case-study-marcopper-disaster in the philippines.pdf
Emerging business opportunities for sustainable development
1. “Global Sustainability Opportunity through Waste
Management Process for Sustainable Development:
An imperial Case study
Written by:
Er. Sambit Biswal (B. Tech in Civil, PGDM cont...)
Co Author:
Prof. Nishit Kumar Srivastava
M.Tech (Ind. Engg. Mgt.), Ph.D.(Cont.)
Asst.Prof Operations&Lscm
Email: Sambit.biswal@hotmail.com
Contact- 094397 62322
Post-Graduation Diploma in Management (PGDM)
From
Asian School of Business Management
SikshaVihar, Bhola, Chandaka, Bhubaneswar
2. “Global Sustainability Opportunity through Waste Management Process
for Sustainable Development: An imperial Case study”
Abstract
"Sustainable development is development that meets the needs of the present without
compromising the ability of future generations to meet their own needs. It contains within it
two key concepts:
the concept of needs, in particular the essential needs of the world's poor, to which
overriding priority should be given; and
the idea of limitations imposed by the state of technology and social organization on
the environment's ability to meet present and future needs."
All definitions of sustainable developmenti require that we see the world as a system—a
system that connects space; and a system that connects time. When you think of the world
as a system over space, you grow to understand that air pollution from North America
affects air quality in Asia, and that pesticides sprayed in Argentina could harm fish stocks off
the coast of Australia. And when you think of the world as a system over time, you start to
realize that the decisions our grandparents made about how to farm the land continue to
affect agricultural practice today; and the economic policies we endorse today will have an
impact on urban poverty when our children are adults.
The concept of sustainable development can be interpreted in many different ways, but at
its core is an approach to development that looks to balance different, and often competing,
needs against an awareness of the environmental, social and economic limitations we face
as a society.
The current paper recognizes the difference between traditional way of doing business in
one hand and going for sustainable business opportunities for their sustainability. The
innovation and their development are driven by one particular need without considering the
wider or future impacts. Consumers are becoming more tech savvy in their approach as well
as their daily life. No doubt we are going towards the bright future but it may not sustain or
retain for the long run.
We all have a part to play. Small actions, taken collectively, can add up to real change.
However, to achieve sustainability in our country, we believe the Government needs to take
the lead. Their job is to help make this happen, and we do it through a mixture of scrutiny,
advice and building organisational capacity for sustainable development.
Key words: Sustainability, Growth, Sustainable business opportunity
3. Introduction:
The domain of environmentii has remained a matter of concern for everyone more
than a decade. Almost every concerned and conscious activist like politicians, business
leaders, environmentalists, social workers, scientists, have been talking about the
environment degradation, deforestation, industrialization, urbanization, just only for the
sake of the survival of the life on this earth but really they are not focused on the matter.
Slogans such as “Say no to plastics & Save the earth”, “Plant more trees save planet earth” &
projects like “Ganga Action Plan etc. are undertaken by government to bring forth the
environment issues in the political agenda. But it will not be fruitful until the psychology and
attitude towards the environment as well as sustainable development will change
practically.
It is not the issue for a single country but for the whole world and each and every
country should extend their hand to save environment from the unexpected danger. For this
reason the business implications also are affected externally as well as internally. The
expansion in globalization of business has placed a burden on business to be responsible.
There is a debate on whether sustainability practices create value for the company continue
to evoke concern in the business would throwing up different description of the term
sustainability.
In global business, companies often face a hard core competition and in order to
have competitive pricing, they urge suppliers to bring down their cost, pay low wages in
poorer condition. But now-a-days more and more companies are realizing that business
should be about exchange and value, trade and respect, friendship and trust to become
sustainable in their business. This ever growing concern towards environmental
sustainability, the role of business is moving steadily towards product stewardship and
extended product responsibility. The big players in the market are now decided to make
their business as well as environmental sense when they design products to maximize their
end of life asset potential. Thus they are going for “Design for Environment”(DFE)iii, which
means fewer hazardous substances and more recycled and recyclable materials designed for
remanufacturing.
4. This would involve creating parts and products that can be reused not just recycled.
All of these initiatives, however, demand that companies work with subordinates to make
greener and smarter products.
What is growth?
It is the act or process, or a manner of growing; development; gradual increase.It can be
seen in any living organism or human being and it is very much identifiable in all the cases,
but the level of growth can be different. A consistent rate of growth can be the parameter of
success in any sector. On the contrary development can be a parameter of growth which
shows how growth occurs. Development leads to growth and growth leads to generation of
waste. As in the case of a particular organization or company the industrial growth creates a
sizable quantity of waste material during its operation. So growth is not only meant for
positive consequences but also a strong reason for harming the environment.
Why it is required?
The tension between growth and preservation happens everywhere. We can assemble the
various projections and provide the composite picture for the year 2050 in terms of growth
in our country. This may be treated as potential of growth. Smart growth practice can lessen
the environmental impacts of development with techniques. Not growing is not staying the
same. There are two ways of growth such as short term growth process and long term
growth process.
Short term growth process:iv
The short term growth happens so that (1) the places can remain the same size,
compensating for the natural loss of people and business. (2) Increase in population through
birth rates and immigrations can be accommodated and (3) desired moment within the
country by people and business can be accommodated.
Long term growth process:v
The above short term growth or year to year process of increasing in size will eventually lead
to a large entity with larger terms of business, people, homes etc. A larger place has more
people, more business, more buildings, and more infrastructures. This situation leads to
competition in business and greater competition in the private and public sector production
5. of goods and services with lower pricing strategy hold the customer base to purchase the
products. Long term growth also has (1) many of the products that people and business
wants to purchase will be produced by local i.e. private or public sector at a lower price (2)
greater choices are available (3) greater diversity exists in population and economy (4) A
sizable quantity of waste material will be production during the consumption and
production process.
Facts about the pros and cons of growth:vi
Growth is necessary for avoiding the stagnation. In general, benefits out of growth are the
path towards development economically or professionally. In the aspects of business,
growth may be reflected in higher income and achieving economies of scale but in case of
human being it may be attaining the development in age and body. Consistent growth is also
a factor for sustainability. When a company is associated with a growth strategy the
efficiency from its operation will take it to the greater point of profit in terms of financial or
non-financial way. Innovation also involves the development of new ideas which is an
influenced result of growth. Green growth is now a concern of all over world which can lead
to improvements in attracting innovation, creating green jobs and industries, conserving the
natural capital, advancing sustainable rural as well as urban livelihoods. So it is well said that
“While integration of a full set of green growth outcomes and benefits are desirable,
focusing on a key subset is more pragmatic.”
Case Study:vii
An inspiring story of Indian social entrepreneur is taken for analysis in this part. The idea is
to frame a society without plastics and waste materials. She is an extra ordinary thinker and
hard worker who have proved that the consciousness of protecting the environment is not
only the duty of every human being but also the best sustainable way for economic
development in terms of a business. She has given her precious time and came up with a
wonderful idea to produce beautiful export quality hand bags from the waste collected
through rag pickers.
Anita Ahuja, Secretary and owner conserve India is the person who started the non profit
organization (NGO) in 1998 and took the up the project waste collection in surrounding
6. locality of New Delhi. That time idea was to separate kitchen waste and make compost in
the local park.
She felt that the process was not possible by a single body and then continued to add the
resident welfare associations (RWA’s), deputy commissioner and the municipality and so on.
During the formation and execution of organization both Anita and Shalabh had faced a lot
of difficulties to stand with a sustainable business plan which will make them sound
economically as well as socially. She had started the organization in a small area with a
handful of RWA’s but later on more than 3000 RWA’s joined in the process. These RWA’swere
across social strata andincome groupsand Conserve Indiafounditselfworkingnotjuston the waste
management but everything from RTI to security and roads.
The phenomena of the NGO is not meant for profit making but to help the distressed and the
persons who are in the need of help but there are many hurdles to face and work with different
issues. Because her organization was working with the rag pickers who were already in collecting
waste but their job was done more systematically. They invested on them and changed their rag
pickingstyle withuniforms and identity cards. Also trained the rag pickers to handle and segregate
the waste and how to go door to door for collections, speak polietly. It gave them appreciation as
well asunbelievable result.Peoplestartedbelievingtheirwayandwhenthe peoplelikesomething –
they embrace it. They don’t buy your idea they buy into it.
By 2002 Conserve Indiahadbecome afull time commitment,anorganization ion its own right. They
startedgettingsmall grantsfromDelhi governmentaswell as from outside funding like USAID from
the World Bank.But theydidn’tstopwiththe govt. fundingandmade theirownwayto generate the
income. They were making the compost using wet waste to create a saleable product and by
experimenting on the plastic waste they got the idea of making something else which will be very
demanding in the market in lower production cost.
At lastshe found recycle technologies from the internet and tried dozens of different things. They
started with weaving and making carpets. But the products came out looked homemade and were
very labour intensive. They are not financially viable and hard to sell in the market. But despite
gettingnowhere,Anitakeptongoingandultimatelyshe developed a texture of layering the plastic
bags together and it came out very nicely.
She got success increatingbeautiful pattersandno one could tell this was made from plastic waste
at all. Then she started to raise money through exhibition and artworks which led the process to a
large extent.Thentheystartedtoproduce plastic sheets but the look couldn’t attract the market as
7. theythought.Theytookthe helpof engineers,artistsandlearnthow tomake the sheetslookpretty.
By trial and error Anita produced of 200 unique designs.
InitiallyAnitamade afewsimple likewinebagsandcarry bags, filesandfolders. To do this she hired
a fewroadside tailors.The merchandise was sold at embassies which had trade fairs around Diwali
season. She tookthe idea to the funding agencies and worked with those creative plans. There is a
saying“everyhardworkhas a reward”.Asthe resulthishusbandgotconvincedjoinedinthe process
to make a high scale business.
The product line took itspace of development andreachedindifferenttypesof wallpaper, tiles, file
folders, footwear. They worked with a sizeable number of volunteers who not only helped in
designingbutalso in setting up systems. Some foreigners also joined in the process and setting up
the total systems such as inventory and labelling. Passion and purpose magically attract resources
and she didn’t look back. Finally in the year 2003 Conserve participated in a trade show at Pragati
Maidan New Delhi and it was the first time to earn a order of 30 lakhs which is a large amount for
the organization.
There wastwo USP’sthe productwas recycledbutitwas alsoverywell designed. It has after all test
marketedatembassyfairs.Thatmeansit had the qualityandfinish so crucial for the export market.
But from the fare organization realized a new lesson that the customers are not relying on the
product as it is produced from a NGO. They are not too keen to place orders with and NGO with a
belief that is the non profit organization can be possible to deliver the goods and will it be
accountable as a for profit which strives to please its clients? This happened because some buyers
had a bad experience with NGO.
Thissituationmade the organizationaswell as both the couple helpless and they were nowhere in
the market as compared to their competitors. At last they decided to start their own venture or
proprietorship company. The company in the starting phase was unable to complete the orders in
time buttheymanageditverynicely.Injust 5 years there is a growth, diversification, bigger buyers
etc.Newproductlinessuchas footwears,tyres,andtextileswerelaunched.Inthe meantime as the
scale of operationwas high and they are well connected with the rag pickers they trained them for
their new production process as craftsperson and machine assistant. Almost all the aspects are
handled by former rag pickers.
The organizationchangedthe statusof livingandlivelihood of the rag pickers significantly and they
become factoryworkers.They take the pride, feels like an important part of the process. Conserve
India revenues were touched 5 crores by 2011 with production demand increasing the company
moved to new factory setup. Things can be done in faster way by hiring some trained persons but
8. the organizationfocusedonthe trainingof the rag pickers for their sustainability. Slwly Conserve is
movingfrombeingasuppliertobecomingabrand.Initiallybuyerswouldsimplysticktheirownlabel
onto anything sourced from Conserve. But now most of them are co-branding the bags because
telling the story its recycled heritage and social purpose- helps sell more.
Conserve has a strong commercial focus otherwise they would not be able to sustain it socially.
Today there are 300 families dependent on the project.
Waste Disposal Process:
ExclusivePoly Bags
PermanentSolution
Processing & Re use
Technological know
how
Quick Fix
Destruction through
Burning
Colleted & dumped
at far away sites out
of the residential
area
9. Suggested Frame work:
From the above structure conclusioncanbe drawnthat the traditional way of waste disposal is very
bad for the environment as well as the other aspects. Now-a-days we can observe that tonnes of
waste materials are lying in the platforms, bus stands and in the public places also. But no one is
focusedonthe transformation of the waste materialsandthe adverse effect on the environment in
the form of air pollutionandlandpollution. In my term of view it is not of a single person’s effort it
must be a group effort which can bring a significant source of income and can help the
entrepreneurswhowanttobuilduptheirownventuresinthese segment.The picture below can be
the suggested framework or action plan for the future.
Probable solutions:
The solution is the process of dealing with a problem or it is the answer or the explanation for
something.Hence there are not many solutions to our problem, only requirement is to change our
mindset towards the environment. The first probable solution to the problem is to apply the
technologyforthe waste managementprocess.Bythe helpof the technologywe canmanage it very
properly and can reduce the production cost. The second probable solution is to empower and
educate the young entrepreneurs to adopt the same transformation process by which they can be
enriched&sustainable intheireconomic condition as well as social status. In the third solution the
Technological Know
How
Promoting and creating
awareness for the
enterprenures
Adding up the Muncipal
Corportations to set up
their own processing
centres.
10. role of Municipal Corporationis very important because they are the only department who has the
duty of collection from door to door. They should come up with their own processing centre to
recycle the waste material touseful things.This may enhance the sustainability of their business in
the future days.The social enterprise whichmakes the world class handbags from the plastic waste
or “kachra” collected by rag pickers turns into million graded business.
Conclusion:
The total motto of the research is to spread the significant way of innovative and sustainable
businessprocessestothe society.We came to know abouta social entrepreneur in the competitive
market who has never looked back and finally touched to her destination. The transformation
process from waste to utility products became the sustainable business opportunity for Anita and
Shalabh. In our daily life we came across factors of the environmental degradation but we are not
seriousaboutfindingoutthe solutionandwe alsocommit the mistake knowingly. The organization
has an aimto helpthe otherminoritysectoraswell asto create a businessdynasty.Sowhile you are
inthe wayof sustainable development you have to be very sure about your environment and your
subordinates who are the road to your success.
The second vital aspect is to create a friendly environment and easy going plan for your business
which should be attractive and cost effective to fetch a sizable amount of profit as well as
sustainable in the future days. The growth of the organization leads to the sustainability and
economic freedom during its operation cycle.
Sustainable developmentrequiresameaningfulco-ordination between government and the NGO’s
who can work together and not parallel to each other. The research paper emphasizes that
sustainable development is a multidisciplinary field and we must enter into training in economic
analyses,manmanagementandresource monitoring.Tosubstantiatethe above points I have taken
the case study of Conserve India.
So whatcan be concludedisthatthe crisisin the political,socio- cultural andeconomicsphere isthat
they all compromise the sustainability of society let alone its development. We as a citizen are
equallyresponsible for this sad state of affairs. The quality of our public life has reached the nadir.
viii
The four costly failures of government and people are:
1. Failure to maintain law and order. We have too much government but too little
administration.
2. Failure to bring the unbounded economic potential od the area of fruition.
11. 3. Failure tomake humaninvestmentineducation,family planning, nutrition in public health.
In contradiction to that the physical investment in factories and plants that too could not
prove purposeful.
4. Failure toprovide effective andvisionaryleadershipeitherbycommunityor by bureaucracy.
Therefore we need a general awareness today and mass mobilization of both the administrative
machinery and the common man for propagating and practising concept of sustainable
development.
References:
i Prtyush Mani Tripathi,SustainableDevelopment,Serials ,New Delhi,Ch 1.
ii Asbm jounal of management Sustainability and its prospective.
iii I have a dream 20 social entrepreneurship by Rashmi Bansal Ch 3,Page 32 wasteland publication.
iv Srusti Management journal “Growth and sustainabledevelopment”
v Srusti Management journal “Growth and sustainabledevelopment”
vi Green Supply chain management, sage publication,ch 2
vii I have a dream, wasteland publication ch 3 Rashmi Bansal
viii Prtyush Mani Tripathi,SustainableDevelopment,Serials ,New Delhi,Ch 6