Question

what is the role of corporate houses in the clean environment ?​

Answer 1

Answer:

Organizations and corporate houses around the globe are increasingly recognizing the importance of demonstrating transparency and accountability beyond the traditional domain of financial performance. A primary reason for this is an even greater increase in public expectations from organizations and industries to take responsibility for their non - financial impacts, including impacts on the environment and on the community. Consequently, environment has taken the center stage and the western ‘green’ wave of the sixties is more powerful now than ever before.

The industrial sector is largely governed by the market which works using sound economic principles. However, the ‘green’ wave of sustainable development led to the formation of a new subject called Environmental Economics! The underlying principle of Environmental Economics is the concept of externality - that some effects (say the pollution it causes) of an activity are not taken into account in its price which may destablize the market. Environmental Economics coupled with Environmental Policy & Law led to some interesting and unique measures of ensuring that corporate houses carry out their activities in an environment friendly manner. A few such measures are briefly discussed below.

Environmental Impact Assessment (EIA) is a corporate planning tool that is now generally accepted as an integral component of sound decision-making. The objective of EIA is to foresee and address potential environmental problems/concerns at an early stage of project planning and design. EIA systematically examines both beneficial and adverse consequences of the project and ensures that these effects are taken into account during project design. But what is most important is the fact that EIA is a ‘legal’ and mandatory requirement and has to be carried out by every corporate house before it can initiate a new project which may have a considerable impact on the Environment. In fact EIA is probably the only tool in the hands of environmentalists that has teeth. It is legally binding and anyone not abiding by it can be taken stratighaway to the Supreme Court.

ISO 14001 is an internationally accepted standard that sets out how a corporate house can go about putting in place an effective Environmental Management System (EMS). The existence of the standard allows organizations to focus environmental efforts against an internationally accepted criterion. The standard is designed to address the delicate balance between maintaining profitability and reducing environmental impact. ISO 9000 quality registration has already become necessary to do business in many parts of the world. Thus, the fact that companies may soon need environmental management certification to compete in the global marketplace easily overshadows all ethical reasons for adopting ISO 14001.

Answer 2

Explanation:

Corporate Environmental Responsibility (CER) refers to a company's duties to abstain from damaging natural environments. The term derives from corporate social responsibility (CSR).[1