12

ENVIRONMENTAL MANAGEMENT INSTITUTIONS

“Where there is a lull of truth, an institution springs up. But the truth blows right on over it, nevertheless, and at length blows it down

—Henry David Thoreau”

Learning Objectives

  • To appreciate the importance of institutions and their effectiveness in managing the environment.
  • To understand the types of institutions at different levels and their respective roles.
  • To familiarize with the environmental management resources and expertise available in these institutions.
  • To get an idea of collaborating and partnering with other institutions for scaling up or getting better impact in the CER initiatives by the firm.

Institutions comprise individuals in systems with leaders walking the talk through their lifestyle. Environmental management institutions comprise individuals having ecological perspectives with the institutions’ leaders standing for environmental causes and aspects.

Institutions are enduring organizations having stable systems and processes, a clear mission, enduring values and strategic objectives. Organizations originate to exploit or capitalize on an opportunity, address a challenge or cause, deal with a problem or issue and manage a resource or activity. Institutions have people, place, systems, processes, procedures, vision and mission. Levels of organization of an institution may be local or national or international. A local institution will have a limited geographic area of activity as a place, while an international institution will have activities in many countries, often involving people from different nationalities. Environmental institutions can be understood better by getting answers to the what, how and why questions of the entity as depicted in Figure 12.1.

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Figure 12.1. The “Why,” ”How” and “What” of Environmental Institutions

Institutions catalyze, facilitate and regulate or produce goods, generate technology and sell services for a purpose. The vision, mission and strategy clarify why this institution exists.

How does the entity produce, facilitate, or regulate? Clear policies, systems and procedures answer the “how” question.

What “does” the institution produce, facilitate, or regulate? Example: governmental institutions sell services; research institutions conduct research and generate technology; private institutions produce and sell goods and services.

The waste problem in a city can be managed only by the goods and services of different institutions as follows:

  • Good urban governance as a service rendered by governmental institutions
  • Waste management technologies generated by research and academic institutions
  • Corporate sector institutions start waste recycling business
  • Civil society institutions create awareness, conduct training, mobilize stakeholder groups to reduce and segregate wastes and buy more of recycled products.
12.1 INTERNATIONAL AND REGIONAL ENVIRONMENTAL MANAGEMENT INSTITUTIONS

There are now more than 500 international treaties and other environment-related agreements in existence, including the 45 global multilateral environmental agreements (MEAs). Most of these are under the auspices of the United Nations (UN). Institutions under the UN framework having various mandates converge on the agenda of environment, in addition to specific environment-related conventions. The agreements under the direct auspices of the UN, others adopted by conferences and negotiating committees convened by the United Nations Environment Programme (UNEP), and the other agreements that are institutionally linked with the UN management are managed by various systems and organizations.

12.1.1 Role of UN as an institution having role in environmental management

The UN is the primary global institution using its enormous convening power in establishing international law and in creating global awareness on environmental issues. The role of UN as an institution in the protection of environment is explained in the next few subsections.

12.1.1.1 Multilateral environmental agreements (MEAs)

These agreements are instruments facilitating norm creation, promoting advocacy and knowledge transfer, assisting the parties to comply with their reporting obligations and facilitating domestic implementation. The UN is the principal arena for crafting these MEAs. New agreements are still being generated under the aegis of UNEP. Vast majority of the MEAs have been adopted since the Stockholm Conference convened in 1972. MEAs can be classified into three broad types that are as follows;

  1. Environment-related agreements adopted under the aegis of organizations within the UN system: The secretariat functions of these agreements are embedded in these organizations which manage the conventions as an integral part of their work program. For example, the International Maritime Organization (IMO) administers 50 multilateral conventions and protocols on maritime safety and marine environment, the International Labour Organization (ILO) services 11 environment-related conventions in the field of occupational health and safety and the International Atomic Energy Agency (IAEA) provides secretariat services to 5 nuclear safety conventions.
  2. Agreements adopted by UNEP: The plenipotentiary conferences and negotiating committees convened under the aegis of UNEP, globally or on a regional basis, or other non-UN bodies like the International Union for Conservation of Nature (IUCN) in the case of Convention on International Trade in Endangered Species of wild fauna and flora (CITES) come under this category. There are seven secretariats for nine global conventions and protocols and eight secretariats for eight regional conventions within UNEP.
  3. Agreements whose secretariats outside the UN management: These secretariats are institutionally linked to the UN, but are without fully being integrated into the work program and management structure of the UN. Examples are the United Nations Framework Convention on Climate Change (UNFCCC), the United Nations Convention to Combat Desertification (UNCCD), the Convention on Biological Diversity (CBD) and the Intergovernmental Panel on Climate Change (IPCC).

12..1.1.2 Instrumental role of UNEP

The nodal agency of the UN on all environment-related matters is UNEP with its headquarters in Nairobi. In implementing the global and regional MEAs, UNEP serves as an integrating and coordinating body, and thereby solves problems and sets strategic direction to actions. The specific functions are as follows:

  • Establishing the linkages between MEAs and agendas of various international meetings having environmental themes
  • Resolving potential conflicts between MEAs
  • Facilitate and inspire international environmental law
  • Capacity building of contracting parties in the MEAs
  • Financial and technical support to projects and programs at the country level
  • Preparing a research database on the gaps in emerging environmental issues
  • Sharing best practices among the stakeholders using Global Environment Facility (GEF) funding, publications, meetings, etc.

12..1.1.3 Interagency administrative coordination?

There are 27 collaborative initiatives taken by the UN organizations to achieve the Millennium Development Goals to ensure environmental sustainability. Forming sectoral groups such as UN Water, UN Ocean, International Strategy for Disaster Reduction, the Marrakesh Process and UN Energy is one of the main mechanisms of interagency coordination. Country-level coordination and regional-level coordination of programs are also the instruments of coordination.

12..1.1.4 Incremental cost funding

The 1992 Earth Summit adopted Agenda 21 and agreed on the provision of new additional financial resources by the international community to enable the developing state parties to meet the agreed full incremental costs of environmental protection initiatives, under various MEAs. Multilateral development banks and funds including GEF, environment fund under UNEP established in 1972, General Trust Funds, Special Trust Funds, MLF (Multilateral Fund for the Implementation of Montreal Protocol), form the funding framework for environmental protection within the UN system.

12..1.1.5 Administrative Services Center

In 2004, UNEP established the Administrative Services Center (ASC) in Geneva to provide administrative services to UNEP-administered MEAs’ secretariats in Europe.

Thus, the UN performs the primary role of global environmental governance through its various agencies and various mechanisms and processes, with UNEP coordinating specifically many of the activities. But the effectiveness of the UN in checking environmental degradation leaves much to be desired. Responses to environmental challenges have become sector specific, specialized and fragmented within the UN system, even though the Rio Declaration envisaged a holistic perspective. Different options to reform the global environmental governance have been put forward in recent years, such as the following:

  1. Upgrading UNEP to a real authority endowed with normative and analytical capacity and a broad mandate to review progress towards improving the world environmental situation
  2. Creating a new world environmental organization
  3. Strengthening the existing institutional framework.

The UN has the legacy and good practices accumulated within the UN system since 1972, in particular, the large body of principles and policies on environment and sustainable development, built by successive global conferences for the protection of the global ecosystem.

12.1.2 International institutions conserving biodiversity

The Earth Summit at Rio in 1992 is a significant step in focusing attention on biodiversity conservation. This was followed by various conferences and meetings at various levels. Biennial World Resources and Environmental Data reports and annual UNEP state-of-the-environment reports have been providing the required database. The World Resources Institute (WRI) formulated a global biodiversity strategy, along with IUCN, UNEP, Food and Agriculture Organization (FAO) and United Nations Educational, Scientific and Cultural Organization (UNESCO) in 1992. This global strategy offers the most comprehensive and systematic method and process ever crafted to protect the world’s total stock of genes, species and ecosystems. With a view to change policies and conserve life on the planet, a strategy for sustainable living has been published recently with the title “caring for earth” by the WRI.

UNEP–GEF support biodiversity conservation oriented projects in different countries to develop replicable models of conservation. The World Conservation Union (IUCN) is the most important conservation network that also publishes the Red List of endangered species. World Conservation Monitoring Centre (WCMC) of the UNEP monitors the effectiveness of biodiversity conservation worldwide.

Box 12.1

Kerala State Biodiversity Board

The board was commissioned a biodiversity survey through 4,000 observation points in the state. Through an Invasive Species Risk Assessment method, 89 alien species were identified as causing environmental and economic loss. They included 11 trees, 39 herbs, 24 shrubs and 15 climbers. They were establishing and spreading native medicinal plants, fodder plants and many other native plants. The pollens from some of them like Acacia and Parthenium cause allergy. Imported timber carries the seeds and eggs of plants and insects. If strict quarantine measures are adopted at seaports and airports, native biodiversity can be preserved.

An alien species alters the ecosystem and brings about changes in species diversity and genetic diversity. Many useful species that coevolved in an ecosystem perish forever when an alien species flourishes without its natural enemies to check its population growth in a fresh habitat.

Sources: www.keralabiodiversity.org/; www.kerala.gov.in; www.timesofindia.indiatimes.com

Apart from the world conservation strategy formulated by the IUCN, Global Biodiversity Assessment (GBA) is scientifically assessing the current issues. The CBD with its secretariat in Montreal, Canada facilitates conservation efforts flowing from the global agreement of the 170 countries that are parties to it.

The World Wide Fund for Nature (WWF) is an international non-governmental organization (NGO) for conservation, research and restoration of the natural environment. GEF provides conservation finance through projects. The successive editions of the global biodiversity outlook are being published by the secretariat of the CBD, reviewing the progress towards biodiversity target.

12.2 GOVERNMENTAL INSTITUTIONS FOR ENVIRONMENTAL MANAGEMENT

The main role of government institutions is to ensure compliance with law and regulations. In India, the nodal agency for implementation of law to take policy decisions and to establish environmental standards is the Ministry of Environment and Forests (MOEF) at the federal level, which is the nodal agency for the UNEP and also for the country. The ministry has several divisions, departments, committees, boards, authorities and institutes to look after separate components and aspects of the environment. National Afforestation and Eco-development Board, National Biodiversity Board, Coastal Zone Regulation Authority, Central Pollution Control Board (CPCB) and Environment Advisory Committee are the institutions within the ministry’s fold. At the state level also, there are similar structures to cater to the regulatory and oversight functions.

12.2.1 ENVIS network

The Government of India (GOI) established the Environment Information System in order to provide environmental information to decision makers, policy planners, scientists, engineers, managers and researchers all over the country. This initiative, established in 1982 with its acronym as ENVIS, developed a network of participating institutions/organizations known as ENVIS centers, with a center facility in the MOEF in New Delhi. This center, with a network of decentralized subject-oriented centers as nodes, is engaged in environmental information collection, collation, interpretation, storage, retrieval and dissemination to all who need data. Pollution control, toxic chemicals, water management, central and off shore ecology, biodiversity, environmentally sound and appropriate technology, biodegradation of wastes, sustainable habitats, energy, natural resources, environment management, etc., are the specialized areas of the networked institutions within the ENVIS network. The primary functions of this multi-location institution are as follows:

  • Creation of a database on selected parameters in the environmental subject area assigned
  • Identification of information and expertise gaps and then locating information sources
  • To establish a library facility on the environmental subject areas of importance to the country
  • Developing user interfaces on the assigned subject
  • Developing a coordinated research agenda in the environmental field.

More than 80 partner nodes are established in the network, which include 30 government departments, 36 other institutions and more than 15 NGOs. ENVIS has an advisory committee, monitoring committee and advisors. The Botanical Survey of India, Calcutta, School of Planning and Architecture New Delhi, Tata Energy Research Institute (TERI), New Delhi, Bombay Natural History Society, Centre of Mining and Environment, Dhanbad, etc., are such nodes in the ENVIS network.

12.2.2 Central Pollution Control Board

As per the provisions of the Water (Prevention and Control of Pollution) Act, 1974, this central institution was established in 1974 with headquarters in New Delhi. The powers and functions of implementation of the Air (Prevention and Control of Pollution) Act, 1981 are also entrusted with the CPCB. It serves as a field formation and provides technical support to the MOEF. It monitors air, water and industrial pollution and takes steps for their management. It fixes air and water quality standards and noise standards in the country. The main activities of the CPCB are given below:

  • National water quality monitoring program
  • National air quality monitoring program
  • Coastal ocean monitoring and prediction systems
  • Groundwater quality surveillance
  • Assessing the status of municipal solid waste
  • Assessment of diffused sources of pollution
  • Conducting epidemiological studies
  • Quality assurance of air and water standards
  • Training, awareness, manual, codes and guidelines
  • Advising the GOI, technical assistance to state Pollution Control Boards (PCBs)
  • Awards, punishments and stoppage.

Environment Star

Vandana Shiva

She was born on November 5, 1952 at Dehradun, and after schooling did her B.Sc. in Physics and M.A. in Philosophy of Science from University of Guelph, Ontario and Ph.D. in Philosophy from the University of Western Ontario with the thesis titled “Hidden variables and locality in quantum theory.” She later did interdisciplinary research at IISC, Bangalore and IIM, Bangalore. In 1982, she founded the Research Foundation for Science, Technology and Ecology, and in 1991, she founded Navadanya, a movement to protect the diversity and integrity of living resources. This movement with a membership of 7,000 farmers led to the creation of 34 seed banks and conservation of about 2,000 rice varieties in India. Bija Vidyapeeth was started in 2004 as an international college for sustainable living in Dehradun.

“Staying Alive,” her first book about Third World women, was published in 1988. “Ecology and the Politics of Survival: Conflicts of Natural Resources in India” (1991), “The Violence of the Green Revolution” (1992), “Biodiversity: Social and Ecological Perspectives” (1992), “Biopiracy: The Plunder of Nature and Knowledge” (1997), “Patents, Myths and Realty” (2001), “Water Wars: Privatization, Pollution and Profit” (2002) and “Earth Democracy: Justice, Sustainability and Peace” (2005) are few of her 20 books that were published later. In 1993, she received the Right Livelihood Award, Global 500 Roll of Honor of UNEP and the Earth Day International Award of the Earth Day International for her commitment towards the preservation of the planet. Golden Plant Award from Denmark came to her in 1997 for her contribution to ecology and environment. Sydney Peace Prize in 2010 and Calgary Peace Prize in 2011 are among the many awards she received for her environmental leadership roles. She is a leader in the International Forum on Globalization, along with Ralph Nader and Jeremy Rifkin.

She has appeared in many documentary films on ecology, biodiversity, water, etc., and sits on many boards and committees on food, water, organic farming and women’s development in many countries. In 2003, she was identified as an environmental hero by the Time magazine. She works with the Government of Bhutan to make that country fully organic.

Sources: www.zcommunications.org; www.southendpress.org/authors/17; www.navdanya.org

12.2.3 US Environmental Protection Agency

The US Environmental Protection Agency (EPA or USEPA) has a mission of protecting human health and the environment. The core values of the EPA are science, transparency and the rule of law in managing the EPA’s programs. The EPA has a strategic plan covering 2010–2015 with five strategic goals given below, with measurable environmental and human health outcomes.

  • Air quality improvement and climate change
  • Promoting sustainable development and clean communities
  • Pollution prevention and safeguarding the public health from chemicals
  • Protecting America’s waters
  • Environmental law enforcement.

There are five fundamental strategies designed to achieve the five goals, which are as follows:

  • Promote conversation and discussions on environmentalism
  • Environmental justice and children’s health
  • Innovation through research, science and technology
  • Developing partnerships between state, tribal and international environmental stakeholders
  • Enhancing the capabilities of the workforce of the EPA.

There are annual action plans, performance plans and progress reports within the five-year strategic plan. Each of the five strategies has individual plans, and the strategic goals have further strategic objectives with specific budgets and programs.

The nine issues covered by the EPA are air, climate changes, emergencies, green living, health and safety, land and cleanup, pesticides and chemicals, waste and water. On each issue, the EPA acts as a resource for people and agencies by giving both technical information and funding opportunities.

12.3 CIVIL SOCIETY INSTITUTIONS IN ENVIRONMENTAL MANAGEMENT

 

“He chose to be rich by making his wants few, and supplying them himself

—Ralph Waldo Emerson”

These are not-for-profit organizations established under different circumstances and contexts. Normally, a civil society organization establishes itself in a social space that is not occupied or serviced by the government or private sector organizations. Civil societies are groups or institutions that are largely independent of the government and are characterized by humanitarian or cooperative than commercial objectives. These are private organizations that pursue activities to relieve suffering, promote interests of the poor, protect environment, undertake community development initiatives, voice concerns of the voiceless and take up or facilitate activities that empower the disempowered. They are diverse in nature with respect to size, mission, aim and strategy. Civil society organizations are called the third sector in the affairs of a country, with the first sector being the government, the second sector being the private commercial firms (corporate sector) and the fourth sector being the media. The third sector is also called NGOs.

Environmental NGOs are civil society based non-profit organizations articulating environmental concerns either from a productive, protective, or as an alternative stand point. Environmental civil society institutions are usually founded for the defense and promotion of various environmental values and causes.

12.3.1 Functions of environmental NGOs

Civil society organizations perform all the functions that the government sector and corporate sector are not focusing on. Nowadays most of the corporate sector institutions also have philanthropy wings to perform the corporate social responsibility (CSR) or corporate environmental responsibility (CER) functions. Generally, corporate firms perform their CSR/CER functions in collaboration with a civil society organization. The government departments also create separate governmental institutions to perform some of the functions hitherto done by the civil society. Nevertheless, NGOs perform the following exclusive functions:

Environment Star

David Brower

“Friends of the Earth” (FOE) is the largest grassroots environmental network with over 2 million members worldwide in 76 countries campaigning on the current most urgent environmental and social issues. Jagoda Munic from Croatia is its chairperson with effect from November 15, 2012. More than 5,000 activist groups challenge the unsustainable economic models and promote solutions that would help to create environmentally sustainable and socially just societies. It exposes the false solutions of carbon markets, agro-fuel plantations and the hidden corporate pressure exerted over national and international environmental law and policy.

It was founded in 1969 at San Francisco in the USA by David Brower, after his split with Sierra club.

“Friends of Earth International” was founded in 1971 by four organizations from the USA, England, France and Sweden. He coined the phrase “Think globally, act locally” as the founding motto for FOE with focus on encouraging people to become involved through local group networks. He died in the year 2000.

FOE activists could achieve in its 40-year history the following:

  • Stopped more than 150 destructive dams and water projects worldwide
  • Pressed and won landmark regulations of strip mines and oil tanker
  • Banned international whaling
  • Reformed the World Bank to address environmental and human rights concern
  • Eliminated billions in the tax payer subsidies to corporate polluters
  • Pushed the debate on global warming for better legislations.

Sources: www.browercenter.org; www.linkedin.com/pub/dir/David/Brower; www.earthisland.org

  • Awareness creation about environmental issues and generating debate
  • Watchdog functions
  • Provide early warning, being close to the grassroot level
  • Networking for exchange of ideas, campaigns and exchange of best practices
  • Fund raising to ameliorate an environmental degradation
  • Advocacy and lobbying for a new environmental policy or action by the government or corporate sector
  • Research and provision of expertise to committees
  • Co-management of project and co-decision making in participatory environmental programs
  • Implementation of environmental projects in a participatory manner with greater effectiveness and efficiency
  • Conduct environment impact assessment and environment audits.

12.3.2 Important NGOs in environmental management

Companies and project managers who desire to conduct environmental impact assessment, environmental audit or launch CER projects would get support and guidance from reputed civil society organizations that have grassroot-level connections. Some of the well-known NGOs focusing on environmental issues are as follows:

  • IUCN: UNESCO created the IUCN which has membership of countries and NGOs. It offers policy advice and technical support and monitors environmental aspects. It monitors the state of world species and publishes “IUCN Red List,” and assesses the world heritage sites. It also finances conservation operations throughout the world.
  • WWF: It is the first fundraising NGO started in 1961. It creates awareness, trains people, funds projects and coordinates activities. The WWF has field-level offices in most of the countries and even at state level, which facilitate and support the environment-related activities of schools, colleges, departments, etc.
  • Green Peace: It has an activist method of functioning. It ended sea dumping of nuclear wastes in 1987 by its protest methods. It raises the level and quality of public debates on environmental issues. Green Peace uses research, lobbying, diplomacy and on-the-street events to achieve its environmental objectives.
  • Oxfam: It is primarily focusing on sustainable development by addressing poverty alleviation programs and humanitarian aids.
  • Earthwatch Institute: It creates partnerships among scientists, educators, businesses and other constituents for environmental conservation.
  • World Resources Institute
  • Friends of the Earth
  • The Independent Sectors Network
  • Biodiversity International
  • The Centre for Our Common Future
  • International Network for Sustainable Energy (INFORSE)
  • International Institute for Environment
  • Rainforest Alliance
  • Society for Development Alternatives
  • Wetlands International
  • Exnora International
  • The Climate Project
  • World Land Trust
  • The Mountain Institute
  • Copenhagen Consensus Center
  • World Union for Protection of Life
  • World Land Trust.
12.4 PRIVATE SECTOR AND MULTINATIONAL CORPORATIONS (MNCS) IN ENVIRONMENTAL MANAGEMENT

The corporate sector aids in environmental management primarily by compliance with all the relevant environmental laws, regulations and standards. Companies can strive to improve upon the prescribed environmental standards through innovations, and thereby become environmental leaders in the business. By allocating funds for CSR/CER, as part of the business strategy, the business firm can gain competitive advantages and become a pioneer or model in environmental initiatives. Companies can undertake research on environmental technologies and produce green products. Some firms specialize on generation and/or marketing of environmental technologies. Firms can promote green consumerism by adopting eco-labeling of their product range and communicate through the product packaging and advertisements. Proactively auditing the environmental impact and disclosing it to public on a quarterly or yearly basis is another practice that the companies can develop to be responsible institutions. On gaining practitioner expertise, the company staff can involve in co-management of projects and become active participants in environmental initiatives. Training all the staff to make them environmentally sensitive, so that each staff individually consumes less energy and water at their home or on transit also helps in environmental management. Equipping each and every staff of the business organization as evangelists of environmental concern through policy initiatives by the firm would be a significant service to the society.

12.4.1 MNCs in environmental management

An enterprise that has production facilities or marketing infrastructure or delivers services in more than one country is called an MNC or Transnational Corporation (TNC). International Corporation, TNC and multinational enterprises (MNE) are the other terms used for the MNCs. The Dutch East India Company established in 1602 that developed trade relationships in many countries with the strength of their ocean voyages is considered as the first MNC. The budgets and influence of large MNCs exceed some national GDPs. The local economy and the world economy are influenced by the MNCs, and they are a major contributing factor in globalization.

The existence and growth of MNCs is attributed to market imperfections. When two monopolistic firms exist in their own markets, the transportation costs, favorable access to local raw materials, tariff and non-tariff barriers, etc., isolate and protect the firms from competition and both the firms would thrive probably with unequal costs and prices. If the costs of transportation of raw materials and merchandise are reduced and/or the tariff barriers are broken, both the firms are forced to compete, which would reduce their profits. If both these firms in two different markets join together through merger or acquisition, the competition is reduced in the joint or shared market. Thus, if the joint company is transformed into one company as an MNC, the pecuniary externalities are internalized. The use of market for coordinating the behavior of agents in the two separate markets is replaced by an MNC as the coordinating institution, and thereby the inefficiencies and market imperfections are reduced. Trans-nationalization of firms as one entity need not lead to improvement of the society, unless regulations are in place and are appropriate for each country, as firms by their very nature look to maximize profits.

The above situation applies if there are no substitutes for a product or only limited licenses are issued in a market. Overseas manufacturing by consolidation of these licenses through mergers, acquisitions or vertical integrations enables the MNCs to have price discrimination schemes in different countries. Thus, the MNC acts as an instrument in restraining the competition between firms through consolidation of the firms existing in different countries. Apart from capitalizing on the market imperfections, the MNCs sustain their advantages through proprietary technology or patents, economy of scale, privileged or exclusive access to inputs, product differentiation, and efficient distribution and customer management systems.

TNCs are located or emerging from the less-developed countries also. For example, outbound investments by Indian companies increased continuously from 2003 onwards. In 2005, it was 4.5  billion USD, and in 2006, it was 10 billion USD. Gaining access to new markets, overcoming the constraints of domestic market, gaining new products/processes/technology and securing access to raw materials are the four major reasons for the companies in the developing countries to become TNCs. Companies in China, India, Brazil, Malaysia, Russia, South Africa and Mexico are becoming TNCs through mergers, acquisitions, joint venture, alliances, outsourcing and vertical integrations.

Often termed as the “the productive core of the globalizing world economy,” the number of MNCs has increased from 7,000 in 1970 to more than 40,000 by the year 2000. Just five countries – the United States, France, Germany, the Netherlands and Japan – have the headquarters of more than 50 per cent of the present MNCs, even though more MNCs are originating from emerging markets now. The 300 largest corporations account for one-quarter of the world’s productive assets. The foreign affiliates of TNCs numbering 250,000 account for most of the world’s industrial capacity, technological knowledge, international financial transactions and ultimately the power of control of resources. By way of functions, the TNCs do extract most of the world’s minerals from the ground, refine and sell most of the world’s oil, build majority of the world’s power plants, harvest much of world’s wood and make most of its paper. Thus, the MNCs as a group not only contribute the maximum to environmental degradation but have maximum resources to mitigate the degradation as well.

12.4.2 Private media and MNCs’ power in environmental management

In recent years, the influence of MNCs has been intensified and multiplied by the collaboration of media giants that have great influence on human minds and their behavior. There is increasing consolidation of media companies by the MNCs and then using the media to further the economic interests of the corporation. Even otherwise, the independent media also need the advertising budget of the MNCs for their survival and are thus dependent on large corporates.

The media plays an important role in creating favorable perceptions about the MNCs and in capturing the markets of the developing countries. The weak regulatory systems along with the paucity of capital and poor economic infrastructure compel the less-developed countries to welcome the MNCs as investors. Many developing countries count the Foreign Direct Investment (FDI) and the number of foreign firms applied for licenses as a criterion of investor friendliness of that country as a positive indicator. Social and market research, opinion building, developing interest groups, lobbying and sponsorship are used by the MNCs to capture the mind space and markets of the developing countries. Sometimes certain products are offered free of cost initially to develop appropriate consumption habits among the people. By offering cheaper and better quality products in the initial phase, and by creating favorable impression by using the media, the MNCs become an important and indispensable part in the socio-economic system of the country. Gradually, the local firms are pushed out of business due to the attractiveness in terms of price and quality, and when these local firms become loss making, the MNCs buy them. Media support through favorable write-up about the events that the MNCs sponsor, their product launches and their expansion plans help the MNCs in their consolidation in a developing country. The strong bonds of relationship, simple living and family-based social security system, traditional knowledge systems, traditional market system, food habits, etc., are impacted by the messages and products broadcast by the media.

The societies in the developing world that are hosting the MNCs aided by media are suffering from poor governance, poverty, illiteracy, malnutrition, inequity and poor infrastructure, and MNCs’ products, services and consultancies are projected as the panacea for all ills of the host society. The enormous money power, influencing ability, global network, backing of developed country base and global media within their own group or in association can be channelized to better governance system development and environmental management. If a few MNCs decide to become genuinely environment friendly rather than greenwashing, then their power is enormous in influencing the decisions in the host countries, leading to sustainable development. Corporate philanthropy is emerging as an organized attempt by the MNCs aided by the media, to shield the business activities, in the wake of growing disparities and environmental awareness. It is argued that corporate philanthropy is out of selfish or enlightened self-interest of the business firms, when 13 per cent of all Third World deaths are attributed to air and water pollution from industrial activity and there is potential for social unrest and economic downturn.

12.4.3 MNCs’ impact on sustainable development

When the MNCs enter the host societies, there are some social and economic benefits which are the two pillars of sustainable development. Some such benefits are listed below:

  • Provide financial and technological resources and expertise
  • Introduce good business practices and professional working environment
  • People have more access to comforts of life with a large variety of choices
  • Infrastructure improvement
  • Pluralism-boosting cross-country interaction among people
  • Some employment generation and thus benefits to a few
  • Contribute to host countries’ GDP and economic growth.

Nevertheless, the MNCs can also pose problems for the host societies in the spheres of social and economic development and cultural diversity as outlined below:

  • Conflicts of interest, MNCs being commercial organizations
  • Increasing materialism and consumerism
  • Corruption and crime – corrupting people to capture markets
  • Health care attitudes shift to third party cashless payments
  • Financial stress prone destructive lifestyle causing lifestyle-related ailments
  • Brain drain by attracting host country talents with higher pay
  • Cultural changes using social marketing tools and film/sports stars
  • Promotion of nonissues and diverting attention from real issues
  • Negative marketing exaggerating product qualities
  • Business promotion through charity
  • Violation of human rights exploiting workers
  • Financial stresses on the family due to overspending habits
  • Corporate interests determine what is to be celebrated and how
  • Cause change of food habits
  • Disparity of resources among people and groups become wider
  • Promotion of fashion accessories.

In order to mitigate the negative effects of globalization on the social, economic and environmental domains through the interests of MNCs and TNCs, interventions at three levels are needed.

  • Global-level interventions by the UN, its agencies, global NGOs, enlightened MNCs, regional blocs such as the European Union (EU), the Association of Southeast Asian Nations (ASEAN), the South Asian Association for Regional Cooperation (SAARC), etc.
  • National-level or country-level interventions by the governance system of the country through making laws and standards according to the local needs, ensuring that benefits and burdens are equally distributed, and protecting the interests of deprived sections of the society.
  • Local-level interventions by local self-government (LSG) institutions, grassroot-level NGOs and consumer movements.

Removing the present inequality in the power base of host societies and the MNCs by having their presence and by ensuring healthy competition between the local firms and the MNCs on a level playing field, agencies at the above three levels should develop strategies and specific programs flowing from those strategies. Such a strategy at multiple levels should aim at creating value to all the stakeholders. In such a situation, the shareholders of the MNCs benefit while the society and the ecological environment that host those MNCs are protected from determination of value. Since MNCs as a powerful group have value chains that are ancillary and auxiliary businesses, adoption of an environmental policy by one MNC will have far-reaching positive impact on the environment.

12.5 ACADEMIC AND RESEARCH INSTITUTIONS

Every environmental problem has technical solutions at the input side, process side, or output side. Even to reduce the greenhouse gases (GHG) in the atmosphere to the levels in 1990, direct technical solutions are possible. Waste management is an easy target for technical solutions. New technologies can provide energy security to every country by developing cheaper alternate energy sources or more output from very less energy. Dependence on chemical fertilizers and pesticides can be avoided, if technology is developed for high yields without chemicals. A step in this direction was cotton breeding for pest resistance.

An example of an environment-friendly agricultural technology can be found in a rice–fish culture that uses the concept of intercropping. A fish species grown in the inter-space of rice in the water jumps and hits the paddy stem; thereby, the insect pests on the plant would fall and the fish eats them. It is an example of biological control of pests in which chemicals are not used. There are possibilities to generate innovative environment-friendly techniques and technologies in all the sectors that currently have adverse environmental impact.

There are specialized academic institutions doing research on specific environment topics and general academic institutions doing research on environmental issues as one of the research agenda of the institution. Environmental science, environmental engineering and environmental management have become distinct disciplines in which there is need for continuing research. Through research, new techniques and technologies are to be found to understand the environmental impact, arrest adverse impact, and mitigate and restore the degraded environments.

Some specialized research institutions are listed below:

  • International Crop Research Institute for Semi-arid Tropics (ICRISAT), Pattancheru, Hyderabad
  • International Rice Research Institute, Manila, Philippines
  • Global Environmental Facility, Norway
  • International Institute for Tropical Agriculture, Ibadan, Nigeria
  • International Tropical Timber Organization (ITTO)
  • IUCN
  • National Environmental Engineering Research Institute (NEERI), Nagpur
  • Indian Rice Research Institute, Cuttack
  • International Geophysical Research Institute (NGRI), Hyderabad
  • TERI, New Delhi
  • Institute of the Renewable Energy Industry (IWR), Muenster, Germany
  • Centre for Earth Science Studies (CESS), Thiruvananthapuram
  • Indian Forest Research Institute, Dehradun
  • Central Marine Fisheries Research Institute (CMFRI), Cochin
  • Indian Institute of Forest Management, Bhopal
  • Wild life Institute of India, Dehradun
  • Central Food Technology Research Institute, Mysore
  • National Hydrographic Survey Institute, Dehradun
  • National Bureau of Fish Genetic Researches, Kochi
  • World Institute of Sustainable Energy (WISE)
  • National Institute of Rural Development (NIRD), Hyderabad
  • Industrial Toxicology Research Centre, Lucknow
  • Central Water Resources Development and Management (CWRDM), Kozhikode
  • Tropical Botanical Garden and Research Institute (TBGRI), Palode, Thiruvananthapuram.

Each country has its own specialized research institutions and research agenda on the issues perceived as important for the region, and the general academic institutions such as the traditional universities in each country also conduct research on environmental issues specific to the region. Even a normal university such as Harvard generates environmental management technology and techniques as better management processes, green strategy, public health process, best business processes in environmental issues, etc.

12.5.1 Integration of scientific and traditional knowledge by academic institutions

Knowledge has assumed significance in recent years as a management resource and as a source of power. Human knowledge systems are classified into two kinds: formal scientific knowledge (SK) systems and traditional knowledge (TK) systems. The SK system is in explicit format that can be articulated in formal language, specification, manuals, etc., and can be transmitted across individuals formally and easily. The format of TK system is mostly tacit which is embedded in the experiences of indigenous or local people, involving intangible factors such as their benefits, perspectives and value systems. The TK inherited from generation to generation in a socio-economic context was also subjected to SK and knowledge gained from outsiders in different periods. Thus, TK is a valuable local resource. Table 12.1 shows the differences between TK and modern SK systems.

Box 12.2

Wood

Wood is one of the oldest natural resources. It is less carbon intensive and energy consumptive than plastic, brick and metal. To manufacture 1 ton of wood, bricks, etc., the energy requirement is as follows:

Wood: 640 kWh/ton

Bricks: 2,560 kWh/ton

Glass: 8,960 kWh/ton

Aluminum: 80,640 kWh/ton

Developing new technologies to produce plywood, laminated veneer, particle board and pure wood-based industries using advanced wood technology is a sustainable energy-efficient business.

TK that evolved in particular socio-economic contexts imbibing the external inputs from time to time is considered to have superior wisdom on the aspects of sustainable development and sustainable living. The value of TK can be understood when one assesses the present lot of most of the world’s small and marginal farmers, artisans and the urban poor, in spite of many decades of centralized, technically oriented modern solutions for rural development, urban life improvement, water shed development, social security schemes and other various welfare measures. Exclusion of TK from development activities has had disastrous consequences in every region of the world where outsider knowledge has been imposed without regard to TK.

Many argue that TK in itself is not capable of addressing all the issues related to sustainable development probably because it is essentially of a fragmentary and provisional nature. Given the complexity and different social perceptions surrounding the resource management issues, the challenge before modern science and technology based solutions from external experts and planners is to develop understanding and learning about TK and then arrive at sustainable solutions. The knowledge about one plant or one bacterium in one ecosystem itself is not complete even with modern science. The complexity of the environmental and social resource systems makes it difficult for the scientists alone to develop the required comprehensive knowledge base for each and every ecosystem context, in spite of modern science adding knowledge in increasing the quantum and quality. With the knowledge that is based on the priorities of the local people and by creating a technological base that includes both traditional and modern approaches and methods to problem solving and resource use, it would be possible to achieve the goals of sustainable development inclusively and comprehensively.

 

Table 12.1. Characteristics of TK and modern SK systems

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12.5.2 Importance of TK in sustainable development

TK provides the basis for local-level decision making about many fundamental aspects of day-to-day life. It has evolved within specific environmental and social settings embedded within particular world views. People depend to a large extent on TK in the following activities:

  • Traditional fishing and gathering of forest produce
  • Construction and maintenance of houses with locally available materials
  • Storage of food, and locating and drawing water
  • Conservation of many species of plants, animals and habitats
  • Conventional agriculture, soil conservation and animal husbandry
  • Treating ailments and injury using local remedies
  • Maintaining the ecological relations of society and nature often with religious sanctions
  • Predicting the natural disasters with indicator animals and plants
  • Adaptation and coping mechanisms to environmental/social change
  • Understanding and interpretation of climatic and natural phenomena.

People, animals, plants and other elements of the universe are perceived as interconnected, and a network of social relations and obligations evolved over a period of time as cultural norms. The living was sustainable with such a holistic approach in traditional societies.

Traditional people’s knowledge about their local flora and fauna has continued to draw the attention of scientists to new species, triggering concern about bioprospecting and IPR (Intellectual Property Rights) of local communities. Traditional medicinal practices continue to provide for the primary health care needs of some 30 percent of the world population. TK informs science about natural forest management, biodiversity management, pest and soil nutrient management, agroecology, crop relations, etc. However, the role of scientific knowledge in the rapid socio-economic development through discoveries and innovations cannot be disputed. Even to mitigate the environmental and social issues challenging the world now, scientific knowledge is crucial. The improvement in the quality of life of people through transportation, health care, communication, etc., was possible only through science. But science does not have answers yet for many challenges. Therefore, partnerships between science and technology communities and local and indigenous communities will, in many areas, be essential to promote sustainable development.

12.6 ROLE OF MEDIA IN ENVIRONMENTAL MANAGEMENT

Media houses, broadcasting corporations, news agencies, publishing houses and film studios are the institutions engaged in mass communication through print or electronic media. Media has the role to create awareness and thereby initiate constructive debates on environmental issues. Print and electronic media, with their reporters and photographers in every location, can bring to light the environmental problems which would then be taken up by civil society, research institutions, or governmental agencies for lobbying or technical solutions or for regulation. Such media exposure will open the eyes of the local stakeholders to take action to prevent recurrence of the problem and for mitigation measures.

Media also has the role of reporting the research results which would be taken up by technology users for adoption. The proceedings and deliberations in conferences with environmental themes are also reported by the media, taking the message to a larger audience. Media exposure would heighten the awareness among policymakers, regulators, academicians, civil society and corporate firms, promoting each agency to play its part in addressing the environmental aspects reported.

Annual reports of the international organizations and debates in the UN conventions are widely reported by the global media which has the potential to enlist the cooperation of many countries and agencies in arriving at the solutions and then implementing them. Media reportage puts pressure on the national governments to make policy decisions to be on the right side of the environment. The disclosures and environmental audit reports of corporates are also reported by the media, prompting other corporates to follow suit.

Film festivals, documentary film festivals, children’s film festivals, etc., are the arenas to communicate environmental themes to a larger audience. Cinema is a powerful medium, and if the script writers, producers, directors and actors are knowledgeable and sensitive to the environmental issues, each cinema can bring about positive changes in the society. The film “Slumdog Millionaire” brings to light pollution, poor sanitation and other ways of environmental degradation in a large city, and there are many movies and documentaries that have the potential to bring about profound changes in the attitudes and practices of environmental stakeholders.

12.7 LOCAL SELF-GOVERNMENT INSTITUTIONS

There are people’s democracy institutions at the local village/panchayat, town and city level. Pre-litigatory remedies, awareness creation, local-level solution to waste management, water management, sanitation, zoning regulations and giving licenses to operate establishments are the normal environmental management functions performed. If people’s representatives are enlightened and have the will to act on environmental issues, many urban and rural environmental issues can be resolved in a preventive manner. Improving the environmental sanitation by establishing proper sewerage treatment plants, cleaning drainage systems, planting trees, avenue maintenance, maintaining public gardens, maintaining clean water bodies, etc., are the activities of LSG institutions.

Water and electricity supply is another important activity of the municipalities in most countries. Solid waste management has become a significant activity of the municipalities in the developing countries. Some municipalities encourage private enterprises for waste recycling and converting wastes into manure or electricity. People pay progressive garbage collection charges or taxes to make the garbage removal commercially viable. In the developed countries, the services of sanitation, waste supply and waste management are performed by private firms at the city level, whereas in the developing countries, it is done by municipal staff alone or in combination with varying degrees of private participation.

12.8 EDUCATIONAL INSTITUTIONS

Educational institutions conduct formal educational programs to generate practitioners and experts in the field of environmental management.

There are more than 40 environmental topics as the subjects of study offered by the educational institutions worldwide in the subject of environmental management, and new topics are being added every year.

Traditional formal education in forestry, agricultural sciences, environmental engineering, chemical engineering, ecology, environmental science, geology, botany, geophysics, zoology and toxicology gives expertise in the field of environmental management. Since the environment has many dimensions, many new branches have evolved over time combining sociology, history, engineering, architecture, geology, chemistry, law management, economics, psychology, etc., in addition to the traditional subjects related to the environment.

Apart from offering courses in the field of environment, educational institutions at all levels can play a significant role in creating environmental consciousness among all the students, so that the younger generation becomes ecologically intelligent. For this, the educational institutions should have an environmental policy and environmental management system (EMS). The EMS of educational institutions would address the waste management, transportation, water use, energy use, landscaping, assessing the carbon footprint and making periodic disclosures. Having an EMS itself will be educational to all the students of the institution. Educational institutions educate the students better by taking International Organization for Standardization (ISO) 14001 certification and implementing an environment management plan by involving all the students.

An educational institution can also create specialized training programs relevant for the local area where the institution is located. It can conduct training programs for different segments of the larger society, of varying durations to create awareness, impart skills and change the attitudes of general public. Educational institutions can organize conferences, workshops and seminars periodically on specific environmental themes to exchange knowledge, by bringing experts in relevant topics, thereby highlighting the issues. Schools and colleges can have nature clubs or environmental clubs and take up environmental restoration activities in the community. By having expertise in the field of environmental management, the educational institutions can offer expert advice to other institutions, business firms and development/regulatory authorities by being in committees and fact-finding mission. Educational institutions are also equipped to conduct research on all the environmental aspects affecting the local community and generate new knowledge and technology to address the issues in an innovative and locally relevant manner. Most of the environmental realities are local, either as a source of an environmental problem or as an effect, and hence local research is important which can be performed by educational institutions. These institutions can provide incubator services for environmental technologies for scaling up and wider adoption by business firms and administrators.

Significant learning for management

Environment is the concern of everyone as its impact affects individuals, business firms and communities. Business firms are an important stakeholder category impacting the environment and being impacted by environmental degradation. Addressing the environmental concerns – both preventive and curative actions – needs the cooperation and mutual reinforcement of all social, political, economic and educational institutions. National and transnational industrial and business firms’ role can be fulfilled better in a cooperative manner by an understanding of the roles of institutions in different spheres and by supporting each other. Managers having this understanding and knowledge can draw the required resources from the relevant institutions and work collectively and collaboratively to have a better quality of life for the internal and external customers of the business organization.

Questions for discussion

  1. “All institutions are organizations, but all organizations are not institutions” – validate this statement with examples from the business world.
  2. International trade and faster transportation have globalized the communicable diseases. Comment on this statement with examples and identify the actions each of the institutions should take to prevent the spread of diseases through trade.
  3. Government institutions alone will not be effective and efficient in conserving the natural resources of a country. Which are all the other institutions in your town or city that should contribute more to conserving the location’s natural resources? Assess their present level of intervention.
  4. Private and government institutions by compliance of all environmental laws, including all the principles of international environmental conferences and declarations, alone can save the planet and natural resources from any degradation. What are the reasons for the noncompliance of environmental laws by private business enterprises?

Exercises for better understanding

  1. Make a list of the components of the environmental management system and processes of the educational institution or business organization in which you are a part. Suggest measures to better the EMS in the institution.
  2. Make a list of environmental aspect reporting made by a daily newspaper that you read and assess the positive role played by the newspaper. It would be a good idea to write a letter to the editor, with suggestions for improving the environmental reportage of the newspaper.
  3. Identify an environmental NGO having presence or activities in your town or city, and analyze the impact of its activities and differentiate the specialization of the NGO from the other institutions in the locality that are engaged in related aspects of environmental management.
  4. Make an assessment of the activities of international environmental management institutions in your country, their method of carrying out the activities and their impact on other domestic institutions, environmental policy and actions.
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