In this paper, we explore the facets of
green marketing with consumer accountability.
Introduction:
Let us first understand about consumer accountability and its process.
Consumer Accountability:
Consumer accountability is the current state of account of happy (satisfied) consumers with
organization‘s product or service.
Organizations should consider policies before serving consumers:
CSR
Corporate Social Responsibility is a combination of economic responsibility (consumer
buying behavior and reasonable profit), Legal responsibility (follow laws and regulations),
Ethical responsibility (right decision making and follow the rules) and Philanthropic
responsibility (voluntary participation in societal programs/activities). (Carroll, 1991)
Figure: Consumer Accountability
Source: Author
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Environmental Issues
Organizations should understand the importance of green practices to lessen the burden
of climate change or global warming. From making till disposal each process should get revised
to avoid further consequences of impact on environment.
Quality, Quantity and Price
Quality plays an important role to maintain long term relationship and sustain in the cut
throat competition. An affordable price with quantity (justified amount of product) can lead to
faith on brand followed by loyalty.
Loyalty, Brand and Relationship
These factors are only visible when customer is happy with what you are offering
continuously without hampering quality. That bond making brings sustainable association and
growth with hard core relationship with consumers and brand.
Genuineness / transparency
Genuineness is the only key if organization wants to sustain in competition. People take
time to faith on but when they got assured then they will never ever leave organization in any
crisis situation. That is the beauty of transparency with public.
Consumer satisfaction and Consumer Purchase activity
Organizations earned the faith of public by implementing policies which are in favor of
society. The bond / association become stronger day by day and results in purchase (regular
mode).
Development of trust with organization after purchase
After purchase if organization fails to perform (false commitment) consumers refuse to
return to the same brand and search for the suitable alternative. That means the only selling and
earning profit once is not the mission for organizations. The vision is to get modified or revised
with societal benefit flowed by organizations growth with sustainable relationship.
This above mentioned process of consumer accountability is applicable to any business.
All traditional businesses can follow all policies depending upon their capacity. That means all
policies are not structured when they designed vision and mission. Their ultimate aim is to earn
profit. So if scenario is only earning the profit then who will take care of consequences on earth.
Who will think about proper disposal of product and not just only disposal it has to be in less
detrimental to earth. Only green businesses have those strategies to take environmental
dimension on priority. So let‘s understand the concept of green marketing.
Green Marketing:
It is the study of all efforts to consume, produce, distribute, promote, package and reclaim
products in a manner that is sensitive or responsive to ecological concerns. (Robert Dahlstrom,
2010)
A firm has to make efforts to pursue green marketing and focus on sustainability as
development that meets the needs of the present without compromising the ability of future
generations to meet their own needs. Firms can pursue green marketing via triple bottom line
perspective focused on achieving economic, relational and ecological outcomes (Robert
Dahlstrom, 2010)
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Why Study Green Marketing:
Beyond the environmental benefits that can accrue from green marketing, several sectors
of the global economy benefit from green marketing. Emerging economy have potential to curb
hunger and poverty by engaging in green marketing. Incorporating with green marketing can
result into consumer welfare and enhancement in corporate strategy.
There is need for consumers and government to understand green marketing but some firms
should understand green marketing to retain their environmental reputations and brand exposure
like always.
Green Consumer:
Several analyst of green marketing defines the psychographic segmentation of consumers
to distinguish them on the basis of consumption pattern.
True Blues: Consumers (politically active) with strong environmental values that seek to bring
about positive change and avoid products which are detrimental to environment.
Greenback greens: Consumers (politically inactive) concerns the sustainability and more
willing to purchase environmentally friendly products than average consumers.
Sprouts: Consumers appreciate the merits of environmental causes but they are making
purchase of regular products; to avoid burden on pocket (not ready to pay more for green
products).
Grousers: Consumers tend to be cynical and uneducated about ecological concerns. They prefer
traditional product over green (they might thought green products are expensive and less
effective).
Apathetics: Consumers do not concern with sustainability and green marketing practices.
It is interesting to know that the preferences of Pune consumers have shifted over the time. The
number of greenback and sprouts are constant while true blue shows the increase and the result
of these shows that grousers and apathetics are reducing day by day.
Let‘s jump into the actual methodology to grab the knowledge about what consumers are up to
with green products.
Objectives:
1. To understand consumer awareness of green marketing
2. To study the impact of demographic and psychographic factors on green marketing
3. To study the market for green products
4. To investigate the factors considerations for green products
5. To understand the satisfaction with the quality of green product
Research Methodology:
A close and open ended questionnaire was made to explore the relationship between
demographic (age, income, employment, education, gender, children) and psychographic factors
(environmental Consciousness, healthy, price, safety, quality, ingredient and label) with
awareness of green marketing in FMCG personal care products; leads to prospective business in
coming future. The consumer accountability is there but required to have more adhesive bond to
get sustainable relationship and profit. All issues were discussed like price, promotion, brand,
labeling, environmental concern and many more to derive the actual relationship with
consumers.
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The respondents were selected from one of the major corporations in Pune (PMC). A
questionnaire filled by 361 responses and data were collected. The duration for the data was
July-Sept 2018.
Questionnaire includes age, gender, education, employment status, income, gender,
marital status, children to understand demographic profile of respondents. Then, the questions
related to use of organic product category, green awareness level, benefits of green products
towards environment, health, certifications and various brands of green products. Other than this
we directly asked them about which green product they are using, cost is high compared to
traditional, what characteristics should be there in green product if it launched, etc. There were
many questions which gave us psychographic approach of respondents.
We have collected the data and some important data present it in graphical form for better
understanding.
Data Analysis
Figure 1 Figure 2
Figure 3 Figure 4
Figure 5 Figure 6
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Figure 7 Figure 8
Figure 9 Figure 10
Figure 11 Figure 12
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Figure 13
Figure 14 Figure 15
Findings
Data collected and analyze questions which are directly focus on green marketing is
illustrated in the graphical form. Figure1 shows that 56% respondents are using cosmetics /
personal care products, followed by 33% from organic food, 8% from organic cloths and only
3% are from electrical appliances.
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Figure 2 concludes 56% of people are having average awareness about green product and 28%
and 12% people are from low and high level of awareness respectively. Only 4% people are from
very low category.
Figure 3 focused on overall awareness of green product like health benefits of green product –
40% are aware, environmental benefits 31%, various brands of green products 23% and
awareness of symbols or certifications of green product is only 6%.
Figure 4 explained category wise use of green product. Personal hygiene and cosmetics are 47%
and 38% respectively. Only 14% people are using medicine and 1% using other form of green
product.
Figure 5 explained whether the people feel that the cost of green product is high or not. 59%
people supports green products are costly and 38% feels green products are not costly and 3%
are not sure about it so they have chosen may be.
Figure 6 explained about satisfaction with the quality of green product. 68% people are happy
whereas 10% are unhappy and 22% people don‘t know whether they are satisfied or not.
Figure 7 focused on performance of green products when compared with traditional products.
57% says that green products are not inferior whereas 32% supports may be and 11% supports
that green products are inferior.
Figure 8 is all about how offers, promotions plays important role in everybody‘s life. 53%
people are not lure towards offer but 42% says they are happy with offers and 5% people
sometimes happy and sometimes they don‘t so chosen may be category.
Figure 9 focused on which is the powerful medium to reach to the people about green products.
TV is on top with 37% followed by newspaper with 30% and 11% people are aware because of
exhibition and 5% people from advertisement and 17% people are aware from other sources.
Figure 10 explained about is there market for new brand of green product or not. So 97% are
ready to accept if new brand is launched and only 3% refused to show interest in new brand of
green product.
Figure 11 explained about the considerations or insight of new brands of green product.
55%people want quality, 28% wants affordable price, 7% wants promotional offers and 10%
wants other things.
Figure 12 focused on how many people read labels of product for natural content understanding.
Only 10% read the labels on every time basis, 26% people never read the label and 32% people
are from sometime and rarely basis.
Figure 13 explained what is important in product. Health (75%) and price (56%) are very
important followed by Environmental safety (47%), brand (51%) and design and label (54%).
Figure 14 focused on green products marketed in India or not. 98% people said yes and only 2%
are not in favor of.
Figure 15 demonstrated that Indian people are aware of green products or not. 94% people think
that people are not aware of green product whereas only 6% people said that Indian people are
aware of green product.
Results
1. Consumers are using green products in terms of cosmetics and personal care as people
are aware about benefits of it.
2. As half of the population knows importance of green products for the health, environment
as well as their various types and symbols to pick the green one.
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3. Maximum consumers are happy with the price, quality and performance of green product
so they are not lure to offers by brand.
4. Print media and electronic media plays important role to generate awareness and so that
consumers can accept new brand of green product with quality and affordable price.
5. Some certifications or logo should be only for green product identification to avoid label
content reading (no knowledge about contents).
6. Consumers are very sure that there is a need for awareness in India about green product
(proper understanding) (avoid situation of green myopia)
7. Consumers are happy to accept the more green products but it should be healthy and with
affordable price.
Conclusion:
Consumers are aware (not 100%) of green products but firms should have to generate
awareness among people through print and electronic media. Consumers are accepts the green
product as they are health and price conscious but firm should revised their vision to get
sustainable growth as if they are running green practices in long run. And lastly, people know
everything about green product, even they are happy with quality so, what is bothering is firms
continuous efforts to have bond with consumers by their visibility and character; comes with
brand (consumer accountability in true sense).
References
1. Bhatia, M. and Jain, A. (2013) Green Marketing: A Study of Consumer Perception and
Preferences in India. Electronic Green Journal, 1, 1-19.
2. Bhattacharya, S. (2011) Consumer Attitude towards Green Marketing in India. The IUP
Journal of Marketing Management, X, 62-70.
3. Braimah, M. and Tweneboah-Koduah, E.H. (2011) An Exploratory Study of the Impact
of Green Brand Awareness on Consumer Purchase Decision in Ghana. Journal of
Marketing Development and Competitiveness, 5, 11-18.
4. Carroll, A. (1991) The Pyramid of Corporate Social Responsibility: Toward the Moral
Management of Organizational Stakeholders. Business Horizons, 34, 39-48.
http://dx.doi.org/10.1016/0007-6813(91)90005-G
5. Chamorro, A., Rubio, S. and Miranda, F.J. (2009) Characteristics of Research on Green
Marketing. Business Strategy and the Environment, 18, 223-239.
http://dx.doi.org/10.1002/bse.571
6. "Consumer Responses to Green Marketing in Cambodia"
written by Leaksmy Chhay, Md Manik Mian, Rathny Suy,
published by Open Journal of Social Sciences, Vol.3 No.10, 2015
7. Dahlsrom,R. (2011) Green Marketing Management. South-Western Cengage Learning
8. Grant, J. (2007) Green Marketing Manifesto. John Wiley & Sons Ltd.
9. Laroche, M., Bergeron, J. and Babaro-Forleo, G. (2001) Targeting Consumers Who Are
Willing to Pay More for Environmentally Friendly Products. Journal of Consumer
Marketing, 18, 503-520. http://dx.doi.org/10.1108/EUM0000000006155
10. Ottman, J.A. (1993) Green Marketing: Challenges and Opportunities. NTC Business
Books, Chicago.
11. Polonsky, M.J. (1994) An Introduction to Green Marketing. Electronic Green Journal, 1,
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Journal of Business Research, 64, 1311-1319.
http://dx.doi.org/10.1016/j.jbusres.2011.01.016
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An Analysis of Impact of Green Marketing on Consumer Behavior
Dr. Major Ashok Giri* & Komal Bodhwani**
* Research Guide,
MES Garware College of Commercre,
Pune, Maharashtra.
**Research Scholar,
Swami Hansmuni Maharaj Degree College of Commerce,
Pune, Maharashtra.
Abstract:
Green marketing is the marketing of products that are assumed to be environmentally
safe. Thus green marketing incorporates a broad range of activities, including product
modification, changes to the production process, packaging changes, as well as modifying
advertising. The influence of the green consumer will grow as environmental awareness among
consumers spread and improvements are made to the environmental information available
through eco-labeling schemes, consumer groups and consumer guides (Peattie, 1995) still
explaining the concept or defining green marketing is not a simple task where several meanings
intersect and contradict each other; example of this will be the existence of varying social,
environmental and retail definitions attached to this term. Other similar terms used are
Environmental Marketing and Ecological Marketing. Green marketing refers to the process of
selling products and/or services based on their environmental benefits. Such a product or service
may be environmentally friendly in it or produced and/or packaged in an environmentally
friendly way. The assumption of green marketing is that potential consumers will view a product
or service's "greenness" as a benefit and base their buying decision accordingly. The not-so-
obvious assumption of green marketing is that consumers will be willing to pay more for green
products than they would for a less-green comparable alternative product - an assumption that
has not been proven conclusively. This paper focuses on “Impact of Green marketing on
consumer buying behavior”
Keywords: Consumer Behavior, Green marketing, environment issues, Green products, Green-
price, Social-responsibility.
Introduction:
In recent years, concern about the environment has been highlighted in many areas of
life. Our limited resources are damaged, the future of human life disturbs this planet, thus leaders
and thinkers have to create a solution. While globalization process continues in its full speed
across the world, this process has also brought some problems with it. Leading one of these
problems is environmental problems that affect all living beings negatively. These
aforementioned environmental problems have started to come to the agenda more and more in
the recent years and people have started to talk these negativities. Consumers now have worries
about the future of the world and as results of this mostly prefer environment-friendly products.
In return to these attitudes of the consumers, companies have started to form their marketing
strategies so as to appeal increasing awareness of this environment-friendliness. These marketing
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strategies, named as green marketing, have caused companies to adopt green policies in their
pricing, promotion, product features and distribution activities. Taking into consideration that
companies are socio-economic entities, it can‘t be expected that they remain unresponsive to the
―Environmental Awareness‖ that may direct consumer behaviors. Particularly marketing
managers encounter with consumers sensible to environmental issues. The old perception on
how businesses are establishments with no other objective but to profit leaves its place rapidly to
a new perception which defines companies as establishments that are sensible to social problems.
Consumers encounter with terms such as ozone-friendly, environment-friendly and recyclable
products in green marketing. However, green marketing isn‘t limited to these terms but is a
much wider concept of marketing activity which can be applied to consumer goods, industrial
goods and even to services (Erbaslar, 2010). Green marketing term was first discussed in a
seminar on ―ecological marketing‖ organized by American Marketing Association (AMA) in
1975 and took its place in the literature. In this seminar where the impact of marketing on natural
environment was analyzed with the contribution of academicians, bureaucrats and other
participants, ecological marketing concept was defined as follows: Studies regarding adverse or
positive impacts on environmental pollution, energy consumption and consumption of other
resources as result of marketing (Cevreorman, 2010). Green marketing serves two purposes:
(Uydacı, 2002: 85)
Definition:
1. Green marketing refers to the process of selling products and/or services based on their
environmental benefits. Such a product or service may be environmentally friendly in it
or produced in an environmentally friendly way, such as: Being manufactured in a
sustainable fashion.
2. According to Business Dictionary, Promotional activities aimed at taking advantage of
the changing consumer attitudes toward a brand.These changes are increasingly being
influenced by a firm's policies and practices that affect the quality of the environment,
and reflect the level of its concern for the community.
Review of Literature:
This marketing approach concerning Ottman, Stafford and Hartman (2006) perspective,
has a huge impact both on society and companies as green products promote health and safety,
cost effectiveness and efficiency, and also performance, symbolism and reputation and
convenience. According to what was mentioned, many green products have energy saving
potential. For instance, there‘s been an increase in the demand for electric cars not only due to
government incentives but also because of long-term savings. Nowadays, we‘ve been consuming
everyday products which contain countless chemicals, hormones or other drugs. However, the
consuming patterns have been changing and the importance given to health and safety products
as become more relevant with the increase of sales of organic foods, for instance, as people tend
to be concerned with their own well-being and with the future generations. In terms of
performance, people still think green products do not perform as good and as efficiently as other
products. Nevertheless, in many cases green products are design to perform better than other
products. We can take the example of clothing washer, which cleans better and are gentler to
clothes than the older washers. Many organizations are trying to establish a ―green chic‖ appeal
to their products, so using celebrities to publicize them in order to determine trends and reach
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and expand targets. Green products are not only efficient, they can provide other benefits. LED
lightening, is an example, which is the most power saving alternative when compared to the
traditional bulbs and also have no toxic chemicals in the composition, and last longer.
In general, green products can have some of the following characteristics: being made from
recycled materials, products which can be recycled or reused, organic products, products which
meet environmental responsible packaging or other environmental criteria.
Green marketing doesn‘t only refer to the promotion or advertising of products with
environmental characteristics. We tend to associate this concept to terms such as: recycling,
environmentally friendly, or for example refillable. However, regarding Henion and Kinnear
(1976) this concept is wider, as it also involves product modification, changes in the production
process, brand adaptation (e.g. logo, packaging), and alteration and improvement of the
advertising approaches. It also implies the consequences marketing activities have on pollution,
environment degradation and on energy consumption. It provides a different perspective of the
general concept of marketing, as it is no longer focused on particular societies concerns, but in
global ones. It consists of being able to satisfy customers‘ needs having the minimum impact and
harm in the environment.
Regarding Ottman (2011), nowadays, companies focus on product development and ways
to align it with sustainability. Actions in producing, distributing, usage and recycle processes
must have the minimal impact on the environment. It‘s important to consider the resources
involved in each process, which resources are required during the product lifetime and whether
the practices used are ethical. The companies‘ role in society has more duties and consequently is
becoming more important with their active participation (Keller 1987, Shearer 1990). They
believe they have moral obligation (Davis 1992) in their policies and practices to have a positive
impact on the environment (Azzone, Giovanni and Manzini 1994). So companies using green
marketing approaches are gaining competitive advantage over companies which don‘t engage in
responsible practices. This current trend emerges in order to better satisfy customers‘ needs
(Polonsky 1994)
Objectives of the Study:
1. To Study the concept of Green marketing
2. To Study the influence of Green marketing on buying behavior of consumer
3. To understand how green marketing affects customers‘ attitudes when acquiring eco-products.
4. To suggest the measures for improvement on Green marketing.
een Consumer
Green Consumer:
The green consumer is generally defined as one who adopts environmentally-friendly
behaviors and/or who purchases green products over the standard alternatives. Green consumers
are more internally-controlled as they believe that an individual consumer can be effective in
environmental protection. Thus, they feel that the job of environmental protection should not be
left to the government, business, environmentalists and scientists only; they as consumers can
also play a part. They are also less dogmatic and more open-minded or tolerant toward new
products and ideas. Their open-mindedness helps them to accept green products and behaviors,
more readily (Shamdasani at al. 1993:491).According to the consumption report of the EU
(Consumers in Europe), it is found that ten percent of the consumers recognize the ecological
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product labels or green energy labels on the products sold in the supermarkets. Although the
companies in our country progress with significant speed in terms of the environment, it is not
possible yet for us to say that they have reached the same level regarding consumer sensitivity.
In Western implementations, environmental awareness and the ―green policy‖ in business
organizations are reflected in the business as result of the environmental awareness of the
consumers. The most recent and classical example regarding this subject is airline transportation
industry. In airline transportation, large amount of carbon emission released by the planes into
the environment is a matter in question. British Airway offers the following ―relieving‖ solution
to people who have to travel by plane but feel disturbed due to the carbon emission: to give
financial support to a fund providing researches intended to reduce carbon emission. The carbon
emission, released during the distance covered is calculated and a contribution of 12.08 Euro per
ton can be paid per person. Carbon dioxide emission per one passenger during an Istanbul-
London flight reaches 29 kilograms, and with this fund, which was established on a voluntary
basis, environmentally conscious passengers can donate 3.25 Euro and feel relaxed. On the other
hand, Turkish Airlines has stated ―we achieved fuel savings and this saving reduced carbon
emission‖ in a statement they made in October, demonstrating that the firm has a more low
profile ―temporary‖ approach (Naturalhaber, 2010).
Impact of Green marketing:
Convenience: It is very much convenient to women to go through online ads, surf on Face book,
snap chat and place the order.The incredible convenience of green marketing online is one of the
biggest advantages of internet marketing. The internet has extremely easy accessibility with
consumers using the internet and reaching markets anywhere in the world. Because of this,
purchasing goods from across borders now reduces the cost of transportation.
Quick information: The information is readily available in hand. All u need is internet to access
the same. Advantages of Internet Marketing make such diversification quite easier as if you wish
to use SEO & SMO, you can easily do it through different channels like-
PPC search engine or Social Media Marketing.
SEO campaigns by outsourcing an SEO techie who can optimize your website and ensure
more traffic
Few hassles: Various apps like myntra, quickr, olx have fewer hassles in their job.With Green
marketing, you do not need to hold up weeks to see a noticeable boost in your business. With a
paid digital marketing effort, you can see real-time results that empower you to adjust your
marketing campaign to accomplish the result you always wanted.
Relationship building: Green marketing helps to build personal relation with the customers by
writing on the walls and sending personalized messages.With the advantages of internet
marketing, everything can be followed and tracked through detailed diagrams. These diagrams
delineate activity development, traffic growth, lead and deals transformations from your specific
search marketing efforts. Utilizing free analytics tools like Google Analytics will help you
measure the success of your internet marketing campaigns.
Lower cost: A study by Hubspot found that inbound leads – leads generated online through
sources such as blogging, social media, and search engine optimization – cost 61% less than
traditional outbound leads. It‘s not hard to see why. With online marketing, there are no travel
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costs, and you don‘t have to pay for printing to distribute materials. Server costs, by contrast, are
relatively low. As compare to television advertising, online marketing is economical and
effective.
1. Aids to refine your strategy and Target Marketing campaigns:
To reach influencers and “invisible” prospects:
There are many people who influence the selection process, even if they might not be the
final decision-makers. Some of these individuals may be professionals within your target firms,
while others may be well-respected industry figures. By the same token, you may have
unrecognized or ―invisible‖ prospects out there of whom you‘re simply not aware. You likely
know that certain firms would be good matches for your service, but there are usually others who
are equally promising matches
2. Firms that generate leads online achieve greater profits:
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Until about twenty percent of leads are generated online, profitability stays more or less
the same. But after twenty percent, profitability begins to rise steadily along with the percentage
of leads generated online.
Analysis of data:
From above diagram, it is clear that only 8% has impact of Green marketing. Although marketers
try different strategies to attract women customers, but they fail as women tend to personal see
and verify the quality of apparel then only buy. It is also due to lack of trust among women
buyers to verify online. Most of the time, they are unaware of payback or return procedures.
Conclusion:
Green marketing is a tool for protecting the environment for the future generation. it has a
positive impact on environmental safety. Because of the growing concern of environmental
protection, there is an emergence of a new market which is the green market. For companies to
survive in this market, they need to go green in all aspect of their business. Consumers want to
identify themselves with companies that are green compliant and are willing to pay a premium
for a greener life style. As such, green marketing is not just an environmental protection tool but
also, a marketing strategy. The aim of this study, by analyzing the impact of environmental
awareness, green product features, green product prices, green product advertisement and
demographical features of consumers on purchasing behaviors of consumers, is to determine
whether there is a significant relationship between them and if there is, to reveal direction and
level of this relationship and hence to give advices to companies producing environment-friendly
products.
References:
1. Cronin, J.J., Brady, M.K., Hult, T.M.G. (2000), "Assessing the effects of quality, value,
and customer satisfaction on consumer behavioral intentions in service encounters",
Journal of Retailing, Vol. 76 No.2, pp.193-218
2. Churchill, Gilbert A. Jr. and Carol Surprenant (1982), "An Investigation into the
Determinants of Customer Satisfaction," Journal of Marketing Research, 19 (November),
491 -504.
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3. Day, Ralph L. (1977), "Towards a Process Model of Consumer satisfaction,
―Conceptualization and Measurement of Consumer Satisfaction and Dissatisfaction. H.
Keith Hunt, ed. Cambridge, MA: Marketing Science Institute, 153-183.
4. Fuller, D.A. (1999), Sustainable Marketing, Sage Publications, Thousand Oaks, CA.
5. Hines, J.M., Hungerford, H.R., Tomera, A.N. (1987), "Analysis and synthesis of research
on responsible environmental behavior: a meta-analysis", Journal of Environmental
Education, Vol. 18 pp.1-8
6. Hopfenbeck, W. (1993), Dirección y Marketing Ecológicos, Ediciones Deusto, Madrid,
7. Isherwood, K. (2000), Mineral Fertilizer Distribution and the Environment, International
Fertilizer Industry Association, UNEP, Paris, March.
8. Jaime Rivera-Camino, (2007) "Re-evaluating green marketing strategy: a stakeholder
perspective", European Journal of Marketing, Vol. 41 Issn: 11/12, pp.1328 – 1358
9. Jones, M.A., Suh, J. (2000), "Transaction-specific satisfaction and overall satisfaction: an
empirical analysis‖ Journal of Services Marketing, Vol. 14 No.2, pp.147-5.
10. Straughan, Robert, James A. Roberts .1999. ―Environmental Segmentation
11. Alternatives: A Look at Green Consumer Behavior inthe New Millennium‖ Journal of
Consumer Marketing, Vol: 16, 6: 559-575Tilikidou, Irene, Antonia, Delistavrou
.2008Advertising. Journal of Advertising, 24(2), 21-31.
12. Barr, S. (200311. Banerjee, A., & Solomon, B. D. (2003). Eco-labeling for energy
efficiency and sustainability: meta-evaluation of US programs. Energy Policy, 31(2),
109-123.
13. Banerjee, S., Gulas, C. S., & Iyer, E. (1995). Shades of green: A multidimensional
analysis of environmental). Strategies for sustainability: citizens and responsible
environmental behaviour. Area, 35(3), 227-240.
14. Cronin, J. J., Smith, J. S., Gleim, M. R., Ramirez, E., & Martinez, J. D. (2011). Green
marketing strategies: an examination of stakeholders and the opportunities they present.
Journal of the Academy of Marketing Science, 39(1), 158-174. 24.
15. Dahlstrom, R. (2011). Green Marketing theory. Practice, and Strategies, Cengage
Learning, New Delhi, 163-164.
16. Dalrymple, D. J., & Parsons, L. J. (2000). Marketing management: text and cases. Wiley.
26. Dangelico, R. M., & Pujari, D. (2010). Mainstreaming green product innovation:
Why
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New Challenges in Retail Human Resource Mangement
Dr. Major Ashok Giri* & Kajal Chheda**
*Research Guide,
MES Garware College of Commerce, Pune, Maharashtra
** Assistant Professor,
Gurukul College of Commerce, Ghatkopar, Mumbai, Maharashtra.
Abstract-
Terms such as globalization, process management, and value-based management
dominate the current discussion of management in retail companies. There has been an
increasing realization that people are one of a company‟s key assets. Retail means working and
serving customers in a direct, personal way. This calls for special actions from retail companies
to fulfill the demands of an increasing number of well-informed and sophisticated consumers. In
view of all the changes in both national and international contexts, it is absolutely essential to
get the right people if a business is to be successful and sustainable. Retailing is a major labor-
intensive industry sector. Therefore, companies are continually challenged to re-organize and
adapt their structures to become more efficient. The necessity for part-time workers, because of
long store opening hours and peaks in the trading day/week, requires a flexible framework to
optimize labor processes. Emotionally, the workforce needs orientation and vision in changing
times. Human resource management (HRM) has to provide a “coach,” not only to organize, but
also to support employees and management mentally and professionally in fulfilling their tasks
in terms of future company goals. People are the driving force behind all transactions that occur
in retailing outlets. In the future world of retailing, there will be an increasing need to adapt and
change towards a more formative and proactive style of HR.
Keywords: Retail, Labor Intensive, Optimize, Coach, Proactive, Emotionally, HRM.
Introduction-
Retail is one of the fastest growing industries across the globe and offers livelihood to
millions. Human resources occupy a significant place in the growth of the retail industry. In spite
of this fact, both organized and unorganized retail sectors are struggling against various human
resource issues that require immediate attention. Though both these sectors may differ in their
scale and method of operations, the human resource challenges are almost the same.
Human resources involve the strategic planning and management of employees to create a
productive and motivated workforce. The retail industry poses particular HR challenges because
employees deal directly with customers.
Objectives of the study-
1. To study the current status of Indian retail industry.
2. To analyze the Human Resource Management practices implemented in the organized
retail industry in India.
3. To study the HR challenges faced by the organized retailers while implementing such
practices.
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4. And finally to come out with the conclusion and suggestions.
Indian Retail Industry-An Overview -
Retailing is one of the pillars of economy. It consists of all activities that result in the
offering for sale of merchandise to consumers for their own use and is the final step in bringing
goods to the end-users. According to US consulting group AT Kearney‘s report published in
June, 2010, India is the third most attractive retail market for global retailers among the thirty
largest emerging markets. The Indian retail industry has expended by 10.6 percent between 2010
and 1012 and is expected to increase to US$ 750-850 billion by 2015. The greater availability of
personal credit and a growing vehicle population providing improved mobility contributed
towards annual retail sales growth of 12.2 percent. Though the Indian retail sector is dominated
by unorganized sector with 90 percent share, it is providing immense opportunities for large
scale retailers to set up their operations. The organized retailing sector is steadily increasing with
the entry and operations of departmental stores, hypermarkets, supermarkets and specialty stores
which are replacing traditional formats dramatically altering the retailing landscape in India.
Organized and Unorganized Retailing-
The Indian retail industry is generally divided into organized and unorganized retailing.
Study shows that India constitutes only 8 percent of organized retail and remaining 92 percent is
left unorganized and within the organized sector, apparel is the largest segment while food and
grocery and mobile and telecom are the other major contributors to this segment.
Organized Retailing in India-
Retailing in India has been achieving a noticeable growth in the organized sector since
the liberalization of our country‘s economy that began in the early nineties. The retail market in
India is said to be fragmented with only around 8% of the sector organized, which means that
only 8% of the retailers are registered under the regulations and licenses. The remaining part of
the sector is unorganized. It is hence viewed as a big opportunity for the future for the organized
retail firms to evolve and grow in India.
Human Resource Management in organized retail-
Recruitment: Depending on the size of the number of vacancies or if it‘s a new store then
campus recruitment is done or recruitment is done through recruiters and consultants. For shop
floor sales requirement advertisement is put up in the local newspapers.
Selection: Selections are based on group discussions & interviews. Some retailers take an
entrance test followed by group discussion and personal interview.
Performance Appraisal: It is one of the most controversial systems within human
resource. No one in any organization is ever happy with the system because it explores the bitter
truth of an employee. It is inherently conflict based because it is subjective and differs from
person to person.
Training and development: Retail industry has finally taken shape in India, and is
experiencing a rapid growth. Since organized retail is growing tremendously procuring trained
human resource for retail is a big challenge. The talent base is limited and with the entry of big
retailers in the market there is a huge demand of trained and skilled professionals in this sector.
This has led
Many retailers to introduce Learning and Development department within the organization.
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Compensation: Compensation is payment for services rendered to an organization by an
employee. Compensation may me direct or indirect compensation & is a motivator for
employees at all levels.
Rewards, Incentives and Recognition: Every retailer is looking at various ways to
motivate their employees and reduce attrition rate. Introduction of rewards, incentives and
recognition of employee is increasingly becoming popular within the industry. Retailers like
PRIL have launched PERK Performance Enhancement Reward Kit and star performer of the
month in their stores. They are used to reward performance at the individual, team and
organizational level.
Employee Discipline: It is a management tool to correct employee behavior.
HR challenges in organised retail-
High Turnover-
Retail is notorious for having a high rate of employee turnover. This means employees
routinely come and go, which poses several challenges. Training and developing are difficult,
time consuming and constant if you constantly have to recruit and hire new people. It's also more
difficult to build customer loyalty if customers keep seeing a new face every time they enter your
store. To address these problemsrecruit the right people and build rapport with employees. When
interviewing people, make sure specific questions are asked that relate to the type of work
employees do. Informal social outings and fun games at work can help build rapport.
Diversity-
A diverse workforce is typically regarded as a good thing. It helps a retailer better
connect with its marketplace and usually leads to more and better ideas and results. However, a
staff of people from widely varying demographic backgrounds might have trouble developing
cohesiveness. From an HR vantage point, challenge is to manage diversity to avoid major
conflicts and promote a spirit of tolerance, teamwork and collaboration. Include diversity
discussions in store meetings and encourage employees to discuss their differences. These
techniques can go a long way toward building a more cohesive team.
Misconceptions-
To build a staffof competent, committed and motivated employees, retailers must
overcome a number of common challenges and misconceptions about the work environment.
Common concerns include long hours, no full-time jobs or benefits, low pay and no growth
opportunities. One can overcome these challenges by going against the industry grain. Offer
regular eight-hour work shifts at retail business. Provide competitive pay and benefits to full-
time employees. Even if starting pay is modest, do best to offer fast tracks to higher salaries and
management positions when an employee has established a good track record with business.
Seasonal Demand-
Retailers often experience seasonal demand fluctuations. The holiday buying season,
from "Black Friday" through Christmas, is well-known as the busiest shopping season of the
year. Retailers often try to add temporary staff during these times. They often wind up with
fewer skilled and trained workers who might not have the tools to best serve your customers.
These workers can also alienate regular staff that must pick up the slack. Develop a plan to
assimilate temporary workers during these seasonal periods. A store meeting at the start of the
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busy season is a good way to help temporary workers learn the system and get to know the
regular staff.
Talent crunch at middle and senior level managements-
The retail industry is facing serious talent crunch especially at the middle level
management. Though unskilled labor is easily available for the sector at entry levels, it is very
difficult to retain the talented manpower to succeed the current leaders. This is because of high
attrition rates which hamper the development of leadership pipeline in the retail industry. The
unorganized sector of the retail industry employs large temporary workforce in addition to the
permanent employees to serve at lower levels. These include students, fresh graduates, and
cyclical workers etc. who quit as soon as they find better opportunities elsewhere.
Lack of professionally educated workforce-
An important problem in the retail industry is lack of professionally educated staff. Retail
as an academic option at Masters Level is relatively new concept and till last decade, only few
universities were offering professional degrees in retail. This has created a gap in the demand
and supply of talent into this industry. Traditionally, retail has been a career choice for less
educated and young people who take this profession either to finance their education or to
support their families and end up in the unorganized sector. But they cannot be expected to be
experts of customer relationship management and supply chain management.
Lack of bargaining power--
Another problem is that such low skilled workforce usually agrees to work at low salaries
giving the power of negotiations in the hands of bosses. This results in low job security which is
yet another major challenge in the retail industry. The unskilled workforce is so easily available
to retailers that if the employees deny following any orders like working on holidays or till late
hours, or they ask for a hike in salary, they are simply replaced by newer and cheaper staff.
Employee poaching in the retail industry-
Employee poaching is also very high in the retail industry. Skilled manpower is scarce in
this industry and as such attracting the employees of competitors by offering them better salaries
and perks is a rather easy option. However, the people having an experience in retail are not only
occupied by competitive retail firms but also by telecom, finance and IT companies.
Problems of work life balance-
Maintaining work life balance is one of the biggest challenges in the retail sector today.
The retail sector does not work on standard format and the employees are often required to work
for long hours and even on holidays and festivals. This somehow creates lot of problems in the
personal lives of employees as they don‘t get much time to spend at home. The conflicts at home
have further influences on the work life also. The employees lack motivation, their stress levels
get high, absenteeism and turnover increases, organizational conflicts become a regular scene
and the and the overall work environment gets negatively affected.
Conclusion-
However, with time the global retail industry is taking a new shape and the retailers are
now looking for employees possessing analytic skills, understanding of global consumers,
knowledge of latest retail concepts, and leadership skills. HRM is now a priority area. Employers
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are focusing these days on correct staffing and proper training along with the initiatives like
employee wellness programs, spouse employment, and employee stock option plans etc. to solve
these HR related challenges.
The Human Resource Management practices are vital for the growth and development of
and business or sector. These practices have significantly evolved in the retailing sector also. The
retailers especially organized retailers are nowadays placing a greater emphasis on the HRM
practices which includes recruitment, selection, performance appraisal, training and
development, compensation, career planning, etc. Apart from this the sector is facing some
problems relating to its human resource like lack of skill, lack of formal education in retailing,
workforce attrition, threat of poaching and complicated human resource environment. It means
that the HRM practices in the organized retail industry needs greater attention in the near future
to make it more competitive.
Suggestions-
Indian retailers need creative HR practices to manage a huge workforce in a competitive
environment enhance the competency and retention of their employees.
There are too many companies chasing too little talent. The retailers should maintain their
goodwill in the overall employment market by communicating its attributes in a way that
distinguishes the company from the competitors.
Find the right talent that is willing to commit over the long-term.
Attractive compensation package should be provided to the employees which includes
both direct (salaries, commission and bonuses) as well as indirect payments (paid
vacations, health and life insurance and retirement plans).
The problem of attrition is very common nowadays. Retaining is more challenging than
hiring. Hence, retailers must examine different strategies which they can use to reduce
turnover and boost the morale of their employees.
References-
1. ―Retail giants adopt various methods to prevent attrition.‖ (October 8, 2007). Retrieved
from: http://www.moneycontrol.com/news/business/retail-giants-adopt-various-methods-
to-prevent-attrition_306920.html.
2. ―Retail sector in India growing at phenomenal pace.‖ (June 25, 2012). The Times of
India. from: http://articles.timesofindia.indiatimes.com/2012-06-
25/news/32408603_1_retail-sector-retail-industry-global-retail-development-index.
3. Reddy, D.M., & Chandra, S. (December, 2011). Human Resource Management Practices
in Organized Retailing: A Study of Select Retailers. International Journal of
Multidisciplinary Research, 1(8), 523-534.
4. Bhaskar, N. (June, 2012). Human Resource Management Practices in Organized
Retailing: A Study of Select Retailers in Warangal District. Asian Journal of Research in
Business Economics and Management, 2(6), 77-89.
5. Mehta, A.P., & Mehta, R. (May, 2013). Managing Human Resource in Retail Sector- An
Upcoming Challenge. International Journal of Scientific Research, 2(5), 374-376.
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Human Resource Management for Sustainability
Amit Deokule
Executive leadership coach, Pune, Maharashtra.
[email protected], [email protected]
Abstract:
Now a days managing ourselves and others has become an extraordinary task in our
personal or even professional life. As a life balance coach and executive leadership coach, when
I was coaching in one small organization dealing in automobile sector for employee
development and business owner‟s vision enhancement, I got to know that sustainability can‟t
just be the word for the sake of implementing it as a normal concept because its meaning is
construed as sustaining for meeting both ends. Sustainability has one hidden concept and i.e.
continuous growth and value enhancement of the entity. So I started observing people from the
same perspective and then I surveyed things while coaching people and drew the conclusion that
people are sustaining not for something innovative or for the better growth but they are
becoming sustainable because they want to meet both ends irrespective of the growth. They want
to be sustainable because they can‟t hop from one company to other. They want to continue
because they need sound sleep at the end of the day where even the organic financial security
can be considered as something greater in value. In small organizations there is no problem of
attrition because of this. The scenario is reverse in bigger companies because stakeholders have
an outlook from growth perspective and the problems existing in such organizations are of
different nature. So as a coach I had to change my perspective in individual coaching and even
group coaching in small organizations and everywhere the bottom line became
“SUSTAINABILITY” HR departments have sure challenges in bigger organizations and in small
organizations business owners or entrepreneurs themselves will require to change to a
phenomenal extent. Psychological state and its sustainability matters a lot for every entity .
Key Words- Small Organizations, Sustainability, Entrepreneur, Meeting both ends, growth
The Researcher is a Life Balance Coach and Master Spirit Life Coach having an
affiliation with Certified Coach Alliance Group, Canada. He is also an Executive Leadership
Coach at Marshall Goldsmith Stakeholders Centered Coaching. He has seven and half years of
experience in the field of coaching where he has handled variety of coaching assignments for
Individuals (Students, Business Owners, Professionals, Housewives) , Organizations and
Institutions. He is the recipient of five awards in the field of education as a coach. He is having
more than 22 years of experience in the field of music being a composer, singer, poet and table
player.
The researcher generally conducts 3 months‘, 6 months‘ or even a yearly program of
coaching in organizations. Likewise he had entered into an agreement with one company dealing
in car services on an annual contractual basis for the employee development and business
owner‘s coaching. While handling the said assignment he was also indulging himself in one
activity for the benefit of the students along with that and it was pertaining to personality
development & leadership. Both the assignments were entirely portraying sustainability issues.
The former was related to employee sustainability and business owner‘s sustainability being an
entrepreneur with a well equipped approach. The latter was related to students‘ ability to make
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them sustain in the industrial world and to make them so; the activity was emphasizing
development of personality and leadership. While working on these projects or even from his
earlier projects, the researcher had different real time experiences about sustainability and they
were portrayed as-
1. Sustainability in organizations is; being sustainable for the sake of doing it. The real
meaning of sustainability was not known
2. For students, the sustainability is; being sustainable to earn enough so that they can spend
lavishly. The cause and effect of sustainability was not the real reason to understand as a
concept
3. In case of business owners, the meaning of it is just to focus on one stronger ability of
them being an entrepreneur. Rest everything has to be managed by the stakeholders of the
organization since they get the salary in return.
The above scenarios and views were found to be ambiguous by the researcher as they
were lacking real time productive essence when we talk about Sustainability where continuous
growth and value enhancement also come in the picture! The above scenarios were showing
unawareness about the professional approach by employees, executable steps of the same
because of getting pressure due to high competition and comparison or even may be because of
reluctance for prioritizing and identifying responsibilities at the right time. The another aspect
was lack of interest in developing oneself with 360 degree angle being an entrepreneur which
was noticed in business owners predominantly.
Because of above observations, researcher‘s job being a coach was little more crucial and
challenging in both the projects. Mainly sustainability depends upon one‘s psychological
conditions rather than usual statistical calculations organizations always look for. Sustainability
is an art to lead oneself! If we will look at it as if it is a management concept then it will not be
nurtured by actually working on the root cause of the same. Hence considering it as an art will
definitely create space of its own. Researcher thought that sustainability ushers tenacity to tackle
critical issues which crop up in personal or professional life. The researcher was of the opinion
that sustainability cannot be worked upon only in professional streams but it can be targeted in
one‘s personal life as well.
Sustainability-
An Ability to SUSTAIN! – Each letter of the word makes lot of sense where S stands for
Service…U stands for ushering uniqueness…S stands for Seldom/Seamless…T stands for
Tender/Tangible….A stands for Alignment/Aim….I stands for Illustrious/Identity….N stands for
Nectar The above extensions should justify sustainability like this now a days and in the
common parlance it should be digested like the same, right?
When the researcher was working on the above mentioned projects he experienced exactly
opposite to what has been figured out. When he worked for the organization as mentioned, he
observed following things while working on Sustainability issues-
The employees of the organization said that they were not knowing that to increase
efficiency to work, coaching is always a necessity. They also proclaimed at one point that they
just want to continue in the said organization because their survival cannot be questioned and put
to test at any point of time and they want to sustain for the sake of sustaining it due to lack of
availability of jobs elsewhere. In reality their experience was not up to the mark and hence they
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wanted to just sustain till the time they can. Because of this attitude at one point they became
restless due to inefficient approach towards effective coaching and their overall performance.
They found themselves in confusion.
A. After working with almost 1500 students in a year, the researcher strongly realized that
students‘ abilities are fascinating and absolutely well deserved but in their case almost
75% students were questioning their ability to sustain smoothly in the industrial world
although their passion to achieve their aim was not at all plummeted. Their desire to
attain everything in life or running after luxuries was a worrisome matter as far as
sustainability was taken into consideration. In Rural area the problem related to
sustainability was different and that was about staying away from the competitive world
because of lack of facilities in their area at an early stage and hence even keeping aim on
a lower level; was remarkably high at times.
B. In case of business owner the problem was severe because as an entrepreneur he was not
at all ready to accept that he should be an all rounder in terms of handling the business
unit as a whole. He had enumerated a serious fact that he just wanted to work for
promoting his services and marketing them so that revenue will surely get generated but
building a brand and establishing it should have been the right of those people whom he
has recruited as per his conviction. It was like relinquishing the responsibility and getting
on to those people who are working there as stakeholders in the organization. This also
showed that he did not want to accept sustainability issues diligently. At one point, he
also said that he is working in the industry almost for a decade but he was unaware of the
fact that coaching can help his organization as a whole to sustain well where next level of
growth can be within the sight.
The above facts seemed very impervious as far as sustainability is concerned. Because of
this researcher had one tough challenge to make that one percent of change in the approach of
these people. The reason behind quoting example of students in schools/colleges was just to
compare the scenario which he observed in the organization he had entered into contract with!
The best example researcher could think of while thinking about sustainability is one example
from our spiritual scripture and i.e. Ramayana. The Lord Rama when he was banished from the
kingdom for 14 years in the jungle and the way he could sustain himself even after confronting
various calamities like abduction of Sita, his wife by Ravana . Although such and other
calamities were existing, he could sustain himself to such a level in the jungle that at one point
the whole troops of monkeys could extend their immense support to escape Sita from Ravana‘s
kingdom. This example could prove that sustainability with integrity results in some rationally
precious outcome. On the contrary in the present conditions whatever we are able to experience
in case of companies like Kingfisher, Flipkart, Infosys are the best examples where how because
of some top end executives and their confrontations because of their wrongdoings could take the
respective organizations in such a state where sustainability was an issue at some point.
Kingfisher came to a liquidated stage because of several reasons, Flipkart was an appropriate
example in the startup category where their situation was at stake but because of merger and
acquisition with Walmart they could sustain themselves. Infosys was sustained due to strong
principles of the chairman, Mr. N. R. Narayana Murthy. I think in such companies the whole
burden falls on HR departments also when sustainability questions itself because after all human
resource is an asset for every organization.
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In small organizations, business owners themselves have to shoulder the responsibility of HR
department because of non-capacity of recruiting people exclusively for the same. The researcher
could observe in the said organization; specified by him such scenario where business owner
himself was shouldering the responsibility but he was not able to sustain because of inability and
lack of sufficient knowledge to handle human resource. However because of researcher‘s
coaching the said challenge was overcome by not replacing the employees but in return training
them and making them sustainable by levying some rules, processes gradually due to which at
least stakeholders could cognize the importance of being efficient and then being sustainable
respectively. Even the business owner took over the charge with full force for sustaining his
organization with proper changes to be made supporting the sustainability.
To make this possible the researcher could take following steps-
1. One to one coaching with the stakeholders of the organization and after specific interval
conducting group coaching to sense the environment of the organization with impact
2. Having continuous coaching with business owner to change his perception to look at his
organizational vision by doing some refurbishment in the conviction
3. Quoting different stories in real time to include in sessions so that the stakeholders will
realize the value of sustainability by adopting proper means of working
4. Provoking the senior manager/administrator or even business owner with motivation in
such a fashion so that they will be forced naturally to make certain viable changes in the
organization like branding, promotion, making rewarding policies for the stakeholders to
channelize them, giving them targets and asking them to work by changing their style or
method of working or such similar change which will support their ability etc.
5. Bringing various subjects and issues on the table to make them think about different
things in a unique manner where at one point it was business owner‘s response that why
the coaching was not hired as a service long back when there was one opportunity to take
the organization to the next level of growth!!!
6. Extending leadership coaching where managing oneself and then managing others was
discussed and worked upon.
7. Sustainability and allied tools establish the culture of the organization and culture
depends upon human resources and hence there were sessions talking about the culture
and strategies.
Conclusion-
The researcher could strongly realize that Human Resource management plays a vital role
in sustainability issues starting from grooming students till the stage of they becoming
stakeholders of their own career with the art of prioritizing and taking the responsibility of
whatever they choose to do.
The definition of sustainability has become the need to look into at this stage because of
some wrong perspective people have with this terminology. One should not forget that
sustainability is an art but not a process of revelation while working in an organization. To
sustain; has a greater meaning and one will require to perceive that diligently. Human resource is
the most integral part of every unit on this earth wherever business is being done. An
entrepreneur has to be well equipped with every piece of knowledge to sustain properly. Students
of this generation will need to be inculcated with a fact that competitive edge will demand
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sustainability but not just mere passion that will help them to survive. Stakeholders will require
to be upgraded with every information which will concretely support them to sustain with full
strength and ability/potential they have. At the outset the researcher just wants to say that
―Oh Sustainability you are the creator of reviving patience in the present world….
Do the professional want some extraordinary supreme power to sustain with credence in
innovator‘s herd….??? ‖
Reference-
1. Goldsmith Marshall (2015), Triggers, Profile Books Ltd (Great Britain)
2. Misner Dr. Ivan (2017), Giver‘s Gain The BNI Story, BNI Global LLC (USA)
3. Pattanaik Devdutt (2006), Myth=Mithya, Penguin Random House (India)
4. Theil Peter (2014), Zero to One, Penguin Random House (UK)
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Work Life Integration and Career Pathing of Mid-Career Women and its
Relevance to Sustainable HRM in India
Nirupama Patwardhan Research Scholar,
Symbiosis International (Deemed University), Pune, Maharashtra
Abstract:
For a long time corporate India has been struggling with recruiting and retaining talent.
One of the major areas of concern has been ensuring greater numbers of women not only remain
in the workforce but make it to the higher echelons of organisations. Sustainable HRM which is
more commonly defined in business literature through the concept of the „Triple bottom line‟
(TBL) where companies focus beyond profits and also take account of social and environmental
issues has gained tremendous importance over the years. The aim of this paper is to advance
discussion on the importance of understanding women‟s career related problems at the critical
mid-career phase with the aim of ensuring they remain in the workforce. Consequently with
more women at the higher levels of organisations extant literature already proves TBL gets
positively impacted in most organisations. The paper also aims to develop a theoretical
framework within the Indian context between these key concepts and sustainable HRM.
Key words: Work Life Integration, Career Pathing, Mid-Career women, Indian Industry,
Sustainable HRM.
Introduction
Sustainable development and sustainability are two terms that have become increasingly
important globally and more so in the business world over the last two decades. Companies are
feeling the need to create and establish better business models with sustainability at the core. One
of the key functions in this process is Human Resources Management.
Historically there have been three main ‗Influencers‘ to the development and
understanding of sustainability theory and consequently practice, namely, the United Nation‘s
World Commission on Environment and Development (WCED, 1987), also known as ―The
Brundtland Commission‘, environmentalists and business strategists.
In 1997 Elkinkton proposed the term ―Triple Bottom Line‖ (TBL) which is essential to
the understanding of sustainability in the business context (Savitz and Weber, 2006) thus TBL
says that a company‘s success should not only be measured by the conventional financial bottom
line but should comprise of ‗Profit, Planet and People‘ that is be profitable without ignoring
Environmental and social/ethical performance.
For a long time human resource management (HRM) has been facing a double challenge
of not only attracting highly skilled employees but also managing, retaining and motivating the
diverse resources they already possess which include older employees, employees from varied
cultural and social backgrounds, women, single parents, the physically challenged and to further
add to this melting pot these resources will be at different career and life stages(Darcy,
McCarthy, Hill, and Grady. 2012). Furthermore as extant literature spells out, for any
organisation its human resources can act as a potential source of sustained competitive advantage
(Barney, 1991; Grant, 1991;Moroko and Uncles, 2008), therefore it is imperative that
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understanding these various groups and their potential contribution is essential to ensure this
competitive advantage and also promote a better level of sustainability.
This paper seeks to understand one such group of resources mainly women in the mid-
career and mid-life stages and how understanding their Work Life balance and career pathing
issues would help in retaining such women and ultimately how this would effect sustainability in
Indian organisations.
Literature review:
Sustainable HRM:
De Prins‟ model of Sustainable HRM:
De Prins (2011) says that Sustainable HRM concentrates on ―optimally utilizing
andrespecting human workforces within the organization‖, where a clearlong-term relationship is
builtbetween an organization‘s policies and its environment. She make a distinctionbetween
fourapproaches to the concept viz, the sociological approach, the psychological approach,
strategic HRM approach and fourthly the concept of ‗Green HRM‘.
The sociological approach looks at the relationship between the interests of the employer,
the employee and society, thus within HRM its scope translates into such issues as, promoting
diversity in the workforce, health and engagement policies and family friendly strategies.
The psychological approach concentrates on what individuals within the organisation find
important. According to Graton (as mentioned in De Prins, 2011) ―People are completely
different from financial of technological capital because they function in time, look for purpose
and have a soul‖. Since these resources are considered to be a crucial part of an organisations
competitive advantage, it makes sense that organisations typically try harder to understand their
human resources and their problems.This third approach looks at the relationship between
Strategic and Sustainable HRM and how issues such as intake, employee turnover, training and
appraisal impact organizational goal achievement.
The fourth approach is termed as ―green HRM‖; or the ‗planet‘ component of the triple
bottom line. This means looking at what aspects of HRM would help achieve the ‗green
initiatives such as green behaviour as a competence, training in sustainability awareness,
stimulating environmentally conscious behaviours and green employer branding.
The concepts of Mid-career and Women in mid-life.
Mid-career
‗Mid-career‘ can be defined as a ―transition period of intra-career role adjustment‖ (Schneer and
Reitman, 1995). It is also referred to as mid-life or middle adulthood, and is defined as the age
between 35 and 45 years (O‘Neil and Bilimoria, 2005) over 40 (Wortley and Amatea, 1982) or
40 to 55 (Wahrendorf, Blane, Bartley, Dragano and Siegrist, 2013).
Women in mid life:
Amos-Wilson, (1996) state that at the age of 40 a significant transition takes place, which
emphases attention on the re-evaluation of attainment. Hall, (1986) further adds that at this mid-
career stage there is a contemplativeassessment of personal interests and values and for many, a
reconsideration of individual needs and hopes (Emslie and Hunt, 2008).
For women,Marcinkus et al., (2007) state, that balancing work and family is a critical issue
which also comes at a time when there may be discordantstrains on the career front, childcare
and other individual level issues. Auster, (2001) further puts forth that many women face trying
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compromises with respect to performance related organisational expectations and the needs of
their children as they move higher up their career ladders.
According to Knight(1994) many women who cope with both career pressures and child
care responsibilities reach a stage where they feel a compulsion to understand what gives actual
meaning to their lives, in fact for some it means reassessing their basic identity, purpose and
values. Knight, (1994) and Campbell Clark, (2002) further state that for some womenresearch
shows that there can be agreaterfeeling of fulfilment and accomplishmentderived from the
satisfaction of having effectively managed these two important aspects of their lives.
Mid-career women, organisational concerns and sustainability.
According to Auster, (2001), flexibility or flexible working becomes a key
organisational-level factor that affects the level of career satisfaction for women at mid-career,
Furthering this Marcinkus et al., (2007) report that job satisfaction, organisational commitment
and career accomplishment is positively linked to organisational support. Sustainability literature
further tells us that under the psychological approach if employees are the core of a sustainable
competitive advantage, then ―the knowledge and fostering of what drives and characterizes them
is of utmost importance‖ De Prins (2011). Some of the critical themes identified by De Prins
(2011) in this approach are issues such as work-life balance, self-sufficiency or autonomy at
work, opportunities for self-development, employability concerns and open dialogue systems or
communication channels.
Under the banner of work life balance many companies offer flexitime and home working
provisions and although this can lead to higher autonomy andflexibility, research also indicates
that it maylead employees to spend more time working, at times including eveningsandweekends
thereby defeating the purpose. This typically causes the borders between workandhome to
become indistinct which can become highly stressful for employees especially if children also
have to be taken care of.
In some other studies, for example it has been reported that in reality there are not very
many employees who actually take advantage of these policies (O'Connell and Russell, 2005)
and that even when organisations inculcated policies for flexi-working, employees seemed to
feel a stigma in availing of them and that in some cases the general perception among managers
regarding women who opted for these policies was that they lacked commitment and were not
serious about their careers.(Hochschild, 1997; Auster, 2001; Drew and Murtagh, 2005).
On another track, researchers such as O‘Connor, (2001) put forth that though there may
be certain women who aspire for top management jobs, and in such cases they should be
encouraged and given the opportunities to advance however the researchers further state that
there are some women who have different needs and do not wish to take on higher
responsibilities. Chusmir, (1982) similarly reports that many women have lowered expectations
regarding promotions because they are aware of their childcare and other family responsibilities.
Lewis and Humbert, (2010) report that in spite of a commitment to flexibility and ―work-life
balance‖ by organisations, the gendered idea of the ideal worker and ideas of competence
combined with a dominating influence of masculinity and the ―good mother‟ ideology, works to
undermine both gender equity and workplace effectiveness, they also highlight the gap between
the discussion of supporting women and the reality of cultural and structural barriers. Schein,
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(2007) also reports that male attitudes and perceptions that men are more suitable for
management roles also act as a hindrance for women striving for higher positions.
The conclusion of these studies is that profound and extensive changes are required in policies,
practices and mindsets at all levels. And organisations need to develop and offer options such
that women should never have to feel that it boils down to a choice between family and career.
The Melting Pot Analogy and its significance to Sustainable HRM
Mid-life/Mid-career is a melting pot of influences; one major ingredient is Work life
Balance/Integration and its sub factors. It remains to be seen what would be the outcome related
to career pathing when all these influences and factors mix i.e. not all women will have similar
pathing choices, it would predominantly depend on the mix of ‗ingredients‘ that ‗went in‘. Each
work-life factor would effect a woman in a different way and consequently her career path and
choices could be affected.
The Mid Career Melting Pot and Sustainability
Fig. 1 Source: Author
If organisations can identify typical ‗mixes‘ of influences it would be easier to develop
female friendly policies/practices to help retain female talent and ensure more women cross this
critical mid-career phase and reach top management positions. It would also help in
understanding what women want from their careers and what roles organisations can play so that
these goals can be achieved and integrated.
One of the most prominent goals of Sustainable HRM is to promote diversity in the
workforce, in India many organisations will now find that they employ if not a large but a
significant percentage of women who are in the mid-career stage. An enhanced perception and
understanding of these women, their careers, career choices and paths in addition to associated
factors like work life integration and how such factors affect the decisions that women take
regarding their work, life and career can aid organisations in making positive efforts so that these
critical female resources can be retained.
Conclusion
Mid-career women and their Significance to Indian Industry - A business case
In Indiasince the mid-nineties significant numbers of women specifically those with a
professional and/ or higher education have been entering the labour market as compared to the
Positive Career Pathing
outcomes will lead to
greater number of
women at higher levels
of management
Work-life Balance/
Integration factors:
Family, Work,
Organizational factors,
Socio-Cultural factors,
Personal/psychological
factors, Technological
factors etc
Mid-Career melting
potAssessment of career
goals, skills, knowledge,
experience, personal
characteristics
Sustainability goal of
gender diversity at higher
levels is reached
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previous decades (Rajan, 2010). Furthermore, in today‘s knowledge economy a crucial source of
competitive advantage for organisations is the human resources that they employ, therefore
inducting and keeping quality talent is a critical concern (Bartlett and Ghoshal, 2002), in addition
as labour shortages become more intense the race for retaining competent talent is becoming
fiercer by the day (Frank and Taylor, 2004). Paradoxically, even as the requirement to retain
resources is escalating, organisations seem to be unable to retain many of the highly educated
female employees who work for them.
In 2009 a study titled ―Understanding the Levels of Empowerment of Women in the
Workplace in India‖ was released by The Confederation of Indian Industry, the findings reported
that at junior management levels women made up 16 percent of the workforce, at middle and
senior levels it fell to 4 percent each and in the highest leadership positions (CEO‘s etc) the
figure stood at only 1 percent. The study which was conducted in a mix of 149 medium and large
size organisations is a clear indicator that either women‘s careers are stunted at particular phases
or they are opting out of the workforce which reflects in their abysmal participation rates in
management.
Studies conducted by McKinsey & Company (2007, 2010), Credit Suisse Research
Institute (2015) all report that the better-performing firms tend to have more women on their
boards, In fact a Catalyst (2008) survey states that:
Catalyst research on Fortune 500 companies has demonstrated that gender diversity in
corporate officer ranks was associated with better financial performance. Organizations
with the greatest gender diversity in their corporate officer ranks significantly
outperformed companies with proportionally fewer women at the top. Return on equity
was 35.1 percent higher in the most gender diverse companies, and total return to
shareholders was 34 percent higher.
This is a compelling argument for companies in India to go the extra mile to retain
women employees, specifically at higher levels of management.
Researchers such as Brown, Brown and Anastasopoulos, (2002), Arfken, Bellar and
Helms (2004), Flynn and Adams (2004) suggest that women appointees on boards and generally
at higher levels of management promotes and generally raises the confidence of investors the
reason for which being that women are viewed as more inclined to be transparent, moral and
promoters of greater accountability. Further Brown and Brown (2001) state that 86 percent of
boards where there is higher female representation ensure that codes of ethical conduct are
enforced compared to 66 percent that had all male boards. Another documented perception is
that boards where women representation is again higher ensures that investments are not in
conflict with managerial misappropriation Brown and Brown (2001), Flynn and Adams (2004)
Thus the business case for Sustainable HRM is a clear one and should work at two levels firstly
to understand women employees as prescribed by the psychological approach to Sustainable
HRM and secondly after ensuring women are retained and reach higher levels of management or
board levels the positive impact that women create on shareholders and company boards cannot
be ignored.
References:
1. Amos-Wilson, P. (1996). ―Accomplishing career development tasks: are there gender-
related differences?‖ Librarian Career Development, 4(1), 25-32.
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2. Arfken, D. E., Bellar, S. L., & Helms, M. M. (2004). The ultimate glass ceiling revisited:
The presence of women on corporate boards. Journal of Business ethics, 50(2), 177-186.
3. Auster, E. R. (2001). ―Professional women's midcareer satisfaction: Toward an
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Sustainable HR Practices in Small Manufacturing Companies
Mridul Kanti Nath Research Scholar,
Symbiosis International (Deemed University), Pune, Maharashtra.
Abstract:
Purpose: Small manufacturing firms form the foundation of Indian economy. They
employ millions. Indian government supports entrepreneurship by setting up specialised MIDC
zones to promote manufacturing. The study is aimed at understanding how human resource
assets are treated and managed in such firms. The purpose is to understand if there is a
sustainable environment for retention and development of talent which leads to sustainable
business practices.
Design: Secondary research was conducted to identify aspects that contribute to
sustainable human resource intervention. Primary research was initiated to substantiate the
findings of secondary research. Visits to 109 small manufacturing units in Pune and
administration of the questionnaire resulted in gaining firsthand knowledge of role of HR, HR
functioning and understand its sustainability.
Findings: Small manufacturing firms employ teams of 11-50 employees. HR
administration forms an important part of day to day activities. The impact of such activities is
limited to ensure availability of a pair of skilled hands behind the machine which is the
fundamental requirement of business. The vicious cycle of resource poverty and the parochial
view of the owner limit the design and execution of sustainable HR practices. Study does reveal
some impactful HR practices in pockets which give an impression to the author that the future
for small manufacturing firms needs sustained focus from the large companies and the
government.
Keywords: MSME, Small firms, small manufacturing firms, HR practices, Sustainable HR
practices
Introduction – Small firms and their relevance
MSME – Micro Small and Medium Enterprises constitute a large part of an economy.
They form the foundation and are responsible for providing large scale employment. MSMEs are
present in large numbers across the developed and developing economies ensuring balanced
social and economic sustainability (Rahman, Yaacob, Busneti & Tambunan, 2015). In
developing economies, mergers between large firms and increased focus on automation lead to
redundancy of jobs which is responsible for rising unemployment. Local governments realise
that focussing on MSMEs is an alternative to create employment and give the necessary fillip to
the economy. Most of these firms are labour intensive and hence serve as the engine for growth
(Kishore, Majumdar & Kiran, 2012).
MSMEs contribute to 28.77% of the GDP in India. They constitute more than 6.38
million entities. These firms exist across rural and urban India employing 110 million people
(Annual Report MSME, 2018).
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Small manufacturing firms in India are defined under the MSME Act 2006, as firms whose
investment is between Rupees 50 Lakhs to 5 Crores. From an employee head count perspective,
small firms are those that employ 10-49 employees (Hill & Stewart 1999).
Small firms produce goods which are either consumed by the end customer in a B2C
format or they end up being suppliers to medium and large firms in a B2B format. Multiple large
firms create an ecosystem where small firms are present in close vicinity providing them
ancillary parts used for creating larger products (Kaplan and Hurd, 2002).
Owners of small firms face multiple challenges. Access to finances and skilled labour are
two of them. At the initial stage of setting up a firm, finding new customers and executing
projects play an important part. As the firm grow in employee headcount; people issues come to
the forefront. Expansion in employee base ensures more people are recruited externally and there
is a need to formulate standardised HR policies that focus on scientific selection, training and
devise ways to enhance engagement (Krishnan & Scullion, 2014; Mazzarol, 2003, Welsh &
White, 1981).
Purpose of Study
Small scale manufacturing firms generate mass employment; however is one of the areas which
have not got the attention of modern day research (Kapurubandara & Lawson, 2006; Mankelow,
2008). This study conducted in the city of Pune in Maharashtra, attempts to find answers to:
(a) What are the prevalent HR practices in small manufacturing firms?
(b) Do these small organisations have sustainable HR practices?
Literature Review
3.1 Relevance of HRM in small firms
Human Resource Management has always been considered to be important for an
organisation (Hodgetts & Kuratko, 1995). Irrespective of the size of a business, the importance
of people and their talent forms a competitive advantage (Baumback, Lawyer & Kelley, 1973;
Scarborough & Zimmerer 2006). Small businesses are distinctly different from large firms.
Larger firms possess financial and managerial talent. Retaining and continuously investing in
them remains a challenge. Small firms constantly face shortage of resources and employing a full
time resource to manage their employees would be expensive and also not practical. Attracting
skilled manpower and providing competitive wages occupies a large bandwidth of the owner
(Birley and Westhead 1994; Greening, Barringer and Macy, 1996; Longenecker, Moore and
Petty, 1994; Welsh & White, 1981; Williams and Dreher, 1992). Small businesses derive
strength from the close proximity between owner and the employees and the bonding between
the small sized teams. The culture of the firm and its day to day functioning is driven by the
personality of the owner. The owner dons multiple hats to ensure there is focus on business,
customers, employees and corporate social responsibility activities (Jenkins 2004; Southwell,
2004).
Small firms employing lesser number of employees are susceptible to incompetent
resources and loss of every single skilled employee (Barone & Share, 2008). As a firm expands,
the owners need to delegate by creating a supervisory layer. This often forms the most crucial
part of sustaining the growth of the firm (Dunn, Short & Liang 2008).
Numerous studies have indicated the lack of formal practices in human resource
management in small firms. Formal and documented policies lead to sustainable HR practices.
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Studies across Europe, Australia and India have shown medium and large firms having
sustainable HR practices. A few small firms have implemented HR policies but this practice is
not widespread (Bartram 2005; de Kok, Jan, Uhlaner and Thurik, 2003; Pingle, 2014).
Informality ensures there is little or no written documentation of policies. Small firms work a lot
on trust, innovate under multiple constraints, take intuitive decisions and have a culture based on
the owner‘s value systems (Kotey and Slade, 2005).
3.2 Sustainable HRM
As firms plan for sustainability, they also realise that focussing only on economic
performance is not a viable option. If a firm has to sustain in terms of performance; business
practices will have to be managed differently along with people (Bauer, Erdogan & Taylor,
2012; Isabel & Tony, 2010). Sustainable HR practices focus on implementing practices which
yield results for a longer duration (Ehnert & Wes, 2012; Rauch, Frese, & Utsch, 2005). Creating
and implementing a set of organisational values fits into the overall strategy of sustainability
(Cohen, Taylor & Muller-Carmen, 2015). Absence of an HR policy creates disruption amongst
employees leading to poor relationship between owner and the team (Sundar and Kumar, 2012).
A few small firms implemented high performance work practices which had a positive
impact on business outcomes (King-Kauanui, Ngoc & Ashly-Cotleur, 2006). Studies have shown
that firms that have been slow to adopt sustainable HR practices have had concerns in managing
their employees. There is a tendency to de-prioritise HR as compared to other business functions
like business planning, business finance and marketing (Liang & Dunn, 2005). Employees
believe that good firms possess good HR practices, which in the long run leads to sustainable
business (Jackson, Renwick, Jabbour & Muller-Camen, 2011). HR aspects relating to fair wages,
availability of skilled labour, functional training and scientific selection were critical to business
(Rowden, 2005; Bartram, 2005). Studies have also suggested small firms use advanced HR
practices like organisation citizenship behaviour, workforce diversity, empowerment, job
security, knowledge management, inclusion and diversity and high performance work systems to
stay competitive (Aust, Brandl, & Keegan, 2015; Ehnert, 2014; Earley & Ang, 2003; Huselid,
1995; Kishore, Majumdar & Kiran, 2012; Peccei, 2004; Vennix, 1999; Kirton & Greene, 2016).
Sustainable firms prioritise three factors that impact the bottom line; economic, social and
environment. Sustainable HRM is the use of practices to help achieve the bottom line leading to
sustainability (Cohen et al., 2010; Ehnert & Wes, 2012).
Research Methodology:
4.1 Primary data: Data was collected using a questionnaire. This was designed based on
previous study (Bauer, Erdogan & Taylor, 2012; Deshpande and Golhar; 1994; Pingle, 2014).
The questionnaire consisted of questions on multiple HR practices, tenure of employees and
functioning of an HR department. The draft questionnaire was designed post taking views from
two groups. A few academicians were contacted to receive their inputs and a group of HR
consultants, who engage with small firms on consulting assignments, were consulted.
4.2 Sampling: Non-probabilistic sampling method was put to practice. Multiple visits to 109
entrepreneurs of small firms entailed interactions and administration of the questionnaire. In
most cases, the researcher got an interaction time of 30 minutes. In a couple of cases, some of the
visit lasted for more than an hour. These occasions were used by the researcher to understand the
nuances of small firms. These firms were present in MIDC – Maharashtra Industrial
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Development Corporation. Everyone participated in the exercise except for 6 owners who were
busy with contingencies at workplace. Analysis was conducted on 103 respondents.
Findings
5.1 Attitude of management
Across the firms surveyed, one of the unique observations was that small manufacturing firms
employed staffs who were working for more than a decade and in some cases for more than two
decades. All the entrepreneurs admitted that people were their key resource and they were taking
significant steps to engage and retain staff. 22 of the firms surveyed confirmed the presence of
multiple HR practices having moderate effect on their staff. However, majority of the firms (79%
of those surveyed) were found implementing only the very basic HR administrative practices.
Table 1: Intent of the management towards human resources
Characteristics Sample
Size Mean
My people are well managed 103 4.47
My people add value to my business 103 4.43
My business has the right people 103 4.32
We want to invest in building our talent 103 4.23
We empower our people 103 4.21
5.2 Prevalent HR practices
Table 2: HR practices in small firms
Characteristics Sample Size %
Firms implementing less than 3 HR practices 103 28%
Firms implementing 3 or more HR practices 103 78%
All the entrepreneurs of the small manufacturing firms were willing to invest 1-3% of their
revenue in creating HR systems. This however was significantly lower than how small firm
owners in the services industries were looking to commit.
Recruitment practices consist of sourcing channels that include referrals, advertisements
and consultants. Selection was primarily done using interviews and practical tests. These tests
were carried out over 1-3 days where candidates were provided raw materials and were asked to
use relevant machines to produce the output. The candidates were paid for the duration of the
assessment. This was a very scientific way of selection that ensured assessment of technical
skills. All the small firm owners were happy with their individual selection process. This could
possibly be due to the fact that they were designing and implementing these processes on their
own. It was also possible that they might not be aware of any other contemporary practices in
this field.
Training was another common practice seen in small firms. Focus was on induction
training where skilled workmen were recruited and trained on specific machines and customer
requirements. Soft skill training was limited to the owner of the firm and no evidence was seen
of any other employee being sent for managerial or interpersonal training. Training was
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instrumental in also learning to operate complex machines. Most of the training initiatives were
limited to peer-to-peer interaction. Automation is the buzz word in the manufacturing circles and
small firms have been quick to adopt the technology. Interaction with the firms led the researcher
to believe that as these small firms scale up; focus is on acquiring niche skilled workers and
automate the production.
Compensation practices in small firms were dictated more by statutory provisions. For
skilled workers, owners used their knowledge of the market and offered suitable compensation.
No formal market survey was conducted. Small firms that were surveyed did not have a union
and hence no collective bargaining process was seen. Most owners used psychological contract
as an effective way to cement their relationship with the staff.
Reward program existed in all small firms. Employees were evaluated on performance
parameters and rewarded. Most of the rewards were bi-annual in frequency and were handed out
in front of family members during social events. Cash rewards were prominent. All rewards were
promoting individual contribution and not other aspects including team involvement or
innovative thinking.
Performance Management system existed in all the small firms. With size being small,
the owner could easily gauge the performance of the individual. Performance card was
implemented in most firms where a document highlighted the expected performance on a weekly
and monthly basis. Supervisors present kept a close watch on daily targets. In some firms
implementing batch performance, daily or weekly performance was not a relevant performance
criterion. Successful batch production which met timelines and quality parameters were critical
to success.
Discussions with owners indicated the presence of fundamental HR practices. Sourcing,
selection, training, compensation and reward forms the foundation of people practices and are
found bundled together in most small firms as indicated in previous studies (Bhattacharjee &
Sinha, 2015; Chaudhary & Singh, 2014). However, the study showed no presence of career
progression discussion or policies on diversity and inclusion, or the use of knowledge
management to retain important organisational learning. High performing work teams were seen
in isolation in some firms.
5.3 Sustainability of HR Practices
Two characteristics were observed in the study. First, only some of the firms had
documented their HR policies while many could not show any evidence of documented policies.
The owner of these firms had scripted thoughts in his mind which were implemented in the firm.
Second, only in a handful of companies, there was a person who was responsible for driving HR
processes. In all these cases, the person was also responsible from multiple administrative
functions. With small firms facing a resource crunch and presence of small teams did not require
an exclusive resource. Not a single small manufacturing firm showed the presence of a HR
department being managed by professionals. This also gives an indication that HR practices were
not complex and hence did not need professional expertise. Keeping the scale of the employees
in mind, this seemed a logical step.
Table 3: Sustainability of HR practices and the function
Characteristics Sample Size Yes No
HR Policies documented 103 35% 65%
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HR policies driven by a dedicated person 103 13% 87%
HR policies driven by professional HR department 103 0% 100%
Practical Implementation:
Discussions on sustainability lead to engaging businesses for long term gains.
Organisations are adapting and aligning to sustainable HR practices. Connectivity, commitment,
culture and capabilities need to be synchronised to ensure sustenance (Colbert, Kurucz &
Wheeler, 2007).
Any business of any size would need to grow and deliver profits. A productive workforce
is built over a period of time by hiring skilled talent, investment in training, setting up of an
ergonomic work environment and rewarding high performers. It is also important to
systematically let go of non performers after efforts to improve them have failed (Jackson et al.,
2011; Krishnan & Scullion, 2014).
Majority of the respondents in the study understood the importance of human resources.
This study brought out the fact that HR practices in small firms exist. These practices are
informal in nature. In most cases, they are neither written down nor administered by any other
person other than the owner and this concurs with previous study (Bhattacharjee & Sinha, 2015;
Yordanova, 2011). This is different compared to other firms. Most large and medium businesses
have detailed policies which are written down and implemented using a distinct professional HR
team (Dunn, Short & Liang 2008).
Informality is a characteristic of small firms. The author does agree with earlier studies
(Baron and Kreps, 1999) which clearly indicate that informality does not mean absence of HR
practices. One should also not confuse formality with conformity. Small firms do what is
necessary for them and the owner wears multiple hats to manage the daily deliverable of the
organisation.
Conclusion
Small firm owners do not follow the implementation of HRM as mentioned in a text
book. They believe that they have the advantage of a small team and their personal intervention
is sufficient to manage their people assets. They also understand that they need skilled staff to
stay competitive. This is corroborated in other studies (Dunn, Short & Liang 2008; Hung, Cant &
Wiid, 2018). Fundamental HR practices exist and informality is a part of their culture. As small
firms expand to become medium and large firms, they invest in documenting their policies and
ensuring professional HR teams drive and improve these HR practices leading to a sustainable
competitive work environment.
Limitation
1. The sample size is limited (n=103) and hence gives a limited indication of the state of
human resources.
2. The study has been conducted only in the city of Pune in Maharashtra. Findings cannot
be generalised.
3. Small firm entrepreneurs are not used to taking part in surveys. They might use this to
highlight only the positives and thereby not declare hidden challenges.
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A Study on Sustainable Human Resource Practices for
Organizational Performance
*Ms. Srimati Naik & **Ms. Vidhya Halarnkar
*&**Assistant Professor,
Department of Commerce,
Government College of Arts, Science and Commerce,
Khandola- Marcela Goa
Abstract:
Sustainability is considered as new strategy for improving the environment and human
activities.Organizations had to face massive competition and sustainability has become utmost
important and key integral aspect of doing business in any sector or Industry - the sustainability
on optimizing and balancing the social, financial and environmental concerns. To achieve this,
sustainability should be important part of the business. Organizational culture plays a crucial
role in today‟s world to sustainin business. It makes or breaks an organization's policies and
programs. It represents the organization's values, beliefs, and processes that echo„s what the
leadership team and the employees perceive about issues on environmental sustainability. One of
the critical roles of Human Resources Management is to lead the organization towards
achieving a sustainability strategy by building and developing skills in people, motivate them,
generate a value system and create an environment of trust so as to accomplish a bottom line
that is threefold. This will bring about healthy and sustainable organizational practices
promoting both the internal and external stakeholders of the organization. This highlights the
increasing need of integrating human resource management and business sustainability.
Keyword: Reward, Employee maintenance, Sustainable HRM, Organizational performance.
Introduction
Sustainable business environment is one in which a business endeavours to meet the
organizational goals without compromisingon environmental, societal or economic aspects. The
role of HRM in developing sustainable business organizations is increasingly attracting attention
.It has been observed that sustainability has a positive impact on its people and on the image of
the company as a whole. In this competitive advanced business environment, sustainability
benefits in gaining animportant advantage over the others as that customers prefer products and
services of companies which follows a sustainable business model.
Sustainability can be used as a principle for HRM itself and the tasks of Sustainable
HRM are twofold. On the one hand it fosters the conditions for individual employee
sustainability and develops the ability of HRM systems to continuously attract, regenerate and
develop motivated and engaged employees by making the HRM system itself sustainable. On the
other hand Sustainable HRM contributes to the sustainability of the business
organizations through cooperation with the top management, key stakeholders and NGOs and by
realising economic, ecological, social and human sustainability goals. So sustainable practices
should start from the people hence organizations need to implement sustainable human resources
policies. It is in this aspect this paper aims to study various aspects of sustainability in human
resources and its impact on organizational performance in Goa.
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Literature Reviews
Jacob Cherian &Sherine Farouk (2017), in their paper titled., ―Impact of Sustainable
Human Resource Practices On Organizational Performance‖, writes that Sustainability is
unarguably one of the most important pillars on which a business has to be built. Study made an
attempt to understand the role of sustainability in human resource management and to investigate
the impact of sustainable human resource practices on organizational performance. The effect of
sustainable practices in various dimensions of human resources like recruitment and retention,
training and development, performance management and motivation and environmental
awareness was studied. The study was based on primary data and Cronbach‘s alpha was used to
determine the reliability of the questions and multiple linear regression was used to understand
the effect of sustainable human resources on organizational performance. The study showed that
the sustainable human resource practices had a positive and significant influence on the
organizational performance.
Saleh Md. Arman (2017) conducted a study on ―Impact of Sustainable Human Resource
Management in Organizational Performance: A Study on Bangladeshi HR Professionals‖. The
objective of this research paper was to assess how the various instruments of sustainable HRM
create an impact on the organizational performance in different organizations operating in
Bangladesh. The study was based on 100 HR professionals and it collected data by administering
a questionnaire consisting of 27 items under 7 sustainable HRM instruments. Quantitative
analysis was used to find out the impact of the above mentioned factors on the overall
organizational performance. The study concluded that, human resource recruitment and selection
and human resource marketing have a positive influence on the organizational performance of
Bangladesh
Keri Spooner and Sarah Kaine (2010), in their paper titled,―Defining Sustainability And
Human Resource Management‖ A great deal of contemporary attention, including the scholarly,
is focused upon issues of sustainability and while much of this is specifically directed to
environmental matters, the literature demonstrates a considerable and growing interest in human
resource sustainability. The paper aims to develop a coherent theoretical framework for
examining HRM and sustainability. In this paper, the meaning of sustainability within the
context of the employment relationship is examined and an analytical framework is suggested. It
is argued that the key distinguishing variables which define sustainability in the employment
relationship lie in the human resource management (HRM) domain and the task domain of the
employment relationship. Extant literature on HRM and sustainability pays little attention to the
impact of both of these domains on the individual worker rather focusing on organisational
sustainability. This paper attempts to fill this gap by including the individual worker into a
proposed framework for future research into HRM and sustainability.
Nyameh Jerome (2013), conducted a study on ―Impact of Sustainable Human Resource
Management and Organizational Performance‖. The paper suggests and recommends that
sustainable human resource management can be carryout in all field of human endeavour. It is
based on the foregoing that the paper discussed the impact of sustainable human resource
management on the organizational performance, and the interplay that exist between the two
construct, it also ensure leadership's responsibility to the frame of sustainability, as the business
issue, employees need to understand the strategic for pursuing sustainability as means of
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achieving management of objectives, the threats associated with ignoring sustainability, and the
opportunities it presents for business improvements, that made it paramount and worth adopting.
Identification of the Research Problem
From the literature surveyed during the study, it was understood that there are research
studies which are conducted with respect to Human resource Management for sustainability of
organisation. It was found that there are very less number of studies which are conducted in the
state of Goa and very few have highlighted factors responsible for sustainable Human Resources
Management. This paves a way for the present study.
Objectives of the Study
1. To provide the conceptual framework of Human Resources Management and sustainability.
2. To study the factors responsible for sustainable Human Resources Management
Research Methodology
With respect to the above research objectives, the following research methodology has been
adopted and executed.
Universe and Sample Size Selection: For the purpose of objective number 2, entire State of Goa
has been considered as universe and a sample comprising of 35 companies have been selected
from the state and studied.
Sources of Data Collection: The relevant and required data has been collected by way of
Primary as well as Secondary Sources. A questionnaire was constructed and response was
collected using five point Likert Scale from the selected sample under study. Information also
has been collected from, journals and electronic media that form the sources of secondary data.
Period of study: The survey has been conducted from November 2018 to December 2018.
Statistical tools used: The primary data has been collected in a manner which can be used to test
the following hypothesis using Regression Analysis in Gretl software of Econometrics.
1. H1: There is dependency of selection, recruitment,rewards, participation,training and
employee maintenance on Sustainable HRM
2. H1: There is dependency ofSustainable HRM on Organizational Performance
Human Resource Management
Human Resource Management is the process of recruiting, selecting, inducting
employees, providing orientation, imparting training and development, appraising the
performance of employees, deciding compensation and providing benefits, motivating
employees, maintaining proper relations with employees and their trade unions, ensuring
employees safety, welfare and healthy measures in compliance with labour laws of the land.
Human Resource Management involves management functions like planning, organizing,
directing and controlling.
It involves procurement, development, maintenance of human resource
It helps to achieve individual, organizational and social objectives
Human Resource Management is a multidisciplinary subject. It includes the study of
management, psychology, communication, economics and sociology.
It involves team spirit and team work.
Importance of Human Resource
Behind production of every product or service there is a human mind, effort and man
hours (working hours). No product or service can be produced without help of human being.
Human being is fundamental resource for making or construction of anything. Every
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organization‘s desire is to have skilled and competent people to make their organization
competent and best.
Among the five M‘s of management, i.e., men, money, machines, materials, and
methods, HRM deals about the first M, which is men. It is believed that in the five Ms, "men"
is not so easy to manage. "every man is different from other" and they are totally different from
the other M‘s in the sense that men possess the power to manipulate the other Ms. Whereas, the
other M‘s are either lifeless or abstract and as such, do not have the power to think and decide
what is good for them.
Human: refers to the skilled workforce in an organization.
Resource: refers to limited availability or scarce.
Management: refers how to optimize and make best use of such limited or scarce resource so as
to meet the organization goals and objectives.
Therefore, human resource management is meant for proper utilisation of available skilled
workforce and also to make efficient use of existing human resource in the organisation.
Sustainability:
Sustainability focuses on meeting the needs of the present without compromising the
ability of future generations to meet their needs. The concept of sustainability is composed of
three pillars: economic, environmental and social - also known informally as profits, planet and
people. The importance of sustainability in HRM practices can be considered from two separate
aspects: the importance of managing people and the notion of sustainability.
So sustainable HRM is about creating competitive advantage for companies, sustainable
employability for employees, shareholder value (based on future cash flow) for the
shareholders, etc.
A sustainable organization meets the expectations of diverse stakeholders. A true
sustainable organization is able to generate long term benefits by creating virtuous cycle between
economic, social and environmental considerations. Such organizations are successfully able and
communities to meet expectations of both internal and external stakeholders such as
shareholders, customers, government, employees to ensure long-term gains for all.
Human Resource can help organizations succeed in implementing sustainable business practices.
Although many organizations make a commitment and form a sustainability strategy, its
implementation, measurement and integration often becomes difficult.
The HR function will need to play a key role in addressing the critical success factors for
implementing sustainable business practices
Hypothesis testing
In order to find out dependency of dependent variable on independent variable the
following Regression Analysis is carried out in the Gretl Software and the following hypothesis
is tested.
Hypothesis 1.
H1: There is dependency of Selection, Recruitment, Rewards, Participation, Training and
Employee Maintenance on Sustainable HRM
OLS model, using observations 1-35
Dependent variable: SustainableHRM
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Coefficient Std. Error t-ratio p-value
Const 2744.68 264.67 1.0390 0. 004 ***
Rewards 238.654 451.728 −0.5283 0. 008 ***
Recruitment 522.113 268.23 0.1964 0.055 ***
Selection 0.194744 0.0648867 −3.0013 0.0051 **
Participation 1.71144 0.231364 7.3972 <0.0001 ***
Employeemaint 0.116415 0.0595703 1.9543 0.0592 **
Training 1.15523 1.80264 −0.6409 0.0260 ***
Mean dependent var 1933.175 S.D. dependent var 231.757
Sum squared resid 18213267 S.E. of regression 92.9113
R-squared 0.921026 Adjusted R-squared 0.906667
F(6, 28) 64.14338 P-value(F) 8.92e-17
Log-likelihood 317.3332 Akaike criterion 68.6663
Schwarz criterion 660.4885 Hannan-Quinn 52.9409
A survey comprising of 35 companies has been selected and studied as per the response
received from the companies in regards to total 6 variables. The hypothesis tries to test the fact
that whether the above factors contributes towards sustainable HRM. The data has been collected
and confined to the State of Goa because of time and geographical limitation. An OLS model has
been designed and the hypothesis has been accepted.
The above OLS model has explained the dependency factor at 90 percent as the adjusted
R-Square appears to be 0.906667, andthe overall p. value being 8.92e-17. All the independent
factors are found to be significant either at 95 percent or 99 percent significance level. Thus the
alternate hypothesis can be accepted which states:
H1: There is dependency of Selection, Recruitment, Rewards, Participation, Training and
Employee Maintenance on Sustainable HRM
Hypothesis 2
H1: There is dependency of Sustainable HRM on Organizational Performance
OLS, using observations 1-35
Dependent variable: OrganizationalPerformance
Coefficient Std. Error t-ratio p-value
Const 2.47901 0.478110 5.185 <0.0001 ***
SustainableHRM 0.498092 0.118787 4.193 0.0002 ***
Mean dependent var 4.457143 S.D. dependent var 0.560612
Sum squared resid 6.971374 S.E. of regression 0.459623
R-squared 0.647599 Adjusted R-squared 0.627829
F(1, 33) 17.58236 P-value(F) 0.000194
Log-likelihood −21.42597 Akaike criterion 46.85195
Schwarz criterion 49.96264 Hannan-Quinn 47.92576
The above OLS model has explained the dependency factor at 62 percent as the adjusted
R-Square appears to be 0.627829, andthe overall p. value being0.000194. The independent
factor is found to be significant either at 99 percent significance level. Thus the alternate
hypothesis can be accepted which states:
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H1: There is dependency of Sustainable HRM on Organizational Performance
Conclusion
This study was conducted to identify human resource practices which would lead to
sustainable HRM and investigate if sustainable human resource management have an impact on
organizational performance. Extensive review of various papers, journals and articles related to
sustainable human resource and its impact on organizational performance was reviewed and
studied. The data was collected with the help of a structured questionnaire that was distributed
to 35 units in Goan based organization. From the data analysis and the interpretation, it is
revealed that Selection, Recruitment, Rewards, Participation, Training and Employee
Maintenance results in Sustainable HRM which helps to achieve employee motivation, loyalty
involvement and satisfaction. Also it can be clearly observed that Sustainable HRM has a
positive and significant impact on organizational performance. Implementing sustainable
practices in selection, recruitment, rewards, participation, training and development, and
retention helps in managing the employees in a productive way. From the literature review it is
observed that employees also had a positive attitude towards the organization and worked better.
One another key area was to implement environmental awareness activities in organization and
to involving employees in it. This showed a positive impact as employees were found to have a
deep connection with the companies that had a sustainable business model that involved the
betterment of the people, environment and the economy.
Sustainability has to be implemented in human resource management as people are the
most valuable assets of any company. And in order to implement sustainability in to all areas in a
company, it has to start from the people as they are the brain and heart of any organization.
References
1. Saleh Md. Arman 2017 ,Impact of Sustainable Human Resource Management in
Organizational Performance: A Study on Bangladeshi HR Professionals, Proceedings of
15thAsian Business Research Conference 22-23 December 2017, BIAM Foundation, 63
Eskaton, Dhaka, Bangladesh
2. Jacob Cherian and Sherine Farouk 2017,―Impact of Sustainable Human Resource
Practices on Organizational Performance‖ , International Journal of Management and
Applied Science, ISSN: 2394-7926 Volume-3, Issue-8, Aug.-2017
3. Nyameh Jerome 2013, ―Impact of Sustainable Human Resource Management and
Organizational Performance‖ International Journal of Asian Social Science, 2013,
3(6):1287-1292.
4. Keri Spooner and Sarah Kaine 2010, Defining Sustainability and Human Resource
Management , University of Technology Sydney. International Employment Relations
Review
5. http://www.whatishumanresource.com/human-resource-management
6. https://www.springer.com/in/book/9783642375231
7. https://www.sciencedirect.com/science/article/pii/S0921344918303719
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Innovative Business Practices for Sustainable Entrepreneurship
Dr. Pradip Joshi
Assistant Professor,
Moolji Jaitha College, Jalgaon, Maharashtra.
Abstract:
Dream of every businessmen to become a successful Entrepreneur. When the
businessman is moving on the path of dream, faced various challenges. Such challenges arise
due to business environment such as economical environment, political environment, natural
environment, government policies, etc. To break the circle of challenges and sustain the
business, entrepreneur wants to implement some strategy and innovative business practices.
This paper discusses the common challenges faced by today‟s entrepreneurs. There are various
traditional business practices for sustain the business, but apart from it, this paper focused on
new business practices and strategies for sustain the entrepreneurship. This business practices
is coming up from the day to day business activities. Suggested business practices and strategies
are easily approachable for entrepreneurs. Thus it is convenient for each entrepreneur to sustain
their business.
Keywords: Entrepreneur, challenges, strategy, sustainable, environment.
Introduction
Now a day‘s peoples prefers secured job for livelihood. Before 2-3 decades the picture
had been different. Business was the powerful source of income. Everyone was interested to
developed self business and became a successful entrepreneur.
To become successful entrepreneurs is a dream of every businessman. When
businessman moving further to achieving his goal must be crossed the obstacles arises on the
way of success. There are regular changes made in business environment, like changes in
business cycle, political environment, legal environment, natural environment, economical
entrainment etc. Thus all this changes creates new challenges every time in front of the
entrepreneurs.
After facing all such challenges, entrepreneurs can‘t sustain their business. Growth rate
of such business now is moving downwards day by day. To sustain in this environment they
must be face such challenges.
This paper focused on common challenges arises to entrepreneurs for sustain their business.
It not only discussed the changes but also suggest some new techniques, polices and some
innovative business practices. Such suggestion is helpful to entrepreneurs for sustaining their
business.
Research Objectives
The following of the research objective –
To analyses the problem faces by the entrepreneurs
To criticize the challenges of entrepreneurs
To Provides the remedies and innovative business practices to face such challenges.
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Research Methodology
Data Collection- This research study is descriptive in nature. Qualitative data is the base of the
research study. Research collect the data through the e-learning sources, as well visit to
government organization like MCED, MIDC, DIC, etc., for the collection of government
schemes for entrepreneurs. Apart from it major part of this paper is secondary data. The publish
information of business entrepreneurs in new papers, magazines, Internet, published articles,
journals are used for it.
Scope of Study- Entrepreneurs faces too many challenges in day to day life for sustaining
their business. Some of them are regular and reoccurring in nature. Thus entrepreneurs have
habit to face it. But few of them are dangerous for sustaining the business practices. They are
very adversely affected on business practices. Thus researcher find out ten challenges criticized
it and taken into study.
Challenges of Entrepreneurs :
In today‘s mega-competitive business world Entrepreneurs face many challenges.
Unfortunately, such challenges lay down the growth graph of entrepreneurs. Face such
challenges first entrepreneurs must be analyze the challenges and the criticized it. Given below
the list of some of the common challenges faced by today‘s entrepreneurs for their sustainability
For sustaining the business entrepreneurs faces various challenges, the following lists the ―Top
10‖ challenges is criticized and which having large brunt of entrepreneurs. Each problem
defines with the reason why it exists and offers solutions. Applicability of it helps to
entrepreneurs for an efficient and successful business.
Challenges of Globalization:
The Challenge: Globalization is the biggest challenges for Entrepreneurs. Due to globalization
and entrepreneurs faces the challenges heightened customer expectations, High cost, Cultural
Rights, Money power, efficient teams of experienced employees, etc.
The Solution- Globalization is need of creative environment. For sustaining the business, it
must be positively accepted by entrepreneurs.
To survive this competitive era of globalization, Indian entrepreneurs need of research.
Entrepreneurs must prepare new and better business policies. By using business tactics
and skills develop own innovative business practices.
Indian entrepreneurs must organize themselves with novel, better and innovative business
tactics and skills. They must accept this global challenge willingly and try their best to
look for business opportunities to establish their prevailing place in this ever-changing
and always challenging open market.
India is developing country, thus entrepreneurs will get new technological advantages
with globalization. New technology improves quality of product and services save cost
and time.
Indian entrepreneurs also take Regional Trading Opportunities.
Balancing Economic and Social Objectives
The Challenge: This is really a big challenge for Indian entrepreneurs. Every entrepreneur must
balance between earning high profit and doing social-welfare activities. Due to competition
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profit margin is decreases day by day. By maintaining quality of product and services with in
smaller amount of profit they have to pay of social objective.
The Solution- Balancing economic and social objectives is adversely related with each other.
To grasp one another put down.
Use of Eco friendly inputs of production or input which less harmful for environment and
society.
Entrepreneurs be gauged by looking at the empirical practice of corporate social
responsibility (CSR) reporting.
Entrepreneurs must be adopted Environmental Accounting. It is the business process
which emphasizes the commercial value-added, offering management of financial capital
in combination with natural capital. Practicing environmental accounting assists to
entrepreneurs to identify inefficiencies due to excessive waste discharge and poor use of
inputs within the value chain.
Being the Visionary-
The Challenge: Indian entrepreneurs‘ vision is limited up to own organization goals. This
narrow vision of entrepreneurs could not cover the problem arises due to competition,
globalization etc. Thus they unable to sustain their business practices.
The Solution- Vision of organization is the living path for organization. To move further
smoothly on the success path vision of entrepreneurs must be spacious.
Open minded entrepreneurs should be spacious visional. Entrepreneurs must be aware
with current changes in market and economy. It shows him not only the challenges but
also the opportunities.
Need to create a mindset for accepting new changes. And also have creativity of new
changes must be mixed with old without harming any one.
Researcher angle of entrepreneurs suggest innovative business practices in global
challenges.
Visionary of entrepreneurs must be reached to problems arises in future due to
competition, globalization etc. and made plant for overcome it.
Managing Finance of Business
The challenge: Capital is burning issue for every entrepreneur. For starting new a business or to
achieve the growth of business capital is always doing major role. Strong financial system made
strong organization. sound financial position encouraged to entrepreneurs for taking dynamic
decisions.
The solution: Finance is the heart of every entrepreneur. This problem have no end, it boom
differently with new day.
With traditional ways to earn funding, from traditional bank loans to family and friends
entrepreneur can choose the routes self-funded growth model in which fund are available
from own business activities. Some of the self funded sources are constructive cash
budge, possession of best financial leverage, etc.
Encouraged the employee for invest their saving. Provide them some facilities for the
cost of their investment. Along with the smaller interest rate, provide some facilities like
interest free loan for education of children, marriages of children, housing loan, providing
funds for funeral function, etc.
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Use various schemes of central or state government. State or central government
provides various facilities and subsidies for small and large scale business. By fulfillment
of necessary documents such funds are available for the development of business. Some
of the schemes are Multiplier Grants Scheme (MGS), Electronic Development Fund
(EDF) Policy, Market Development Assistance, Rejuvenation, Modernization and
Technology Up gradation of Coir Industry (REMOT), Skill Up gradation & Quality
Improvement And 19 Mahila Coir Yojana, etc.
Change in Workforce Challenges-
The challenge: Today Indian workforce is change. Women workforce is increase now days.
To handle women‘s workforce related problems is the challenges for entrepreneurs. Currently
another one is finding a prospective candidate from the interview is creates a challenge due to
demand of high salary package. Handling of potential employees is the challenge for the
entrepreneurs. Experienced and potential employees demand for high salary. They also compare
the facilities available to them. Participation in management is preferred demand of employee is
another one challenge faced by entrepreneurs.
The solution: Entrepreneurs must know the special Labour Laws for women. They must
provide better working conditions, safe environment and other related essential facilities for
women staff.
Be exclusive. Demand of high salary package offered to multitasking personality
employee. Multitasking employee is capable to handling various types of jobs at same
time. He always self motivated fort job rotations. Provides the various facility to
employee like work life balance, etc.
Regular work for long hours work creates health issues to employees. To overcome it a
healthy work-life balance is essential, and people need to know that management
understands its importance. Encourage and motivate staff to take vacation time, and if
late nights are necessary to cover a project, offer those late arrivals or an extra day off to
compensate and increase job satisfaction.
Adoption of technology change is requirement of competitive world. Every new
technology should be set up for success from the very start, from the first day of work to
the first week and beyond. The job orientation is just one component of on boarding,
which helps worker and buildup confidence also encouraged them to accept it. Before
changes in technology if worker are familiar with new technology they learn about the
job and how they can contribute and flourish, with ongoing discussions, goals and
opportunities to address questions and issues as they arrive.
Utilization of recognition and rewards systems motivate and encouraged the employee.
Achieve the organizations goal by arranging some cultural activity. Goals and mission of
the organization is passes through the cultural activity of employees. Reward them for
better performance. Also shared with him negative points with them for improvement.
Proper process of Communication and feedback improve the relationship of employee
and employer. Keeping open lines of communication is crucial for employee retention.
Direct communication should feel that management is always with employee for
developing ideas, questions and concerns, and likewise. Transparency of communication
stimulate them
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Cost Cutting-
The Challenge - Cost cutting is one of the weapons of entrepreneurs‘ crates a challenge for
them. Cost cutting affects the quality of work, culture of organizations, restricted the freedom of
activity of the organization. To achieve the target of cost cutting creates the limitations of
various task of the organization.
The Solution: Cost cutting is the activity that directly effects the quality of product and
services. Thus entrepreneurs must be handle it skillfully.
Outsourcing the activity is the one of the best solution for cost cutting. Some activities
run in organization is very costly due to maintain proper staff, machinery and so on, such
activity is outsource then it is very cheap, hence minimize the cost of activity. By paying
small cost to such activity organization can focus on their core functions.
Recycle and reissue is the one of the best solution for cost cutting. Any wastage of
industries is recycling it and use this recycle material as a raw material its helps to
minimize the cost of production. Not only the material but other waste of organization is
also try to reused it or recycle it by various ways reused it for different purposes.
Make or buy decision is useful for cost cutting. Some part of production is costly for
production as compare to purchase it from outsider, in such case purchase it from
outsider according to standard required.
Allowing employees to work from home, any convenient place and away from the office
can save costs in many ways. All is need to ensure is get the job done on time and
maintain the proper security. The strategy is to employees work longer hours but fewer
days at the office.
Fully utilization of all the sources is also helps to reduce the cost. Use of both side of
papers. Generally one side used paper is not use in next time. But such one side usable
paper can be use another time by using the back blank side. Its helps to minimize the
cost.
Use of solar energy electricity. Solar electricity is free of cost. only one time investment
is required. Now a day‘s government gives subsidies on solar electricity production. It
helps to minimize the cost of production.
Waste Management
The Challenge: Wastage of materials and other things is unable to control by the entrepreneurs.
Every entrepreneurs faces the problems of waste of materials. It faces not only the waste
material but also waste of other useable things like paper, electricity, etc. In big industries apart
from the material the other things like waste of electricity is also the major waste issue.
The Solution: Waste creates the good test. Proper waste management creates a good test for
entrepreneur. By observing and following some strict rules controls on all types of waste.
Recycle of waste material is goods source of raw materials. Recycle material maintain
the proper as well content of various sub raw materials, standard thus its helps to improve
the quality of product.
Some waste other than materials is also the big challenge for todays entrepreneur. Paper,
files, stationary, boxes, etc, such types of waste is also need to control. One side used
paper is also reused by way of using of back side. Less important part can be or less
valuable data can be print on one side printed page. It‘s helps to reduce cost and reused of
waste.
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Use green technology for waste management. Most of the thing we can manage without
any proper things only by way of electronic media like email, social networking, internet
etc.
Minimize the waste of electricity. Most of companies required huge power for
production purpose. The cost of electricity of such company is very high. To control on
it first step is to minimize the waste of electricity. Implement a Switch-off Campaign. A
switch-off campaign at the workplace is a good technique to raise awareness among
employees. Provide information to employees such as switching off lights and energy
consuming appliances before leaving the workplace or when otherwise not necessary.
Use of LED lights in proper direction which gives proper reflection of light.
Government Policies-
The Challenge: Governments forms new rules and regulation for the development of economy.
A new rule, regulations, acts creates challenges to entrepreneurs. Every new act, amendment in
old act is affected on transaction system. Thus it creates limitations on entrepreneurs. Adoption
of new act is not always feasible for entrepreneurs.
The Solution: Formation of new act or amendment of act is made by Government for
developing of new policies and increase the growth of economy. This change some time
affected favorably or sometimes adversely on entrepreneurs.
The Government of India has undertaken several policy s to foster a culture of innovation
and entrepreneurship for Indian Entrepreneurs. With a significant and unique
demographic advantage, India, Government create jobs for the benefit of the country.
The idea of Entrepreneurial ecosystems is booming entrepreneurs. Entrepreneurial
ecosystems business practices deliver two main services: first, they facilitate and support
the kinds of innovative and growth-oriented new firms described above, and second, they
help to identify which ventures work and which don‘t through trial-and-error allocation
of resources. The ultimate result of this business practices is enhanced productivity of the
entire ecosystem.
Develop the business policy or activity which broadly focused and covered Government
policy.
After taking the deep knowledge of new act or new government policy developed the
new policy and business practices for sustain the business.
Marketing Strategy-
The Challenge: Finding right marketing channels is one of the common challenges faced by
every Entrepreneur at least once. There are too many channels are available in market that
confused, which is the most reliable, which will give you more benefits, which will provide
product with target crowd. Loss of creative methods for marketing is another marketing
challenges faced by Entrepreneur. Entrepreneurs are promoting their companies in the traditional
way.
The Solution: Marketing is related to the customers i.e. king of the market. Thus whatever is
decision about the marketing should be taken systematically by the entrepreneur.
Every entrepreneur need core marketing plan. To adopt creating marketing plans and
placing ads, is ads idea of marketing strategy. Thus, Outsource of marketing strategy is
one of the best idea. According to budget, product, target people etc. commercial
organization craft plan that efficiently uses that budget to produce profit.
Selecting only one channel for marketing is oldest method of marketing strategies. Now
a day‘s entrepreneurs should adopt multiple channel strategy for marketing. Customers
demand and preferences are change due to change is dynamic environment.
According to product and target people select one of the following marketing channel for
best business practices Ser Engine Optimization (SEO), Speaking Engagement, Utility
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Marketing, Social Media Marketing, Community Building, Digital Marketing, Blogging
and other content marketing channel, etc.
Pay per Click, Pay per sales, Youtube, secretive wholesale, etc are various new
techniques should be adopted by entrepreneurs for sustention.
Time Management
The Challenge: Time management might be the biggest problem faced by entrepreneurs, time is
crucial factor. Once a time pass away never get back. To catch the proper time for proper
activity is the biggest challenge for the entrepreneur.
The Solution: Make time. Like money, time doesn‘t grow on trees, thus everyone take
precaution for doing time management. So need to do smart work for time management.
Create goal lists or to do list. To do list and goal list of lifetime goals is an important part
of time management. Annual goals, of organization are broken down into small goals. It
is broken down into monthly goals, and then broken down into weekly goals and daily
goals. This daily goals, then will be broken down into specific task.
Some time every tasks do not mesh with predefined goals, such mismatch goals eliminate
or delegate them
It is not possible to complete the entire task absolutely. If any tasks do not absolutely
have to be complete, delegate them
Every person should be consistently asked ourselves: ―Is what I‘m doing right now the
absolute best use of my time?‖
Conclusion-
An approach of the entrepreneurs delivers reaps. Negative approach gives negative reaps and
vice versa. Challenges have never ends. It arises one by one. Negative approach regarding the
challenges, entrepreneurs gets negative feedback. It creates limitations on business practices,
creates insecurity about sustaining of the business. Positive approach of accepting challenges
gives positive feedback to entrepreneurs. Every challenge open new business strategy for
entrepreneur, challenges push up entrepreneurs towards new business practices, it increases the
working ability of entrepreneurs, imparting alertness and also provides security for future
dilemma.
References-
1. Agarwal S. P (2006 b); An Innovative Policy Framework for Technology Capacity
Building of SMEs; UNESCAP SIS Workshop Beijing China October.
2. Munshi Porus, "Making Breakthrough Innovation Happen, How Eleven Indians Pulled
off the Impossible", Harpers Collins Publishers, Thomson Press (India) Ltd; New Delhi,
2013.
3. Report of the Working Group on MSME Growth for 12th Five Year Plan (2012- 17)
Ministry of MSME Government of India.
4. Srinivas K T (2013): International Journal of Engineering and Management Research.3
(4) August 2013 ISSN No.: 2250-0758.
5. https://www.thebalancesmb.com/top-business-sustainability-trends-4121259
6. https://www.thebalancesmb.com/29-cost-saving-sustainability-ideas-for-businesses-
4097466
7. https://www.thebalancesmb.com/achieve-zero-waste-in-business-4117249
8. https://www.imperial.ac.uk/business-school/knowledge/finance/how-can-government-
support-entrepreneurs/
9. https://yourbusiness.azcentral.com/globalization-challenges-businesses-22245.html
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Innovative Entrepreneurship for Sustainable Business Practices
* Dr. Sunil Zagade & ** Ms. Manisha R. Shedge
*Research Guide,
MES Garware College of Commerce, Pune (Maharashtra)
**Research Scholars
MIT-WPU, Pune (Maharashtra)
Abstract :
Every society has experienced many forms of business. As per the need there are
emergence of new business models. Every business model has gone through the life cycle i.e.
introduction, development, growth, maturity & decline, this shows no single business model is
permanent or suitable for long period. As there is change in social structure there are need of
new business models which suits the requirements of the society. In the dynamic environment the
permanent thing is only change. In this background entrepreneurship can be treated as
innovative & creative aspect which recognizes the requirement of the ever changing structure,
triggers & extracts an economic juncture.
An economy experiences entrepreneurship as a tool to reduce unemployment & poverty
which are the biggest hurdles in the development. Every business & society is interdependent for
survival & growth. Nothing can be alive in vacuum so business models should be incorporated
which will lead to sustainable development.
Changing structure of society leads to many problems major reasons are nuclear
families, migration of working population to cities, increasing need of old age homes. Working
women face problems in maintaining balance in their career & family. At early motherhood
many working women unwillingly take break in their career which is loss for the economy. Old
age homes are increasing but they are fail in providing emotional support at last period of lives.
Working population is migrated to cities. Educated population is more interested in the white-
collar jobs than the farming activity. Very few people see farming as their career but truth is that
farming can not be neglected as it fulfill the first basic need of food. This research paper will try
to discuss some business models which can be solution to these problems.
Keywords : Dynamic, entrepreneurship,agrochemicals,nuclear family, motherhood, working
population
Introduction : The fundamental questions are raised whenever to concept entrepreneurship is
discussed i.e. what is the meaning of entrepreneurship? To whom we can call entrepreneur?
Objectives :
This research paper try to focus the effects of nuclear families, migration of working
population to cities, increasing need of old age homes. Through this research papers some
innovative ideas are discussed for sustainable business practices.
Hypothesis/Research Problem:
Changing structure of society leads to many problems
Innovative entrepreneurship can provide sustainable business practices.
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Research Methodology:
Data is collected through primary & secondary sources. In primary source interviews are
conducted of 50 working women who took bleak in their carrier in motherhood. Interviews
young 50 men & women are conducted who are migrated from villages to the cities. Interviews
of 50 senior citizens staying in old age homes are conducted. Interviews of 50 farmers staying in
different villages of Maharashtra are conducted Observation method: researcher observed
innovative business practices for sustainable development in Singapore. In secondary source
literature is reviewed. Various research papers, books, journals, news papers& films are
reviewed.
Findings/Observations:
Effects of migration of working population to cities & agriculture:
Due to socio economic , political, environmental factors people migrate for better
opportunities. Migration can be treated as natural process of human beings. In the first census of
1881 migration was recorded based on the birth place of citizen. The major reasons of migration
are urbanization & employment. Increasing rate of urbanization resulted into vast difference in
the wage rates of urban area & rural area. Increased wage rates in cities attracted rural youth in
the cities. The failure of rural part in providing employment opportunities is again the major
reason behind migration to cities. All this resulted into the decrease in the working population in
the villages. Due to this agriculture is facing a serious problem of less labor supply. The
maximum number of farmers are not taking the formal education of agriculture. To meet the
demand of market chemicals, fertilizer, pesticides are used without taking complete knowledge
of it. This inappropriate application has started showing adverse effects on human body &
environment. Due to excessive use of agrochemicals water is contaminated at few places.
To avoid these ill effects agriculture has to be given equal status of corporates. Motivation for
chemical free farming can be effective tool. In cities societies can start group farming or
community farming through this societies can recycle their waste in their own society. The farm
produced can sold. Group Farming can help to solve problem by managing waste, supply of
chemical free farm produce. In Singapore Eco-Community Garden is working at Tampines. This
community produce organic vegetables & sale it at reasonable rate. This type activities can have
sustainable development by applying commercial angle.
Increasing need of old age homes :
Demand of old age homes are increasing because of reasons like migration of children,
misbehavior of children etc. It is observed that people are saving for their old age, they are
financially sound but they are dependent after certain age. As the children are not staying with
them they need to choose old age homes for the last part of their lives. Now a days old age
homes are providing the required facilities but they fail to provide emotional support at this age.
The solution to this can be relatives can start small companies or joint ventures for running old
age homes. Here relatives will be staying at their old age. Since the beneficiaries are known to
each other they will be sharing emotional bonds. We can refer the community living of Israel,
where people were living for helping each other, importance was given to the group. This
concept can be modified in the commercial way. If the persons living at old age homes are close
relatives it will be a joyous stay. Children who are not able to stay with their parents due to any
reason can create a company, use proper management skill can make it happen. This will be win-
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win situation for parents as well as for children. Both will be happy. Young generation will treat
this as sustainable business practice through which emotional support can be provided to parents.
The current study revealed poor awareness regarding the harmful effects of agrochemicals
among the farmers. The practice of storing, mixing and applying agrochemicals without
personal protection and unsafe disposal of pesticide containers appears to be widely prevalent
in the study villages. The farmers mainly depend on the information from the shop owner
regarding the type and amount of agrochemicals to be used. The current study revealed poor
awareness regarding the harmful effects of agrochemicals among the farmers. The practice of
storing, mixing and applying agrochemicals without personal protection and unsafe
disposal of pesticide containers appears to be widely prevalent in the study villages. The farmers
mainly depend on the information from the shop owner regarding the type and amount of
agrochemicals to be used. The current study revealed poor awareness regarding the harmful
effects of agrochemicals among the farmers. The practice of storing, mixing and applying
agrochemicals without personal protection and unsafe disposal of pesticide containers appears
to be widely prevalent in the study villages. The farmers mainly depend on the information from
the shop owner regarding the type and amount of agrochemicals to be used.
Imbalance between career & family of working women:
Education increases the confidence as well as expectations of a person. Women are
showing their existence at respectable positions,powerful corporates as well as at small
designations. This has given financial independence & increase in the national income. This is a
very beautiful journey but some of the times the speed breakers changes the destinations. It is
been seen that 25-30% of the working women unwillingly have to quit their carriersto take the
responsibilities of motherhood. The major reasons behind this are nuclear families, absence of
motherhood friendly policies of corporates. Due to nuclear family structure the major problem
faced is who will take care of child? Absence of affordable, hygienic &good quality of day care
centers is again the biggest concern for the parents.
Women working in the agriculture & unorganized sectors are facing same problems but
sue to weak financial conditions they have to fight with situation very tuff. Almost
Women working in the unorganized sectors such as agriculture and labour remain even
further aloof from maternity healthcare or employment benefits. Almost 70 percent of the
farmers in India are women though they receive no employment benefits from ―farmers‘
schemes‖ that the government launches for the betterment of those employed by the agricultural
sector.
If the educated women are quitting their jobs it is a huge loss to the nation. To avoid this
new business idea has to be implemented. A company who is providing child care facilities at the
work place has to be formed.
Special Small Help Groups should be formed who can provide day care facilities to unorganized
labours& women working in the agriculture sector.
Well, moms at KSP feel that becoming a mother is not the only reason why a growing
number of educated urban women are opting out of their professional lives to become a full time
mom. It has to do instead with a severe lack of mother and child-friendly policies by corporates,
a regressive mindset by society that makes a back to office transition difficult, and a failure to aid
an achievable work- life balance for new moms.
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Why do we feel so?
For new moms:
Current maternity leave structure followed by Indian companies allows 12 weeks of paid
leave, which can be extended to another 4 weeks in case of any complications. But in the bargain
in order to spend more time with her baby after the birth, mothers end up working till the last
week of their due dates placing a lot of stress on a new mom.
Even if a maternity leave period starts after the child is born, 16 weeks is hardly enough
for a new mom to join work. Doctors advise that a baby needs to be completely breastfed during
the first 6 months of their lives, a new mom getting back to work often finds it difficult to pump,
store and transport milk from her office to her baby which leads moms to wean babies off much
earlier than they would like to. Read our Guide to feeding & storing breast milk for working
moms in India to know how moms can continue to breastfeed the baby even when they go back
to work.
The biggest concern for women in nuclear families is who will take care of the baby
when the mother goes back to work? Lack of good quality and affordable day care facilities in
India is a huge setback. In fact, most families can't even begin to afford the exorbitant prices
demanded by existing day care facilities.
Similarly, very few employers provide flexible working hours or crèche facilities, so
many working mums end up quitting their jobs just to take care of their children.
For Moms Coming Back Post Maternity Leave: Most moms who get back to work feel that
their responsibilities and their job role has considerably diminished, since their is a popular
notion that she is either preoccupied or can't work long hours.
As Indian women we are well aware that society places a much higher emphasis on men being
the traditional breadwinners. A woman's job is to bring up children and handle stress associated
only within the home. When this attitude is changing world over, KSP asks why not in India?
Image Source: memegenerator.net
Another emerging statistic from the 2013 World Bank study, shows that only 27% of the
female population aged over 15 is working in India. We rank as the country with the lowest
participation of women in the workforce compared to Brazil, Russia, China and South Africa.
What Can Moms-to-be Expect From India Inc?
International corporations like Apple and Facebook have taken aggressive steps towards
retaining women in their workforce by paying for egg freezing options.
Some Indian companies too have proactively taken measures to retain their female workforce by
launching various initiatives that will help moms- to- be pursue their career goals while raising a
family. Here are some initatives we really appreciate!
The woman workforce in India has experienced a decline in the past decade. According
to a Bloomberg report, the women in the workforce have reduced from 36 percent in the last
decade to 24 percent. In 2017, World Bank ranked India among the worst countries in terms of
employing women. Indian ranked 120th among 131 countries, closely followed by Saudi Arabia.
According to 2015 findings by management consultant firm McKinsey and Co., an increase in
women in the work force can add up to Rs 700,000 crore to India' GDP. In 2017, an Indiaspend
study found that only 27 percent of the women in Indian were employed.
Women working in the unorganized sectors such as agriculture and labour remain even further
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aloof from maternity healthcare or employment benefits. Almost 70 percent of the farmers in
India are women though they receive no employment benefits from ―farmers‘ schemes‖ that the
government launches for the betterment of those employed by the agricultural sector.
A Helping hand
Maternity Benefit (Amendment) Act, notified by the President‘s consent last month, has
been hailed for making it easier for women to continue working after becoming a mother
Who pays for the maternity leave
France, Australia, Canada and Scandinavian countries use public funds to pay for
maternity leave.
UK and Singapore, both the employer and public funds pay for the maternity leave.
Employees contribute to the maternity leave in South Africa and Brazil.
Like in China, Indian companies will have to bear the cost of the salary during the maternity
leave
Changes to Indian Maternity Act
Leave period increased from 12 to 26 weeks for the first two children. After two children, the
period is 12 weeks
12 weeks leave to be available to mothers adopting a child below the age of three months
Crèche facilities in places with more than 50 employees
Options to work from home to be extended
Majority of the old age home residents were aged between 60-69 years which is similar to the
Conclusions:
Right entrepreneurship skills are required to meet the ever increasing wants of consumers
& ever changing lifestyles as well as social structure. Consumer demands can not be fulfilled
completely without invention & innovation in the business.
The current study revealed poor awareness regarding the harmful effects of agrochemicals
among the farmers. The practice of storing, mixing and applying agrochemicals without
personal protection and unsafe disposal of pesticide containers appears to be widely prevalent
in the study villages. The farmers mainly depend on the information from the shop owner
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regarding the type and amount of agrochemicals to be used.The current study revealed poor
awareness regarding the harmful effects of agrochemicals among the farmers. The practice of
storing, mixing and applying agrochemicals without personal protection and unsafe
disposal of pesticide containers appears to be widely prevalent in the study villages. The farmers
mainly depend on the information from the shop owner regarding the type and amount of
agrochemicals to be used.
References & Notes:
1. Socio Economic Effects of migration in India : International Journal of Humanities and
Social Science Invention
2. https://www.news18.com/news/business/mandatory-maternity-benefits-may-cost-1-8-
million-women-in-india-their-jobs-1792487.html
3. https://www.hindustantimes.com/india-news/for-women-corporates-return-is-tough-after-
long-maternity-break/story-Qz3rfhUQpeQ28bwsKXUerN.html
4. timesofindia
5. Health and Environment Linkage Initiative, WHO. Toxic hazards.[Internet] 2012
[cited on 2012 April 26]. Available from:
6. http://www.who.int/heli/risks/toxics/chemicals/en
7. Health and Environment Linkage Initiative, WHO. Toxic hazards.[Internet] 2012
[cited on 2012 April 26]. Available from:
8. http://www.who.int/heli/risks/toxics/chemicals/en
9. Agrawal A, Pandey RS, Sharma B (2010) Water pollution with special reference to
pesticide con-
10. tamination in India. J Water Res Prot 2(5):432–448
11. Aktar W, Sengupta D, Chowdhury A (2009) Impact of pesticides use in agriculture: their
benefits
12. and hazards. InterdisciplToxicol 2:1–12
13. Anon (1993) The environmental effects of pesticide drift, Peterborough: English Nature.
9–17.
14. Benefits of pesticides and crop protection chemicals. In: Crop life America. Available
from
15. http://www.croplifeamerica.org/crop-protection/benefi
16. Pesticides. In: GRACE Communications Foundation. Available from
17. http://www.sustainabletable.
18. org/263/pesticides .
19. Tables, figure captions and figures (if any)
20. The current study revealed poor awareness regarding the harmful effects of
agrochemicals among the
21. farmers. The practice of storing, mixing and applying agrochemicals without
personal protection and unsafe
22. disposal of pesticide containers appears to be widely prevalent in the study villages. The
farmers mainly depend
23. on the information from the shop owner regarding the type and amount of agrochemicals
to be used.
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Innovative Entrepreneurship for Sustainable Business Practices for
Development of Eco-Friendly Market for Electric Vehicle (EV) in India
Surojit Saha
Research Scholar,
MES Garware College of Commerce, Pune (Maharashtra)
Abstract:
The capability to rapidly and successfully move into new business models is an important
source of sustainable competitive advantage and a key leverage to improve the sustainability
performance of organizations.
In recent decades we can see around the business that the things are changing like never
before due to technological advancement, change in economy and political influences. It has
been also observed in two decades that there is a major shift in consumers taste and preferences.
In current market scenario the studies show that consumers are now health and environment
conscious. Perhaps this is the reason, that the concept of green product and green marketing are
taking place slowly and steadily in the market. It can be also as an opportunity for those
companies, who believe in innovation and redesigning their products and services in ecological
manner.
With the advancement in 21st Century, there has been increase in usage of Oil and Gas
leading to problems like Global Warming, climate change, shortage of crude oil, etc. Due to
these reasons Automobile Companies have started doing research for making Hybrid
Technology usable into the daily life. The Paper will discuss the technologies used in the making
of eco-friendly electric vehicles (EV) and development of EV market. Our Paper is based on the
explanation of such technologies, their function, drawback of this technology, efficiency of EV
and the fuels and raw materials used in the electric vehicles. Paper concludes on the advantages
and dis-advantages of development of EV market and how this technology will take over the
world in future and would become the alternative for Petrol and Diesel Cars.
Introduction:
Change is a very common phenomenon which can be seen anywhere whether it is
business, economics or anything. It occurs some times in cyclic way or may be in a random
order. In the same way, when we take a look towards consumers, we find that their needs, wants,
demands, test and preferences are also changing. This change is not specific to a particular
product category but it is in every product segment. There may be several reasons for that such
as increasing consumer household income, change in life style and increasing consumer
awareness etc. Among these changes market also need to adopt some changes for its survival
and for that there is a need of new product development concept, product redesign, process
design, changes in marketing policies etc. A successful business organization always focuses on
these changes and implements it into its operations within time. Changing consumer behavior in
the market generates a new market which may be seen as a challenge and opportunity both
by many organizations. Those organizations that are capable enough to adopt changes and can
fulfill the desire of their customers, they take it as an opportunity but there are several
organizations who failed to adopt these changes many times. In recent scenario it has been seen
that the consumer behavior is taking a shift towards the eco-friendly product.
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Driven by powerful environmental, macroeconomic and technological factors, the global
transportation sector is undergoing a historical period of transition. New business models like
Mobility as a Service and the increasing economic viability of technologies like Electric
Vehicles (EVs) will soon reshape how we travel.
According to research by the International Energy Agency (IEA), the global EV has
increased from just five thousand vehicles in 2008 to more than two million by 2016. This has
been driven by key underlying trends including mounting environmental concerns, decreasing
Lithium-ion battery prices and increasing availability of charging infrastructure. All this has led
experts to predict a rapid growth in EV adoption in the next decade – current year on year growth
projections range from 27% to 33% until 2030. By many metrics, China is leading the world‘s
EV revolution. China‘s share of the global EV grew to 32% in 2016, overtaking the US for the
first time. Its share was only 11% in 2011. Private investment is pouring into China from major
auto manufacturers like Daimler, BYD, Honda, Toyota and Ford, all of whom are actively
exploring how to capitalize on China‘s expanding market. Several lessons can be drawn from the
China story, including its recent transition away from subsidies towards a dual-credit scheme that
is expected to be launched in 2019.
In contrast, the India EV story has been underwhelming so far. Absence of charging
infrastructure, inconsistent government support and early product failures have all resulted in
stagnant growth in recent years. However, 2017 may have marked a turning point in India‘s EV
journey - a clear and ambitious goal of 100% EV adoption by 2030 has been laid out by the
government, and the country‘s leading government think tank, NITI Aayog, has set the contours
for a comprehensive, long-term mobility strategy. This has already led to concrete steps being
taken to help spur EV growth. Energy Efficiency Services Limited (EESL) launched a tender for
10,000 4-wheeler EVs in 2017, the world‘s largest single EV procurement to date. In the 3-
wheeler and bus segments, the government is looking to introduce battery swapping to decouple
battery costs from vehicle costs and ease the re-charging process. Standards for the first
generation of public EV chargers have been set, and a second generation is in the pipeline. The
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strategy for EV growth in India revolves around two core assumptions – that demand
aggregation from the likes of EESL can help quickly grow scale, and that the battery swapping
model can help reduce upfront EV costs and improve the charging experience.
The paper is trying to focus on how emerging eco-friendly EV markets are an opportunity
for green entrepreneur and sustainable development in India. The paper is segmented in various
parts such as theoretical background of the study i.e. literature review, identification of various
parameters on the basis of the literature review, methodology, development of the conceptual
model, discussion and findings, managerial implication, conclusion, contribution of the study,
limitations and future research scope.
indian ev market and key trends :
India has emerged as one of the key automotive markets globally with a dominant
position across several vehicle segments. The country is actively exploring cost-effective and
viable solutions to the problem of poor air quality in a number of its cities as well as reducing its
excessive dependence on oil imports. The EV industry is at a nascent stage in India and is
dominated by e-rickshaws and two-wheelers (2Ws). However, the market has the potential to
grow significantly in the coming years. A varied pace of electrification is expected across
different vehicle segments driven by specific user groups in India. The growth will depend on
multiple factors that will be crucial in making the market ready for electrification of mobility in
India. 2Ws is the largest segment of the Indian automotive industry representing ~80% of Indian
automotive sales in FY17 (17.6 million units). Owing to the vastness of this segment, it has a
huge potential to promote emission-free mobility in the country. The e2W segment has already
demonstrated its potential in 2011–12, when e2Ws clocked sales of 90,000 units. However, the
sales saw a dip in the following years with a withdrawal of subsidies by the Ministry of New &
Renewable Energy (MNRE), with sales of only 25,000 units in 2016. However, development of
an end-to-end ecosystem (right from in-house manufacturing to setting up the charging
infrastructure) by emerging start-ups is likely to accelerate the adoption of e2Ws.
India has emerged as one of the biggest 3W markets, with total sales of 0.6 million units
in FY17. 3Ws are widely used in India as an affordable means of public and goods transportation
over short to medium distances. The segment is also witnessing an influx of e-rickshaws, with
some estimates putting their numbers around 1 million. India is the fifth largest car market in the
world with over 3.0 million cars sold in FY17. The market offers a significant growth potential
given the car density stands at 34 cars per 1,000 individuals. Car sharing and a shift from vehicle
ownership to access are likely to significantly push EV penetration, as utilization of a shared
vehicle is estimated at 25%—30% as compared to only 4%—5% of a private use vehicle.
Ev Manufacturing Facility In India:
Few EV component manufacturers who are involved in the manufacture of chargers and
controllers for electric vehicles were interviewed. They are also working on developing
specialized battery packs and storage solutions based on the end usage of the vehicle. For
instance they have separate battery recommendations for passenger rickshaws and small load
autos, cabs vs private cars etc.
They mentioned that today almost all the electrical modules, motors, controllers and
batteries are imported from China, while the structural components connected to the chassis such
as steering, brakes, suspension, air conditioning are generally sourced locally by the auto makers.
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The primary reason for this is because there is an indigenous supply chain of conventional auto
component makers who can supply structural components for EV at competitive prices. On the
other hand technical competency is lacking among Indian manufacturers for production of
Lithium ion batteries and other electronic and electrical componentsin India. Chinese suppliers
are at least 5 years ahead in technology, and offer products at a predatory price. Further they are
incentivised by the Chinese government with tax breaks and subsidies on exports. Unless there is
a huge demand, new entrants cannot achieve the economies of scale that would be required to
compete against the more established Chinese players. Further, there are no major entry barriers
on import and trading of these components,so it is cheaper to import from China than to
manufacture them in India. All these factors make it unattractive for the Indian auto component
manufacturers to invest in domestic manufacturing, when they can actually import goods at a
reasonable cost to meet the current market demand.
Take for instance the specific case of energy storage batteries used in EVs. The transition
to EVs would require a battery capacity of about 400 GWh (gigawatt hours) each year, which, as
per research conducted by Council on Energy, Environment and Water (CEEW), is equivalent to
increasing the current global EV battery production by a factor of four, just to cater to the Indian
EV market. Currently China is in the lead position followed by the US with installed capacities
of 125 GWh and 35 GWh respectively. Germany is leading the EU nations and plans to have 34
GWh capacity by 2019. [8] Currently 100% of Li-ion batteries are imported. It was for the first
time in 2016 that Central Electrochemical Research Institute (CECRI), Karaikudi in Tamil Nadu,
set up the first indigenous Li-ion fabrication facility that has applications in defence, solar
powered devices, railways and other high end usages. EVs will create a huge demand for Li-ion
batteries, and this is an ideal opportunity for the domestic auto component manufacturing
industry to transition into.
Manufacture of lithium-ion batteries, which are the primary source of energy used to
propel electric vehicles require critical minerals such as lithium, cobalt, graphite and phosphate.
The resource endowment of the most critical component i.e. Lithium, is limited to only nine
countries and 95% of global lithium production comes from Argentina, Australia, Chile and
China. The recent demand surge in the electric mobility market has already resulted in a twofold
increase in lithium prices from $4,390 per tonne (in 2013) to $9,100 per tonne currently. It is
estimated that India would require about 40,000 tonnes of lithium to manufacture EV batteries in
2030, considerably higher than the current annual global lithium production of 32,000 tonnes. To
meet India‘s demands amid a global surge in electric vehicle demand, the entire mineral supply
chain needs to be overhauled and expanded. However, India has missed many such opportunities
to be integrated in the global value chain in the past. During the early waxing phase of solar PV
and electronics industries, there was a lack of suitable policy support by the government for solar
cells and wafers and electronics manufacturing. This led to an ever-increasing import bill for
electronics products, currently the highest after oil and gold. The annual EV battery market is
expected to be around $30-55 billion and India cannot afford to fulfil the demand solely through
imports. Hence there is a need to formulate policies incentivising domestic manufacturing
companies to create a vibrant battery manufacturing, research and development ecosystem, and
mining companies to simultaneously invest in overseas lithium mining assets.
The same view was also reflected in a recent article published in Auto News magazine,
by the president of Automotive Component Manufacturers Association of India (ACMA), Mr.
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Rattan Kapur. He expressed cautious optimism over the government‘s plans to switch over from
ICE vehicles to EV by 2030. Unless government policies and regulations create a conducive
environment, it would be difficult for the component manufacturers to face the dual challenges
of graduating from B-IV to B-VI and gear up for supporting the electric mobility wave in India.
Component manufacturers also highlighted that lack of industrial standards was also
compromising public safety and leading to poorly built and unstable / unfit vehicles plying the
road. Last year, the GOI exempted E-rickshaws and E-carts from the regulatory process
governing other motor vehicles, thereby allowing them to ply on roads anywhere in the nation .
Lack of standards leads to poor construction quality and substandard vehicles which are cheap,
but at the same time is a safety hazard. According to a recent news article there were 380 deaths
due to e-rickshaws, with maximum 71 deaths reported from Telangana, followed by 66 in UP, 56
in Haryana, 47 in Maharashtra and 20 in Delhi.
Charging Infrastructure:
The growth dependency of EV adoption and charging stations is often described as the
chicken and egg problem, i.e., the need for ample EV penetration as a prerequisite for EV
charging infrastructure deployment vs. the need for abundant EV charging infrastructure as a
prerequisite for EV adoption. However, recent studies confirm that availability and accessibility
of reliable public charging infrastructure must precede dense EV penetration. In the absence of a
robust charging infrastructure, EV fleet growth will also be difficult to sustain, as can be seen in
the example of California. The region of California leads the US EV adoption, with 269,000
sales during 2011–16, representing nearly 48% of total EVs across the US. However, charging
infrastructure has not kept pace with the EV growth, with only 12,000 public chargers available
in California
We are already witnessing a divergence of business models for operators of charging
infrastructure aimed at the users of private EVs. As of now, India has about 222 charging stations
(353 charger units). Recently, EESL floated a tender for 4,500 chargers for installation in Delhi
NCR. However, many installations are taking place in the country at a pilot level, offering free
charging services to consumers.
Over the last year, the Indian Government has held extensive discussions with many
companies, both domestic and foreign, for setting up a charging infrastructure. EESL has floated
a tender of 2,000 electric vehicle chargers for the second phase of its EV programme and is
looking to float additional tenders during the course of the year.
Despite the progress, the lack of standardization remains a key challenge. Going forward,
in order to meet the rising demand of charging stations the Government will have to quickly
facilitate standardization of charging infrastructure and incentivize R&D for advanced charging
technologies.
Battery Storage Technology:
As EVs gain traction, there is an increased focus on finding and adopting an optimal
battery solution that provides the highest energy density for maximum range. Lithium-ion
batteries are currently used in most of today‘s electric cars, and it is likely that they will remain
dominant in the coming future. The growth in the production capacity is likely to be led by
China, with 62% of the Li-ion mass production set to be in China by 2020. EVs are likely to
account for around 40% of the total battery production (in GWh) in 2020, and the requirement is
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expected to further grow up to almost 60% by 2024. According to BNEF, the annual demand for
Li-ion batteries from EVs is expected to reach around 1,293 GWh in 2030, representing an
annual growth of 32.49% from the 2015 levels.
In order to achieve significant electrification of automobiles by 2030 and beyond, India
needs a robust and competitive battery manufacturing supply chain. As per a report by NITI
Aayog and Rocky Mountain Institute, India would require to set up a minimum of 20
Gigafactories to produce batteries at an investment of US$100 billion for meeting India‘s EV
targets. However, lack of clear long-term policies, technology uncertainty, low mineral reserves
and absence of major EV battery producers are preventing investments in battery storage
technologies in India. As EVs gain traction in India, OEMs are looking to secure access to Li-ion
reserves and R&D capabilities to manufacture batteries indigenously. Going forward, a number
of foreign collaborations, partnerships and consortiums between OEMs, battery producers and
suppliers could be expected. While the policy and regulatory framework for battery storage
system does not exist at the Central Government level; however, State Governments of Uttar
Pradesh, Karnataka and Telangana have, in particular, proposed some policies for battery storage
in their EV policy draft.
Conclusion and Recommendation:
On the basis of various explanations in this paper we can understand various
opportunities for the eco-friendly entrepreneurs due to emergence of eco-friendly market.
Changing consumer behavior towards eco-friendly market is another significant and positive
indicator for the entrepreneurs. The entrepreneurs are not only important just for the fulfilling the
need of consumers but they mean more than it. The entrepreneurs have the responsibility towards
achievements of social objectives, economic objectives, environmental objective and sustainable
objectives. The concept of eco-friendly entrepreneurs is not different, the one who more innovate
green product or services more he become a successful eco-friendly entrepreneurs. Although it is
difficult to innovate eco-friendly products many times as it is difficult to provide substitutes for
various raw materials, this is a kind of challenge which a Eco-friendly entrepreneur can handle.
Our analysis leads us to 3 major conclusions about the future of EV adoption and development of
EV market in India.
1. If both swapping and demand aggregation work as per plan, India may reach an EV sales
volume of more than 1.6 Million vehicles in FY23.
2. 2. The target set by the government is ambitious and expected to be missed due to the
industry and the consumer not being ready to adopt rapidly, given the relative economics
of EV vs. ICE
3. If the government‘s 2030 objectives are met, India could save INR 8 lakh Cr (a 20%
saving relative to a BAU scenario) in imports of petrol and diesel for the automotive
industry over the period, after considering some level of domestic manufacturing of
batteries. Thus, shifting to EVs will not necessarily reduce our import dependency.
However, the impact on the environment will be significant.
References:
1. WHO, ―WHO Global Urban Ambient Air Pollution Database (update 2016),‖ WHO,
[Online]. Available:
2. http://www.who.int/phe/health_topics/outdoorair/databases/cities/en.
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3. S. K. G. R. &. P. P. Guttikunda, ―Nature of air pollution, emission sources, and
management in the Indian cities.,‖ Atmospheric Environment, vol. 95, no. 0, pp. 501-
510, 2014.
4. S. Dhar and M. a. S. P. Pathak, ―Electric vehicles and India's low carbon passenger
transport: a long-term co-benefits assessment.,‖ Journal of Cleaner Production, 2016.
5. PTI, ―India aims to become 100% e-vehicle nation by 2030: Piyush Goyal,‖ Economic
6. Times, 16 March 2016. [Online]. Available:
7. http://economictimes.indiatimes.com/articleshow/51551706.cms?utm_source=conten
8. tofinterest&utm_medium=text&utm_campaign=cppst.
9. S. D. Charles O. P. Marpaung, ―Market Mapping – An Introduction,‖ in Second Capacity
10. Building Workshop – Asia and CIS, Bangkok, Thailand.
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Green Industry for Sustainable Development
Prof. Mrs. Lata Vitkar
Assistant Professor,
Sangmeshwar College, Solapur, Maharashtra
Abstract:-
Green Industrial policy is strategic government policy that attempts to accelerate the
development & growth of green industries to transition towards a low- carbon economy. It
strives for more sustainable pathway of growth, by undertaking green public investment. Green
industry initiative creates awareness, knowledge & capacities. Green Industry is becoming
increasingly evident for effective & efficient use of modes of production & more efficient use of
resources. This is especially so in the developing world ,which has the unique opportunity of
avoiding the environmental pitfalls that the developed world has fallen into in the course of its
industrials development .it can use past experience to build a Green Industrial infrastructure at
the very outset.
The concept of Green Industry include the things like sustainably produced inputs,
minimal use of virgin raw materials, Production process that minimse the use of water, energy &
materials ,production processes free from harmful toxins reuse& recycling of solid waste
streams ,substantial reductions in emissions or effluents of harmful greenhouse gases &
pollutants & product that are built for durability .
This paper helps to enhance the knowledge regarding Green Industry for Sustainable
Development.
Key words-Green Industry, sustainable development, energy, infrastructure
Introduction-:
While the concept of SD has been ensconced in policy circles for decades now,
operationalizing this concept has proven to be a challenging task. The recent emergence of
concepts such as Green Economy, Green Industry and Green Growth are reflective of the need
for strategies or roadmaps to help achieve SD and shift current consumption and production
patterns on to paths that are more sustainable in the long run, while keeping resource constraints
and carrying capacity limits in mind.
India, one of the mega diverse countries in terms of its biodiversity, is under threat today. With
only 2.4 percent of the world‘s land area, India
accounts for 7-8 per cent of the world‘s plant and
animals spices, ecosystem and genetic resource and
links traditional conversion to sustainable future.
Today‘s conventional agriculture system may give
short gain in production, but in most cases it is not
sustainable in long term,nor does it guarantee safe
food. In particular, conventional production
methods are inadequate for disadvantage forming
communities and are thus not a sustainable solution
for many of those who face a food shortage. Organic/green product has the potential to produce
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sufficient food of high quality. Green marketing is also deals closely with issue of industrial
ecology and environment sustainable such as extended producers of liability, life-cycle analysis,
material use, resource flows, and eco efficiency. Generally terms like phosphate free, recyclable,
ozone friendly and environmental friendly are some of the concepts that the consumers most
often are associate with green product or organic product.
Objectives Of The Research Study:
The major objectives of the present research study are as follows.
1. To study the theoretical issues relating to the concept of a green industry.
2. To examine the nature and extent of a green industry achieved by the India;
3. To suggest the appropriate suggestions for attaining green industry in respect to India.
Methodology
a) Source of data
This study is based on secondary data.
b) Collection of data
The data has been collected from various published books, magazines, articles
and websites.
.c) Period of study
This study is conducted in the financial year 2000 - 2016
e) Statistical tools
Descriptive analysis has been used to describe the collected data.
Hypothesis Of The Research Study
The hypothesis of the present research study is as follows:
1. India is not rigorous and honest in achieving a green industry. (H0)
Concept Of Green Industry And Research Problem
Today we use the conventional macro economics indicators of GDP to understanding overall
economic position of a country, but GDP does not properly account for social and environmental
cost and benefit. It is also difficult to achieve sustainable decision-making. Therefore, the Green
Industry is a new approach arose fromsummit of Rio de Janeiro, 2012 (Rio+20) to celebrate the
20th anniversary of the first Rio Earth Summit in 1992.The UNEP defines a green economy as
one that results in ―improved human well-being and social equity, whilesignificantly reducing
environmental risks and ecological scarcities‖ (UNEP, 2011, P-16). In its simplestexpression, a
green economy is low carbon, resource efficient and socially inclusive industry. In a
greenindustry, growth in income and employment should be driven by public and private
investments, that reducecarbon emissions and pollution, enhance energy and resource efficiency
and prevent the loss of biodiversity andecosystem services. The green industry approach is an
effort to focus sustainable development and povertyreduction effort on transforming economic
activities and economies.India can make green growth a reality by putting in place strategies to
reduce environmental degradationat the minimal cost of 0.03% to 0.05% of average annual GDP
growth rate. According to a New World Bank Report, 2016, this will allow India to maintain a
high pace of economic growth without jeopardizing futureenvironmental sustainability. The
annual cost of environmental degradation in India, amounts to about Rs. 4.75trillion ($ 80
billion) equivalent to 6.7% of GDP. It focuses on particle pollution from the burning of fossil
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fuels, which has serious health consequences amounting to up to 4% of India‟s GDP along with
losses due to lack of access to clean water supply, sanitation and hygiene and natural resource
depletion. Of this, the impacts of outdoor air pollution account for the highest share at 1.7%
followed by cost of indoor air pollution at 1.3%. The higher costs for outdoor/indoor air
pollution are primarily driven by an elevated exposure of the young and productive urban
population to particulate matter pollution, that results in a substantial cardio pulmonary
andchronic obstructive pulmonary disease mortality load among adults. Further a significant
portion of diseases caused by poor water supply, sanitation and hygiene is borne by children
under 5. Above 23% of child mortality in the country could be attributed to environmental
degradation. Also according to World Bank Report, 2016 ―Diagnostic Assessment of select
Environmental Challenges in India‖ is green growth affordable to India, 10 % particulate
emission reduction by 2030 will lower GDP modestly, representing a loss of merely 0.3% to the
GDP compared to business as usual, on the other hand, a 30% particulate emission reduction
lowers GDP about $ 97 billion, or 0.7% with very little impact on the growth rate. There are
significant health benefits, the savings from reduced health damage range from $ 105 billion in
the 30% case to $ 24 billion with a 10% reduction. This, to a large extent, compensates for the
projected GDP loss. The report also emphasized that green growth is measurable and important
as India is a hotspot of unique biodiversity and ecosystems. The study undertook a first ever
comprehensive assessment of value of ecosystem services from various biomes across India.
Based onconservative estimates, it amounts to about 3.0% to 5.0% of GDP. Conventional
measures of growth do not adequately capture the environmental cost, which have been found to
be particularly severe at the current rapid growth rate (World Bank, 2016, p.24). In this
backdrop, it is essential to evaluate the state of the green industry of India. Therefore, the present
study tries to examine the state consisting of nature and extent of the green industry with
reference to India through empirical analysis by using appropriate indicators of green industry
for the latest study period.
Environmental Issues In India:
The environmental issues in India become more serious every day like that lack of
environmental education, falling fertility of agricultural land, declining water level in earth, mass
deforestation, land degradation, excess use of fertilizers and chemical in food production and
river contamination and pollution. a true about India, ours whopping 65 percent of the land is
degraded in some way like nature or size and the infinite government policies do little to curb the
damage. In reality, there is no shortage at all of government legislation protecting the
environment and other resources but sorry to say that it is never enforced due to flagrant abuse of
power, corruption, lack of resources, lengthy process of policy preparation and its
implementation. We discussed here, some essential burning issues exist in Indian economy and
whether or environment. First, Drought is very dangerous calamity stood in front of India
because most of area covered by natural calamity of drought due to inadequate or lack of access
to vital fresh water resources to common people of country. Furthermore Indian economy in
large scale depends on agriculture and allied sector. Therefore, economy is directly influenced by
impact of drought. Similarly, our 67 per cent agriculture land directly depends on rainfall or
monsoon. Consequently, one of the most important proverbs has applied to Indian agriculture,
―Indian Agriculture is gamble on monsoon‖.
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Areas Of Green Industry-
This research study highlights three principal areas of a green industry and their
indicators and the key challenges to developing a framework for metrics for a green economy.
Metrics framework of a green economy given by the UNEP with identified three principal areas
and the number of indicators of a green industry , within these areas are given below.
1.Indicators of Economic Transformation
A green industry is first and foremost about transforming the way economies grow
currently. Growth is typically generated from investments in high emission, heavily polluting,
waste generating, resource intensive and ecosystem damaging activities. A green economy
requires investment to shift towards low carbon, clean energy, waste minimizing, resource
efficient and ecosystem enhancing activities. The key indicators of economic transformation,
therefore, include the shift in investment over time, the consequent growth of environment
friendly or environmentally enhancing goods and services and related jobs.
2.Indicators of Resource Efficiency
Principal indicators of this area include those on the use of materials, energy, water, land,
changes to ecosystems, generation of waste and emissions of hazardous substances related to
economic activities.
3.Indicators of Progress and Well-being
A green economy can contribute to societal progress and human well-being in two ways
is, Firstly, by redirecting investments towards green goods and services and secondly by
redirecting investments towards the strengthening of human and social capital. Some of the
indicators of progress and well-being area include the extent to which basic human needs are
fulfilled, the level of education achieved, health status of the population and the availability of,
and access by the poor to social safety nets, conventional indicators of GDP, also covers
calories per capita, population below poverty (USD day), Human Development Index (HDI) and
employment generation from each sector.
Researchers have used the following actual and appropriate indicators of a green economy from
its areas, which are nearer to the original indicators
Principal Area‟s &
Actual Used
Data Results And Analysis
Researcher has selected six dummy or alternative but appropriate indicators for accounting of
green performance of India. For each area two indicators are chosen.
Table No. Indicators of Resource Efficiency
Total Renewable Electricity Generation
Sr.
No
Year In Billion
Kilowatt
Hours
(000,000,000)
Annual
%
Change
Indian
Population
In Crore
(00,00,000)
Annual
%
Change
Per Capita
Renewable
Electr.
Generation
(Khr.)
1 2000-01 77 0.00 101.4 0.00 76
2 2001-02 77 0.00 102.9 2.00 75
3 2002-03 68 -12 104.6 2.00 65
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4 2003-04 80 18 105.1 0.37 76
5 2004-05 90 13 106.6 1.00 85
6 2005-06 109 21 108.1 1.00 101
7 2006-07 123 8.00 109.6 1.00 112
8 2007-08 133 -6.00 113.1 3.00 118
9 2008-09 125 -2.00 114.8 2.00 109
10 2009-10 123 10 116.7 2.00 105
11 2010-11 135 19 117.3 1.00 115
12 2011-12 160 0.00 119.1 1.00 135
13 2012-13 160 4.00 121.1 1.00 133
14 2012-14 166 5.00 122.1 1.00 136
15 2014-15 174 5.00 123.7 1.00 141
16 2015-16 182 5.00 130.1 5.00 140
C.G.R 7.00% 2.00% 5.00%
MEAN 124 113.5 108
C.V 30% 7.00% 24%
(Source: 1-U.S Energy information administration -http://www.eia.gov or World
development Indicators-last updated: 28/07/2016)
World Walk and run through energy, therefore all countries has been engaging in energy
and electricity generation help of natural resources like coal, oil, gas, timber etc,. But this
conventional energy is harmful to environment and ecosystem services of respective country.
Hence, today there is need to be generated the clean or healthy energy for sustainable
development of the World. Above table revealed the data about total renewable electricity
generation in India. It shows that until 2002 and excepting 2008, 09 & 2012; renewable
electricity generation status has been good, even their compound growth rate was at positive 7
per cent and averagely generated 124 Billion Kilowatt Hours. But coefficient of variation
indicates renewable electricity generating process is inconsistent therefore C.V is at 30 per cent.
Besides, if we compare the renewable electricity generation with growing population then we
come over the growth of renewable electricity is higher than growth of Indian
Population therefore; per capita electricity has been showing a continuous increase. It
increased from 77 Khr in 2000 to 140 Khr in 2015 due to technological and industrial
development in India. Averagely, 108 Khr per capita renewable energy has increased. But only
at 5 per cent compound growth rate is found in respect to per capita renewable electricity
generation in India. In conclusion, performance of renewable electricity generation of India has
been improving year by year. For that, we should hard work for increasing share of renewable
energy in total electricity generation in India.
Table No.Adjusted Saving: Natural Resources Depletion
Adjusted Saving: Natural Resources Depletion
Sr.
No
Year % of GNI Net Annual Percentage
Change (%)
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1 2000-01 2.83 0.00
2 2001-02 2.72 -0.11
3 2002-03 2.69 -0.03
4 2003-04 2.73 0.04
5 2004-05 2.86 0.13
6 2005-06 3.02 0.16
7 2006-07 3.62 0.6
8 2007-08 4.04 0.42
9 2008-09 5.55 1.51
10 2009-10 3.01 -2.54
11 2010-11 4.19 1.18
12 2011-12 4.26 0.07
13 2012-13 3.23 -1.03
14 2012-14 3.14 -0.09
15 2014-15 4.12 0.98
16 2015-16 4.22 0.10
C.G.R 3.00%
MEAN 3.51
C.V 23%
(Source:World Bank staff estimates based on sources and methods in World Bank's "The
Changing Wealth of Nations)
Resource depletion means the consumption of a resource faster than it can be replenished.
Natural resources are commonly divided between renewable resources and non-renewable
resources. Here, we want the meaning of Natural resource depletion is the sum of net forest
depletion, energy depletion, and mineral depletion. Net forest depletion is unit resource rents
times the excess of round wood harvest over natural growth. Energy depletion is the ratio of the
value of the stock of energy resources to the remaining reserve lifetime (capped at 25 years). It
covers coal, crude oil, and natural gas. Mineral depletion is the ratio of the value of the stock of
mineral resources to the remaining reserve lifetime (capped at 25 years). It covers tin, gold, lead,
zinc, iron, copper, nickel, silver, bauxite, and phosphate.
Above table shows that percentage of natural resource depletion in India. In 2000, natural
resources deplete at 2.83 percent of GNI and then this depletion rate has been gradually
increasing until 2008 then it goes done in the year of 2009, 2012 and 2013. Excepting these
years, slowly depletion rate has increasing still now. Right column of table shows that annual
percentage change of resources depletion in India. We may see that most of positive percentage
changes found in years 2008 & 2010 and negative percentage changes found in 2001, 2002,
2009, 2012 & 2013. But we should keep in mind, positive percentage changes shows that more
resources exploitation by citizen vice versa negative percentage changes showing that improved
the condition of natural resource, means lower deplete of natural resource in respective years.
Overall picture of Natural resources repletion is showing that compound growth rate of 3 per
cent. Similarly, natural resource depletion has been 3.51
average percentage of GNI. This means 23 percent of coefficient of variation is found in given
period of study.
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Hypothesis Testing
The researcher has used the one sample (Two tailed) t-test for hypothesis testing. This test has
applied to each indicator of different principal area of green economy for evaluating the role of a
particular parameter in attaining the green economy in India.
One sample t-test (Two tailed test) at 0.05 Percent Significance Level
Sr.
No
Hypothesis-H0 Degree
of
Freedom
T –value
Calculated
T-
Table
Value
Mean
Difference
P-
Value
Decision
(Accept
or
Reject)
Economic Transformation
1 H0-There is
no
significant
contribution
by renewable
energy to
green
economy in
India
15
4.976
2.731
46.875
.000
(P<0.05)
H0-
Reject
Ha-
Renewable
energy
has
significantly
contributed
to green
economy in
India.
Ha-
Accept
2. H0-No
significant
depletion in
natural
resources has
taken
place in
India.
15
3.378
2.731
0.68437
.004
(P<0.05)
H0-
Reject
Ha-A
significant
depletion in
natural
resources has
taken
place in
India.
Ha-
Accept
E9conAbove Table revealed very essential statistical data about the formulated Null hypothesis
either to accept or reject.omic
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Conclusions
The thorough discussion of some indicators from their principal area of green economy
with reference to India reveals that some indicators show positive trend useful for green
economy except the indicator health. This adequately proves that India had adopted the strategy
of green economy; hence it is endeavoring in that direction. But there is urgent need to improve
the health sector and its positive results. The necessary provision for health in government
budget with honesty and rigorous in spending and implementation will help us a lot.Tra
References-
1) Books and magazines
2) Internet
3) Clark at Albans (2009).‖Design for Sustainability :Current Trends development.‖
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Pune Metro : A Sustainable Public Transport Option for Pune
Dr. Pradnya Vhankate
Assistant Professor,
Ness Wadia College of Commerce, Pune, (Maharashtra)
An Abstract:
Adequate, efficient and effective public transport can be considered as a lifeline of the
city having high density of population. The big cities like New Delhi, Mumbai etc. have
multimodal transport options available to the commuters. But in the city like Pune, considering
rising population, there is hardly any increase in the public transport options.Up till now, Pune
MahanagarParivahanMahamandal Limited (PMPML) has been only public transport option for
Pune. This has not only increased personalised vehicles but also created lot of issues such as
traffic congestion, road accidents, rise in pollution, vehicle parking etc.
Pune Metro can definitely be considered as boon on the given background. Since many of
the issues may be reduced to the greatest extent due to it, Pune Metro can be considered as a
Sustainable Public Transportation Option for the citizens of Pune.
The present article is an attempt to understand the utility of Pune Metro from different
perspectives and to understand whether really Pune Metro is going to be a Sustainable Solution
to Public Transportation.
Key Words : Pune Metro; Sustainable Public Transport; PMPML.
Introduction:
There is a huge gap between demand of public transport of Pune city and supply of the
same. It has resulted in uncontrolled rise of personalised vehicles. It has created other number
issues related to Pune‘s traffic. However, with the launch of Pune metro work, now there is hope
that there could be sustainable solution to the public transport of Pune city. Current
researcharticle attempts to throw light on the same.
Objectives:
The broad objectives of the research are:
1. To study various issues related to public transportation in Pune.
2. To understand the views of commuters in Pune about the Pune Metro.
3. To understand whether Pune Metro would be a sustainable Public transportation option to
Pune Commuters.
Research Methodology:
The present article has been prepared by using both primary as well as secondary data.
1. Primary Data- It has been collected with the help of questionnaire. The questionnaire
with multiple choices was prepared. It was converted in the google doc and circulated to
around 300 respondents. Only 80 respondents replied to it. Hence the research article is
based on the perceptions of those many respondents only.
2. Secondary Data- Various websites, articles and journals have been utilised in order to
collect the secondary data. The detailed list has been provided at the end of the article by
way of bibliography.
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Literature review:
1. Poor service Quality: The service quality of current transport system is quiet poor in terms of
frequency ,Available and reliable schedules, Travel time taken, long Waiting time, routes,
safety, poor maintenance of buses (like seating arrangement and cleanliness in the buses,
broken or non functioning windows,), bus stop maintenance, complaints solving / redressal
system, drivers and conductors behaviour, Change issues, safety measures against crime on
buses, display system, handicapped and visually impaired and aged seating arrangements are
not sufficient (MeghnaVerma,AshishVerma,,p98,2014)
2. Traffic jams and congestion: the current public transport faces lots of traffic jams and
congestion especially during peak hours. Due to large number of personalized vehicles and
other means of road transport has lead to traffic jams. The constantly increasing buying
pattern of two-wheeler and four-wheeler resulting congestion on the roads (Ayesha
Bangi.p65, 2004) (T.Virupaksha.p575, 2002).
3. Air Pollution/Emission of hazardous gases The pollution issues are causing serious health
issues to public as well as environment(Sara K.Guttikunda,RahulGoel,Pallavi
Pant.p501.2014)Road vehicles are the main contributions to urban air pollution in all big
cities around the world.
4. Increased travel time: Due to traffic jams, on overflowing roads with vehicles have slowed
down the speed of public transport especially long travels which leads to increase travel time.
Causing the burden of more fuel consumption.(Document – p57,2008)
5. Fuel consumption/wastage: Fuel consumption/wastage is increasing due to traffic congestion
and narrow roads. Therefore the cost of losses is increasing year after year. The cost of
import of petrol and diesel is another financial burden to the nation.(K.l.Thukral and
M.Absar Alam.p293,2013)(S.Rama Krishna and Ravikumar Reddy.610,2002)
6. Infrastructure and related issues such as narrow roads, insufficient bus stops, etc. cause a lot
of inconvenience,
7. Provision of Insufficient services due to reasons such as shortage of buses, lack of timely
maintenance due to insufficient funds or technology, breakdown of buses on roads,
overcrowding etc.(B.I.Singhal and Y.P.Sachadeva.p17,2003)
Thus, rapid urbanization is creating serious challenges for infrastructure like housing facilities,
water, medical, education, transport, etc. India needs not only smart cities but also smart urban
solutions for sustainable development. Pune is a fast growing metropolitan cityand is in the
process of becoming a smart city. But it is facing variety of challenges and issues. One of critical
issues is current public transport system. Pune requires a smart multi modal transport solution to
cater to the needs of commuters belonging to various strata of the society. The cost and benefit
analysis of proposed metro rail project clearly states that it will become one of the important
sustainable travel option to the commuters in terms of saving fuel cost, travel time as well as
reduce pollution. Separate tracks will enhance frequency and speed of commuting (parisar.p8,
2011)
Analysis and Interpretation of Primary Data:
The questionnaire was divided in to two parts, the first part was about the profile of the
respondents whereas the second one was devote to the perception related the metro. The analysis
and interpretation of the same has been done as mentioned below:
Part-A
1. Gender:
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In order to collect the input from the commuters, based on the questionnaire, the scholar
collected duly filled in questionnaire through Google doc. In response to the questionnaire, 54
males with 67.50% and 26 females having 32.5% responded to the questionnaire. It indicates
that, the conclusions drawn from the data analysis will be having more weightage of male
respondents‘ opinion.
2. Qualification:
0
100
EducationGraduation Post Graduation Professional
All the respondents are well qualified, hence it can be expected that each question in the
questionnaire has been understood correctly by the respondents and he has replied. Since
majority that is around 70% respondents are graduate respondents, their views can be reflected in
the research.
3. Profession:
Around 47% of the respondents are students, thereafter by the service personnel with
30.40%, it is followed by the professionals with 15.2%, and rest constitute around 8%so the first
three categories comprises of more than 90%. Hence these three categories would be decisive in
making overall impression in research.
3. Age:
Gender Responses %
Male 54 67.5
Female 26 32.5
Educational Responses %
Graduation 54 69.2
Post-
Graduation 14 19.2
Professional 9 11.5
Profession Responses %
Student 37 46.8
Service 23 30.4
Professional 12 15.2
Retired 2 2.5
Home
Maker 4 5.1
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Majority of the respondents with 57% belong to less than 25 years of age, thus the opinions of
the respondents of this category would be vital in the research.
Part-B
The scholar asked following questions to the respondents to know their views about the
metro. The detailed analysis has been done as follows:
Part B Responses
Questions Related to Metro and
Sustainability Strongly
Agree
Agree Can‘t
Say
Disagree Strongly
Disagree
Since Metro will be using electricity/
clean/ green energy for its operations,
it will reduce air pollution to the
greater extent.
40 34 4 1 1
% 50 42.5 5 1.25 1.25
Commuters may prefer Metro over
personal vehicles as it will be more
economical and accessible.
27 28 18 5 2
% 33.75 35 22.5 6.25 2.5
Due to exclusive tracks, Metro will be
free from traffic congestion; it will
run on time, providing punctual
services to the commuters.
37 37 5 0 1
% 46.25 46.25 6.25 0 1.25
Metro will help in reducing road
accidents to the greater extent, as
many commuters may avoid using
personalized vehicles to avail various
benefits such as saving fuel , saving
time, energy, parking issues, etc.
40 29 9 1 1
% 50 36.25 11.25 1.25 1.25
Age in
Years Responses %
Upto 25
Yrs 45 57
26 to 35
Yrs 15 19
36 to 45
Yrs 14 17.7
46 to 55
Yrs 2 2.5
More than
55 Yrs 3 3.8
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Due to large coverage of area, it
would be convenient to commute
from one part of the city to another
without much traffic problems.
38 35 4 2 1
% 47.5 43.75 5 2.5 1.25
Since Metro would be one of the
important transport infrastructures, it
would boost business and related
activities in the city.
31 34 11 2 2
% 38.75 42.5 13.75 2.5 2.5
Metro would help for overall social
and economic benefit of the Pune
City. (Enhance standard of living.)
35 33 10 1 1
% 43.75 41.25 12.5 1.25 1.25
Since Metro would be beneficial from
various aspects/ angels, it could be
considered as one of the best
sustainable transport option for the
City.
36 32 11 0 1
% 45 40 13.75 0 1.25
1. 50% respondents have responded as strongly agree and 42.5% as agree. If both of these
clubbed together, it is totalledto 92.50% .Thus we can interpret that significant number of
respondents do agree with the statement. Hence, we can say that the statement holds true.
2. In response to the statement 33.75% respondents say strongly agree 35% responds as
agree.Thus the favourable responses go up to 68.75%. The negative responses are very
negligible up to 9%. However, the surprising element can be seen in the third category of
responses where, 22.5% it means almost ¼ respondents have responded as can‘t say.
But since, majority i.e.68.75% respondents have responded favourably, it can be said that
the statement is valid.
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3. Pune is facing huge traffic congestion all the time in almost all the part of the city. Hence,
many of the citizens are looking metro as a long term solution to such congestion. In this
context, it would very interesting to know the responses to this statement . The responses
show that 46.25% do strongly agree, whereas equal percentage i.e.46.25% say as agree to
the statement. If both the percentages are added together, it reaches up to 93.50%.Thus
huge percentage of respondents do go with the statement. Therefore, we can very well say
that, Metro would certainly help in reducing the traffic congestion in the city.
4. Pune is witnessing number of social accidents and other such mishaps due to traffic
congestion and narrow roads in almost all parts of the city. But due to the entry of metro, it
is expected that many commuters would avoid their personalised vehicles and they may
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prefer to commute by metro. It may help not only in reducing the congestion, but also the
road accidents.
As many as 50% of the respondents reply as strongly agree, 36.25% as agree, 11.25% as
can‘t say and 1.25% each say as disagree and strongly disagree. Thus huge positive
response with 86.25% can be seen in favour of the statement, Where as only 2.50%,
resistance, by responding negatively .Therefore we can say that, Metro would be helping in
reducing the road accidents.
5.Commuting from part of the city to another part has become an issue due to various
traffic relatedissues. Due to Metro it is expected that it would be sorted out and commuter may
enjoy and travel comfortably from one place to another, once metro is functioned.
47.5% of the respondents reply as strongly agree and 43.75% say as agree. Hardly 4% have
responded as strongly disagree and disagree respectively. If both the responses clubbed
together, It reaches to 91.25%, which is significant one. Hence, it can be understood that
commuting could be comfortable in case of Metro.
6. It is said that transport is one of the important tool of economy. But in Pune, transport has
become an issue. However, it is expected that, due to metro it may be reviewed and may
help boost the economy.
The perception of the respondents in this point can be seen as 38.75% say strongly agree,
42.50% as agree and 2.5% each say strongly disagree and disagree respectively.
Theseresponse also show that, they go with the statement and it means that, it would
definitelybe helpful in boosting the economic activities in that area.
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7. It is expected that metro would be beneficial not only to the commuters, but also to
overall citizens of Pune, it would be helpful in increasing standard of living of the people.
In response to this view, 43.75% and 41.25% respondents respond as strongly agree and
agreerespectively, whereas, 1.25% each say disagree and strongly disagree. Thus95% of
the respondents believe that Metro would definitely be useful in boosting the economic
development in that locality.
8. In response to the above statement, 45% of respondents say as strongly agree, 40% as
agree and 1.25% as disagree. The positive responses come to 85% where as negative with
1.25%. Since significant percentage of commuters are strongly in favour of the statement,
it can definitely be estimated that Metro is going to be a sustainable option for the Pune
city for public transportation.
Conclusion:
Pune‘s traffic and public transport issue has taken really a bad shape. It‘s already too late
to provide affordable public transport solution to Pune. There has been a long pending discussion
and debate on various options such as metro. However, off late the options can be seen now
round the corner as already the metro work has begun.
The perception of common man also show that the though metro is not an ultimate
solution to all the issues pertaining to public transport, it is one of the promising sustainable
option to the public transport of Pune.
Bibliography:
A. Books and Journals:
1. B. I. Singhal& Y. P. Sachdeva, ―SUSTAINABLE DEVELOPMENT AND MASS
TRANSPORT‖, TRANSPORT POLICY – A BOOK OF READINGS, CIRT, PUNE-411
026, 2003, pp 17-26.
2. Mohinder Singh, ―TIME FOR ANOTHER TRANSPORT POLICY COMMISSION‖,
TRANSPORT POLICY – A BOOK OF READINGS, CIRT, PUNE-411 026, 2003, pp
74-77.
3. O. P. Agarwal, ―A CASE FOR INDEPENDENT REGULATION OF PUBLIC
TRANSPORT IN THE MEGA CITIES‖, TRANSPORT POLICY – A BOOK OF
READINGS, CIRT, PUNE-411 026, 2003, pp 78-90.
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4. B. P. Pundir, ―VEHICULAR EMISSIONS AND MANAGEMENT: STATUS AND
ISSUES‖, INDIAN JOURNAL OF TRANSPORT MANAGEMENT, VOLUME 28
NUMBER 1, MARCH 2004, ISSN 0972-5695, Regn. No. 11604/66, pp 31-51.
5. V.K. Deshpande &AshwiniDalvi, ―ENVIRONMENT AND SUSTAINABLE
TRANSPORT‖, INDIAN JOURNAL OF TRANSPORT MANAGEMENT, VOLUME
28 NUMBER 1, MARCH 2004, ISSN 0972-5695, Regn. No. 11604/66, pp 50-64.
6. Ayesha Bangi, ―TRAFFIC AND NOISE IMPACT: A CASE STUDY OF
HYDERABAD CITY, INDIA‖, INDIAN JOURNAL OF TRANSPORT
MANAGEMENT, VOLUME 28 NUMBER 1, MARCH 2004, ISSN 0972-5695, Regn.
No. 11604/66, pp 65-74.
7. M. M. Pathak, ―TECHNO-ECONOMIC FEASIBILITY OF ALTERNATIVE FUELS
FOR SUSTAINABLE URBAN MOBILITY‖, INDIAN JOURNAL OF TRANSPORT
MANAGEMENT, VOLUME 28 NUMBER 1, MARCH 2004, ISSN 0972-5695, Regn.
No. 11604/66, pp 75-91.
8. Abhiram R. Supekar, ―TRANSPORT OPTIONS AND TRAFFIC MANAGEMENT IN
URBAN AREAS : A CASE STUDY OF PUNE CITY‖, INDIAN JOURNAL OF
TRANSPORT MANAGEMENT, VOLUME 32 NUMBER 2, APRIL – JUNE 2008,
ISSN 0972-5695, Regn. No. 11604/66, pp 139-151.
9. SudarsanamPadam, ―PUBLIC TRANSPORT: THE BUS AND THE CAR‖, INDIAN
JOURNAL OF TRANSPORT MANAGEMENT, VOLUME 32 NUMBER 1,
JANUARY - MARCH 2008, ISSN 0972-5695, Regn. No. 11604/66, pp 4-8.
10. R. Balasubramanian, ―CURRENT PUBLIC TRANSPORT SCENARIO IN INDIA‖,
INDIAN JOURNAL OF TRANSPORT MANAGEMENT, VOLUME 32 NUMBER 1,
JANUARY - MARCH 2008, ISSN 0972-5695, Regn. No. 11604/66, pp 24-33.
11. N. Subbaram, ―ALIGNING THE HUMAN RESOURCES WITH THE BUSINESS
STRATEGY IN STUs‖, INDIAN JOURNAL OF TRANSPORT MANAGEMENT,
VOLUME 32 NUMBER 1, JANUARY - MARCH 2008, ISSN 0972-5695, Regn. No.
11604/66, pp 34-41.
12. SundraMetzner& Ashish Varma, ―DEVELOPING URBAN TRANSPORT
STRATEGIES – A CASE STUDY OF CARACAS, VENEZUELA‖, INDIAN
JOURNAL OF TRANSPORT MANAGEMENT, VOLUME 32 NUMBER 1,
JANUARY - MARCH 2008, ISSN 0972-5695, Regn. No. 11604/66, pp 42-56.
13. DOCUMENT, ―DELHI METRO – THE CHANGING FACE OF URBAN PUBLIC
TRANSPORT IN INDIA‖, INDIAN JOURNAL OF TRANSPORT MANAGEMENT,
VOLUME 32 NUMBER 1, JANUARY - MARCH 2008, ISSN 0972-5695, Regn. No.
11604/66, pp 57-61.
14. VaishaliGijre, ―PUBLIC TRANSPORT AND ROAD SAFETY – A CASE OF PUNE
CITY‖, INDIAN JOURNAL OF TRANSPORT MANAGEMENT, VOLUME 26
NUMBER 4, OCTOBER - DECEMBER 2002, ISSN 0972-5695, Regn. No. 11604/66,
pp 575-590.
15. S. Rama Krishna & C. Ravi Kumar Reddy, ―TRANSPORT AND ENVIRONMENT
IMPLICATIONS IN URBAN TRANSPORT – A CASE STUDY OF PUNE CITY‖,
INDIAN JOURNAL OF TRANSPORT MANAGEMENT, VOLUME 26 NUMBER 4,
OCTOBER - DECEMBER 2002, ISSN 0972-5695, Regn. No. 11604/66, pp 610-620.
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16. T. Virupaksha, ―STRATEGIES TO CONTROL VEHICULAR EMISSION – INDIAN
SCENARIO‖, INDIAN JOURNAL OF TRANSPORT MANAGEMENT, VOLUME 26
NUMBER 4, OCTOBER - DECEMBER 2002, ISSN 0972-5695, Regn. No. 11604/66,
pp 575-590.
17. SudarsanamPadam, ―PUTTING PLANNING INTO TRANSPORT‖, INDIAN
JOURNAL OF TRANSPORT MANAGEMENT, VOLUME 24 NUMBER 5, MAY
2000, ISSN 0972-5695, Regn. No. 11604/66, pp 343-344.
18. Amit Ray, ―MAJOR ISSUES ON PRIVATE PARTICIAPTION IN PASSENGER
TRANSPORT AND INFRASTRUCTURE‖, INDIAN JOURNAL OF TRANSPORT
MANAGEMENT, VOLUME 24 NUMBER 5, MAY 2000, ISSN 0972-5695, Regn. No.
11604/66, 345-358.
19. Amit Ray, ―APPLICABILITY OF MARKET BASED INSTRUMENTS IN
CONTROLLING AUTOMOBILE POLLUTION‖,INDIAN JOURNAL OF
TRANSPORT MANAGEMENT, VOLUME 28(1) JAN-MARCH 2004, ISSN 0972-
5695, Regn. No. 11604/66.
20. Book Review, ―PUBLIC SECTOR BUS TRANSPORT IN INDAI IN THE NEW
MILLENNIUM – A HISTORICAL PERSPECTIVE‖, INDIAN JOURNAL OF
TRANSPORT MANAGEMENT, VOLUME 24 NUMBER 10, OCTOBER 2000, ISSN
0972-5695, Regn. No. 11604/66, pp 711-712.
21. SudarsanamPadam& Sanjay K. Singh, ―URBANISATION AND URBAN TRANSPORT
IN INDIA – THE SEARCH FOR A POLICY‖, Working Paper -3 ,CTPE CIRT, PUNE-
411 026, pp 4-29.
22. Sanjay Kumar Singh &AnandVenkatesh, ―PRODUCTIVITY AND PROFITABILITY
ANALYSIS OF SWARGATE DEPOT OF MSRTC‖, Working Paper -4 , MARCH 2002,
CTPE CIRT, PUNE-411 026, pp 4-17.
23. MeghnaVerma, Ashish Varma, Ajith P. &SnehaSindhe, ―URBAN BUS TRANSPORT
SERVICE QUALITY AND SUSTAINABLE DEVELOPMENT: UNDERSTANDING
THE SERVICE GAPS‖, INDIAN JOURNAL OF TRANSPORT MANAGEMENT,
VOLUME 28 NUMBER 2, APRIL – JUNE 2014, ISSN 0972-5695, Regn. No.
11604/66, pp 98-112.
24. Neelam J. Gupta, Subhas Chand & E. Madhu, ―REVIEW OF FEEDER TRANSPORT
SYSTEM AT PUBLIC TRANSPORT TERMINALS TOWARDS SUSTAINABILITY‖,
INDIAN JOURNAL OF TRANSPORT MANAGEMENT, VOLUME 28 NUMBER 2,
APRIL – JUNE 2014, ISSN 0972-5695, Regn. No. 11604/66, pp 113-123.
25. Ravi Kumar Reddy C., ―MEASURES TO REDUCE DIESEL VEHICULAR
POLLUTION‖, INDIAN JOURNAL OF TRANSPORT MANAGEMENT, VOLUME
28 NUMBER 2, APRIL – JUNE 2014, ISSN 0972-5695, Regn. No. 11604/66, pp 116-
131.
26. Indrasen Singh, ―NEED OF ROAD SAFETY POLICY FOR TAMIL NADU‖, INDIAN
JOURNAL OF TRANSPORT MANAGEMENT, ISSN 0972-5695, Regn. No. 11604/66,
Volume 28, No. 4, December 2004, Page No. 505-531.
27. Document, ―URBAN PUBLIC TRANSPORT IN INDIA: TRENDS, CHALLENGES
AND INNOVATIONS‖, INDIAN JOURNAL OF TRANSPORT MANAGEMENT,
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ISSN 0972-5695, Regn. No. 11604/66, Volume 28, No. 4, December 2004, Page No.
578-587.
28. Paulose N. Kuriakose, ―A NEW DIRECTION IN PUBLIC TRANSPORT IN INDIA
WITH NATIONAL URBAN TRANSPORT POLICY 2006‖, Indian Journal of Transport
Management, ISSN 0972-5695, Regn. No. 11604/66, Vol. 37. No. 4. October –
December 2013. Page No. 248-266.
29. K. L. Thukral& M. AbsarAlam, ―VEHICLE PUEL EFFICIENCY NORMS: STATUS IN
INDIA AND INTERNATIONAL EXPERIMENCE‖, Indian Journal of Transport
Management, ISSN 0972-5695, Regn. No. 11604/66, Vol. 37. No. 4. October –
December 2013. Page No. 293-303.
30. Mairead Cantwell, Brian Caufield, Margaret O‘Mahony, ―Examining the Factors that
impact Public Transport Commuters Satisfaction‖, Journal of Public Transportation
(United States) Vol. 12, No. 4, 2009, ISSN 1077291X.
31. Ngatia, Okamura Toshiyuki, Nakamura Fumihiko, Githui John, ―The Structure of users
satisfaction on Urban Public Transport Service in Developing Country : A Case of
Nairobi‖, Journal of Public Transportation (United States) – Vol. 3, No. 2, 2009, ISSN
1077291X.
32. John Pucher, NishaKorattyswaroopam, NeenuIttyyerah, ―The Crises of Public Transport
in India: Overwhelming Needs but Limited Resources‖, Journal of Public Transportation,
Vol. 7, No. 4, 2004, ISSN-No. 1077291X.
33. John Pucher, NishaKorattyswaroopam, NeenuIttyyerah, ―The Crises of Public Transport
in India: Overwhelming Needs but Limited Resources‖, Journal of Public Transportation,
Vol. 7, No. 4, 2004, ISSN-No. 1077291X.
B. Website:
1) www.pmpml.org/about_us.php
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5) http://en.wikipedia.org/wiki/public_transport_bus_service
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Innovativeness in Karnali Based Microenterprises for Sustainable Growth
Rishi Khanal
Assistant Professor,
Mid-Western Univeristy, Surkhet, Nepal
Abstract:
Sustainability of microenterprises, together with scalability and competitiveness, is a
critical for their contribution to local economy. Thisstudyexplores orientation of Karnali based
micro-entrepreneurs towards innovation in multiple areas of businesses along with challenges
they experience. It provides guidelines to the entrepreneurs and other stakeholders to identify the
suitable entrepreneurial approach, business model and functional dimensions to prioritize for
increased competitiveness and growth. The study was interview based qualitative field survey in
three districts of Karnali Province to identify innovative approach to entrepreneurship in
different business segments operating locally. The samples were twenty micro-entrepreneurs
from different business areas in Surkhet, Dailekh and Jajarkot. The study finds that the
entrepreneurs have good understanding of product, process and market based innovation. It also
discovered that agro based small businesses, if develop innovative market network, can be highly
benefitted. There were several barriers to innovation such as limited market access, structural
disadvantages of industries, resource limitation, knowledge and skills deficiencies and
technological gap. It facilitates rural entrepreneurs and supporting agencies to locate the gap in
sustained business growth both at micro and macro levels.
Key words: innovation, competitiveness, business growth, value addition, sustainability, market
network
Introduction
In Nepal microenterprises predominantly underlie development of national economy.
They are playing important role in livelihood and poverty alleviation. Microenterprises are very
small or tiny enterprises and operated by a few number of people including the owner with a
little amount of capital in local area where raw materials, resources, and skills are available
(Karki, 2017). Micro enterprises are usually owned and operated by one individual or household
and seldom engage in formal contractual agreements with stakeholders (Roy and Wheeler,
2006). They are the starting point of development in the economies towards industrialization.
They have their significant effect on the income distribution, tax revenue, and employment,
efficient utilization of resources and stability of family income (Ghimire, 2011). Harvey (2003)
mentions in the context of East Asia that micro-enterprises account for more than 60 percent of
all regional enterprises and up to 50 percent of paid employment. Their presence includes both
urban and rural areas and a greater number of women depend on micro-enterprises in the
informal sector for survival (Harvey, 2003).
But the more important factors are sustainability, competitiveness and continuous growth.
Such enterprises must be continuously infused with innovative disposition for increased
competitive growth, sustainability and profitability (Tu and Hwang, 2014). The global
competitiveness of any organization depends upon its success in creating innovation (Tesfaye
and Kitaw, 2018)). There is a strong empirical evidence to support the claim that entrepreneurs,
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particularly those successful at growing an enterprise, are more innovative than non-
entrepreneurs (Mueler and Thomas, 2001). Continuous innovation in microenterprises has
multifold benefits to local economy. Oppositely, low innovation capability hinders the
entrepreneur activities (Tu at al. 2014) possibly leading to ultimate failure.
In the federal structure of Nepal, Karnali stands as the largest province. It occupies
approximately 17 percent area of the country with 1.2 million population (Khanal, 2018).
According to Khanal, the Province includes economically poorest segment of the country where
significant proportion of people are living in miserable poverty. Despite high potential for
tourism, the major economic activities of the region are mostly limited to trading and
agriculture.The remote areas cover about 80 percent of the province with lowest poverty line and
population density of 47 people per square kilometer with gloomy culture of
entrepreneurship(SCCI, 2017).Reliable statistics about number, types and performance of
microenterprise in the province are difficult to find. Lack of entrepreneurial vision and
insufficient technical assistance in existing microenterprises are major setback of economic
growth, as the resources locally grown and harvested are mostly exported in natural state with
little value addition.
In this background, this research intends to explore the innovativeness in managing micro
enterprises in Karnali Province. This research fundamentally uncovers innovativeness in the
micro-entrepreneurs based on their conceptualization of innovation in their industries so as to
ensure sustainability and competitiveness of their firms and their knowledge about factors
influencing innovation. It investigates the challenges they experience in innovating one or more
aspects of their businesses. The study, therefore, examines their perspectives on how they can
introduce innovation in the existing businesses for best contribution to local economy.
Literature Review
Innovation is the basis of growth of enterprise. Authors have defined innovation in
multiple ways. Innovation is generation of new ideas or practice adopted for a process or an
entire sector of an organization (Galuk, Zen, Bittencourt, Mattos & Menezes, 2016). It is a
process that turns an invention into marketable process. Another definition given by Hayami and
Ruttan (1985, as cited in Cristina, 2017) considers innovation as the overall process of
technological and commercial creativity, the transfer of a new idea or concept to the final stage
of a new product or process accepted by the market. Innovation in the broadest sense is practical
application of new ideas (Millson and Wilemon, 2008). According to Edwards and Gordon
(1984, as cited in Ehrenberger, Koudelková and Strielkowsk, 2015) defines innovation as a
process that begins with an invention, proceeds with the development of invention, and results in
the introduction of the new product, process or service to the marketplace. This definition
highlights on technical approach to innovation. But many of innovations are not the results of
invention but merely forms of improvement.
Joseph Schumpeter(1942) gave pioneering emphasis on the significance of innovation in
economy. According to him, entrepreneurs create value through innovation process by disrupting
the existing market structure with new goods and services resulting in shift of resources from
existing firms to the new ones. Schumpeter connects word innovation with entrepreneurs
realizing it as a dynamic force for economic growth of any society. It is understood therefore that
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innovation encompasses internal processes of firms that depend on the nature of their products,
their competitive strategies and their internal competencies (Virkkala, 2007).
Contextually, it is imperative to discuss what causes innovation in microenterprises.
Since the majority of factors leading to innovation are within the firm itself, it is desirable,
therefore, to focus on internal factors (Ehrenberger et al. 2015, p.81). They argue that
competition and investment level have positive impact on innovation, as it forces firms to be
more innovative. Lukes(2013) states that an entrepreneur, if implements simple research activity
like asking others, especially those working with him or her, tends to be more innovative than
another without subordinates. In fostering innovation, information from customers is
significantly important because they are the recipients of the products introduced to the market
(Hutter, Hautz, Repke, and Matzler, 2013). Innovation is driven by the ability to see connections,
to spot opportunities and to take advantage of them (Tidd, Bessant, and Pavit, 2005).
Kozubikova and Zoubkova (2016) in their studies found that in Czech majority (58 percent) of
microenterprises developed new products in order to maintain the pace that come with today‘s
dynamic and global economic world. Although R&D and market orientation are key drivers of
the innovation process, the role of entrepreneur for innovation in small food firms cannot be
ignored. The characteristics of the entrepreneur are related to background and skills and are
thought to have a considerable impact on innovation (Avermaetea, Viaenea and Morganb,2004)
Scholars have divided innovation into several categories on different grounds. The
innovation literature is characterized by highly diverse research methodologies, data-set features
and variables selected (Montoya-Weiss & Calantone, 1994). Variations in approach to study
innovation is one of the main reasons why authors have come to apparently contradictory results
and is important to note when interpreting the outcomes of empirical studies (Avermaetea etal.,
2004). This study, however, is based on innovation model as identified by Hall (2009) subject to
the OECD guidelines. According to him innovation appears in five different categories namely-
product, process, service, management and marketing innovations. Tidd et al. mention that
product innovation occurs when a firm introduces a new product in the market. A service
innovation is a new service or such a renewal of an existing service (Toivonen and Tuominen,
2006).
Process innovation is said to be the execution of a novel or improved production and/or
delivery method such as changes in technique, equipment or even software (Cooper, 2009).
Process innovation fundamentally means improvement of the techniques, process or systems.
Hjalagar (2010) identifies process innovation as a means for enhancing efficiency and
productivity that takes place behind the scene. Avermaete et al. (200) highlights the key role of
employee‘s skills in process innovation.
Another aspect is market innovation. Camison and Monfort-Mir (2012) identifies
marketing innovation as introduction of new marketing methods in product design, promotion
and pricing. This also includes expansion of marketing network with external stakeholders like
regulatory bodies and customer segments (Sundbo, 1998). Finally, changing organizational
culture and structure, and new ways of directing and empowering staffs, compensation and other
relevant policies are another form of innovation , called management innovation (Hall 2009,
Hjalagar, 2010; Ottenbacher and Gnoth 2005) . Location of the organization (Meira 2013), and
the internal alignment of the organization and its long term vision (Ferriera,David, Sousa, and
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Santos, 2008 as cited in Galuk et al., 2016) are important for strategic management of
innovation.
Hutter et al. (2013) identified problems of lack of time and complementary assets,
constraints in distributionand sales, lack of multi-disciplinary knowledge, limited financial
resources, high bureaucracy and risk avoidance.One way to conceptualize barriers of innovation
is to scope based classification - as external to the firm or exogenous and internal or endogenous
ones (Piatier, 1984). External barriers include supply, demand and environmental related factors
whereas the internal barriers can be further subdivided into resource related, systems related, and
human nature related (Nassar and Faloye, 2015)). Many researchers have specifically identified,
but similar, barriers.Vieira (2007, as cited in Nassar et al., 2015 ), in a study with Portuguese
business community, identified high economic cost and risk associated with innovation, lack of
funding, organizational rigidity, lack of skilled manpower, lack of market information and
technology, government regulation and weak capacity to approach the clients as well as lack of
connection with learning centers. Sometimes, small businesses face inability to protect their new
ideas and innovations as barriers (Oke, 2004). Pachouri and Sharma (2016) classify barriers to
innovation in small and medium sized enterprises in six categories: people, financial,
information, government policy, infrastructure, andmarket constraints.
Methods
This study follows exploratory qualitative research design with fundamental
concentration into participants‘ perspectives on innovation for business sustainability, growth
and competitiveness. There is little empirical evidence of similar research in selected geographic
area. The study is thus based on exploratory research for getting insight into research topic.
Qualitative methods answer questions about experience, meaning and perspective, most often
from the standpoint of the participant (Hammarberg, Kirkman and Lacey, 2016). Here theoretical
considerations are important (Glaser and Strauss,1967, as cited in Hutter et al.). The study
involved semi-structured interview with 20 micro-entrepreneurs on Karnlai Province. For the
purpose, I selected the judgmental sampling in order that participation is representative from
across the different industries. There were altogether 20 participants – 10 from Surkhet, 7 from
Dailekh and 3 from Jajarkot. Among them, 5 participants represent agribusiness sector, 3 leather
shoes, 3 from forest based industry, 3 from semiprecious stone, 4 from handicraft industry and 2
participants are from metalwork sector. Fifty percent of firms are run by family members where
the others employed 2 to 5 workers during full fledge operations.All the participants were
notified earlier and approached with appointment.
A standard interview guideline was prepared based on theoretical findings. The guideline
addresses five categories of innovation as identified by Hall (2009). Accordingly, the study
examined the participant‘s conceptualization of innovation on product, service process,
marketing and management dimensions and used the operational guideline as prescribed by
Rabionet (2011). Rationality of this approach was based on discussion with the experienced
researchers in the field and thorough review of literature. The following step was the formation
of broad guideline and crafting interview protocol based on guideline of Castillo-Montoya
(2016.) This step was more cumbersome and sensitive because it covers the major questions
pertaining to research objectives. The total standard questions were limited of six that served as
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representative ones during actual interview. These standard questions were drafted in Nepali
language.
The actual interview was in local (Nepali) language and recorded in personal mobile set
of the interviewer. Average interview period with each participant was 40minutes. Due to limited
theoretical knowledge of participants on constructs and variables under study, questions were
highly elaborated and simplified as necessary. Finally, the qualitative data was transcribed and
thematically analyzed in multiple steps based on the guidelines as followed by Hutter et al
(2013).The first phase of thematic analysis included careful study of data and developing broad
categories in connection with each research question. The second round of content analysis
developed some insight categories that were coded adequately. In the third round the coded data
were revisited, eliminated,summarized and refinedas necessary for meaningful themes.In order
to eliminate the potential bias in interpreting result, content analysis of two of the sample
interviews was done by an independent expert.
Result
The participants explained that the business can follow a number of approaches to
innovation. Agro based entrepreneurs described that the businesses can be sustainable and
competitive when the firms develops ability to satisfy the existing customers through secured
supply with much stable price levels and this is possible when they have broader outlook at
entire value chain rather than having only inward perspectives. They claimed that just buying
new machines and offering pure and fresh products is not sufficient but they have to
institutionalize entire supply chain to secure their market opportunities. All of the interviewees
involved in agro-based and dairy businesses opined much similar views:
Interviewee 1: ……but our market network is not stable and broad. We face problems of
supply as farmers are not organized and do have mechanism of professional business. They do
not find good wholesalers who guarantee stable pricing for their products…… and nobody is
encouraging assuring them to continue farming profession.
Interview 2: we collect products from farmers and sent them to market but we do not have
capacity to buy in bulk because we do not have access to storage for off season sales. If we have
another participant in market for storage relative value addition would be increased through
sustained market service…..
Interview 4: …. Speedy service, efficient supply and technical advices from specialized
institutions can guarantee innovation.
The interviewees who belonged to non- agribusiness sector, however, referred what innovation
means for them to product and production side. They felt the need of capital, excellent product
design and efficient technology.
Interviewee 9:: I know how to make our product better to make customers feel new experience,
but for this we need new machines, they are expensive and not available in our country.
Interviewee 12:our product is relatively expensive among local industries, so we need fine
machines and good design.
Interview 19: Yes, we can offer better products, we have all but good workers …. They work for
some months and leave their firm; i have tension of finding people to work for me……
With regard to their approaches to innovation, the interviewees are asked ―how
entrepreneurs like you effectively generate cost effective innovation in your sector?‘ Here, they
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showed having mixed orientation. The agribusiness micro-entrepreneurs highlighted on external
innovation i.e. role of regulators and cooperatives in local level. Rather than physical aspects,
concern should be with organizing production and streamlining supply with coordinated efforts
of producers and traders. They were found to have focused on market institutionalization across
the value chain. But, those associated with handicrafts and precious stones claimed that
innovation is possible with importing new machines, ensuring market access and providing
skilled based training to workers. However, they are following economic measures for
innovative for survival and market competition.
Interview 4 and 5: we must have well managed and systematic market network- that
consists of producers and wholesalers and also our customers …..
Interviewee 7: We work with limited skills and traditional system …….. we need new skills and
machines too. We do not have enough capital to buy all new equipment ….relevant education is
important.
Interview: 8 ……. Ultimately we need market…… our local market is small but is not
possible to work manually as it becomes expensive and also people do have skills if we work for
large market.
The important point is – since the participants of interview operate locally in small
markets- do not expect high investment in innovating their business and believe incremental
improvement, which is clear for their remarks:
Interviewee 3: Although I can manage capital, I do not install big machine because time has not
come yet.
Interviewee 14: Over investment in present time means your do not stay in business for
the long time ….
Interviewee 16: Out intention is how we can improve with what ever have, with more
investment and it is possible ……
Interviewee 8: Technology is important for us, but at the same time we need larger
market. For local market it is not wise decision to invest.
Interviews were also asked ‗what they must do in order to make microenterprises
sustainable locally‘. They identified competitiveness and need for continuous development in all
dimensions of their businesses for improved quality of products, better customer services and
growth of market.
Interviewee 11: You have to give good product to customer and keep on improving for survival.
Interviewee 13: I must find new market …… there will be more competition in the existing one.
Interviewee:17 …. No problem if your product is durable and unique.. …. Create better
design…. Use better materials…..
The study also covered possibility of innovativeness in micro-entrepreneurs for benefits to local
economy. The participants believed that it can have huge impact because they are making good
earning which can escalate with support from stakeholders.
Interviewee3: We see good possibility but we need improve industry structure, support for
market access, technical training and new information for innovation.
Interview 15: ….. I can scale up my business but I should technical supports and institutional
linkages for product awareness and market access.
Interviewee 20: Its attraction is increasing day by day but new additions in varieties and design
are important ……..
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Finally the research attempted to identify the possible barriers to innovation.
Accordingly, limited knowledge and lack of learning culture were found to negatively impact
innovation and resource limitations, skills deficiencies, adequate institutional supports and
market limitations are among the other barriers to innovation as revealed in the following
expressions:
Interview 2: ….. more important are institutional support and market collaborations….
Interviewee 10: if we get financial resource, we can buy machines and introduce new designs
and go to new market……
Interview 13: ….. knowing what market demands is important for giving new items in
market….. in fact, we do business without must knowledge about it……
Interviewee 17: There must be skill development centre for continuously learning new skills for
developing new items
Discussion and Conclusion
Even though the sample participants did not have advanced education in business and
sufficient training opportunities, they were found to have a considerably good knowledge about
innovation and innovative tendencies to manage microenterprises. They identified innovation
imperative for value addition and sustainability. As confirmed by the empirical study of Hutter
et. al. (2013), the micro firms operators understood the need of innovation for survival, growth
and competitiveness and realized innovativeness needs addressing wider dimensions of business
i.e. the factors lying outside the scope of their businesses. The participants of interview could not
thematically understand the issues and elements of innovation; they, however, were familiar with
how their firms can innovate. In this study innovation has been accepted as any process or
initiative within or outside the firm resulting change and improvement in terms of efficiency,
quality and overall performance improvement of firms as adapted by Peljko et al. (2016), The
result was very positive with respect to conceptualization and initiation of innovation. The
participants viewed innovation is possible through product and process improvement and market
network development. Particularly, they felt need of product and service design, new technology,
creativity, skills, organized external institutions, marketing knowledge and information
mechanism for innovation thus creating cross-functional dimension of innovation. The
agribusiness entrepreneurs were more focused on market structure based innovation whereas the
other types of entrepreneurs stressed on technology and design based innovation. They also
believed that, especially in the context of Karnali Province, cost effective innovation is suitable
due to small market and difficult in access to new market. The micro-entrepreneurs were making
efforts innovation and also expecting external support for it as many of dimensions of innovation
were beyond their capabilities such as market management, skill development, technical
assistance, information supply and resource management. This study identified a number of
barriers to innovation. Among the important were limited market access, structural disadvantages
of industries, resource limitation, knowledge and skills deficiencies and technological gap. The
barriers are, very commonly, similar to those identified by Hutter at al. (2013) and Lee,
Sardeshmukh and Hallak (2014).
Implications and Future Directions
Little is known in scholarly literature about the issue in question; thus this research can
play an important role. Micro-entrepreneurs were found to have sound knowledge on innovation
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concept and they have a remarkable level of innovative mindset. The research undoubtedly
suffers from many limitations. Exploratory nature of the study, limited samples, subjectivity in
data collection methods and limited expertise in data analysis and limited time span are major
limitations. However, this work has manifold applications. First, it pursues innovativeness in
business concept and operations in the local context together with the problems faced by local
microenterprise and presents suggestions to policy makers calling for rational priorities for
uplifting local economy. Second, this helps to identify gap in entrepreneurial innovativeness for
better results. Third, the study can help as foundation for comparative study on innovativeness in
national and international levels. Fourth, it opens new avenues for further specialized researches
in the area. Fifth, as the problems outlined are similar in global perspectives, it will be easier to
trace out the solutions as followed in other countries. This can serve as the foundation for
theoretical model of innovation in microenterprises operating in a poor economy. The study
recommends the further - more detailed - study to be more specific in terms of business type,
territory, microenterprise category and problems.
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The Challenge of Women Employment and
Sustainable Development Goal (SDG)
Dr. Marcelle Samuel
Associate Professor,
Symbiosis College of Arts and Commerce, Pune, Maharashtra.
Abstract:
Sustainable development pivots around human capital and resilient societies. The path
to equitable and sustainable development must address equitable employment and more
particularly the participation of women in the workforce This paper attempts to study the
importance of participation of women in the workforce, and achieving SDG 8: „Promote
sustained, inclusive and sustainable economic growth, full and productive employment and
decent work for all‟. The scope of the paper includes a review, at the global and all India level,
of the prevalence of gender disparities in the employment of women, across the parameters of
Workforce Participation Rate (WPR) and wage differentials, amongst others, which come to be
hurdles in the path of sustainability. At the micro level, the paper focuses on a case study of
„GRIHINI‟, an all-women co-operative society functioning under the parent company – TATA
Motors, in Pune. It reveals the important role industry can play in achieving the dual objectives
of providing gainful employment to disadvantaged women and simultaneously achieving
sustainable business practices.
“Leave no one behind....”- the promise for Sustainable Development by 2030!
We live in a complex era of globalization, where we as nations are interlinked through
various issues social, economic and environmental. The principle agenda for global development
is „sustainable development‟ across borders. The major challenges to sustainable development
range from issues of poverty, hunger, health and education to environment, urbanization, job
creation, exclusion and the many faces of inequality, to mention a few. As stated in the
Sustainable Development Goals Report 2018, the 2030 agenda of 17 Sustainable Development
Goals (SDGs) provide a worldwide blueprint for dignity, peace and prosperity, for now and the
future.
The 17 SDGs though enlisted separately cannot be compartmentalized, as an
interconnection between goals exists. This paper attempts to study the challenge of women
employment – the importance of participation of women in the workforce, with reference to
achieving SDG 8, namely, „Promote sustained, inclusive and sustainable economic growth, full
and productive employment and decent work for all‟. Sustainable development pivots around
human capital and resilient societies. The path to equitable and sustainable development must
address equitable employment and more particularly the participation of women in the
workforce.
Scope of the Paper:
The scope of the paper includes a review, of the prevalence of gender disparities in
employment of women, across the parameters of Workforce Participation Rate (WPR) and wage
differentials, amongst others, which come to be hurdles in the path of sustainability both at the
global and all-India level (India SDG Global rank 112 of 156, 2018).
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At the micro level, the paper focuses on a case study of ‗GRIHINI‘, an all-women co-
operative society functioning under the parent company – TATA Motors, in Pune. It provides
the socio-economic profile of women beneficiaries and describes the desired work environment
for enhancing gender equity and inclusivity in employment. The paper reveals the important role
industry can play in achieving the dual objectives of providing gainful employment to
disadvantaged women and simultaneously achieving sustainable business practices
Objective and Research Questions:
The primary objectives of this paper are:
To explore the impediments in the path to attain SDG 8
To investigate the role of industry in imbibing gender equality and inclusivity of
disadvantaged women in employment.
The paper attempts to answer the research question:
What role can industry play in providing a conducive work environment to
women for sustainable and inclusive employment?
Data Sources and Methodology:
The paper uses both primary and secondary data. Primary data (2016) is obtained from
‗GRIHINI‘ – through structured questionnaires circulated amongst 80 women, unstructured
interviews with management, site visits and analyses of artefacts. Secondary data is obtained
from various sources in the public domain.
The Impediments:
Three years into the agenda and with only 12 years left to achieve SDGs by 2030, the
world is still in the throes of gender inequality in employment. Definitive action and reforms are
the need of the hour. While SDG 8 and the 17 interlinked SDGs speak of equality, inclusivity
and provision of basic human rights for survival, data reveals that gender inequality in
employment remains a major impediment.
Labour Force Participation Rate:
The ability of women to participate in the labour force enables improved investment in
well being and long term economic growth.
The Gender Inequality Index1, which takes into account the Labour Force Participation
Rate (LFPR) (SDG 9.2), indicates that the Female Labour Force Participation Rate (FLPR) for
women was only 48.7 percent while for males it read 75.3 percent (ages 15 and older) in the
world in 2017 (UNDP Report, 2018).
A decline in FLFPR, particularly in South Asia, is often attributed to increasing
participation of women in education. While this may be partly responsible, there are numerous
other factors, such as lack of decent work opportunities leading to the ‗discouraged worker
effect‘, mechanization of agriculture, lack of rights over land, discriminatory social norms,
gender stereotypes regarding ‗appropriate work‘ for women and the disproportionate share of
unpaid care and domestic work women undertake,
1 Gender Inequality Index: : A composite measure reflecting inequality in achievement
between women and men in three dimensions: reproductive health, empowerment and the labour
market. (Human Development Indices and Indicators – 2018 Statistical Update)
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Empirical studies, on female employment trends in India, have shown that the
participation of women in the workforce is remarkably low as compared to the participation by
men (Ghosh & Mukhopadhyay, 1984), and also that though most women work in India their
participation does not get recorded in official statistics (Dunlop & Velkoff, 1999).
On examining the ‗‗U shape‖ FLFPR studies find that it has been declining. It is
observed that FLFPR reaches a minimum and then starts moving upward as women acquire
appropriate skills and return to the labour force at an advanced stage of development to
participate in non-agricultural jobs. India, undergoing structural transformation from a low-
income to middle-income country status, has experienced falling FLFPR because of income and
substitution effects. However, the FLFPR in India stood at a meagre 27.2, (way below the world
FLFPR of 48.7) while it was 78.8 for males, in 2017.
Fig. 1: Labour Force Participation Rates – World and India - 2017
Source: Compiled from UNDP Report, 2018
Further, as shown in Fig. 2 below, women participation rates in employment are almost
half as compared to men over the period 1987-88 to 2011-12, in India, reflecting gender inequity
in employment.
Fig. 2: Gender Inequity in Employment
Source: Employment and Unemployment Surveys of NSS
Gender Pay Gap:
The extent to which work rewards are distributed equally between women and men is
critical for sustainable development. Although the global scenario, for 2017, reveals an increase
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in labour productivity2 accompanied by a decrease in the unemployment rate,
3 on the flip side,
much needs to be done on labour market inequality, particularly in terms of the gender pay gap.
A majority of 40, or 89 percent, of the 45 countries studied for achieving SDGs, reveal
that gender inequality is still persistent. As shown in Fig. 3 below the hourly wages of men, on
an average, are 12.5 percent higher than those of women. Further, it was found that gender wage
gaps are sensitive to wage distribution. The gaps are largest at the top of the wage distribution for
highly skilled women workers and also at the bottom for women working in low paid low-status
jobs. Another finding was that countries with greater inequality in the distribution of wages tend
to have larger gender wage gaps.
Fig. 3: Earning Inequalities - 2017
Source: Sustainable Development Goals Report, 2018
In India too, it was found, women earn 20 percent less than men. (Monster Salary Index,
MSI 2017). According to this report, men earned a median gross hourly salary of Rs. 231,
while women earned only Rs. 184.8 in 2017 and the gender pay gap widens with an increase in
work experience.
Unemployment:
The other major hurdle in working towards ‗full and productive employment and decent
work for all‘ is the problem of unemployment. From 2010 to 2017, both, the Total
Unemployment Rate- Female to Male Ratio –World4 and the Youth Unemployment Rate –
2 Labour productivity at the global level, measured as output produced per employed person in
constant 2005 US dollars, grew by 2.1 per cent in 2017. This is the fastest growth registered
since 2010. (The Sustainable Development Goals Report, 2018) 3 The global unemployment rate in 2017 was 5.6 per cent, down from 6.4 per cent in 2000. The
decline has slowed since 2009, when it hit 5.9 per cent. (The Sustainable Development Goals
Report, 2018) 4 Total unemployment rate, female to male ratio: Ratio of the percentage of the female labour
force population ages 15 and older that is not in paid employment or self-employed but is
available for work and is actively seeking paid employment or self-employment to the
percentage of the male labour force population ages 15 and older that is not in paid employment
or self-employed but is available for work and is actively seeking paid employment or self-
employment. . (Human Development Indices and Indicators – 2018 Statistical Update)
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Female to Male Ratio – World5 (SDG 8.5) was 1.24 and 1.05 respectively showing a bias against
women.
A similar trend is witnessed in India between 2010 and 2017, for the Total
Unemployment Rate- Female to Male Ratio and the Youth Unemployment Rate – Female to
Male Ratio, reading 1.27 and 1.02 respectively.
Successive rounds of National Sample Survey (NSSO) show that the rate of
unemployment6 is higher amongst females as compared to males across education levels, age
groups as well as urban-rural areas as given in Table No. 1 and 2 below.
Table 1: Education-Level Specific Usual Status (Adjusted) Unemployment Rate
for Persons of Age 15-29 Years (Youth) During 2011-12
(All India)
Sr.No. General Education Level
Unemployment Rate
Rural Urban
Male Female Male Female
(1) (2) (3) (4) (5)
1. Not Literate 23 8 25 16
2. Literate and up to Primary 32 6 48 43
3. Middle School 42 46 51 58
4. Secondary 46 86 55 151
5. Higher Secondary 65 138 120 146
6. Diploma/Certificate 59 300 125 173
7. Graduate and above 91 296 163 234
8. Secondary and above 81 155 117 198
9. All 50 48 81 131
Source: NSSO 2014, 68th
Round, (2011-12)
Table 2: Education-Level Specific Usual Status (Adjusted) Unemployment Rate
for Persons of Age 15- 59 Years during 2011-12.
(All India)
S.No. General Education Level
Unemployment Rate
Rural Urban
Male Female Male Female
(1) (2) (3) (4) (5)
1. Not Literate 5 2 9 7
5 Youth unemployment rate, female to male ratio: Ratio of the percentage of the female
labour force population ages 15–24 that is not in paid employment or self-employed but is
available for work and is actively seeking paid employment or self-employment to the
percentage of the male
labour force population ages 15–24 that is not in paid employment or self-employed but is
available for work and is actively seeking paid employment or self-employment. 6 Principal Status (PS) – the activity status on which a person spent relatively longer time
during the 365 days preceding the date of the survey
„Subsidiary Status‟ (SS) ―if he is engaged in any activity for only a part of the year
If a person is working either under PS or SS, he is said to be counted under „Usual Status
or Usual Principal Subsidiary Status (i.e., both combined)
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2. Literate and up to Primary 12 3 19 16
3. Middle School 19 25 22 35
4. Secondary 20 60 23 64
5. Higher Secondary 33 88 46 91
6. Diploma/Certificate 85 197 52 102
7. Graduate and above 75 189 53 128
8. Secondary and above 38 101 42 104
9. All 19 17 31 55
Source: NSSO 2014, 68th
Round, (2011-12)
It is observed:
As level of education increases the unemployment rate also increases for males
and females in the 15-29 years age group (youth) as well as the 15-59 years
group.
However, in both age groups the unemployment rate for females is higher than
that of males for education levels of Middle School and beyond.
The unemployment rates are higher for females than males in both urban and rural
areas.
However, the unemployment rates are comparatively higher for females in urban
areas than females in rural areas.
Share in Employment in Non Agriculture:
The impediment of poor accessibility to the labour market, is accentuated with women
more likely to be concentrated in ‗feminized‘ sectors, with low wages and insecure working
conditions. Share in Employment in Non Agriculture, Female – (percent of total employment in
non agriculture)7 - World, stood at 38.6, while in India it was a meagre 18.6 implying more
progress is needed in achieving SDG 8.3 (UNDP Report, 2018).
In a study by Srivastava and Srivastava it was found that female workers in rural India,
are principally engaged in agricultural work as self employed or casual labour.
However, with the process of structural transformation in India a large number of
females are pushed out of agriculture. As revealed in data on the sectoral share of employment
in India, (NSSO 68th Round) the share of agriculture has declined continuously from 59.9
percent in 1999-00 to 48.9 percent in 2011-12, thus aggravating the employment problem.
Further, the growing mechanization in agriculture and rising capital intensity in manufacturing
sectors together have limited the opportunity for females because of low levels of education,
skills and other cultural constraints. In addition, it was found that the rise in real wages in rural
areas and the consequent improvement in the standard of living has produced a strong negative
income effect which outweighs the positive substitution effect and as a result FLFPR has
declined substantially (Mehrotra and Parida, 2017).
Further, in a study related to urban female employment at the all India level it was
observed that there has been a decline in the casual employment of urban females but an
increase in self and regular employment (Chandrashekhar & Ghosh, 2007). ‗The Future of Jobs
Survey‘(World Economic Forum, 2016) states that ―across all industries, unconscious bias
7 Share of employment in non agriculture, female: Share of women in employment in the
nonagricultural sector, which comprises industry and services activities.
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among managers and lack of work-life balance, are the two top barriers‖ ( with 44 percent each)
to women‘s workforce integration over the period 2015–2020.
In this context, it thus becomes essential to elaborate upon the important role industry
plays in improving the employment potentialities of disadvantaged women through sustainable
employment and skill development, improving gender equity and inclusivity.
Grihini:
On this macro level backdrop, a study at the micro level of a collective, socio-commercial
enterprise, a unique ‗all-women‘ co-operative society under the parent company of TATA
Motors is undertaken. It brings forth the role of industry in providing women with sustainable
employment, especially from the economically weaker sections, thus achieving the twin goals of
gender equality and inclusivity with sustainable development.
Sponsored by the automobile giant, TATA Motors, with a revenue of more than Rs. 10
crore, the distinguishing feature of GRIHINI is that it imparts employment and training to
approximately 150 women from the local community (which initially was to only relatives of
TATA employees) for sustainable livelihood and economic independence. It empowers women
by providing gainful employment with sustainable livelihood.
GRIHINI founded by Mrs. Leelatai Moolgaonkar (wife of Sumant Moolgaokar, former
Chairman of TELCO, now Tata Motors Limited) was established in 1973 with seven women.
The society grew in strength and today it comprises of four units, all of which were registered in
1979. Headed by the wife of a senior executive of TATA Motors, appointed by the company, it
operates on a sprawling campus with 4 units8 operating from 64, 1 BHK flats.
9The expansive
campus also hosts an English medium school, Vidyaniketan, a playground for the school, a
training division hostel, a senior officers colony and provides housing facility for employees on
rent.
Launched initially as a Masala and Home Products unit with women preparing different
spices, pickles and an array of snack items for prestigious customers like Marriott, Taj Blue
Diamond, Sayaji Hotels , it later expanded to include units for Tailoring, which stitch uniforms
and hand gloves for TATA and 45 varied items ranging from pillow covers to hand bags.
Breaking gender stereo types in the Cable Harness and Electronics units women are trained to
assemble harnesses and products which range from main cables, tail cables, engine cables,
complex and intricate wiring and hi-tech automotive electronic products. Similarly, in the
Electronics unit women assemble 69 different electronic components used in vehicles which are
supplied to TATA Motors.
Grihini and Women Employment
GRIHINI provides sustainable employment and inclusivity to women through its flexible
and accommodating employment process. GRIHINI opens its doors to all women in the
neighbourhood, seeking employment, below the age of 58 years. The only exception being the
the Cable Harness Unit wherein the upper age limit is 30 years. There is no minimum education
8 Electronics, Cable Harness, Shivankala and Vividh Karyakari
964 One BHK flats are taken on rent from Tata Motors at a nominal rent of Rs. 275/- per month
per flat.
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qualification required for women seeking employment in the Masala and the Tailoring Units.
The only requirement for women for the Tailoring Unit, is the knowledge of operating a sewing
machine. The minimum educational qualification for the Cable Harness unit is completion of
10th Standard –necessary to understand the Wire Colour Coding System. In order to comprehend
the Assembly System in the Electronics Unit completion of 12th standard is desired.
Keeping in mind the necessity to offer employment to tap one‘s potential and area of
interest, while simultaneously maintaining work-life balance, women may choose their preferred
area of work and convenient work-shifts, either between 8 a.m. to 1 p.m. or between 2 p.m. to 7
p.m.. Women in the tailoring unit, also enjoy the option of working from home.
The training/skilling follows the principle of ‗learning while doing‘. There is no rigid
time frame regarding duration of training, which may range anywhere between one day to three
months. A majority of the women employed come from the surrounding belts of Pimpri and
Chinchwad in Pune, making accessibility to the work place easier. Importance is given to
communication in the local language - both Marathi and Hindi in GRIHINI.
Table No. 3: Socio-Economic Profile - GRIHINI
Attributes Categories Percent
Age (years)
Below 30 8.6
30-40 20.0
41-50 50.0
Above 50 21.4
Marital status Single 5.0
Married 95.0
Education With Higher Formal Education 17.5
Without Higher Formal Education 82.5
Family size
(no. of
members
in family)
Up to 3 55.3
4-6 42.1
7-8 2.6
8 0
Monthly
Household
Income10
(Rs.)
<=8334 46.8
8335-25000 51.1
>25000-50000 2.1
Source: Survey by author
The socio-economic profile as seen in Table No. 3 reveals that a majority 91.5 percent
respondents are above 30 years of age and 95 percent are married.
With regard to providing sustainable livelihood to the marginalized in society it is seen
that 82.5 percent of the women employed have no formal education beyond class 12.
The data on family size reveal that a majority, 55.3 percent, come from a family
comprising of up to 3 members, and only 2.6 percent from families with 7 to 8 members.
10
Monthly Household Income Classification as per Pradhan Mantri Awas Yojana
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The important role played by TATA Motors through GRIHINI in providing sustainable
livelihood and employment is seen from the fact that 100 percent of the respondents stated the
major benefit was ‗getting a job‘ and 28.8 percent cited ‗flexibility in timing‘.
According to the Pradhan Mantri Awas Yojana (PMAY) classificatory criterion, it was
observed that a very large chunk, 97.9 percent of the women, belonged to Economically Weaker
Section (EWS) households having annual family income up to Rs. 3 lakh per annum (up to Rs.
25,000/- per month) while only 2.1 percent belonged to the Lower Income Group (LIG)
households having an annual income between Rs. 3 lakh and Rs. 6 lakh per annum (between Rs.
25,001/- to Rs. 50,000/- per month). Further a 46.8 percent have an annual family income of less
than Rs. 1 lakh per annum (Rs. 8334/- per month).
With GRIHINI paying the prevailing Government Minimum Wage (Rs. 250/- per day,
2016) and with other benefits like provident fund, leave, bonus, gratuity, etc., it takes the lead in
economically empowering marginalized women.
Observations:
From data on employment at the macro level, it is observed that the major impediments
in achieving SDG 8 are poor FLFPR, wide gender pay gaps, unfavourable Total Unemployment
Rate( Female to Male Ratio) and Youth Unemployment Rate ( Female to Male Ratio), a higher
rate of unemployment amongst women as compared to men across education levels, age groups
as well as urban-rural areas, women employment concentrated in ‗feminized‘ sectors, low
wages, insecure working conditions and a smaller share in employment in non agriculture
occupations. Similar impediments, some more accentuated, are found in India which act as
hurdles in achieving SDG 8 and decent work for all.
Based on data collected at the micro level, the study answers the research question in the
affirmative – ―Industry does have an important role to play in providing a conducive work
environment to women for sustainable and inclusive employment‖. The capacity of industry to
invest in employing women, who have no financial capacity of their own, to make large
investments as entrepreneurs, plays a pivotal role in promoting sustained, inclusive and
sustainable economic growth.
A conducive work environment is provided through ‗work-life balance‘, ‗flexible
timings‘, ‗convenient shifts‘, option of ‗working from home‘, ‗communication in the local
language‘ and ‗a fixed sustainable income‘.
Additional vital features, include facilities of affordable housing, hostel facilities, schools
and playgrounds for children. Innumerable healthy practices which spell welfare and celebrate
life such as provision of uniforms and aprons, breakfast and lunch, blood donation camps, tree
plantation programmes, Women‘s Day celebrations, cultural programmes and regular donations
to charity, all contribute to a woman-conducive work environment.
Suggestions and Conclusions:
From a policy perspective, the challenge of women employment may be considered from
the demand side with labour market discrimination and the supply side with a patriarchal
attitude. The labour market discrimination from the demand side may be partially resolved
through legislation. However, enforcement faces constraints, as stringent laws are often
intrusive, discriminatory, evasive, and hence ineffective. It is here that industry may take the
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lead through voluntarily pursuing transparent employment policies, equitable pay structures and
appointment of responsive and functional ombudsmen.
On the supply side, the human capital model that focuses on patriarchal attitudes, which
influence gender differences in skills, education and experience, need a change of mindset.
Women dropping out of the labour force when family incomes are comfortable, bearing the
primary household and parenthood burden, all influence hiring decisions, resulting in women
being seen as less reliable employees. Introduction of parental leave rather than maternal leave
would help bring about a change in societal perception and attitudes.
In conclusion, the issue of women employment may be addressed on multiple fronts,
ranging from greater formalization of the workforce to creating better job opportunities.
Incentivising industry to introduce new flexible and supportive work patterns for improving
employment of women from different socio-economic strata through tax breaks, setting up of
individual training units by the parent industry and other interventions, would go a long way.
These would serve a two-fold purpose of providing gainful employment to women while
simultaneously providing economic viability, all signposts on the arduous road ahead.
Key Terms: Women Employment, SDG 8, Gender equality and inclusivity in employment,
Industry and sustainable employment, Supportive work pattern and environment
Research Paper on ‗The Challenge of Women Employment and Sustainable Development
Goal (SDG) 8‘ submitted for Interdisciplinary International Research Conference on
‗Sustainability: Aspects, Challenges and Prospects in the Global Perspective‘ organized by
Garware College of Commerce in association with SPPU and James Cook University, Singapore
on 17th
and 18th
January, 2019 at YASHADA.
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Website : http://www.tatamotorsgrihini.org
Appendix I
Questionnaire - GRIHINI
The information provided will be kept confidential and used for academic research only.
(I) Personal Details:
Q1. Name:
Q2. Gender:
Q3. Date of Birth(dd/mm/yy)
Q4. Marital Status: Single Married Divorced
Widow/Widower
Q5. Languages spoken by the respondent:
Family Background:
Q6. No. of members in family (excluding self):
Q7. Number of siblings: Brothers( ) Sisters( )
Q8. Language spoken at home:
Q9. Highest level of education attained by the father:
Q10. Highest level of education attained by the mother:
Q12. Main occupation of father:
Q13. Main occupation of mother:
Q.15. What is your gross monthly family income : Rs. _____/month
Formal Education: Q.16. Have you at any time registered for or completed any course in higher Formal
Education? (For example, B.A., B.Com.,B.Sc.etc.) Yes/No
Q17. If you have registered and/or are studying for a course in Formal Education please
complete the information asked below:
a)Name of Degree/Course:
b)Duration of the course:
c)Name of Institution:
d)Year of Registration:
e) Studying for the Course/Course Completed (Tick the correct option)
f)Year when you will complete the course:_______ / year when you completed the
course:________
Employment in GRIHINI:
Q18. Main reason for enrolling in GRIHINI
a. To obtain a job
b. Any other
Q.19. The benefit of working in GRIHINI is/are: (Please tick the appropriate option/s)
i) Flexibility in terms of attendance and timing
ii) Choice of work area
iii) Learning with practical knowledge and exposure
iv) Any other (please specify)
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A Glimpse in to Sustainable Urban Development and
Sustainable Urban Transport
Dr. Sheena Mathews Associate Professor,
Symbiosis College of Arts and Commerce, Pune, Maharashtra.
Abstract:
Sustainable Urban Development is a significant, immense and challenging aspect in
today‘s context. The adaptation of it from eight MDGs with 18 targets and 48 indicators, to
proposals for 17 SDGs with over 100 indicators, demonstrates its importance, outreach and
significance of it over different countries, economies and sectors. Urban sustainability aims at
bettering the life of individuals in cities with no intention of endangering the limited resources. It
intends to provide livability. Sustainable urban development is securing the safety of the future
with measures undertaken at present. It is a continuous journey of evolving. The essence of
sustainable development is to enable livable communities, while undertaking safety of the
historical, environmental resources. Transport is the lifeline of an economy. Urban transport
faces a number of challenges in usage , operation, feasibility and integration . Challenges of
urban transport ranges from Excessive Motorization, Urban Pollution, Road Accidents, Mobility
Challenges of the Poor, Disabled and Senior Citizens to name a few. The urban transport faces a
number of challenges. In order to establish a sustainable urban transport system it is essential to
have an all-inclusive and integrated approach to policymaking and decision making, where in all
stake holders are equally involved. The aim of sustainable urban transport system is to develop
affordable, people centered and environment friendly transport systems.The solutions are an
integration of various segments of the transport, government, people. The solutions are not water
tight system based. It involves the acceptance and willingness of people to comprehend the
problem and to follow the solutions Sustainable urban transport emphasizes the use of public
transport ,non-motorized transport( bicycles and walking) and discourages the use of
personalized modes of transport. Also promoting use of appropriate technology, integrated land
use mix, urban development plans and institutional support. The essence of the study is
understand the challenges of urban transport and to provide comprehensive solutions which are
sustainable.
Key Words: Sustainable Urban Transport, Motorization Road diet
Introduction:
Sustainable Urban Development is a significant, immense and challenging aspect in
today‘s context. The adaptation of it from eight MDGs with 18 targets and 48 indicators, to
proposalsfor 17 SDGs with over 100 indicators, demonstrates its importance, outreach and
significance of it over different countries, economies and sectors.
Sustainable Development
Sustainable development would encompass the coexistence of nature and homosapiens.
Sustainable development is a multi- dimensional phenomenon which engage both developed and
developing countries. Sustainable development visions to develop a quality life both in the
present and in the future. The quality would include at the social, economic and environment
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front. There is a need for co-existence of man with nature which enables development and
secures the future. Sustainability Urban Development(SUD) is a powerful framework to develop
solutions that would improve the quality of life, involvingdifferent variables of sustainability that
enables operationalization, implementation/execution of activities by different agencies at local,
regional and international levels. There is an interlinking of policies and practices at cultural,
political and economic front.
Statement Of The Problem, Study Justification
Sustainable urban development is the bigger picture. Sustainable urban transport is one of
the spoke in the wheel of sustainable urban development which is essential for the wellness of
the city. Thus both are interlinked. The study is essential since only movement of people can
bring about major development.
Evolving Definition of Sustainable Development
‗Sustainable Development is development that meets the needs of the present
compromising the ability of the future generations to meet their own needs‘
Our Common Future, Report of the World Commission on Environment and Development 1987,
United Nations
‗ The Rio Conference or Earth Summit was a major success in raising public awareness
on the need to integrate environment and development
The Rio Deceleration in Principle 7, stated that ‗States shall cooperate in a spirit of global
partnership to conserve, protect, and restore the health and integrity of the Earth‘s ecosystem. In
view of the different contributions to global environmental degradation, States have common but
differentiated responsibilities. The developed countries acknowledge the responsibility that they
bear in the international pursuit to sustainable development in view of the pressures their
societies place on the global environment and of the technologies and financial resources they
command
United Nations Conference on Environment and Development,1992
‗Poverty eradication, changing consumption and production patterns , and protecting and
managing the natural resource base for economic and social development are over arching
objectives of, and essential requirements for sustainable development‘
The Johannesburg Declaration on Sustainable Development- Political Declaration, World
Summit for Sustainable Development, 2002
The conceptual framework……emphasis the challenges of understanding and exploring
avenues for human development with Earth system boundaries. The fundamental , holistic
,understanding is the basis for developing transformative pathways and solutions for global
sustainability‘
Future Earth(2013) Future Earth Initial Design: Report of the Transition Team.Paris:
International Council for Science(ICSU)
Sustainable development calls for robust economic development and a long term
convergence in living standards between rich and poor countries in ways that are socially
equitable and respect planetary boundaries‘
Sustainable Development Network, United Nations, at the launch of ‗The World in 2050:
Pathways towards a sustainable future‘, March 2015
Source: Sanwal,M ( 2015), pg.167
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Objectives Of The Study
The study is an exploratory study and it examines:
An insight into the concept of Sustainable Urban Development
To comprehend the linkage between sustainable urban development and urban transport
To understand the issues and challenges of urban transport. There is a specific case study
of Vishrantwadi area, Pune is taken to understand area specific challenges
To provide a comprehensive solution for making sustainable urban transport possible
Research Question
Is sustainable urban transport an apt solution to an area where people are vying for place
among large number of vehicles?
Limitations Of The Study
The study is based on secondary data. The linkage is always a challenge both in theory and
practice.
An Insight Into Sustainable Urban Development:
Sustainable urban development may be defined as a process of synergetic integration and
co-evolution among the great subsystems making up a city (economic, social, physical and
environmental), which guarantees the local population a non-decreasing level of wellbeing in the
long term, without compromising the possibilities of development of surrounding areas and
contributing by this towards reducing the harmful effects of development on the
biosphere.(Camagni, R, 1998). The sustainable urban development is integrating the urban
spaces, with green belt, incorporating travel which is non-motorized and mix land use.
In his book Target 3billionDr. A.P.J. Abdul Kalam explained the constituents of sustainability as
consisting of:
Economic sustainability: This implies that the model is sound and robust and considers
the core competency of the area in order to achieve financial stability over a period of time
Technological sustainability: It implies better and fast operations, lower wastages, higher grade
products and services , at lesser cost
Social sustainability: It intends for societal up liftment working with local community
for building capacities and living standards
Environment sustainability: It aims at reducing emission, pollutions, protecting biodiversity,
waste recycling, awareness of ecology and accountability on environment
Value sustainability: It aims at creation of a value based society that lead to evolution of
enlightened citizens are powered by knowledge, skills and guided by moral values
Learning Adaptability: It aims at continuous learning and evolution to bring innovations
and enhance capacity to bring down cost and to add value.
The urbanization process engulfs the entire demography. The urbanization process brings
about not only shift of people from rural to urban areas but also has an impact on the movement
of people within the city. Cities are the centre of growth. Cities see a lot of movement of people
to them. Thus there is a strong need to develop the concept or urban sustainability. Urban
sustainability aims at bettering the life of individuals in cities with no intention of endangering
the limited resources. It intends to provide livability. Sustainable urban development is securing
the safety of the future with measures undertaken at present. It is a continuous journey of
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evolving.The essence of sustainable development is to enable livable communities, while
undertaking safety of the historical, environmental resources.
Source: Porta, S. (2001)
For the development of a city or of a nation infrastructure is an essential element. The 14
letter word infrastructure encompasses definition by the World Bank. Infrastructure refers to
―long lived engineered structures, equipment, facilities, and services that are used in economic
production and by households which enhance residential and non-residential consumption and
production. Infrastructure includes: water systems, solid waste management, drainage and flood
protection, roads, mass transit, energy installations, and telecommunications, schools and
medical facilities, among other systems‖ (World Bank 1994).
Sustainable Urban Transport:
Sustainable Urban Transport is an integrated system which optimally satisfies
accessibility expectations of all concerned stakeholders on a continual and equitable basis in a
manner which isdynamic, eco-friendly, energy efficient, safe, affordable and operationally
viable.
attributes
Dynamic: This would refer to transport system which is changing with the requirements
of the consumers. It involves incorporating vehicle technology, information systems,
transport engineering etc.
Eco-friendly: This would refer to accepting transport system which is eco-friendly. It
would mean greater emphasis to pedestrians, bicycles, cycl-rickshaws, battery operated
busses, local trains, Compressed natural gas(CNG), Hybrid fuel vehicles
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Energy Efficient: This would be possible only if the emphasis is on large scale
transportation of people through public transport either through road or rail.
Safe: The social and economic costs of accidents is very high. The paper throws a
glimpse on the issues of road accidents.
Affordable: Affordability of public transport for all is essential for the sustainable
transport to be successful. If not affordable then people would use either personalized
transport or outdated modes of transport to reduce expenses of travel
Operationally Viable: The viability of the transport system would depend upon land use
characteristics and the transport system in operation
Stakeholders Of Urban Transport
A city of any magnitude would have many stakeholders which make the urban transport
possible. The working of all the stakeholders are interlnked.
Challenges Of Urban Transport
In order to establish a sustainable urban transport system it is essential to have an all-
inclusive and integrated approach to policymaking and decision making, where in all stake
holders are equally involved. The aim of sustainable urban transport system is to develop
affordable, people centered and environment friendly transport systems. The paper looks at the
challenges facing urban transport.
Excessive Motorization
With increasing growth of cities both in density and in parameter there has been
excessive motorization. This phenomena is visible in both developed and developing countries.
Table shows that the developed countries have a high count of car per 1000 persons, indicating
high car usage. USA has the highest count of a car oriented system followed by Australia and the
European Cities. Due to high auto dependence in America and Australia/New Zealand (ANZ)
cities, there is higher trip making rates. This is reflected in terms of high total trips by motorised
private modes. Transport is interrelated with the urban form. American, Australian and Western
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European cities are less densely populated consequently auto dominance is reflected. The
developing countries has a mix of transport modes and there is greater dependence on two-
wheelers.
Table 1: Transport Indicators in City Clusters
Indicators Australia/NZ High
Income
Asia
Latin
America
Low
Income
Asia
USA Western
Europe
Passenger Cars per
1000
persons(units/1000
persons)
575.4 210.3 202.3 105.4 587.1 413.7
Two-wheeler per
1000
persons(units/1000
persons)
13.4 87.7 14.3 127.3 13.1 32
Source: Kenworthy, 2011
Increased motorization does have negative externalities in terms of pollution both noise
and air and increased congestion issues. The developing countries are yet to comprehend the
enormity of the problem. In order to have greater mobility, more roads and flyovers are being
built. This only solves the problem to some extent and to some time. Since with more roads
come more vehicles and the congestion issue continues post some time.
The vicious cycle of motorized transport usage is shown in the diagram below:
Urban Pollution
The increased usage of vehicles causes excessive damage to the health. Increasing
pollutants and high level of carbon monoxide andhydrocarbons causes respiratory and
cardiovascular illnesses.
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Table 2: Transport Indicators in City Clusters
Indicators City Clusters
Australia/NZ High
Income
Asia
Latin
America
Low
Income
Asia
USA Western
Europe
Private Passenger
Transport Energy
Use per
capita(MJ/person)
29610 9556 7283 5523 60034 15675
Public Transport
Energy Use per
capita(MJ/person)
795 1423 2158 1112 809 1118
Source: Kenworthy, 2011
Road Safety
Global status report on road safety states that about 1.3 million people die each year on
the world's roads and between 20 and 50 million sustain non-fatal injuries. Road traffic injuries
are the leading cause of death among young people, aged between 15 and 29.This is the first
broad assessment of the road safety situation in 178 countries.Over 90% of the deaths on the
roads occur in low-income and middle-income countries, which have only 48% of the world‘s
registered vehicles. Pedestrians, cyclists, and riders of motorized two-wheelers and their
passengers (who are collectively known as "vulnerable road users") account for around 46% of
global road traffic deaths. This proportion is greater in lowincome countries than in high-income
countries.One serious road accident in the country occurs every minute and 16 die on Indian
roads every hour.1214 road crashes occur every day in India.Two wheelers account for 25% of
total road crash deaths.
Top 10 Cities with the highest number of Road Crash Deaths (Rank –Wise):
1. Delhi (City)
2. Chennai
3. Jaipur
4. Bengaluru
5. Mumbai
6. Kanpur
7. Lucknow
8. Agra
9. Hyderabad
10. Pune
Source of Information:
National Crime Records Bureau, Ministry of Road Transport & Highway, Law
commission of India, Global status report on road safety 2013
Table 3 shows the personal vehicle ownership and official road traffic fatality rates per 100000
population for some countries including India (W.H.O. 2015). This study indicates that there are
countries with much higher vehicle ownership rates than India but lower road traffic injuries(
RTI) fatality rates. The data reflects that it is not necessary that increases in vehicle ownership
rates always result in increases in road traffic injuries fatality rates.
Table 3: Personal vehicle ownership and official road traffic fatality rates
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Country MTW(Motorized Two-
wheeler) + light 4- wheelers
per 100 persons
Official fatality rate per
100,000 population
Australia 71 5.1
Canada 61 6
Japan 69 4.5
United Kingdom 54 2.8
India 9 12
Source: W.H.O, 2015
Mobility Needs of the Urban Poor
In most cases it is observed that the urban poor are forced to stay away from the Central
Business District(CBD). The reasons would vary from expensive housing to high standard of
living expenses. The urban poor tend to stay at the periphery and spend a lot of time and money
in commuting. Often the far away places are poorly connected by mass transit. Even if it is
connected by public transport, the poor have to spend a major part of their earnings on travel.
Also the roads at the outskirts are poorly maintained or do not exist. The poor mans mode of
transport i.e. the bicycle is worn out due to the non- existence or the poor quality of road . Also
the other alternative is the non-motorized transport(walking). The poor tend to walk to save on
mobility expense. But in the process have to spend longer time commuting and have to bear the
noise and air pollution. Besides they also are subjected to road accidents and fatalities(World
Bank 2002,UNDESA,2012 )
Mobility Needs of the Disabled and Senior Citizens
The disabled and senior citizens constitute an important segment of the socially
challenged group. Their travel concerns are different and difficult. Often planners do not
consider their challenges while providing transport facilities.
People with disabilityhave to not only overcome transport challenges but also have to
use transport mobility to find opportunities for education, employment, medical, and social
concerns of their life. Transport is not only a concern about also a tool which helps it open up a
lot of avenues of their life .
Case Specific - Vishrantwadi, Pune
Vishrantwadi is located in the north of Pune cityMaharashtra, India. It is a suburb of Pune
City which is of historical significance.Vishrantwadi used to be a resting place for the thousands
of Varkaris who made the annual pilgrimage from Alandi to Pandharpur(located south of
Maharashtra) by foot. Vishrant in Marathi means rest and vadi means town. Even today the
pilgrimage passes through vishrantwadi even today but now the pilgrims do not rest here.
Vishrantwadi is mainly connected by the public transportPune Mahanagar Parivahan
Mahamandal Ltd ( PMPML) to near and far areas. PMPML runs on regular and BRTS routes .
Despite the fact that public transport is a good sustainable transport. There are problems which
are specific to it. The problems specifically faced by people of Vishrantwadi are:
Duplication of Services:
The bus services provided by PMPML plies on both regular and BRTS route. In
Vishrantwadi the people are not sure which bus would come and to which bus stop. This means
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that people are crossing roads and in the process endanger themselves and others.( as seen in the
picture)
Crossing by Pedestrians: Often pedestrians are crossing when the signal is green for
vehicle. Despite the fact that there is an overhead bridge built for the safety of
pedestrians. (Overhead bridge is seen in the picture)
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Tank Road: The road is built for tanks of the Army to ply. Often this road is used for
parking, which means that when the tanks come there is quite a traffic confusion before
the vehicle is removed and the tanks are allowed to pass. Also the tank roads cause quite
a wear and tear to vehicles forced to ply on the roads.
Footpath Invasion : The invasion happens either by vendors, or personalized parking of
vehicles. This causes the pedestrians to walk on roads and in the process endanger their
lives
Other Problems: The other challenges like accidents, pollution, unsafe travel, health
challenges, expensive travel, poor public transport, poor integration of land-use and
transportdo exist.
Solutions For Sustainable Urban Transport Development
Thesolutions are an integration of various segments of the transport, government, people.
The solutions are not water tight system. It involves the acceptance and willingness of people to
comprehend the problem and to follow the solutions.Sustainable urban transport emphasizes the
use of public transport,non-motorized transport( bicycles and walking) and discourages the use
of personalized modes of transport. Also promoting use of appropriate technology, integrated
land use mix, urban development plans and institutional support.
Educating and Enforcing :
There is a very strong need to promote, and regulate the users of personalized transport.
Often people are unaware of traffic rules and regulations despite having received a driving
licence.
Public Transport and Bus Rapid Transit System(BRTS):
The need to enhance the usage of public transport both in terms of financial viability and
usage. The need to have a separate lane (BRTS lane) for busses would enable fast travel, less
congestion and greater use of busses by people.
Travel Information:
Advancement of technology is to be used in making travel comfortable. Technology can
be used for informing commuters about arrival and departure of busses, the extent of congestion
on roads, ticketing of busses and rail, payment of tolls, availability of parking space are different
avenues for application of technology.
Fare :
Single payment of fare to enable multiple vehicle usage. The commuter has the choice of
hopping from bus to train to cab and also clear toll payment and payment for parking through a
predesigned card payment.
Car-Bike Sharing:
There is a system of sharing the car and bike in a planned manner. This refers to plan and
pool a ride with your coworkers or friends. Companies also provide parking to those who have
used car pool for travel.
Road Diet:
Despite the challenges there is a new approach that is being followed. There is policy of
―road diet‖ being followed where in space for cars is reduced and re-allocated for public
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transport and non-motorized transport. Also the approach is of having ―complete streets‖. It is
designed and operated to enable safe access for all users. People of all ages using different
modes of transport are given space, importance and their needs are catered to .
Cycle Sharing
:Self-locking bicycles are distributed around the city, and would be unlocked by calling
a phone number and entering a code. The payment is done through the mobile.Customers are
charged by the minute, the day, or the week. Customers can also use their cellphones to locate
the nearest bikes.This has been used in Pune in municipal corporation area.
Inclusive Housing:
This refers to housing structure which is all inclusive . This means that the area is
complete in all aspects which means that there is no need to travel outside the periphery.
Walking Zone:
There are certain segments of the road that can be closed on weekends so that it can be
used as walking plaza.
Congestion Pricing:
Tax to be levied on use of personalised vehicles on certain routes at certain time of the
day. London was the first country to successfully impose the tax.
Traffic Enforcement:
Traffic laws are followed only when a traffic personnel is available to supervise and
control. The electronic enforcement helps in speedy supervision. Switching to camera-based
enforcement enables supervision of speed limits, jumping of signals and other traffic laws.
Afterdetecting violations, the systems use license plate recognition to identify the defaulters and
to send them the violations fees.
Conclusion
Urban sustainability aims at bettering the life of individuals in cities with no intention of
endangering the limited resources. It intends to provide livability. Sustainable urban
development is securing the safety of the future with measures undertaken at present. It is a
continuous journey of evolving. Sustainable urban transport intends to coexist and make the goal
of sustainable urban development possible. To establish a sustainable urban transport system it
is essential to have an all-inclusive and integrated approach to policymaking and decision
making, where in all stake holders are equally involved. The essence of integrating sustainable
transport in the SDG goals is made possible only if the five E‘s are observed:
Evaluation of the travel situation prevalent
Engineer solutions that suite the city requirement
Educate
Encourage people to follow the different measures and
Enforce the measures.
Bibliography
1. ADB( 2007). Study On Sustainable Urbanization In Metropolitan Regions Halcrow
Group Limited in association with Tsinghua University, PRC and the UCL
Development
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2. Annez, P.C and Buckley,R.M. (2010). Urbanization and Growth: Setting the Context In
Michael Spence, Patricia Clarke Annez,and Robert M. Buckley. Editor, Urbanization and
Growth. (pp.1- 45). Rawat Publications.
3. Baker, J.L( 2008).Urban Poverty: A Global View, World Bank, Urban Sector Board
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Mohan Geetam Tiwari Kavi Bhalla Transportation Research & Injury Prevention
Programme Indian Institute of Technology Delhi 2017
7. Moreno,M and Ruiz,J.P.( 2008). Sustainability of Urban Transport: Common Strategies
and Individual Actions in Local Sustainable Urban Development in Globalized
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Ltd, England.
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Urban Development in the 21st Century
9. Porta, S. (2001). Formal indicators: Quantifying the contribution ofform to urban (social)
sustainability. Australia: Walking the 21stcentury, pp. 67–79.
10. Rosenbloom, S.(2007).Transportation Patterns and Problems of People with Disabilities
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the Global South. Cambridge University Press. ISBN 978-1-107-12266-6
12. Simin Davoudi, S.(2005) .Urban Planning in Sustainable Urban Development Volume 1
The Framework and Protocols for Environmental Assessment Steven Curwell, Mark
Deakin and Martin Symes (eds) ISBN 0-203-35108-8 ( pg36-58) Taylor & Francis e-
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21st Century, United Nations Department of Economic and Social Affairs
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Corporate Sustainability Policies and Stock Market Performance
Varsha Kshirsagar (Bhujbal) Research Scholar,
Ness Wadia College of Commerce, Pune, (Maharashtra)
Abstract:
Adequate financial resources are required for starting new entrepreneurial activity. All
entrepreneurial ventures must have resources such as capital, talent, accounting and finance,
operations, management, equipment and facilities.Funding can come from a variety of sources
including personal savings, credit lines of entrepreneurs, family members, friends, and other
sources and capital subscription from the public by issuing shares. Capital subscription is most
important as it is directly related to stock market performance during lifetime of the company.
After settlement of business company needs to pursue sustainability programmes.
Academic researchers have conducted several meta-analyses to know the correlation
between corporate Sustainability Policies and Stock Market Performance. They found that
corporate sustainability helps to lower a business‟s cost of capital and boosts a company‟s
operating performance. In addition, 80% of studies showed a “positive correlation” between
sustainability and stock market performance. Environmental, social and governance (ESG)
policies have more impact on Stock price.
This research paper explains how sustainability policies help to boost share prices by
finding correlation between Corporate Sustainability Policies and Stock Market Performance.
ESG policy analysis will show the how sustainability improves share value.
Keywords: Sustainability, Sock Market Performance, ESG, Sustainability policies, Stock price
1.0 Introduction:
In recent years the term ―Corporate Sustainability‖ is getting very popular. This term is
often used as a synonym for, other terms such as ―sustainable development‖ and ―corporate
social responsibility.‖ The phrase is derived from the concept of "sustainable development" and
the "triple bottom line." The Brundtland Commission's Report, Our Common Future, described
sustainable development as, "development that meets the needs of the present without
compromising the ability of future generations to meet their own needs."
Corporate sustainability is an approach aiming to create long-term stakeholder value
through the implementation of a business strategy that focuses on the ethical, social,
environmental, cultural, and economic dimensions of doing business. The strategies created are
intended to foster longevity, transparency, and proper employee development within business
organizations.
Elkington (1997) developed the concept of the Triple Bottom Line According to him it
means that business goals were inseparable from the societies and environments within which
they operate. Corporate sustainability is an alternative to the traditional growth and profit-
maximization model.
1.1 Objectives
1. To understand the concepts of corporate sustainability.
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2. To know the relation between corporate sustainability and stock market performance.
3. To conduct case study of Tata Chemicals ltd.which is the top most of sustainable
companies to find the relation of corporate sustainability and stock market performance?
1.2 Hypothesis
1. There is a positive relationship between Corporate Sustainability and Stock market
performance.
1.3 Research Methodology
Data is collected from various websites like Tata Chemicals moneycontrol.com, NDTV
Profit,CSR box and some other reports of Tata Chemicals ltd. to know financial performance
and Stock market performance of Tata Chemicals Ltd.
1.4 Concepts of Corporate Sustainability:
There are four established concepts which contributes to Corporate sustainability. They are
discussed as follows:
1. Sustainable Development:
As per the book published by the World Commission for Environment and Development
(WCED). Sustainable development means ―a process of change in which the exploitation of
resources, the direction of investments, the orientation of technological development, and
institutional change are all in harmony and enhance both current and future potential to meet
human needs and aspirations.‖ Sustainable development combines economics, social justice,
environmental science and management, business management, politics and law.
2) Corporate social responsibility:
Corporate social Responsibility is also called corporate conscience, corporate citizenship,
social performance, or sustainable business.It is the integration of socially beneficial programs
and practices into a corporation's business model and culture. CSR aims to increase long-term
profits for online and offline businesses by enabling them to become more efficient and attract
positive attention for their efforts.
3) Stakeholder theory
Stakeholder theory was first popularized by R. Edward Freeman in his 1984
book Strategic Management: A Stakeholder Approach (Pitman Books, Boston, Mass, 1984).
Freeman defined a stakeholder as ―any group or individual who can affect or is affected by the
achievement of the organization‘s objectives.‖ The basic premise of stakeholder theory is that the
stronger your relationships are with other external parties, the easier it will be to meet your
corporate business objectives; the worse your relationships, the harder it will be. Strong
relationships with stakeholders are those based on trust, respect, and cooperation.
4) Corporate Accountability
The fourth and final concept underlying corporate sustainability is corporate accountability.
Accountability is the legal or ethical responsibility to provide an account or reckoning of the
actions for which one is held responsible.
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Corporate Sustainability and Stock market Performance
India‘s Top most company Tata Chemicals is selected for sustainability on the basis of
Responsible business ranking 2018 done by Indian Institute of Management (IIMU)for studying
relationship between Corporate Sustainability and Stock market performance. Following are the
top 10 companies for sustainability.
Sr. No. Name of the Company Sr.No. Name of the Company
1. Tata Chemicals 6. Tata Power Company Ltd.
2. Ambuja Cement 7. Bharat Petroleum Corporation
3. Infosys Ltd. 8. ITC Ltd.
4. Mahindra and Mahindra Ltd. 9. Hindustan Zinc Ltd.
5. Tata Motors Ltd. 10. Indian Oil Corporation
1.6Summary of sustainability practices of Tata Chemicals
Case Study – Tata Chemicals
Details of the
Company
Tata Chemicals started their business in Mithapur, Gujarat, in western India in 1939 with
a small plant that would raise a wealth of marine chemicals from the ocean .A part of the
over $100 billion Tata Group, Tata Chemicals Limited is a global company with
interestsin businesses that focus on essentials for LIFE: Living, Industry and Farm
Essentials.
Tata Chemicals operates in the sectors of consumer products, industry chemicals,
agrosolutions and nutraceuticals
The company‘s Basic Chemistry product range provides key ingredients to some of the
world‘s largest manufacturers of glass, detergents and other industrial products.
Tata Chemicals currently is the world‘s third largest producer of soda ash with
manufacturing facilities in Asia, Europe, Africa and North America. The company
through its subsidiary Rallis has a strong position in the crop protection business. The
Tata Chemicals Innovation Centre is home to world class R&D capabilities in the
emerging areas of food sciences, nanotechnology and biotechnology.
Certifications
ISO 9001: 2015, KOSHER CERTIFICATION, IFANCA HALAL PRODUCT
CERTIFICATE,NSF CERTIFICATE
Commitment to
sustainable
practices
1. 1. Saving Energy
Tata Chemicals has implemented several schemes to save energy across its plants,
including the commissioning of a solar photo-voltaic plant
2. 2. Save the Shark Project
TCL teamed up with the Wildlife Trust of India and the Gujarat State Forest Department
to launch the ‗Save the Whale Shark Campaign‘ which has resulted in the rescue and
release of 585 whale sharks
3. 3. Aspire
With a view to take its commitment towards social responsibility a notch higher, TCL
reaches out to the needy through its plethora of CSR initiatives, offering them
opportunities for learning and education
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Case Study – Tata Chemicals
Impact to
business
TCL‘s Corporate Social Responsibility team won the Best Practice Award on Sustainable
Development Goals of UN Global Compact Network India in 2017-18
For the company's business, build your image around sustainability has great potential to
add value to their products reduce risk of corporate image in case of accidents with
impacts on the environment and society.
Stock Market
Performance
Consolidated Net Profit from continuing operations stood at Rs. 409 Cr, up 17 percent
Standalone Profit from continuing operations stood at Rs.295 Cr, up 109 percent
PE Ratios : 10.22
EPS (Rs.)- :69.34
Sales (Rs. Cr)- :1,013.61
Face Value (Rs.) :10
Net ProfitMargin (%) :50.97
Last Dividend(%) :110
Return on Average Equity :15.
1.7Analytical study of Tata Chemical‟s 5 Years Financial Summary and stock Market
Performance: (Source:NDTV Profit)
Interpretation:
Above table shows the financial performance of Tata Chemicals ltd. For five years from 2013-14
to 2017-18 profit after tax, Earnings per share and Book value per share is increasing from last
five years. It shows overall growth in stock market performance.
1.8Analytical Study of Tata Chemical‟s 5 Years Financial Ratio( Source : NDTV Profit)
Parameters MAR'18
(₹ Cr.)
MAR'17
(₹ Cr.)
MAR'16
(₹ Cr.)
MAR'15
(₹ Cr.)
MAR'14
(₹ Cr.)
PAT 1,766.96 692.71 666.20 637.97 436.07
Earnings Per
Share (in ₹) 69.36 27.19 26.15 25.04 17.12
Book Value (in
₹) 444.50 347.60 317.40 236.78 223.15
Parameters MAR'18
(₹ Cr.)
MAR'17
(₹ Cr.)
MAR'16
(₹ Cr.)
MAR'15
(₹ Cr.)
MAR'14
(₹ Cr.)
ROA(%) 13.10 5.35 5.13 5.31 3.92
ROE(%) 17.51 8.18 9.44 10.89 7.94
ROCE(%) 23.20 10.39 10.76 11.92 8.50
Operating
Profit Growth 21.70 3.49 4.92 9.09 -19.91
Net Profit
Growth 155.08 3.98 4.42 46.30 -32.22
EPS
Growth(%) 155.08 3.98 4.42 46.30 -32.22
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1.9 Details of Share Price at BSE as on 31st Dec. every year ( Source : NDTV Profit)
Year Share Price
2013 274.90
2014 434.30
2015 408.80
2016 501.60
2017 726.05
2018 760.00
Interpretation
Above table shows share price details from 2013 to 2018. It shows rise in Share price . It
is an Indicator of good share market performance.
1.10Sustainability Practices and CSR Financial Details (CSR BOX CSR in India)
Year 2016-2017 2015-2016 2014-2015
Actual CSR 15.00 Cr 13.97 Cr 10.20 Cr
Prescribed CSR 13.92 Cr 12.34 Cr 11.66 Cr
Interpretation of CSR Details:
Above table shows CSR expenditure details of Tata chemicals ltd. For last 3 years. It shows
every year company has contributed more towards sustainability programme.
1.11Implementing Partners of Sustainability Practices
Tata Chemicals Society for Rural Development
Tata Chemicals Golden Jubilee Trust
OKHAI
Uday Foundation
Thematic Areas
Eradication Hunger, Poverty, Malnutrition
Preventive Healthcare, Water and Sanitation
Education, Employability and Livelihoods Enhancement
Environmental Sustainability
Rural Development
Contribution to Central Government Fund
1.12 Highlights of IIMU Report- Responsible business Ranking 2018
Tata group companies occupy the prime position. Of the top five companies, three are from
the Tata stable (as compared to four in the previous year).
Ambuja Cement has moved up to the second position. Infosys, Bharat Petroleum
Corporation Ltd, Hindustan Zinc and Indian Oil Corporation Ltd joined the top ten list.
Two public sector companies have entered the top 10 list – Bharat Petroleum Corporation
Ltd and Indian Oil Corporation Ltd.
Like the previous years, this year too there is no foreign company in the top ten list.
1.13 Conclusion
A part of the over $100 billion Tata Group, Tata Chemicals Limited is a global company
with interests in businesses that focus on essentials for LIFE: Living, Industry and Farm
Essentials.
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On the basis of case study and analysis of sustainability and stock market performance
done in this research paper it is concluded that there is a positive relationship between Corporate
sustainability and Stock market performance.
References:
1. https://iveybusinessjournal.com/publication/corporate-sustainability-what-is-it-and-
where-does-it-come-from/
2. https://www.futurescape.in/responsible-business-rankings/responsible-business-
performance/
3. https://kb.osu.edu/bitstream/handle/1811/80687/4/Yilin_Zhang_Thesis.pdf
4. https://file.scirp.org/pdf/ME20110500009_57182350.pdf
5. http://www.scielo.br/scielo.php?pid=S0104-
530X2017000300514&script=sci_arttext&tlng=en
6. http://www.tatachemicals.com/about-us/Company-profile
7. http://www.tatachemicals.com/upload/content_pdf/press-release-financial-results-quarter-
ended-september-30-2018.pdf
8. https://money.rediff.com/companies/Tata-Chemicals-Ltd/12090010
9. https://youtu.be/g824uNLbieo
10. https://www.ndtv.com/business/stock/tata-chemicals-ltd_tatachem/financials-historical-
ratio
11. http://www.tatachemicals.com/upload/pdf/ISOCertGRW.pdf
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Sustainable Job Creation through Plastic Waste Management
Abdul Kadir Nasir Hussain Arsiwala
Assistant Professor,
Moolji Jaitha College, Jalgaon, Maharashtra
Abstract:
Plastic is an invention that turned into Frankenstein‟s monster. Plastic has multiple uses
and the physical and chemical properties that have lead to its commercial success. However
indiscriminate disposal of plastic has become major threat to environment. India generates
about 15,722 tonnes of plastic waste per day and contributes to 8 per cent of the total solid waste
generation. Only around 9200 tonnes of plastic is recycled daily. This constitutes around 60% of
total plastic waste generated daily. Around 6000 tonnes of plastic is either burned in unsafe
ways or discarded in local surroundings. Government has introduced Plastic waste management
rules 2016 which specify Extended Producer Responsibility (EPR). EPR is a practice and policy
approach in which producers are made responsible for collecting and processing their
manufactured products upon end of their lifetime. Responsibility may be fiscal, physical or a
combination of both. The current paper discusses the working model of Producer Responsibility
Organisations (PROs) who take back waste from open market, recycle or process, and file
compliance of EPR on behalf of producers. The paper also discusses on how these PROs can be
a source of sustainable employment and job creation means for the economy.
Keywords: Job Creation, EPR, PRO, Waste Management, Plastic Waste recycling.
1. Introduction
Plastic is an invention that turned into Frankenstein‘s monster. It has multiple uses and
the physical and chemical properties that have lead to its commercial success. However
indiscriminate disposal of plastic waste has become major threat to environment. Biggest
contributors to plastic waste are plastic bags. Every year millions of plastic bags end up in to the
environment in soil, water bodies, water courses, etc. It takes an average of one thousand years
for plastic waste to decompose completely.
Benefits of plastics are no doubt undeniable; they are durable, portable and economical.
But extended durability of plastic has now become its greatest disadvantage. India generates
about 15,722 tonnes of plastic waste per day and contributes to 8 per cent of the total solid waste
generation. This is not the main problem. The problem is the fact that only 60 per cent of it is
processed and the remaining 6,000 tonnes of un-segregated and littered waste remain scattered in
our neighbourhoods and landfills, clogging drains, creating unpleasant sights and releasing
greenhouse gases like methane.
In spite of a scarcity of reliable data on the volume and mix of plastic waste in
rural areas, it is becoming increasingly clear that plastics are posing significant
environmental and health challenges in rural communities. In Macro form, plastics act as
physical barriers, degrade soil quality, and get ingested by livestock and also other fauna, lead to
blockages in drains and streams. In Micro form Plastics are disturbing
local ecological balances and show up in water and land as micro-plastics.
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Plastic waste disposal methods in rural India are often basic and unapprised and
further aggravate the challenge. The open burning of plastics generates toxic
emissions such as carbon monoxide, dioxins, and nitrides. Low-quality plastics,
common in rural India, also leach out toxic additives.
Government has introduced policies on Proper waste management of plastic since last
two decades. Most policy measures have focused on segregation, collection, and
in certain cases banning the use of certain categories of plastics altogether. Many States and local
bodies have made guidelines which are compliant with these policy measures, but major
challenges lie in the acceptance and implementation of these policies at ground level.
The lack of segregation of plastics waste, the absence of organized systems of
collection and efficient aggregation, poor economic value in low-grade (thin)
plastics, and the livelihoods associated with plastics production have been the
key categories of challenges.
2. Objectives to process plastic waste
Plastic waste is not homogenous. Different types of plastics demand different type of
attention from a waste management point of view.
Most commonly found plastics in rural areas (polythene bags, bottles, etc.) are
thermoplastics. They are relatively easy to recycle but difficult to collect viably at scale
given the low density in rural areas.
Plastics found in electrical and cooking appliances are mixture of thermos/thermosetting
plastics. They are technically challenging to recycle at scale, but also not very common in
rural areas.
Plastics in India are produced by over 30,000 units, 90-95% of them being small-scale
informal entities. This proves it challenging to enforce quality standards and recycling
processes.
60% of all plastics produced in India are currently recycled. PET bottles have a recycling
rate of 90%. There is a strong network of informal scrap dealers who recycle plastics but
they are susceptible to macroeconomic shocks and taxation policies.
Plastics continue to threaten the quality of our land, water and air. Unsafe disposal of
plastics in rural areas is becoming prevalent and will come at massive costs to the rural
ecology and economy.
Some kinds of plastic do not decompose at all; others could take up to 450 years to break
down, leaving a vexing problem to address.
There are several types of plastics in circulation across India, found in a variety of
consumer products and they vary on whether they can be recycled and if so, is the recycling
process economically feasible.
Plastics that are not recyclable from a technical standpoint: These are plastics found
in electrical and cooking appliances for instance; laminate packaging such as Chips and
Biscuit packaging and PVC pipes etc.
Plastics that are recyclable but the recycling process is not economically viable: Low
quality plastic bags that are technically easy to recycle but are far too scattered to be
collected efficiently fall within this category; polyester clothing along with bags and foot
wear made from plastic are not economically recyclable.
Plastics that can be recycled in economically viable ways: Plastics such as PET bottles
that are both technically recyclable and also viably collected fall within this category.
Technically, plastics get divided into two categories:
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Thermoplastics are those that do not undergo changes in their chemical composition
when exposed to heat, and thus can be moulded repeatedly.
Thermosetting plastics can melt and only be shaped once. They are challenging to
recycle at scale given existing technologies.
3. Production of Plastics
There are around 30,000 factories producing plastic materials across the country. The
industry employs estimated 40 Lakh people. Approximately 90% of these units are small and
medium-sized enterprises, often producing low-grade plastics in unorganized and informal
sector. It is particularly difficult to monitor and regulate production of plastics in these
enterprises. Indian packaging industry is valued at over USD 32 Billion and offers employment
to more than 10 lakh people across the country through approximately 10,000 firms
35% of plastic consumption is in packaging, and 23% is in building and construction.
Other relevant categories are transport (8%), electronics (8%) and agriculture (7%).
Consumption of plastics in consumer goods is growing at an alarming rate, and much of this
growth is likely to be rooted in rural areas.
4. Disposal and treatment of Plastic
Only around 9200 tonnes of plastic is recycled daily. This constitutes around 60% of total
plastic waste generated daily. Around 6000 tonnes of plastic is either burned in unsafe ways or
discarded in local surroundings.
A thriving informal market has emerged in India for recycling of plastic waste. Most of
the business is in PET bottles. PET bottles are collected by scrap dealers for Rs 14-15 per Kg.
almost 90% of all the PET bottles manufactured are recycled. These bottles are collected,
shredded, washed and sold as flakes. These flakes are sold as raw materials to various big
manufacturers at Rs 45-50 per Kg. the recycling business for PET bottles alone is estimated to be
around 3000 – 4000 crores business annually. However informal Industry of plastic scrap dealers
is susceptible to economic fluctuations. Last year scrap dealers have seen price of their products
fall substantially owning to taxation and drops in oil prices. Earlier plastic scrap was taxed at 12-
18% under GST which was dropped to 5% in October 2017. This led to drastic fall in circulation
of plastic scrap in market. Additionally drop in crude oil prices have resulted in making virgin
plastic available at more affordable rates. This has further impacted the business of plastic scrap
dealers.
5. Emergence of Producer Responsibility Organisations
To introduce and promote scientific plastic waste management, the Plastic Waste
(Management and Handling) Rules, 2011 were notified in 2011, which included plastic waste
management. The Government has notified the Plastic Waste Management Rules, 2016, in
suppression of the earlier Plastic Waste (Management and Handling) Rules, 2011.
Plastic waste management rules 2016 specify the following
Rural areas have been brought in ambit of these Rules since plastic has reached to rural
areas also. Responsibility for implementation of the rules in rural areas has been given to
Gram Panchayat.
Responsibility of waste generators is being introduced for the first time. Individual and
bulk generators like offices, commercial establishments, industries are to segregate the
plastic waste at source, handover segregated waste, pay user fee as per bye-laws of the
local bodies.
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Plastic products are left littered after the public events (marriage functions, religious
gatherings, public meetings etc) held in open spaces. To prevent this, persons organizing
such events have been made responsible for management of waste generated from these
events.
Use of plastic sheet for packaging, wrapping the commodity except those plastic sheet‘s
thickness, which will impair the functionality of the product are brought under the ambit
of these rules. A large number of commodities are being packed/wrapped in to plastic
sheets and thereafter such sheets are left littered. Provisions have been introduced to
ensure their collection and channelization to authorized recycling facilities.
Extended Producer Responsibility: Earlier, EPR was left to the discretion of the local
bodies. Now the producers (i.e persons engaged in manufacture, or import of carry bags,
multi-layered packaging and sheets or like and the persons using these for packaging or
wrapping their products) and brand owners have been made responsible for collecting
waste generated from their products. They have to approach local bodies for formulation
of plan/system for the plastic waste management within the prescribed timeframe.
State Pollution Control Board (SPCBs) will not grant/renew registration of plastic bags,
or multi-layered packaging unless the producer proposes the action plan endorsed by the
concerned State Development Department.
The entry points of plastic bags/plastic sheets/multi-layered packaging in to commodity
supply chain are primarily the retailers and street vendors. They have been assigned the
responsibility of not to provide the commodities in plastic bags/plastic sheets/multi-
layered packaging which do not conform to these rules. Otherwise, they will have to pay
the fine.
Plastic carry bag will be available only with shopkeepers/street vendors pre-registered
with local bodies on payment of certain registration fee. The amount collected as
registration fee by local bodies is to be used for waste management.
Central Pollution Control Board (CPCB) has been mandated to formulate the guidelines
for thermoset plastic. In the earlier Rules, there was no specific provision for such type of
plastic.
Manufacturing and use of non-recyclable multi-layered plastic to be phased in two years.
EPR is a policy approach in which producers are made responsible for collecting and processing
their manufactured products upon end of their lifetime. Responsibility may be fiscal, physical or
a combination of both.
EPR is a blend of following factors
Economic (shift responsibility of cost of disposal to producer),
Environmental (design recyclable products and discourage use of toxic components)
Social factors (meet increasing consumer demand for environment-friendly products or
those manufactured using recycled content).
So far, its implementation in India is unsatisfactory, except some producers, who have
been voluntarily collecting and recycling the waste generated by their products. But with no
appropriate systems in place, take-back of products has become a challenge.
However, there is a shift in wave with numerous Producer Responsibility Organisations
(PROs) now coming into the picture. A PRO is a third-party organisation that facilitates the
responsibility of producers to take back waste from open market, recycle or process, and file
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compliance. With a PRO, producers do not physically take back the product, but instead support
the process financially.
Manufacturers pay service fees to PROs for enabling EPR compliance. The fee consists of:
1. Cost of reverse logistics
2. Cost of compliance
The cost of reverse logistics and compliance are high for an individual producer and
creates an opportunity for PROs to work with multiple producers.
PROs source waste from self-owned collection centers through the informal sector.
Additionally, they also operate through franchisee-driven sourcing centers, which reduce
transaction costs. In general, the obligation to recycle is transferred to a certified recycler. In few
instances, these recyclers also operate as PROs by instituting their own collection channels.
Companies are warming up to the idea of PROs to deal with plastic waste. Recently,
PepsiCo India committed to work toward collecting and recycling PET plastic waste generated in
Maharashtra. It has forged a partnership with Gem Enviro (PRO) to set up infrastructure for
collection and recycling. The PET bottles would be recycled to manufacture thermal wear,
furnishing fabrics and carpets.
PET waste will be sourced through developed network of scrap dealers and contractors,
who, in turn, work through informal ragpickers. Gem Enviro is known for following a
technically advanced process of reverse logistics and sourcing PET waste through automated
reverse vending machines. The quality of waste sourced through this chain is also known to be of
high quality. In addition, Gem Enviro associated with Ganesha Ecosphere Ltd (GESL) as the
collection and recycling partner. GESL sources raw material through a pan-India network of
more than 20 collection centres. PET waste at collection centres are further sent for processing.
This established network enables collection of about 225 tonnes of PET waste daily.
6. Waste Collection Model of PRO:
Saahas Zero Waste (SZW) another major player in field of reverse logistics, collecting
plastics through extensive network of informal sector in Bengaluru, Gurugram, Chennai,
Hyderabad, Surat, Bellary and Hubli, has a strong collection model involving scrap dealers and
informal sector of waste collectors who ensure collection of large quantity of tetra packs.
Material recovery facilities (MRF) are the secondary aggregation and segregation point.
Secondary segregation of paper, glass, metal and plastic is done at the MRF. Plastic is further
segregated into 16 categories to increase sale value. SZW acts only as a collection partner and
forwards the materials to Tetra Pak on reaching threshold (holding capacity of MRF). This
model is a perfect example of strengthening existing value chain to ensure efficient sourcing of
waste.
Waste Venture is a PRO operating from Hyderabad and offers PRO solutions for a
leading FMCG. The collection chain is driven by web app and on-call demand-based collection
from residential and commercial establishments. This is further supported by nearly 30,000
informal waste collectors associated with the PRO. Waste Ventures created a database of these
waste pickers, provided social identity, infrastructure and training on safe and hygienic way of
handling waste. This ensured supply of quality raw material from these informal waste collectors
at lower rates compared to an aggregator.
7. Sustainable Job Creation through Plastic Waste Management:
Waste recycling is a Rs 5 lakh crore opportunity that can boost employment opportunities
in the country. The waste recycling policy can help in transforming the country‘s economy,
Nitin Gadkari said at NITI Aayog‘s International Conference on ―Sustainable Growth through
Material Recycling: Policy Prescriptions.‖ There is a huge opportunity to convert waste into
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wealth, Ministry said in a release citing Road Transport, Highways, Shipping, Water Resources,
River Development and Ganga Rejuvenation Minister.
In China, the recycling industry created 1.5 million direct jobs and about 10 million
indirect jobs. In India, the metal recycling sector currently employs nearly 1.75 million people
and contributes around 2 per cent to GDP. For India, recycling has the potential to create six
times more jobs and generate around ₹14-lakh crore of additional cost savings by 2030, which is
approximately 11 per cent of our annual GDP.
While source segregation has to be actively promoted through behavioral shifts, the four
million rag-pickers and kabadiwalas should be substantially incentivized and trained to
efficiently transfer sorted waste to the recyclers. A key policy thrust should be to achieve a
systematic formalization of this sector. The rag-pickers should be given an official identity,
trained on environmentally safe scrap-handling practices and supported with a minimum wage.
At Institutional level, Government can set up more Institutions that provide trainings to
pursue a job in plastics industry. The Central Institute of Plastics Engineering & Technology
(CIPET) is playing a key role in creating Plastic Engineers, these engineers will play a vital role
in recycling and reuse of plastics. Currently there are 39 CIPETs in India and Government plans
to take the figure to 50 CIPETs in few years.
In 2014, there were 40,000 engineers and technicians in the country even though there is
a demand for an estimated 8 lakh plastic engineers required in the country. CIPETs provide
degree programs in Plastics Technology services the fields of Design, Tool Room, Processing,
Testing, Inspection and Plastics Waste Recycling services the Polymer & allied Industries.
8. Conclusion:
From the above we can conclude that Recycling of Plastic waste has a vast potential for
job opportunities in future. The Government will have to play key role in bringing currently
informal sector of Plastic scrap business into a mainstream formal sector and implementing
policies to standardize the workings and wages in this sector.
References:
i. Https://Economictimes.Indiatimes.Com/Industry/Indl-Goods/Svs/Paper-/-Wood-/-Glass/-
Plastic/-Marbles/India-WantsTo-Double-Consumption-Of-Cheap-Material-In-5-Yrs-
What-About-Its-Plastic-Waste/Articleshow/59301057.Cms
ii. HTTP://FICCI.IN/SPDOCUMENT/20690/PLASTIC-PACKAGING-REPORT.PDF
iii. AIPMA, Plastindia, TATA Strategic Analysis; 2017
iv. CPCB 2013 report
v. CSIR NCLI resources (www.petrecycling.in)
vi. Technical Note for Solid and Liquid Waste Management in Rural India, Ministry of
Rural Development, Department of Drinking Water and Sanitation, and UNICEF – 2010
vii. https://www.downtoearth.org.in/news/waste/how-plastic-producing-companies-can-
make-waste-recycling-viable-61272
viii. https://economictimes.indiatimes.com/news/politics-and-nation/experts-believe-
recycling-plastic-waste-can-create-more-jobs-in-india/articleshow/64418179.cms
ix. http://vikaspedia.in/energy/environment/waste-management/plastic-waste-management-
rules-2016
x. https://www.dailypioneer.com/2018/india/plastic-industry-could-be-major-job-creator-
ananth-kumar.html
xi. https://www.financialexpress.com/economy/waste-recycling-can-boost-modis-job-
creation-dream-union-minister-tells-how-niti-aayog-can-help/1273391/
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Green Marketing and Customer Accountability
Shraddha Rahane
Research Scholar,
MES. Garware College of Commerce, Pune, (Maharashtra)
[email protected], [email protected]
Abstract
Green marketing is the marketing of goodswhich are friendly to the environment. People
are more conscious about the environmental issues which are increasing day by day, and they
look forward to purchasing goods which are not harmful to the surroundings. There are
basically two types of customers, one who issensible about the environment and second who is
not sensible about the environment. The sensiblecustomers might compromise in quality,
appearance, packaging, and other features over the environmental friendliness of the goods but
other insensiblecustomersmight not be ready to compromise. The business organization needs to
satisfy customer needs and have to provide the best goods to position themselves in the market
competition. Business organizations are bound to provide satisfactory goods to their customers.
The study here is related to whether a business organization is able to provide satisfactory goods
by using eco-friendly material and contents for the goods and service. Sometimes performance of
the environment friendly material and contents is of good quality but sometimes it is
comparatively not. If it is not as good as other non-ecofriendly material then it is challenging to
the business organization to provide accountable goods and service to the customers. Goods
include its contents, features, packaging, container, delivery etc. Green marketing is nothing but
the eco-friendly practices in all mention above. This kind of marketing may not be cost effective
but it can be profitable due to the increasing demand. Now a day people prefer eco-friendly
goods so a business organization can take advantage of it and increase sales. While providing
value to the customer it has to be considered that whether eco-friendly goods really satisfy to the
entire customer group or not. Business organizations have to use different ways to satisfy
customers in practicing green marketing.
Introduction
Marketing itself is the efforts taken by the business organization to satisfy customers,
Green Marketing is the part of marketing and objective of the both is the same which is to satisfy
customers for the profit motive. Green marketing is environmental friendly marketing so the
contents of goods, packaging, delivery, containers include eco-friendly material only. The basic
thing in green marketing is protecting the atmosphere but with this business, organization have to
think about customer satisfaction too. The response from customers to eco-friendly practices is
good only from customers who are conscious about the atmosphere but not from others. The
good response means these customers give more importance to the safety of the environment and
not satisfaction from goods. An increasing number of environmentally conscious customers is an
opportunity for a business organization. But the satisfaction of other customer group is
challenging for the organization which has the organization have to take care of.
Importance
There are different environmental issues like uncertain climate change, pollution, scarcity
of natural resources etc., are increasing day by day. Green marketing is a step towards saving of
atmospherewhich business organization should need to take and people need to respond to the
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eco-friendly practices of the organization. Now it‘s a need of time to save the surroundings by
doing this green marketing practice because ultimately it is good itself to the people who are
living in the society. Green marketing is considered as societal marketing too because ultimately
it is advantageous to society.Customer accountability is also very important because while doing
green marketing practice business organization has to take care of both customer group‘s
basically environmental conscious and unconscious. Because as discussed above conscious
customers may compromise with product satisfaction but unconscious customers are not. So that
business organization at the same time has to take efforts to satisfy all the customers by doing
green marketing practices.
Conceptual Framework
Green Marketing
Green marketing talks about the practice of promoting and selling goods as well as
services created on their environmental and eco-friendly benefits. Thesegoods or service may be
environment friendly in its own or produced in an eco-friendly way. Green marketing is subject
to sustainable environmental development due to its long-term benefits to the atmosphere. Green
marketing goods that are accepted to be environment friendly have beenintegrated in a broad
range of activities including product modification, changes to the production process, sustainable
packaging, as well as changing advertising.
Statement of Hypothesis
H O: Green marketing practices not accomplishes the accountability with customers.
H 1: Green Marketing Practicesaccomplishes the accountability with customers.
H O: Due to mentality of customers green marketing practices are not effective.
H 1: Due to mentality of customers green marketing practices are effective.
Research Problem
Green marketing practices are not effective and accepted amongst the customer groups
despite of increasing environmental problem. The reason behind the same may be related with
accountability of customers with green marketing practices or mentality of customers of not
accepting or consuming green marketing practices or product.
Research Methodology
The data has been collected from the secondary source. All the data related to petroleum
goods and green marketing practices are collected from a secondary source. The information
related to green marketing practices has been gathered from valid websites and sources.
Green marketing practices result in sustainable environmental development
Green marketing is a part of marketing. The objective behind both is the same is to exchange
goods to satisfy customers for a profit motive. Green marketing is the efforts taken by a business
organization to protect the atmosphere by providing environmentally friendly goods and doing
eco-friendly practices in the business. Green marketing includes all marketing mix, means eco-
friendly practices related to the product, price, promotion, and physical distribution. Green
marketing is toward sustainable environmental development the marketing is just exchanging
goods but green marketing practices are towards long term sustainability of the environment. As
discussed many companies taking initiative in doing green marketing practices to save the
atmosphere. These green marketing practices result in minimization of long term environmental
losses and problems. Green marketing is a great step taken towards the safety of the atmosphere
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by different companies and these efforts help in reducing future problems due to unhealthy
environmental practices.
Current Green marketing efforts are helping to save many natural resources for the long
term. Many efforts reduce the environmental losses like shortage of natural resources, water and
soil, air pollution, and issues caused by pollution for the long term. Today‘s Conservation of
petroleum, electricity, water and other natural resources cause to save future scarcity of all.
Examples
Eco-friendly alternatives for petroleum goods for sustainable environmental development
The petroleum and natural gasministry has initiateda generation of biofuel and ethanol as an
alternative for petroleum goods. As petroleum goods are of rare nature and demand for the same
is growing day after day. It is a need of time to save petroleum goods for the next generation.
India imports around 80% of crude oil from other nations. The production of alternatives is
important in order to minimize the losses from imports. Alternatives for petroleum goods are
produced in our country itself so it woulddiminish the future scarcity of petroleum goods.
Generation of alternatives goods would result into a reductionof scarcity for petroleum goods.
All the alternatives like CNG,LPG, biofuel, ethanol, etc. are eco-friendly and they have been
made from farming waste and the small and big plants which are of no use for human life. CNG
is a natural gas. LPG is produced from liquefied petroleum gas. A biofuel is produced through
contemporary biological processes of agriculture and anaerobic digestion. Biofuel is collected
from plants, farming related activities and industrial wastes. There is also a bioethanol which is
driven from an alcohol made by fermenting of a carbohydrates produced in sugar or starch crops
such as sugarcane and sweet sorghum. The development of the above alternatives will surely
reduce a future scarcity for petroleum goodsand its reserve for the next generation. If one wants
to reduce the use of petroleum then alternative creation is the only way to minimize the
petroleum use.
Alternatives for petroleum goods and customer accountability
There is a different kind of alternatives which has developed by the ministry of petroleum and
natural gas. The environmentally conscious customers positively accept the alternatives but
others non-conscious customers are giving more importance to the satisfaction in terms of
mileage, performance, convenience (availability of filling stations), speed, expenditure etc. of the
vehicle. The Indian Oil Corporation Ltd. is mixing 10% ethanol in the petrol, some customers
accepting it positively but some care about the average, and engine life of the vehicle due to
ethanol. In an actual sense there is no adverse effect of ethanol on an engine of a vehicle and
average of the vehicle but initially, people worried about it and prefer pure petrol instead of
ethanol. Here people are not satisfied with the eco-friendly goods but they matter their
accountability first. But other conscious customers not much think about all mentioned above but
they all compromise with the performance of the product if any.
Customer Accountability
Accountability in customer service is our ability to account for our business actions and
decisions. It is our willingness to show our customers that we really do care about them, and
carry with this an unspoken pledge to respond to a customer's request for information or help.
Green marketing practices it is a part of customer accountability
The customers who are conscious about the atmosphere those wants product which are
eco-friendly. Their satisfaction is in the eco-friendly goods. Their tendency is they may
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compromises with unsatisfactory quality, packaging, material, performance of product if any but
not compromises with non-eco-friendly goods. These customers themselves prefer eco-friendly
goods and they desire to buy the same. These customers take initiative in demanding eco-
friendly product it means if they demand eco-friendly product and service they expect the
business organization to be accountable with them in providing eco-friendly goods & services.
Green marketing practices
Our environment is getting badly affected because of the non-environmental goods and services.
Environmentalists are raising their concerns over the repercussions on the atmosphere due to the
rapid progress in the field of industrialization. Increase usage of harmful chemicals, dangerous
gases and their being left away in the air, drainage systems, reveres and sea is badly affecting the
environment and its natural rhythm. It is required that the companies should be more aware of
the ways in which their factories often affect the environmental ecosystem. They must improve
their ways in terms of industrial waste. Some are those green companies in India which has
improved trusts, and have showcase a path of sustainability to others.
There are certain examples of the companies in our country who have started offering eco
friendly goods. One of the example is LG India who is making electronic goods and appliances
that are ecofriendly. They have recently came up with a LED bulb of E60 and E90 series which
provide minimum Co2 emission and reduce electricity consumption by many folds. Their USP
consumes 40% less energy than conventional LED monitors. Also, they hardly used any mercury
or halogen, and always trying to reduce the use of harmful materials in their goods.HCL is
another example who has introduced an ecofriendly goods in the market. They have recently
launched the HCL ME 40 notebooks. These notebooks do not use any polyvinyl chloride
material or other harmful chemicals and the Bureau of Energy Efficiency has already given them
a five-star rating for their notebooks. Haier is more examples in the category of producing
ecofriendly goods. As per their new green initiative, they have launched the Eco Life Series.
They have enhanced washing machines, semi-automatic and automatic refrigerators, split and
window air conditioners which are quite eco friendly goods. Samsung India has got a thriving
range of LED TV screens and now they have introduced ecofriendly LED backlights. They use
40% less electricity and has no harmful chemicals like mercury and lead. Tata Consultancy
Services has been globally recognized for sustainable ecofriendly practices. They have topped
the Newsweek‘s top World‘s Greenest Company title. They also have achieved a global green
score of 80.4% and this has mainly happened due to their initiative of creating atmosphere
friendly technology for agricultural and community benefits. Indus Ind Bank is one of the first
banks in India to discourage the use of paper for the counterfoils in ATMs, and sending
electronic messages. This initiative has contributed a lot towards saving paper and reduce the
deforestation. Wipro has got its headquarters in Pune which is the most eco-friendly building in
concern sector all over India.MRF tires have launched the ZSLK series which creates eco-
friendly tubeless tire‘s made from unique silica-based rubber with extra fuel efficiency in
vehicles. With all the above examples we come to know that India is now on its way to become
an eco-friendly nations by creating best alternatives to petroleum, efficient energy saving
appliances, low Co2 emission bulbs, low mercury or halogen based monitors, polyvinyl chloride
less notebooks, mercury and lead less LED backlights, Paperless ATMs, eco-friendly building,
tubeless tire‘s made from unique silica-based rubber with extra fuel efficiency etc.
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Challenges before green marketing practices
Profit: The main objective of Business organizations is to earn profit. In some cases,
profit may be compromised because of issues with customer accountability. Sometimes business
organizationsare not able to fulfil all the commitments and not accomplish all demanded and
expected things to the buyer. It results in a reduction in a number of buyers and ultimately
reduction in profit.
Cost of production: To produce atmosphere friendly product, different material is
required which is not harmful to the surroundings. The cost of environment friendly material is
high; and due to the high cost, the cost of production could be increased. The high cost of
production results in lower profit. A business organization should need to compromise the profit
due to the high cost of production.
Quality of goods: the Business organization may not be able to provide high-quality
goods. The packaging, contents, performance, the material may not give that much high quality
appearance always. The eco-friendly raw material used for packaging of final goods may not
give a high quality to the product. Due to this a business organization may not challenge
customers in quality and may not be able to influence them on the base of quality. Quality of the
product is one of the important determinants in buying decision of the customer. The business
organization may not be able to take advantage of that determinant or factors to influence the
customer and to satisfy them on the basis of quality.
Customer satisfaction: All customers may not be satisfied with eco-friendly goods. The
main motive of the business organization is to make customershappy by providing quality goods.
If all eco-friendly goods may not give satisfaction to all the buyers then it will be a big challenge
to the business organization to satisfy them.
Difficulty tosegment the market: It is very much difficult to the business organization to identify
the market for green goods. Due to varying preferences and scattered customers it is quite
difficult to reach up to the environmentally aware customers. It is also difficult to find out the
market area having educatedcustomers.
Conclusion
It is concluded that nowadays the customers are more conscious about the environment
so they demand eco-friendly goods themselves. The business organization are able to take
competitive advantage by generating eco-friendly goods and providing eco-friendly services.
Sometimes Business organization also compromises with more cost of production for eco-
friendly material and customers also compromises with satisfaction from goods. Eco-friendly
goods are saleable in the market but there is a problem with insensiblecustomers who do not
accept eco-friendly goods with less satisfaction. By taking an opportunity of increasing demand
from sensiblecustomers, a business organization can focus on only those who prefer eco-friendly
goods and try to influence those who do not prefer. The marketer should also try to give
maximum satisfaction to the customers so that all will be interested in the eco-friendly goods and
services.
Green marketing practices are not effective because insensible people are habitual of
using goods and services which are dangerous to the atmosphere. People more think about their
comfort but not about long term bad effects of these non-eco-friendly goods. So the reason
behind un-effectiveness of green marketing practices is related to insensiblecustomer groups and
their mentality of not using eco-friendly goods.It is suggested that to save the environment,
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business organization also need to take initiative and try to inspire people to use eco-friendly
goods.
References:
The New Rules of Green Marketing: Strategies, Tools, and Inspiration for Sustainable Branding
by Jacquelyn A. Ottman
The green marketing manifesto by John Grant
Greener Goods: The Making and Marketing of Sustainable Brands, Second Edition
Green Marketing Management by Robert Dahlstrom
Green Marketing: Theory, Practice, and Strategies by P. Kishore Kumar , Byram
Anand
Opportunities for green marketing: young customers by Kaman Lee
www.shopify.in/encyclopedia/green-marketing
www.thebalancesmb.com/green-marketing-2948347
www.investopedia.com/terms/g/green-marketing.asp
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Migration, the Catalyst for Sustainable Development Goals
Jyoti Saha
Research Scholar,
Gokhale Institute of Politics and Economics, Pune, (Maharashtra)
Abstract
The 2030 agenda for Sustainable Development goals is an initiative by United Nations
and embraced by all its Member States formulated in the year 2015. It provides a map for plan
of action for present and into the coming future for peace and prosperity of people and the
planet. It has 17 goals sub divided into 169 targets to be achieved by 2030, which requires
immediate call of action by all its member states in a worldwide association. They have pointed
that putting end to poverty, improving health and education, reducing inequality and spur
economic growth as its major concerns which should be solved along with addressing climate
change and preserving our oceans and forests.
This agenda is plan of action for the people, planet and prosperity. It was aim to
strengthened the peace of the universe. The serious global challenge of today‟s world is poverty
in all its form. Hence eradicating poverty is utmost important for sustainable development. The
three aspect of sustainable development can be stated as: economic, social and environment,
which is closely integrated to each other.
Migration has been seen as an indivisible part of economic development process. Hence
the 2030 agenda of SDGs recognize the positive contribution of migration for inclusive growth
and sustainable development.
If the policies are rightly placed, migration can bring vital development in both
origin and destination countries. In one side migrants remit substantial amounts to
developing countries in the origin, on the other side they promote trade and investment, and
convey innovation, skill and knowledge to their countries of destination.
Hence in my paper I would like to show how Migration is an important element for Sustainable
Development and its linkage to Sustainable Development Goals in the Indian context. The work
will include the migration trend of India, the push and pull factors of migrants and where can we
place India when talking about Sustainable Development.
Keywords : Sustainable Development Goals, Migration, Migration policies.
Introduction
Sustainable Development Goals (SDGs) was formulated to construct a world in which
every nation can enjoy sustained economic growth along with decent work for all. World within
which production and consumption patterns uses the natural resources keeping sustainability as
priority. One within which democratic governance at the national and international level comes
with environment protection and eradication of poverty in mind. One within which development
with the help of technology are climate- sensitive which would respect biodiversity. One within
which humanity lives in harmony with nature. Last but not the least within which life and
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alternative living species are protected.(Transforming our world: the 2030 Agenda for
Sustainable Development (A/RES/70/1 ), 2015)
It is internationally recognized that migrants are drivers and enablers of development.
Migrants contributed to efforts to realize the Millennium Development Goals by boosting family
household income, leading to improved health and greater school enrolment. At the national
level, remittances to developing countries account for a big proportion of the gross domestic
product and they are a very important supply of foreign currency earnings, supporting national
income and permitting countries to pay for vital imports, gain access to capital markets and pay
lower interest rates on sovereign debt. Migrants increase domestic demand for goods and
services that successively will increase total economic output there by creating jobs with in the
country of destination. At the regional and global levels, migration addresses global talent and
labor shortages.
In 2015, there were an estimated 244 million international migrants globally (3.3% of the
world‘s population) - an increase from an estimated 155 million people in 2000 (2.8% of the
world‘s population). Internal migration is even more prevalent, with the most recent global
estimate indicating that more than 740 million people had migrated within their own country of
birth.(Migration and migrants: A global overview, 2018).
Migrants have been facing problems which includes exploitation, lack of fare livelihood,
right to quality education, trafficking and many more which is not been heard and given enough
attention although they are considerable number in the global population. SDGs which aim for
development of all will include migrants in large number, so development of this large number
would act as catalyst for overall development.
Hence due to increasing internal and international migrants the targets of SDGs is
sensitive to and inclusive of migration, focusing not only on citizens but also on migrants,
thereby recognizing their human rights, contribution to development and need to be explicitly
recognized as legal persons and as drivers of development.
Objective and Structuring of the Paper
Mainstreaming migration consideration into national and local policy planning can help
India in archiving the Sustainable Development Goals.
The first section of the paper explains the structure of SDGs as proposed in the report of
the Open Working Group of the General Assembly on Sustainable Development Goals (2014).
The second section states the migration specific SDGs. The third section talks about the
Migration trends in India. The fourth section states the existing migration policies in India. Last
but not the least the fifth section concludes the paper giving the insights of current situation of
India while talking about SDGs.
Research Methodology
The report is essentially based on a review of secondary literature such as scholarly and
academic studies, reports of various international organizations, government reports and
documents on trends and political situations, including policies on migration, and reports and
writings emanating from various non-governmental and human rights organizations. A part of
paper uses data from Census of India, which gives information about the volume of migrants and
the migration flows in the decadal intervals. This data set typically reflects mobility of the
population and not necessarily of workers and their reasons.
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The structure of SDGs
The framework is based on the SDGs as proposed in the (Report of the Open Working
Group of the General Assembly(A/68/970), 2014). It comprises of three levels, to which we
assign goals based on their planned outcomes. This is illustrated in Figure 1
Figure 1: The SDGs as proposed in the Report of the Open Working Group of the General
Assembly on Sustainable Development Goals
The inner level, Well-Being, includes ‗people-centred‘ goals that aim to deliver individual and
collective outcomes, such as health, education, and nutrition, which directly pertain to welfare
and well-being and their equitable distribution within and between individuals and countries.
The middle level, Infrastructure, includes goals that pertain to different kinds of networks
and system for the production, distribution, and delivery of goods and services, including food,
energy, clean water, and waste and sanitation services in cities and human settlements. They are
presumed to contribute to growth in welfare while at the same time reducing potency of resource
use, pollution, and adverse impacts on the environment.
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The outer level, Environment, groups together those goals that relate primarily to the
management of global resources, underlying support systems and global public goods such as
land, ocean, air, natural resources, biodiversity, and the management of climate change. These
goals typically require international and transnational cooperation for their realization.
Goal 17 is relating to revitalizing the global partnership for sustainable development, outside the
three levels because it is a cross-cutting goal relating to goals in all levels.
The challenge of the SDGs as a global partnership framework is the complexity of the
interconnectedness between goals at different levels. There is no such existence of mechanism,
structure or institution for governing these types of interconnectedness, particularly where
conflicts may involve. This creates substantial and important governance challenges for the
SDGs.
The migration specific SDGs
Migration has been recognized as a core development consideration by Sustainable
Development goal which can act as catalyst in implementation of various government policies.
SDGs does recognize the vulnerabilities of migrants which it aims to address and hence
eliminate them to empower the migrants to fulfill their own development potential which in turn
contribute to develop the communities which they belong to. Number of targets in SDGs
mention‘s migration specifically, but in fact it is relevant to all seventeen goals and one sixty
nine targets in the agenda. Due to complexity of interaction of different, at the same time
interrelated targets of the agenda there is the need for enhanced policy coherence with a sound
framework at the national, regional and international levels.
Migrants will positively contribute to reinforced sustainable development goals if all the
relevant provisions are implemented. In the process it will address many of the root causes of
forced displacement which will help to create more favorable condition in countries of origin.
Specific migration-related targets in the 2030 SDG Agenda includes:
GOALS TARGET PARTICULARS
8
(Migration
specific)
8.8 Aims to protect labour rights and promote safe and secure working
environment for all workers including migrant workers, in particular
women migrants, and those in precarious employment.
5
(Migration
specific)
5.2 Eliminates all forms of violence against all women and girls in the
public and private spheres, including trafficking and sexual and other
types of exploitation.
1
(Indirect)
1.3 Implement nationally appropriate social protection systems and
measures for all, including floors, and by 2030 achieve substantial
coverage of the poor and the vulnerable
4
(Indirect)
4.1 By 2030, ensure that all girls and boys complete free, equitable and
quality primary and secondary education leading to relevant and
effective learning outcomes
4.3 By 2030, ensure equal access for all women and men to affordable and
quality technical, vocational and tertiary education, including
university
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3
(Indirect)
3.8 Achieve universal health coverage, including financial risk protection,
access to quality essential health-care services and access to safe,
effective, quality and affordable essential medicines and vaccines for
all.
10
(Indirect)
10.2 By 2030, empower and promote the social, economic and political
inclusion of all, irrespective of age, sex, disability, race, ethnicity,
origin, religion or economic or other status
16
(Indirect)
16. b Promote and enforce non-discriminatory laws and policies for
sustainable
Development
(Report of the Open Working Group of the General Assembly(A/68/970), 2014)
Hence migration can play an important role as enablers, subjects and drivers of
development, which in turn will contribute positively to programmers of governments, other
stakeholders for regional and global processes. Developing the knowledge base on the links
between migration and development is important for giving formal recognition of the links
between SDGs and New York Declaration.(Human Rights of migrants)
Migration trends in India
The two main secondary sources of data on population mobility in India are the Census
and the National Sample Survey (NSS). These surveys may underestimate some migration flows,
such as temporary, seasonal and circulatory migration, both due to empirical and conceptual
difficulties. Since such migration and commuting is predominantly employment oriented, the
data underestimate the extent of labour mobility.
It is observed that from 1991 to 2001 census the flow of migration has increased but the
pattern of migration has more or less remained same. The flow of migration shows U.P, Bihar,
M.P, Rajasthan are the main places for out-migration, whereas, Delhi, Maharashtra, Haryana,
Punjab and Gujarat are the main places of destination.
It is observed from Census of India that migration has shown decadal increases from
30.6% to 37.5% increase in migration majorly for female, but that is mainly due to marriage as
seen in Table 1.
Census of India identifies reasons of migration as: Employment, Marriage, Business,
Education, Moved after birth, Moved with household and Others. Employment has shown 31%
increase in 2011 census since 2001census. Marriage has shown 21% increase in 2011 census
since 2001census, female contributing the maximum. Businesshas shown 30% increase in 2011
census since 2001census. Education has shown 102% increase in 2011 census since 2011, which
is phenomenal.
Table 1: Computed from Census of India
Year Percentage of migrants to total population
Persons Male Female
1971 30.6 19 43.1
1981 30.3 17.6 43.9
1991 27.4 14.6 41.2
2001 30.6 17.5 44.6
2011 37.5 22.6 53.2
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Migration in India is predominantly short distance, with around 60% of migrants
changing their residence within the district of enumeration and over 20% within the state of
enumeration while the rest move across the state boundaries. A significant proportion of women
migrate over short distances, mainly following marriage.
Indian economy is highly dependent on natural resources and the climate sensitive sectors, global
warming and natural disasters like drought, flood, severe change in weather etc. may influence
climate-induced internal migration. Evidence showed that people migrate because of climate-
induced events such as natural disasters, droughts, rising sea levels, lack of sufficient rainfall for
agriculture, and the like.
We can study the trends and patterns of migration in detail in India during 1999-2000 to
2007-2008 using data from NSS 64th round.
During 2007-08, more than 2 million migrants have fallen under the category of forced
migration. Among these forced migrants, the numbers of people who become migrants due to
natural disaster come around 537,336 in 2007-08. During this period, social and political
problems have emerged as the most dominant reasons for forced migration (1.44% of total
migration) followed by the reasons related to natural disasters (0.59%).It can be seen that non-
economic migrants are more in number where 7.55% people migrates for studies followed by
3.99% migrated for the acquisition of own house/flat and 2.44% people migrated due to reasons
related to housing problems. Health care related migration has accounted for 0.7%. Among
economic reasons of migration, in search for better employment (9.40) and to take up
employment/better employment (7.94) have been found to be the most important reasons for
migration in India in 2007-08.(Ghatak, 2017)
Poorer migrant workers, crowded into the lower ends of the labour market, have few
entitlements vis a vis their employers or the public authorities in the destination areas. They have
meagre personal assets and suffer a range of deprivations in the destination areas. In the source
areas, migration has both negative and positive consequences for migrants and their
families.Migrant labourers, whether agricultural or non-agricultural, live in deplorable
conditions. There is no provision of safe drinking water or hygienic sanitation. Labourers
working in harsh circumstances and living in unhygienic conditions suffer from serious
occupational health problems and are vulnerable to disease. Those working in quarries,
construction sites and mines suffer from various health hazards, mostly lung diseases. For
women workers, there is no provision of maternity leave, forcing them to resume work almost
immediately after childbirth. As there are no crèche facilities, children often accompany their
families to the workplace to be exposed to health hazards. They are also deprived of education:
the schooling system at home does not take into account their migration pattern and their
temporary status in the destination areas does not make them eligible for
schooling.(S.K.Sasikumar, June 2003)
Migration policies in India
Internal migration
The Ministry of Labour and the Departments of Labour, at state levels, are responsible
for formulating and implementing measures to protect migrant workers.The important ones are:
the Inter State Migrant Workmen (Regulation and Conditions of Service) Act, 1979; the
Minimum Wages Act, 1948; the Contract Labour (Regulation and Abolition) Act, 1970; the
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Equal Remuneration Act, 1976; and the Building and Other Construction Workers (Regulation
of Employment and Conditions of Service) Act, 1996. At the central level, the key agency is the
office of the Chief Labour Commissioner and its field offices. However, the Directorate General
of Labour Welfare and the WelfareCommissioners also deal with certain welfare
provisionsemanating from some of these enactments. In the states, the offices of the Labour
Commissioners and their field offices are responsible for enforcing these laws. Concerns of
migrant laborers are also the responsibility of the relevant Social Sector Ministries (Health and
Family Welfare,
Human Resource Development, Food and Consumer Affairs, Urban Affairs, Social
Justice). However, there are no separate departments in these ministries dealing exclusively with
migrant labour.
International migration
India regulates external labour migration flows, for which the 1983 Emigration Act
provides the necessary legal framework. The office of the Protector of Emigrants, Ministry of
Labour& Employment, is empowered by law to regulate the deployment of Indian nationals
seeking foreign employment. This is achieved mainly by setting minimum employment
standards and verifying employment contracts; regulating recruitment through licensing the
agents; issuing emigration clearances for certain categories of emigrants, especially those
considered less able to protect their own interests; and handling public grievances related to
violation of employment contracts and recruitment abuses. Two other ministries concerned with
the emigration of Indian workers are the Ministry of External Affairs (MEA) and Ministry of
Home Affairs.
Conclusion
We recognize the significant role that the millions of migrants play as enablers and
subjects of development, whose human rights should be respected, protected and fulfilled.
Migration affects the realization of a number of development goals at the national, regional and
global levels and at the same time migrants are affected by them and thus needs to be taken into
account when formulating development strategies at all levels.
In line with SDG commitments and recognizing the cross-cutting impact of migration
across policy sectors, identifying policy priorities, and developing specific implementation plans
related to development and the governance of migration in the priority sectors relevant to the
Indian context e.g. climate change and disaster risk reduction, poverty reduction, national
employment policy, trade and investment, and social protection and rights is needed as the
present policies of migration in India does not adhere to the problems to the core.
Hence, mainstreaming migration consideration into national and local policy planning
can help India in archiving the Sustainable Development Goals.
References
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IOM.
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(2014). Report of the Open Working Group of the General Assembly(A/68/970). United
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(2015). Transforming our world: the 2030 Agenda for Sustainable Development
(A/RES/70/1 ). United Nations.
Waage, J. Y. (2015). Governing Sustainable Development Goals: interactions,
infrastructures, and institutions. In Thinking Beyond Sectors for Sustainable
Development. (pp. 79–88). London: Ubiquity Press.
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Human Resource Management Techniques and
Employee Performance for Business Sustainability
Prof. Shruti Mangalpalli
Assistant Professor,
Sangmeshwar College, Solapur, (Maharashtra)
Abstract-
Sustainable Human Resource Management proves to be an effective tool for sustaining
employee dignity in times of staff lay off and assure them employment in the job market. In this
uncertain corporate world it is not only essential for the business concern to survive in the
market but for gaining competitive advantages towards the need of sustainability of
organisation. With this intention to catch efficientstaff , human resource management is must.
HRM practices should be applied in such a way which ensures the sustainable business
development. In this regard, Human Resource Management plays vital role as it is only most
significant resource of an enterprise which have a maximum capacity to utilize the other
business resources upto their full extent.
This research paper throws light on the important issues on Human Resource Management
for the businesssustainability .
Key Words – Sustainable, Human Resource, Development, Business, Bold.
Introduction –
Human Resource is a very important factor for any organization. The survival, growth
and progress, success of any corporation depends on proper utilization of this resource. The firm
should arrange Human Resource techniques in such a way which enhances their knowledge,
skills for the betterment of the business. The development of work force automatically ensures
the man power retention and success of the company.
India is a country of large population but to convert these large scale populations into
resources it is essential to train them in a proper way so the objective of business sustainability is
possible. For this purpose the training methods should include the things which help to enhance
the skills of human beings. After the acquisition of these skills through training these human
beings will convert into human resources and this resource is a dominant part of the business
which is having the power to utilize other resources of business in a most profitable manner. In
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this way Human Resource Management plays significant role in the fulfilment of sustainability
object of the business.
Terms–
1) Personnel Management : Personnel Management are those who are employed in the work
place. Personnel management is an administrative function which exists in an organization to
ensure right personnel at right organizational activity. It is a traditional approach of managing
hired hands which focuses on adherence to proposed actions and rules of organizations.
Personnel management is concerned with planning, job analysis. Personal management also
focuses on managing labour relationship by handling employee grievances.
2)Human Resource Management: HRM is the strategic approach to the effective management
of organization workers so that they help the business to gain competitive advantage. It is
designed to maximise employee performance in service of and employers strategic objective.
3) Sustainability : Sustainability is the process of maintaining change in a balanced fashion in
which the exploitation of resources, the direction of investment, the orientation of technological
development and institutional change are all in harmony and enhance both current and future
potential to meet human needs and aspirations.
Objective of the study : It is in direction towards the study which examines the major factors
associated with business unit for moving towards greater sustainability and role of human
resources in that overall process. Human Resource Professionals have a key role to play, to help
a company to achieve its sustainability object. The sustainable HRM road map will help HR
managers to understand and leverage this opportunity, hence, this study has its focus to
understand the role of HRM come what with various methods of preparations.
Statement of the problems: Even after great changes in management and technologies many
companies are unhabituated about the use of modern HRM implementations. Low interest of
wage earnersbehind it, is the main reason along with lacking knowledge regarding HRM
executions. Within context towards business sustainability it entails to review applications of
HRM techniques in commerce as well as industries along with its influence on productivity and
efficiency of work force. The researcher is intended to come up with the latest technologies and
its uses in industries.
Significance of the study : As we know a number of methods of HRM practices which can be
used by industries. Most of the business organizations from urban areas are in the early phase of
knowing about modern HRM techniques but no profound improvements in implementation of
these HRM enactments. Main problem of this research is exploring different aspects and scope
of using HRM techniques. To find out solution regarding with effective application of
manpower retention and maintaining techniques on the basis of best HRM operations isin
proceedings.
Objective of the paper :
* To be aware of variousHRM methods/techniques .
* To compare effectiveness of HRM methods with that conventional methods.
* To study application of HRM techniques forbusinesssustainability .
Hypothesis :
Problem: To cheque an impact of HRM techniques on performance and efficiency of
workforce.
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The following null and alternative hypothesis is framed in this study.
HO- HRM techniques andemployees performance are not affected on each other.
H1 – HRM techniques andemployees performance affects on each other.
Methodology :1.Research Method- In this paper primary data as well as secondary data is used
for Data Collection.
2.Population and Sample-(80 Respondents from4 different industries)
Four different industries from Solapur city were purposely selected for this study. In which one
is from service sector industry, one is from co-operative sector, one is from textile business and
one is from educational institution. 20 employees from each sector i.e. total 80 samples were
purposively selected. 40 employees are adopting conventional methods remaining 40 are
working with new technologies then there achievement was tested with the aspect of these
threecomponents.
3.Statistical Techniques-Mean value, Standard Deviation Value, t-value techniques are used.
Application of HRM techniques and business sustainability in connection with employee
performance.
1) On job training: On the job training is efficacious for member of staff inducement to start the
job immediately with full confidence. It helps develop the career of individual and organisations
prosperity . On the job training is a form of training provided at workplace.
2) Technology based learning: The form of training with technology is a upcoming HRM
technique to train the hired help for increasingemployee efficiency as well asperformance.
3) Simulators : Simulators are used to imitate real work experiences. It helps to build up the
confidence among employees to accept new challenges of business organizations.
4) Mentoring : Mentoring gives breadwinners a best chance to receive training one on one from
an experienced professional. It also gives a positive view towards the problem. So this HRM
technique proves to be very fruitful for improving efficiency and performance of these mentored
one‘s.
5) Loyalty Interviews: With the use of loyalty interviews organizations are checking about the
organization‘s decisions and the trust of hirelings towards these decisions. This helps for greater
performance of employees and ultimately for thebusiness sustainability.
6) Communication: This is the one greatestHRM techniquewhich produces beneficial results on
member of staff‘s performance. Businesssustainability can be fulfilled out of hired man‘s job
satisfaction and for same purpose communication is very important as it solves difficult
problems in easy way.
7) Recruit and Retain: When the confederationsrecruit the employees in business by treating
them as a resource HRM guidelines helps the concerns for retaining them. This would helps the
organization in saving such expenses on repetition of talent searching and choosing qualified
together with capable menials.
8) Growth and Development : With this HRM technique, large groups now a day providing job
rotation opportunities to help in improving employee performance gripping with broaderbusiness
understanding which ultimately helps for business sustainability. Finally all above HRM
techniques works miracally in improving employeesefficiency,performance ,job satisfaction and
no doubt for the sustainability of the business.
Problems in applying the above HRM methods/techniques :
1) Low interest among employees creates problem in applying HRM techniques.
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2) In large scale concerns it is very difficult to communicate concerned staff‘s immediately
within the time limit.
3) Lacking mastery regarding the techniques is also one of the problem in applying HRM
techniques.
Difference between Personnel Management and Human Resource Management
Basis of
difference
Personnel Management Human Resource Management
Meaning It is the traditional approach of
managing people at work place and
is concern of personnel department
It is modern approach of managing
people at work place and is concern of
managers of all levels (from top to
bottom)
Nature It is routine function It is a strategic function
Focus Efficient Management is given
priority
Human Values and Individual needs are
given priority
Function Personnel administration, labour
relation and employee welfare are
major functions of personnel
management
Acquisition, Development Utilization
and Maintenance of Human Resource
are major functions of Human Resource
Management.
Objective It manages people in accordance
with organization role
It determines Human Resource needs
and formulate policies by matching
individual needs with organization
needs.
Perspective It regards people as basic input to
make desired output
It regards people as strategic and
valuable resource to make desired
output.
Job Design Jobs are designed on the basis of
division of labour
Jobs are designed on the basis of team
work
Interest Organizations interest is valued the
most
Interest of organization and interest of
employee is harmonized.
Adaptation It is regulation, direction and
control adapted.
It is development adapted. It provides
space for employee involvement,
performance and growth
Communication Communication is limited or even
restricted
Communication is open.
Emphasis It emphasizes on adherence of
rules and regulations and their
implementation
It emphasizes combination of human
energies and competences.
Benefits i) Disciplined employees.
ii) Increased production
i) Committed human resource
ii) Readiness to change
iii) Increased Production
iv) Increased Profits
v) Quality of work life
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Result Organizational Goal is achieved
and employers are satisfied
Organizational Goal is achieved and
both employers and employees are
satisfied.
Primary Data Analysis :
The primary data collected through sample of 80 employee respondents. One group of 40
employees from two sectors that have conventional techniques is treated as control group.
Another group of 40 employees having new HRM techniques is known as experimental group
and they were tested. The data is analysed in the following table.
Table No.1
Primary data analysis of performance.
Mean value
Aspect Control Group Experimental Group
Pre-Test Post-Test Pre-Test Post-Test
Efficiency 4.4 5.9 4.3 8.3
Performance 2.1 3.1 2.3 4.6
Job Satisfaction 2.3 3.3 2.4 6.2
Source- Data analysis by using sigma XL software
The above table shows the mean value of 40 respondents of control group and 40 respondents
experimental group after tested. The standard deviation value is calculated by using sigma XL
software and presented in the following table 2.
Table No.2
Primary data analysis of performance.
Standard Deviation Value
Aspect Control Group Experimental Group
Pre-Test Post-Test Pre-Test Post-Test
Efficiency 0.61 0.77 0.55 0.73
Performance 0.91 0.81 1.3 1.7
Job Satisfaction 1.4 1.8 1.7 1.6
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Testing ofHypothesis : The null and hypothesis framed in this study are tested by analysing the
data and calculating t-Value in the following table 3
Table No.3
Testing ofHypothesis
Aspect t- Value
Pre-Test Post-Test
Efficiency 0.90 15.92
Performance 0.93 5.2
Job
Satisfaction
0.32 7.2
by calculating t-value
Aspect Significant difference
Pre-Test Post-Test
Efficiency No significant difference Significant difference
Performance No significant difference Significant difference
Job Satisfaction No significant difference Significant difference
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Conclusion : So the first alternative hypothesis entitled ‗HRM techniques and performance of
employees does not affect to each other is not proved and rejected‘ whereas the second
alternative hypothesis entitled ‗HRM techniques and performance of employees affects on each
other is proved and accepted‘.
Application of HRM techniques prove advantageous for business sustainability.
References :
1) Edward E Lawler Lii, Jhon W. Boudreaue (2009) ‗achieving excellence in human resource
management : An Assessment Of Human Resource Functions‘
2) Edward E Lawler Lii, Jhon W. Boudreaue (2012) ‗effective resource management : A Global
Analysis
3) Ken N. Kamoche (2001) ―Understanding Human Resource Management‖
4)Human Resource Management by Dr. Anjali Ghanekar
5)Human Resource Management and Human Relations by Dr. V.P. Michael
6)https://en.m.wikipedia.org
7)www.quora.com
8)www.businesstopia.net
9)www.researchgate.net
10)www.hr.com
11)study.com
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Sustainable Event Management
Dr. Sulbha Patole*, & Rekha Kankariya**
*Research Guide,
MES Garware College of Commerece, Punr, (Maharashtra0
**Assistant Professor,
St. Mira‘s College for Girls, Pune, (Maharashtra)
Abstract
Sustainable Event Management is the process of integrating environmental and social
accountabilityconcerns into event planning. It calls for considering the needs and values of
different participants with the help of green meeting ideas and green policies to further a
sustainable reach in a cost effective manner.
The Indian Event Management Industry needs to be encouragedto adopt green measures
in hosting and organizing events. This is because events take a huge toll on our resources,
society and the environment. Adopting Event Greening has minimum negative impact on the
environment and the local economy as it avoids depletion of natural resources.
This paper is descriptive and historical in nature. It will trace the international practices
in Event Greening and seek to understand its benefits. The researcher will also use the case
study method to examine the current situation prevalent in India. The paper will bring out some
of the ideas that can be implemented by the Event Planners.
In carrying out this research, a sample of 20 Event Management Companies situated in
Pune city is considered. Data is collected with the help of a questionnaire. Secondary data
iscollected from published sources viz. books, journals, websites and articles.
Keywords: Event Greening, Sustainable Events, Green initiatives, Green Event, Green Festivals.
Objectives:
To trace some of the International Practices in Event Greening
To judge the level of sustainable actions by the Indian Event Management Companies
To gauge the understanding of Sustainability in the Indian Context
Methodology:
This paper is an attempt to provide an understanding of the concept of Event Greening. It
is descriptive and historical in nature and based on primary as well as secondary data.Primary
Data has been collected with the help of a Questionnaire from the Event Management
Companies. About 40 companies operating in and around Pune were targeted, but response was
elicited from 20 companies. No statistical tools have been employed for analyzing the data.
Secondary data has been gathered from various published sources viz. books, journals, websites
and articles relevant to the study.
Limitations of the Study:
Time Factor
Ignorance about the concept in the Indian market
Low Response Level
Lack of Interest by the Event Management Companies
Non-use of statistical tools for analyzing data
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Introduction
Events have been with us since time immemorial and they have taken a substantial space
in the world today. The Event Industry in India is witnessing a mushrooming growth and is
expected to grow by leaps and bounds. But, Events alsotake a substantial toll on our resources,
society and the environment. They generate considerable waste and are a strain on the natural
resources. According to meetgreen.com the typical conference waste attendee produces 1.89 kg
of waste per day.If we calculate that number for 1000 attendees over 3 days we get 5670 kg of
waste, the equivalent of 4 compact cars.
Sustainable Event Management is the process used to make an event with certain
concerns for environmental, economic and social issues. It integrates socially and
environmentally responsible decision making into the planning, organization and execution of an
Event. It aims at hosting events in a responsible way. It should start at the very initial stage of
planning an event and involve major elements like clients, organizers, venues, sub-contractors,
suppliers etc. If the event organizer takes into consideration the environmental and social factors,
then the event can be called as a sustainable event.
Sustainable events are one of the topmost choices for Event Managers. It is the need of
the hour to brainstorm and find out the ways which can make events environmentally
friendly.Being sustainable means to make changes to avoid exhaustion of natural resources. It
makes a responsible event planner.It can be done by: going paperless, saying ‗NO‘ to plastic,
delivering zero-waste, using renewable energy sources, pollution control checks for vehicles etc.
It can be adopted in the areas of transportation, selecting location, production, purchasing,
catering etc.
The obvious question to be answered is ―Why become sustainable?‖ The answer lies in
knowing the footprint we are leaving on the environment. The world is moving towards a
common agreement that doing nothing about sustainability issues is no longer an option and the
need to adapt our societies and economies to sustainable patterns of consumption is a pressing
one (Purt 2011). Sustainability is important because all our present actions will have an impact
on our future. This impact falls into the category of CO2 emissions (from transport and power
usage), waste generation (containers, food scraps, water and sewage), consumption of non-
renewable resources and possible damage to the site from foot and vehicle traffic.
Few Sustainable Practices outside India
Coachella‘s energy playground, US uses brightly colored bins designed to increase
recycling throughout the festival site, an energy playground to power their energy sources, VIP
ticket competitions for those who car share on the way to the festival.
UK‘s Glastonbury music festival uses bio-diesel generators since 2014 to ensure the use of
renewable energy, provides 100% stainless steel water bottles for visitors and multiple water
refill points, encourages volunteers to help pick up rubbish and recyclable materials to return the
site to its normal state as a working farm.
Glasgow, 2014 were the first games to secure ISO 20121 sustainability standard ensuring
that the event leaves behind a ―positive legacy‖. They ensured that all the competition venues
were car-free, a modern and locally based company provided clean and efficient energy and
ensured that the games HQ was on a Green Tariff energy supply.
ICCA congress in Malaysia 2016, the speakers were handed out a charity donation
instead of the usual plastic or other non-biodegradable material speaker gifts.
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The MLB (Major League Baseball) All-Star Games, is the first professional sports league
to ensure that its members are part of the Green Sports Alliance. It provides environmentally
sustainable guidelines for the games. Green teams collect recyclables throughout the game, solar
panel installations and red carpets are ―green carpets‖ using recycled content, left over untouched
food is donated to the needy.
A brief history of the emergence of the concept „Sustainability‟at the International Level
Event Green Initiatives
1992 Albertville Winter Olympics, France Environmental concerns were raised by the
public
1994 Lilehammer Olympics, Norway First ‗Green Games‘
1994, The Centennial Olympic Congress,
Congress of Unity, Paris
Promoted sustainable development and
regarded environment as the third dimension of
Olympism, alongside sports and culture.
2000, Sydney Olympic Games Facilities constructed in a more
environmentally friendly manner. Organizers
were honored the Global 500 Award in 2001
for organizing the greenest games ever.
2006 FIFA World CupTM, Germany Green Goal was launched
2010 FIFA World CupTM, Cape Town, South
Africa
Green Goal further implemented, awarded the
International Olympic Committee (IOC) Sport
and Environment Award.
Efforts of this event aimed at mitigating
negative environmental impacts of the FIFA
World Cup and to maximize a positive
environmental and social legacy
2002, World Summit on Sustainable
Development (WSSD), Johannesburg
Discussions about sustainable developments by
the United Nations. The Johannesburg
Declaration was the main outcome of the
Summit. It was agreed to restore the world‘s
depleted fisheries for 2015.
UNFCCC – United Nations Framework
Convention on Climate change
UNCCC (United Nations Climate Change
Conferences) – yearly conferences.
To assess the progress in dealing with climate
change.
Sustainability in the Indian Context
A Delhi based entrepreneur Tamanna Sharma follows the principles of a circular
economy and entails locally sourced, socially inclusive and environmental-friendly solutions for
all the event requirements. She has come up with a sustainable model of handling waste that
envisions events with zero waste contribution to the environment. Her company Earthling First
Pvt. Ltd. is a sustainable events and event waste management service provider. The company has
been part of Maruti Suzuki Devils Circuit and Border Security Force (BSF) events and has been
able to successfully divert 75-90% of the waste generated by the clients for recycling. Careful
waste assessment is done during the planning stage to bringing on board catering partners who
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offer biodegradable alternatives. The housekeeping staff is also carefully selected and trained for
the event. They separate and categorize waste at the venue itself before transporting it to various
composting/recycling units. The company also strongly advocates the social justice policy under
which the staff is ensured a dignified and safe work environment. The staff wellbeing is kept in
mind and they are made to feel respected.
Bengaluru, the IT city‘s cultural festivals have successful public campaigns around water
scarcity, solid waste management, green cover and it is encouraging the city‘s community of
artists and event organizers to be eco-friendly and minimize wastage. The International Arts
Festival that was held in Oct 2018 hosts around 1500 artists from across the world, ensures that
artists are part of the green drive that involves planting over 200 saplings. They also aim at
reducing plastic usage and every guest is offered a sapling as a memento. The saplings are
procured from the state forest department and ensuring a healthy survival rate for the plants.
According to RoshanNetalkar, director of the music festival Echoes of Earth ―A sustainable
event is often double the cost. Conventional options are always cheaper, but the point is to not
plug and play, and be less destructive.‖Visitor camps, stage and stalls were made of bamboo, log
wood, tyres and bottles sourced from scrap yards.
Vani Murthy, founder member, Solid Waste Management Round Table (SWMRT),
opines ―Cultural Events have the potential to make people ecologically-aware. When something
is unconventional, it gets noticed. People are gradually realizing the importance of going back to
basics, which is also leading to trends like green weddings and green marathons.‖
ISO 20121 – Event Sustainability Management System
ISO 20121 was published on 15th
June 2012. It is a management system standard that has
been intended to help organizations in the events industry improve the sustainability of their
event related activities, products and services. It is based on the earlier British Standard called
BS 8901 Specification for a Sustainability Management System for Events‘ which was first
developed in 2007. It is a practical tool for organizing and managing events so that the events
contribute to the three dimensions of sustainability – economic, environmental and social. ISO
20121 helps the event related organization to continue to be financially successful, become more
socially responsible as well as reduce its environmental footprint. It applies to all types and sizes
of organizations from caterers, lighting, sound engineers, security companies, venues etc.
Sample
Primary data was collected with the help of a questionnaire to know about the awareness
level and actions taken by Event Management Companies for having Sustainable Events.
Questionnaire was sent through online resources, watsapp and emails. Response level being low,
personal calls were made and the survey was completed with a sample size of 20 Event
Management Companies operating mainly in Pune city. The criteria for selection of the
companies was the rating given by the customers and the popularity of the company. The
Companies which were surveyed: Pros, Finer moments, J & R Events, AnandUdaye, Lifetym
Creations, Make magic events, Amazing Eventz, Pratisad Event Management, Perfect Events,
Prism Events, Fovero Events, Zeal biz media, The Grand Feast, Mulberry Media, Jayas Events,
Silver Bells, Sanskruti Events, Urban Events, Sarika Events and Freedon Events.
Findings
The sample size consisted of Event Management Companies mainly into Personal Events
and Corporate Events. 30% of the Companies have been in operation for less than 5 years, 25%
in 5 to 8 years category and 45% have been in operation for more than 8 years.
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Interestingly 55% of the companies said that they have heard about the concept sustainability and
40% were not aware about the concept, 5% skipped this question.
20% of the companies said that they always used sustainable considerations while
planning their events, another 20% also said they used it sometimes.
However, 30% of the companies said they never used sustainable considerations due to
the cost and unclear idea about the concept. While 30% of the companies were in the ‗usually‘
and ‗rarely‘ response category. Cost factor accounted as the reason for 30% of the companies to
not being able to use sustainable considerations in planning, unclear ideas was the cause for 40%
companies, lack of time and other reasons were for 30% of the companies.
Surprisingly, only 55% of the companies were of the view that sustainable events will
gather enough attention in future, 15% of the respondents felt otherwise and30% of the
respondents were not sure about the future for sustainable events.
Of the companies who have been in event business for more than 8 years, 75% of them are
always using sustainable considerations in their events
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Conclusion:
In the present day, where environment is a serious concern and the number of threats are
looming large over the Indian economy, sustainability is the required tool that will salvage the
future and not compromise on the well-being of the future generation and the society at large.
The Event Industry should do its part and contribute to the efforts being made by other sectors of
the economy in this direction. There needs to be more awareness among the Event Management
Companies about this issue and they need to be made sensitive towards the same. While 55% of
the companies felt that sustainable events will gather enough attention in future, only 20% of the
companies are actually using these considerations in their events. Companies who have been in
operation for more than 8 years i.e. a long time period are able to think and make efforts for
Event Sustainability. The efforts by the Indian Event Management Companies are seen mainly
towards waste management and non-use of plastic.Another major factor in not using sustainable
considerations by the companies is the lack of interest as the Events Industry is glamorous in
nature and the cost is ultimately borne by the Client. The Event Organizer has a minor role as the
requirements are given by the Clients.
References:
1) A network perspective on managing stakeholders for sustainable urban
tourismhttps://www.emeraldinsight.com/doi/abs/10.1108/09596110810873543
2) Meegan Lesley Jones – Sustainable Event Management-A Practical Guide
https://www.taylorfrancis.com/books/9781315439723
3) Sustainability handbook for Event Organisers
http://inside.fei.org/system/system/files.FEI_Sustainability_Handbook_for_Event_Organi
sers.pdf
4) Gallagher, Anthony, Pike, Kate Journal of Coastal Research Sustainable Management for
Maritime Events and Festivals.
5) Tchobanoglous, George, Karagiannidis, Avraam, Leverenz, Harold, Cadji, Max,
Antonopoulos, loannis-Sofocles Sustainable Waste Management at Special Events using
Reusable Dish ware: The example of while earth festival at the University of California,
Davis.
6) WaldemarCudnyNomosVerlagsgesellschaftmbH The Phenomenon of Festivals: Their
Origins, Evolution and Classifications
7) Yi-De Liu Springer Socio-Cultural Impacts of Major Events: Evidence From 2008
European Capital of Culture, Liverpool
8) Shawna Mckinley New Sustainable Event Management (2018 Edition): A Free Guide to
Better Green
Meetings.https://www.google.com/amp/s/www.eventmanagerblog.com/sustainable-
event-management/amp/
9) https://www.google.com/amp/s/www.thebetterindia.com/121225/want-to-have-a-green-
and-clean-event-heres-a-delhi-woman-who-can-make-that-happen/amp/
10) https://www.insightssuccess.in/event-management-trends-that-aims-to-change-the-
industry-in-india/
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Sustainable Tourism through Music
Dr. Sulabha Patole*, Kedar Joshi** *Research Guide, Garware College of Commerce, Pune, Maharashtra. [email protected]
**Research Scholar, Garware College of Commerce, Pune, Maharashtra.
Abstract:
Sustainability is based on three basic pillars: Environmental, Social and Economic. Art-
Culture and Tourism are both important facets of the Socio-Economic scheme for sustainability.
Musical Tourism is a subset of this aspect. For sustainability, peaceful coexistence is a must. The
overall wellbeing and feel good factor is generated by having a very peaceful mental state. These
can be achieved through practice and enjoyment of music. Musical tourism covers several social
aspects. It brings together people from different walks of life representing different communities,
regions, countries etc. However, the basics and sensitivities are common ensuring a Unity in
diversity. It also increases collaboration and sharing. On the economic front, it provides an
income source. It creates new avenues for business. It creates brand value for the country, its
culture to the individuals involved in it. It can also generate forex and can provide the economic
advantages that the industry provides. Musical Tourism, thus, helps in a great way to ensure
sustainability.
Introduction
Musicians form a very important part of society from the point of view of establishing a
cultural landscape and also contributing in enhancing the economy in general. They range from
individual performers to performers in large group. The music has taken many different forms
like vocal, instrumental. They are also many genres like classical, jazz, rock. However in all this
diversity we see a common element that represents the culture and heritage.It also contributes in
preserving the cultural values and history. Music is also used as an accompaniment or a
supplementary value addition in dance performance to theatre and cinema. The music forms an
inevitable component of these art forms and is thus a source of inspiration as well as
entertainment. Music is at the very base of culture as it is one of the forms to connect to divine
power. It forms a very important part in temples, gurudwaras, mosques, churches and religious
places. Folk music is the music of the masses and is very popular among different section of any
society.
Music thus represents the culture, provides entertainment and also leads to spiritual
upliftment. Taking into consideration all these aspect it can be said that music can provide
sustainable tourism. The tourists will find all the aspects mentioned earlier interesting and just as
they like sightseeing, they would love to understand the music journey to know more about the
cultural make-up and diversity of the countries visited by them.
Research Methodology :
Research problem : Examine sustainability by musical tourism:
Musical Tourism is a comparatively new concept. However music had been there since ancient
times and represents culture and heritage. The relationship of musical tourism and sustainability
needs to be studied to understand how sustainability can be achieved by musical tourism
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Objectives To study sustainable tourism, its properties and advantages
To study the various social aspects of musical tourism
To study the various economic aspects of musical tourism
To study the relationship between musical tourism and sustainability
Important Concepts Sustainability
iis the process of maintaining change in a balanced fashion, in which the
exploitation of resources, the direction of investments, the orientation of technological
development and institutional change are all in harmony and enhance both current and
future potential to meet human needs and aspirations. For many in the field, sustainability
is defined through the following interconnected domains or pillars: environment,
economic and social. Sub-domains of sustainable development have been considered
also: cultural, technological and political
The three pillars of sustainability
Tourism:
Tourism is a method using which people travel to different areas of the globe.
During this journey they can study new living styles, experience the natural beauty and
culture. This experience gives them an outlook into other aspects that they do not
experience in their homeland. Tourism is recognized for its impact on the socio-political
and environmental landscapes which form the pillars of sustainability. This happens as
tourism is practiced by a huge number of people around the globe.
Sustainable tourism:
There exist, within the realm of tourism, more sustainable practices and ideals that
are aligned with the idea of cultural sustainability.11
11
Cultural_sustainability. (2017, June 28). Retrieved from en.wikipedia.org:
https://en.wikipedia.org/w/index.php?title=Cultural_sustainability
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Sustainability is central to underpinning feelings of authenticity in
tourism.Experiences can be enhanced when substituting the contrived for the genuine,
and at the same time inspire a potentially deleterious appetite for follow-up visits to the
real thing: objectively authentic sites untouched by repair or rejuvenation. Feelings of
authenticity at a tourist site are thus implicitly linked to sustainable tourism; as the
maximization of existential "felt" authenticity at sites of limited historical provenance
increases the likelihood of return visits.
Musical Tourism:
Music tourism is the act of visiting a city or town, to see a music festival or other
music performances12
.
Musical Tourism and sustainability:
There is a relation between musical tourism and sustainability.
Economic considerations and cultural aspects in isolation in isolation cannot ensure
sustainability. However, when balanced these can give lasting development.
Type of Research Descriptive. This particular paper is based on descriptive research as it explains the
concept of musical tourism and its various aspects as described in available literature.
Scope The paper covers the aspects like examining and understanding musical tourism and
sustainability interrelationship internationally through available literature
Sources of data This paper is based on the following sources of secondary data, Books, research papers,
websites
Limitations of the study and future scope of study The study is limited to the aspects mentioned earlier.
The study is based on available literature. There is still scope to investigate using
instruments like survey and interviews. This will give the human perspective and interactive
methods will give more fresh data and outlooks.
The artists and contributors to the music industry and the intangible and tangible impacts
of the concept of sustainable music tourism on their lives can be studied.
Musical Tourism: Global perspective Musical tourism is a phenomena that is present worldwide. Some countries, including
developing countries, have used this phenomena very effectively.
Birgitte Anderson13
and others observe that some countries have been unable to
successfully commercialize their own music and hence cannot reap benefit from this important
12
Music_tourism. (2017, February 20). Retrieved from wikipedia:
https://en.wikipedia.org/wiki/Music_tourism
13
Anderson Birgitte, ZeljkaKazul-Wright &RechardKazuls Wright – Copyrights Competition
and Development – A case of the Music Industry (2000), www.unctad. United Nations
Conference on Trade and Development as published in Music Industry – Imerging Paradigm
edVandanaShajan-Icfai (2007)
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indigenous resource. Developing countries like Brazil have gained competitive advantage by
generating music based on fusion of traditional music with western musical traditions.
The authors further observe that cultural industries such as music offer excellent growth
and export potential to developing countries. Building competitive industry in a developing
country suffers from problems like weak institutional and political support, low levels of
entrepreneurial capability, low value added, massive copyright infringement, etc.
This sort of tourism is particularly important to small villages such as Glastonbury, as
well as large cities like Glasgow. The fairly recent jam band phenomenon is a contemporary
example that encourages music tourism. Music festivals are visited by many tourists annually.
According to these researchers, creating a successful music industry is as much related to
institutional capabilities as to music potential or talent. Adapting copyright legislation to local
conditions should be the focus of policy makers in developing countries looking to strengthen
their cultural industries. Without this, they will be unable to fully realize the benefits from
creativity and talents of people in the audio-visual sector.
Musical Tourism: Example of Sweden
Wallis14
(2001) has given the example of Sweden to justify how a small country could
develop music as a resource to generate business wealth and foreign exchange. It achieved a
positive trade balance in specific music industry revenue flows. Wallis further explains the social
and cultural policies of the government around 1980 which have contributed to the success of the
music industry –
School children to gain proficiency in vocal or in atleast one musical instrument through
the music educational programme.
Social programmes at local level providing rehearsal venues to music groups.
Encouragement to local entrepreneurs to set up recording studios, record production and
publishing firms, etc.
Easy access to good quality technology and technological expertise at reasonable cost.
Social policies to encourage municipal authorities to provide venues where creativity and
cultural expression can be encouraged among the youth, e.g. converting empty
warehouses into meeting places and rehearsal halls.
Encouragement to form societies to protect and regulate the rights of artists and
composers, music publishers, e.g. copyright society is owned jointly by composers‘
association and music publishers and it has state representatives on the board. The value
of such functioning bodies lies with the principles of reciprocity and solidarity.
Music Tourism in Trinidad and Tobago:
Henry Ralph15
and others have tried to assess the contribution of music industry in the
national development of Trinidad and Tobago. The music industry in this region is characterized
14
Wallis Dr Roger (2001) Best Practice Cases in the Music Industry and their Relevance for
Government Policies in Developing Countries, UNCTAD (Pg 36-42)
15
Henry Ralph, Daniell Alvin and Trotman Stein – Music Industry in Trinidad and Tobago – As
in Music Industry – Emerging Paradigm Ed. ShajanVandana
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by a wide variety of firms and organizations. In Trinidad and Tobago the music of the highest
quality was generated by converted oil drums. This instrument, pan, has the emotional value and
remains a novelty factor. The festivals, carnivals and party times were associated with music
from pan. A clear understanding of the value process and the degree to which characteristics of
music products can be manipulated have played key role in promotion of cultural products of
Trinidad and Tobago. Both Trinidad and Tobago have the highest number of visitors during
carnivals and other festivals that have become popular. Music industry gets tremendous boost
during this period. It is a major income earner not only for artists, instrument players, singers and
other participants of music industry, but also for a variety of other services like transport,
restaurants, hotels, retailers and many others. Though music industry has tremendous scope,
there is lack of institutions that would train the budding artists in traditional folk form. The
distinctiveness and creativity of instruments like pan, calypso, soca, chutney and parang needs to
be enhanced for acceptance in international markets.
Musical tourism in India and recent trends Musical Tourism is now a growing and popular concept in India. Some time back it was
just picking up speed and was not a very widely practices in India.
India is very rich in its history, cultural heritage and also natural beauty.
In the coming years Musical Tourism is set to become the buzzwors of the Tourism industry in
India.
There are already many examples of Musical Tourism in India which are already huge
success stories.
Musical Tourism is not merely limited to Music Concerts and festivals. They do form the
backbone but there are so many individual performance experiences, thematic experiences,
climate based music experiences and festival based musical experiences that are enjoyed by
tourists.
The tourists enjoy the whole journey of living the musical experience along with other
aspects of sightseeing and tourism. Winter desert camping festival in Rajathan is one such example.
It was held in Jaisalmer, Rajasthan from February 23 to 25, 2018. It was Asia's first
desert camping festival and was held in the Thar Desert full of desert dunes.
It featured artists from around Rajasthan. The Rajasthan folk music and traditional music
was the hero of the event and provided a great insight into the rich culture of Rajasthan.
Commenting on the trend of music tourism, Varun Gupta, CEO Goomo16
, said, "A
number of events boasting famous international artists have debuted in India over the past few
years, producing a year-long packed schedule of music festivals across the country. With more
and more state governments looking to boost tourism through musical and cultural events, we
have witnessed people from all over the country travelling to various places just to attend these
16
what-will-inspire-your-next-vacation-music-tourism-to-be-2018s-top-travel-trend. (2018,
February 13). Retrieved from economictimes.indiatimes.com:
https://economictimes.indiatimes.com/magazines/panache/what-will-inspire-your-next-vacation-
music-tourism-to-be-2018s-top-travel-
trend/articleshow/62893900.cms?utm_source=contentofinterest&utm_medium=text&utm_camp
aign=cppst
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SawaiGandharvaSangeetMahotsav17
(music festival) which is held in Pune, Maharashtra, India,
has now become a Sawai Brand. It was started with the concept of devoting the art of music at
the feet of the Guru (teacher). Pt. Bhimsen Joshi and Nanasaheb Deshpande initiated the festival
to keep the memory of Late Pt. SawaiGandharvaRambhauKundgolkar in 1952. Since then it has
been attracting well known artists as well as music lovers, not only in India, but also from
countries round the globe. The growing international audience is appraised about the
accomplishments of the presenter artist, the Raga, its peculiarities and the bandish. This practice
gives necessary knowledge to the listeners and also makes them experience the trends in the field
of classical music.
Findings:
1. Musical Tourism is a comparatively new phenomenon.
2. Musical tourism is observed to be used both, the developed as well as the developing
countries
3. The music festivals in different countries are becoming popular among tourists. The
tourists have developed a habit to visit such events regularly.
4. Attracting regular flow of tourists through music events ensures sustained development
by creating business opportunities.
5. There is lack of supportive agencies for growth of music tourism in developing countries.
Recommendations: 1. Considering the scope for sustaining growth through musical tourismthe following
avenues are suggested
Musical Tourism linked with medical tourism though music therapy.
Temple traditions and music. Devotional music like Navaratri celebrations
dandiya, garba
Folk art and folk music – tribal art and music like Kala Ghoda Festival in
Mumbai.
Special musical tours for drama enthusiasts –Dramam music an important part of
cultural heritage.
Instrument based tourism – Dholtasha attracts tourists across the globe during
Ganesh festival
Visits to Gurukul.
2. The government and the music promotion institutions should develop supportive systems
to facilitate music tourism
E.g. Arrangement for tourists at venues, advanced intimation of programs and festivals,
online booking facilities etc.
17
Kulkarni Vidyadhar – AbhijatSangeetalnadhyePunyachaSavai Brand, Loksatta (Pune), 8 Dec
2016, Pg 5
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Conclusion:
For sustaining progress of any nation, peaceful coexistence is the basic factor. Musical
tourism makes people understand the interwoven aspects of culture, and thus ensure mutual
understanding and respect leading to peaceful coexistence.
Human beings strive for inner satisfaction and peace. Music and its meditative values lead to
satisfaction of human aspirations. This in turn can result in devoted efforts for better living,
which is a prerequisite for sustainable development.
Sustainability. (2018, Nov 6). Retrieved from wikipedia:
https://en.wikipedia.org/wiki/Sustainability
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