Corporate Environmental Responsibility

Humans can have plenty of desires at once and always want their desires fulfilled. We want to be at comfort, for which we are ready to exploit anything and everything, be it our very Mother Earth.

We barely look at our actions when using these precious resources for our greed; only when it’s too late that we realize how far we have come in destroying natural beauty in the name of development. As a coexisting species on this planet, if we have a right over the provided amenities to use as per our needs and greed, then we do have a responsibility to protect and preserve this gift of nature. We remember our rights but forget our duties.

Every citizen of a country should contribute to environmental causes in some way or the other. In this case, let’s talk about India.  As of now, you might have a rough idea about the topic we will be diving into. So, in this article, we will talk about our responsibilities towards the environment, in particular, we will be discussing Corporate Responsibility for Climate Action. Stretching our discussion to multiple facets of this topic, we’ll try to have a deep and clear understanding. So let's get started.

What is corporate social responsibility?

Let’s first understand social responsibility. It is a moral obligation for an individual or an organization to take decisions and actions in favour of society or the common good. In an ethical framework, everyone is expected to be sympathetic enough to understand the plight of others and help people for the sake of humanity. 

Corporate Social Responsibility means the same for a company or a corporate organization. These responsibilities include being charitable, providing professional volunteering, setting philanthropic goals, funding NGOs, standing up for environmental causes, etc. 

For now, our focus is environmental/ climate causes. Corporate Environmental Responsibility (CER) refers to a company’s duty to abstain from harming natural resources and make efforts to preserve the dignity of nature. 

CER in India

In India, there are rules and regulations to govern corporate responsibilities. The  Environment Impact Assessment (EIA) notification of 2006 specified the industrial sectors which make a direct environmental footprint. They are required to take Environmental Clearance (EC) from the Ministry of Environment, Forest and Climate Change (MoEFCC) before beginning any new project/modernization/ expansion of the existing project/ change in product mix. Also, the ministry may put certain conditions on the company, which, if implemented unsatisfactorily, it then has the right to revoke the EC granted. 

One such specific condition imposed by the MoEFCC while issuing the EC is that the applicant should undertake CER based on the local needs and that it should be restricted around the area of the proposed project. Other than that, as per a memorandum, a certain percentage of funds has to be allocated for CER. It also states that CER duties should be treated as a part of the project and monitored on a regular basis.

Another memorandum titled “Standardisation of Environmental Clearance Conditions for Non-Coal Mining Sector”, issued by the ministry in 2019, further streamlined the procedure while undertaking CER activities. It is pertinent to note that even before the issue of these memorandums, the Expert Appraisal Committee for Environmental Appraisal in 2015 had noted: The corporate sector should be asked to perform welfare functions for social interests as the business entrepreneurs are trustees and not the owners of society.

Role of the employers

A company is made and defined by its employees; it is necessary to have a motivated and dedicated team for the organisation to achieve its tasks on time.  So the question is: How to motivate employees to contribute towards CER?

• First of all, they need to see these tasks as a part of their job. 
• Second, employees should be appreciated for playing their roles in achieving the deadlines. Appreciation is the key to keep them motivated to take up more such social responsibilities. 
• Third, there should be time-to-time sessions or seminars to spread the word about CER and conduct such activities so that the employees take up these tasks voluntarily.

An employer’s strict adherence to the rules is necessary to make sure, that the organisation is at par with societal expectations and governmental norms. Also, the employer-employee relationship is a major factor to be considered while complying with these notifications. So, it’s important to maintain good relations with the employees and provide them with a friendly working environment for their mental peace as well as the company’s growth.