CORPORATE GOVERNANCE AND ETHICS

Assignment on Edx Courses

SUBMITTED TO SUBMITTED BY
PROF. SUNIL B AMIT KUMAR SAH
PRN: 17021141120
SEC: A
BATCH 2017-19
DATE: 3RD JAN, 2019
Week 1
What is Sustainabiltyy and Why Should Strategists Care?
The course strategy and the sustainable Enterprise basically emphasises on the
emerging relationships between sustainability issues, non-market environment and
competitive advantage.
Development is rapid all over the world. And in the course of development the world
is advancing but at a greater cost. We have aster means to accomplish the works
but the current use of those relaxing technology he are indirectly hampering the
environment to fulfil our needs and thus spending a millions of dollars to again clean
them.
So, what is Exactly Development?.
According to the World Commission On Environment And Development,
”Development that meets the needs of the present without compromising the ability
of the future generation to meet their own needs. But the question still remains, Can
we keep doing without getting the additional resources without hampering the future?
Sustainability has become an increasingly trendy topic, especially in the corporate
world. Simultaneously corporate sustainability initiatives have flourished, driven by a
desire to minimize risks, maximize opportunities and enhance reputation. But what
does sustainability mean in the business context? Why has it gathered such
momentum in both academic and corporate worlds? How can businesses manage
emerging sustainability related concerns, transforming themselves into 'sustainable
enterprises' in the long run?
Thus sustainability can be said as doing any business or making progress that not
makes our lives better but also takes care of our future. As we know optimum
utilisation is the one of the objectives of the business, but modern world it has
changed and it’s the ability to endure, it’s about translating social and economic
welfare into commercial success.
The world is becoming a global hub. And around 50 corporation in the world control
over US9 trillion which nearly equals the combined GDP of 161 countries of the
world put together. These corporation of the have created a linkage between the
global economies. And the change in one economy impacts the other. Thus it has
become necessary for the corporation to look at the impact of the other global
economy. Thus governments are becoming like corporates while corporates are
beginning to behave like national governments.
With the advancement of technology there is no doubt that it has bought us some
good but every bright side has dark phase thus along with curing of disease the
population of the world is too increasing and is expected to cross 9 billion by 2050
which will be condition for worry for the world as to how to sustain them and how to
allocate our limited resources.
We know that technology has brought distant people together but the same technology
is causing greater damage than good. Today the rise and fall of the government is
also being affected by the technology apps, means etc. thus as technologies evolve
society has become more apprehensive and worried about their impacts.
The rapid development has not only brought us pleasure and further advancement to
matters of time and the universe but along with it has brought us the cold war
between nations of the world and the nature verses man. And as a result of it we are
facing droughts, global warming, rising of sea level, floods, etc and of the conseques
man is facing its wrath.
So what is Strategy?
Strategy is about winning in the market place. But what if winning now means losing
big in the long run. But what if its losing a bigger opportunity that are yet to come just
for the sake of small time benefit.
But what is the basic concept of doing business successfully? In conventional
business school language, it is growing income over expenses, growing the asset
base and getting increasing returns on Investment. So, how are we managing the
earth's resources? Unfortunately, instead of growing income over expenses, we tend
to hide and ignore costs. We are depleting the planet's asset base and investing
more to produce less.
Growing concern about the state of our planet have catapulted sustainability issues
from the corporate back burner to the board room. Today more firms than ever are
examining and redesigning their strategies, structures systems and processes to
minimise the negative social and environmental impacts while maximising the
shareholders’ value.
The rules of the game have been changed and there are newer players at the table.
Silent but powerful. Questions still remain, how is sustainability concerns influence
corporate performance in future? Which new models of decision making and
paradigm. Can sustainability turn out to be the next source of competitive
advantage? What would be the next best practices? What new competencies would
you need to succeed in this changing context?
Week 2
Managing sustainability risks
Managing Sustainabilty gives us the highlights of the globalisation and offers
theoretical and real-world insights into why and how globalisation can be used as a
conduit for sustainable development.
An issue is any trend, event, controversy or public development that might impact
the corporation. Issues may have its origins in social, political, regulatory or judicial
environments. When we refer to managing an issue, we're referring to the approach
that a corporate adopts to deal with challenges to its strategies, plans and
assumptions. How do we identify if a problem is an emerging issue? One the terms
of debate are not clearly defined. Two, the issue deals with matters of conflicting
values and interest and often there is no one correct solution. Three, automatic
resolution is not available. Four, the issue is often stated in value-laden terms.
So, how do you deal with issues?
This is mapped as a four-stage process.In the first stage, most issues can be traced
to some initial concerns that may have surfaced in campaign group agendas or from
academics or specialists working in this field. In stage two,concerns begin to
circulate around opinion formers and the level of noise in the system, particularly in
the media, goes up. This is when interest groups are formed and the terms of debate
framed. Notresponding at this stage has two adverse consequences. One, the issue
may get framed in ways thatyou don't prefer. Two, framing also draws the
boundaries for the search for solutions. Not activelyengaging at this stage can make
or break your company literally. In the third stage, leading politicalagencies adopt
policies to deal with the issue. Legislation and regulation follows. Businesses begin
lobbying if the issue appears to be headed for new laws that may constrain them.
Unfortunately, it may be too late. In stage four, regulation is passed and litigation
happens. Costs and penalties are a portion to the players. The issue normally heads
to a resolution.
How do you deal with issues? There are a number of frameworks and models for
dealing with issues. Here is one that I found quite interesting. It looks at managing an
issue using a stage model. The first step is identifying the issue by looking at leading
events, leading authorities or advocates, literatureand so on. In the second stage,
you analyse the issue, identify who are the stakeholders or interest
groups, what are their positions of influence, how has the issue evolved over a
period of time and how is it likely to move in the future? In the third stage, prioritize
the issues. Prioritization is often done by using expert panels, content analysis, trend
extrapolation, scenarios or polls and surveys. It the next stage, formulate responses
to the issue. This may include identification of alternatives, doing a tradeoff analysis,
building stakeholder coalitions and so on. In the next stage, implement your
responses, prepare contingency plans and finally, monitor and evaluate the results to
ensure that you've got the results that you wanted.
Globalisation is associated not only with significant economic development
opportunities but also with pressing environmental and social challenges.
We know that the population of the world is 7 billion and is expected to hit the 10
billion within a century. But the major question that arises is that will all the 10 billion
people be happy? Will it be sustainable for them? Will we be able to feed them? Can
we provide them education and create job opportunities? Thus it is important for us
to know the way of globalisation and the impact of it as we face a number of
impeding social, economic and environmental challenges that requires global
attention and strong political will resolve them.
Unlike the developed countries, some developing countries such as Bangladesh
contribute to less than 0.01% of greenhouse gas emissions but yet it is one of the
vulnerable places in the world due to the effects of climate change escalated by the
emissions from the developing countries. The prospects of local solutions in
countries like Bangladesh look much more realistic with globalisation than without it.
Week 3
Managing Organisational Crisis:
What additional lessons for risk management can you gain from this? First, it is
necessary to map issues and manage risks at the earliest possible time. Two, a
broad approach to managing risks would be to identify each risk and then ask the
following questions. Which risks can be eliminated? The high-impact, high-probability
risks need to be eliminated. What can be reduced by using internal strategic controls
or actions? Three, what can be transferred? For example, by way of insurance. Four,
the risks that cannot be eliminated, reduced or transferred need to be accepted and
the organisation needs to deploy resources to manage these risks. Another
important point to note is that risks and opportunities are two sides of the same coin.
If you see climate change as a risk, you maintain a defensive strategy. Else, you
maintain an offensive strategy and create great reputation and become a leader in
climate-related products.
Family businesses are the most common type of enterprise in the world and perhaps
the most complex. This tries to explain us the unique skills and knowledge needed to
manage and sustain healthy family enterprises. Core topics include strategy,
leadership, conflict resolution, entrepreneurship and communication
From global firms like Nike, Heineken, Hermes, IKEA, Bharti Airtel, Toyota, Lee Kum
Kee, and Hershey, to small local establishments, family firms drive economies and
employment around the globe. This course is designed for anyone whose work
intersects a family business – whether you are an entrepreneur, an owner, an
employee, a family member or an advisor to family business.
If a single sheet of paper represents all the companies in the world, a small piece
torn from the sheet represent the public companies and the rest of the sheet
represent family businesses. Family enterprises make up over 2/3 of all economies
around the world, across industry. Whether it’s a corner grocery store or a multi-
billion dollar company the challenge complexities are the same.
Today many parents have a dream that their child would be the new next president of
the company. But some got the skills to take it higher while some don’t and that leads to
downfall thus this course helps in navigating the business and family complexities.
Family business is foster passion. Passion brings dedication. Passion can also bring
conflict if not managed well. Thus one should know the real tools like decision
making, leadership and how to address and mange conflicts.
Week 4
Transforming into sustainable Enterprise
The creation of new markets is worth reemphasizing because the biggest gainers in the
sustainability game are often new entrants, who are able to enter in trends markets
because of changed conditions. This is because sustainability issues may erode existing
basis of dvantage and change the key success factors for the industry.
Sustainability, especially environment management is viewed as a cost of doing
business. Generally, coping strategies are characterized by a period of wildly
fluctuating environmental performances and even mishaps. The central focus at this
stage is on limiting potential liabilities. Such strategies may be successful in the short
term but eventually they lead to crisis causing loss of legal and moral legitimacy, loss
of image and profits to the firms concerned. At the other end are firms that adopt
highly sensitive, or what could be called as proactive, stances. There's a conscious
effort by such firms to anticipate and seek solutions to sustainability issues that are
expected to arise in the short to medium term. At the highest level, there are
attempts at corporate transformation by transmitting the values and ethics, which are
consistent with the paradigm of sustainable development. In this mode, companies
incorporate long-term sustainability needs of the stakeholders into their strategic
planning, if needed by linking up with the government or research and advocacy
organizations and even competition. The underlying philosophy is that the firm is a
trustee for the resources of future generations.
Strategic measures are normally carried out at the level of the firm or the industry.
These involve choices in corporate strategy and may involve restructuring, including
exiting, or entering new businesses, or creating new joint ventures and alliances.
At the functional and tactical levels, sustainability efforts involve managing
environmental, social, or economic impacts across the supply chain; and in some
cases, specific initiatives within the firm to improve operational efficiency or manage
sustainability impacts.
Finally, at the tactical level are the short-term measures to deal with an immediate
sustainability crisis or opportunity, especially those that impact reputation and
product integrity.
So, here is a map adapted from one created by CottonConnect, a firm that has done
some fantastic work in this area. While both LCA and SLCA are very effective
decision support tools, there are challenges. Determining system boundaries for
measuring impacts is rather problematic. Identifying social impacts and creating
standardized measures can also be difficult. Not every impact can be reduced to a
number. And finally, costs for doing such an exercise can also be quite high.
Regardless, it is still an important decision support tool for firms looking to minimize
the environmental and social costs of their products and processes. A good example
of a firm that does this is Procter & Gamble. P&G has used these techniques
extensively to evaluate their product decisions.
Ecological footprint for an organization can be scoped as required for decision-
making. Several variations of the ecological footprint have been developed in the
recent years. An example is the carbon footprint. The carbon footprint measures the
total carbon emissions emitted over the full life cycle of a product or service either
directly or indirectly. We can extend this to create greenhouse gas footprints, which
will now include all the six Kyoto protocol designated GHG gases, namely, carbon
dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur
hexafluoride. This is usually expressed in grams of carbon dioxide equivalent. The
Greenhouse Gas Protocol, also called the GHG Protocol, was developed by the
World Resources Institute and the World Business Council on Sustainable
Development, and sets global standards for how to measure, manage, and report on
greenhouse gas emissions.
Can we also take a more system's perspective in resolving these problems?
Traditionally, we assumed a linear model of the industry, that is, a linear supply chain
model. This operates on the assumption that there is an almost inexhaustible amount
of resources to go around. What dominates now is a model in which some materials
are recycled back into the industrial ecosystem, but still we continue to industrialize
at a rate that is depleting the earth’s resources

It has become almost impossible to imagine what our lives would be like without the
many benefits of packaging - just think about the different packaging and single-use
items you use on a daily basis. Yet as our global population grows in size and
affluence, both our collective demand for packaging materials and the waste we
generate as a result will increase dramatically. Currently, large amounts of
packaging waste escape formal collection and recycling systems and eventually end
up polluting the environment. Moreover, their material value is forever lost to the
economy. The Ellen MacArthur Foundation estimates that uncollected plastic
packaging waste alone is worth somewhere between 80 to 120 billion dollars a year.
So how can we improve packaging systems in order to capture this wasted
potential? Clearly, the way we currently design, recover, and reuse packaging
urgently needs a rethink!
This course enlightens is how sustainable strategies can transform a trillion dollar
industry, the packaging industry. We need packaging to store and transport our
products and to protect valuable goods and to preserve our foods. However energy
and material consumption are rising and packaging waste pollutes the environment.
In contrast to our current industrial models which extracts, uses and disposes of
resources, a circular economy is regenerative by design. This means that products
and their packaging are reimagined from a system perspective. In order to minimise
waste and keep resources locked in a cycle of restoration.
So thus this course discusses the specifics of recycling, reuse, renewable materials
and implementation of circular packaging systems.
Week 5
The Anarchist Corporation
The Anarchist Corporation is about how to translate natural resources wealth into
sustainable development outcomes.
Natural resources represent a potentially transformational opportunity to support
development but are ultimately finite How do we make the most of them without
destroying the planet? In this 12-week course, produced by the Natural Resource
Governance Institute, the Columbia Center on Sustainable Investment and the World
Bank, learn about efforts to sustainably manage extractive industry investments, the
complex and interwoven aspects of natural resource governance and become part of
a global movement of citizens and practitioners committed to harnessing the
transformational impacts of our natural resources. This course is for: -Sustainable
development practitioners – as well as private-sector actors, such as those who work
in corporate sustainability and responsibility or renewable energy – who need a
historical context of the extractives industry and its evolution -Extractive practitioners,
such as those who work in oil, gas and mining, who are interested in making the field
more sustainable -Graduate students and advanced undergraduate students
studying extractives, environmental science, environmental law, sustainable
development, sustainable business and related fields -Climate change activists or
practitioners looking to understand the balance of sustainable resource use and
business investment
Today mining has become so important that it produces and the technologies and
tools that it enables that we even define the timeliness of human history according to
what is brought up from the ground.
The natural resources are the biggest opportunity for the rapid development that
many poor countries have and the super cycle that lasted 10 years has been the
biggest opportunity that we have had in history.
However these opportunities come with great challenges, the resources curse, the
governance challenges, the social exclusion that can come, the depleting resources,
leaving the future bereft of resources if one doesn’t take care and the environmental
challenges. All together that means the extractive sector is really at the heart of
sustainable development challenge.
Thus it an important challenges and opportunities with the world’s leading experts in
natural resource governance and sustainable development.
We can become part of the solution to how countries can take decision which harness to
how countries can take decision which harness resources for sustained prosperity.
The real question is, “How do we sustainably address the world’s population, 2/3rds
of whom may fall in the bottom tiers as explained earlier?
To me it is breaking the compromise that the poor are faced with. The quality-price
combinations of products generally available in other tiers of the market do not meet
the expectations of the consumers at the base of the pyramid. And, therefore they
are forced to compromise. If that’s the case, then we need to redefine our problem
so that we can get some new insights for solving them.
Creating Successful BOP Models:
What are the dimensions of truly meaningful BOP models?
Meeting Basic Needs: A successful BOP model should be meeting a basic need of
the bottom of pyramid. This is because for BOP there is only a certain amount of
individual buying power and hence a certain basket of products that can be
purchased. Creating Access: Access is defined as the ability of the BOP to avail the
benefits of the products and services being offered. Measures of access include:
reach - the number of people the product or service becomes available; buying
power; reduction in product complexity; and awareness levels.
Short and Long Term Financial Viability: The model should be viable in short term
and should have to rely on charities or grants.
 Economic, social and environmental sustainability: In the long term a BOP model
will have significant economic, social and environmental impact because of the sheer
numbers involved. Thus it should also be sustainable in a long term.
Competition: The BOP model should have some element of competitive superiority
against competing products and services in tier 1 sector. At the very least it should
have parity with competition, in terms of quality of products and services offered to
the customer
Scalability: Business models that are location specific or have constraints on
growth potential, will serve only a very small section of BOP. Scaling up the
operations, products or services will pose new challenges. Hence a precondition for
success precondition for success is that such models should not have an inherent
disadvantage in overcoming scalability problems.