Environmentally Sustainable Business

Globalization and ever-changing advances in information technology and the emergence of ethical investment opportunities have resulted in an increased focus on community and business smooth relationship. Globalization resulted in cross border flow of people, products, information, and money. At a different levels all over the world, globalization is resisted by societies or communities concerned with the social and environmental implications of large companies (say MNC’s) operating throughout the world. Therefore it becomes increasingly important for organisations to attempt to be proactively responsive to social and environmental issues in order to ameliorate to social concerns (Panwar et al. 2006). Corporate social responsibilities are defined as “an obligation to pursue those policies, to make those decisions, or to follow those lines of action that are desirable in terms of the objectives and values of our society” (Bowen, 1953, P.6). However, there is no universally accepted definition but several models have been developed.
The Continuum model of business responsibility conveys a proportional set of responsibilities of the firm such that larger elements represent greater responsibilities. According to the model, the firm’s primary responsibility is economic success followed by legal, ethical and discretionary responsibilities. Ethical and discretionary responsibilities espoused by Carroll (1979) and have been further developed. Another model called the multidimensional Construct (Niskala &amp. Tarna, 2003) is introduced by emphasizing the interdependence among economic, environmental and social dimensions in responsible business behavior. Finally, Zadek (2004) proposed 4-stages maturity model (fig.-1) having different organizational stages through which business organizational deals with social and environmental issues. The first stage is the latent stage where active communities and NGO’s are aware of the societal issues but generally, issues are ignored or dismissed by business communities. The next stage is the Emerging stage where Political and media are aware of the issues and leading business also tries to deal with the environmental and social issues adopting different approaches. The third stage is the consolidation stage represented by those business organizations which frame their business policies and practices around societal issues, organizations normally establish sector-wise and issue base voluntary initiative which takes care of societal issues. Through the litigations and legal approaches, all the issues are addressed. In the process, voluntary standards are developed and collective actions emerge. Finally, the fourth stage in the organization emerges with the institutionalization of social and environmental issues and some system, legislations or business norms have been established. By adopted as a system, the issues related to social &amp. environmental aspects embedded in the system and act as normal parts of a business excellence model. Now we will discuss the London Underground (LU) on the basis of the maturity framework for its social and environmental policies. As we know LU is the oldest underground railway system that began in 1863, now operates seven days a week and covers most of London.

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