EASTERN AND SOUTHERN AFRICAN MANAGEMENT INSTITUTE

(ESAMI)
EXECUTIVE MBA PROGRAMME Environmental Management for Business

EE 502 PROJECT
PROJECT TOPIC:
Design an environmental management system (EMS) for an organization

SUPERVISORS NAME: Dr. J. M. Onyari Prepared by: FRED RAPHAEL Reg. No. 19EDA10107

TABLE OF CONTENTS Page ASSIGNMENT TITLE .......................................................................................... ii 1.0 1.1 1.2 2.0 2.1 3.0 4.0 5.0 EXECUTIVE SUMMARY ......................................................................... 1 NIC (T) Ltd And Business /Structure/ Tasks and Procedures ...... 1 NIC (T) Ltd Vision, Mission Statement and Values. ..................... 2 NIC (T) Ltd ENVIRONMENTAPOLICY STATEMENT. ........................... 18 The Commitment and Responsibilities of NIC (T) Ltd . ............... 20 ENVIRONMENTAL MANAGEMENT PROGRAM .................................. 22 CONCLUSION .................................................................................... 24 REFERENCES ....................................................................................... 25

ASSIGNMENT TITLE Design an environmental management system (EMS) for your

organization. Hint: You may follow the following planning steps: 1. Give a description of your organization s business including structure, tasks, procedures, etc. 2. Identify the composition of the environmental committee that will be involved in designing the EMS. 3. Identify the processes, issues, and areas of environmental

relevance. 4. conduct an organizational environmental review, and present your findings in the form of: 5. Formulate an environmental policy statement, clearly stating your Vision, Mission, Objectives, Strategies, Commitments, and Responsibilities. 6. Prepare the environmental management program for

implementation in order to achieve your objectives and targets. 7. Present all your work systematically in a single report your EMS planning document.

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1.0

EXECUTIVE SUMMARY Designing of an Environmental Management System (EMS) for my organizations part of the Environmental Management for Business (EE 601) course. My organization is known as National Insurance Corporation (T) Ltd; like many insurance companies, my organization has a fully fledged corporate social responsibility as one of its core values. This raises the issue of personal responsibility and willingness of rank and file members of the insurance community to fly the green flag. Commitment to change staff behavior by starting to use less energy and or using basic conservation techniques like shutting off lights and equipments when not in use, which can help to reduce energy bills. Environmental compliance operations. management and continuous system (EMS) involves of such procedures for

systematic analysis of environmental impact; it sets goals for performance, improvement environmental policies, This encompass recognition of environmental problems;

emergency of public awareness, setting of environmental

regulations and monitoring of such performance. Thus the Environmental Management System planning (steps) designing for National Insurance Corporation (T) Ltd.

1.1

NATIONAL INSURANCE CORPORATION (T) LTD AND BUSINESS/STRUCTURE/TASKS AND PROCEDURES As the name implies, the organization is involved in insurance business registered and incorporated since 1963 in Tanzania, Head office is along Samora Avenue/Pamba Road in Dar es Salaam with branches geographically dispersed in 25 regions of Tanzania, in addition to four branches within Dar es Salaam city.

1.2

NATIONAL INSURANCE CORPORATION VISION, MISSION STATEMENT

AND VALUES. VISION To be a premier insurance provider in the region (East and Central Africa) NATIONAL INSURANCE CORPORATION (TANZANIA) LTD NIC (T) Is a market leader of the insurance industry in Tanzania, in terms of premium income, asset base and has a country wide distribution network to reach every customer/client. MISSION STATEMENT To provide high quality customer focused insurance services to organizational, commercial, and personal line clients through innovative marketing, efficient and effective management of resources, thus maximizing stakeholders returns and remain market leader. NIC shared values ( That.. Customer first High quality service, High integrity Team spirit; Performance oriented workforce; Social responsibility.

Composition of the Environment Committee involved in the designing the environmental Management System (EMS) o The project aims to introduce green office practice which can also inculcate green values in all employees from the first time they are

employed and continuously; therefore members of the committee will include: The Managing Director (who is the Chief Executive officer of NIC (T) Ltd); The Director of Finance and Administration The Directors of both divisions (life assurance and the Non life insurance products); The Corporation secretary who is also the Secretary to the board of directors and a lawyer by profession). The Chief Manager, Human Resources and Administration (who is responsible for overseeing purchasing/supplies/staff allocation/resource allocation etc) All heads of Departments at the Head Office and the 25 branch Managers; Four representatives from a group of intermediaries (i.e insurance brokers, agents, risk surveyors and loss adjusters); Two representatives from the Trade union representing employees ( one man/one woman re-gender representation in sensitive issues); One representative from the Department of Ministry of Finance ( - the Commissioner of Insurance office which is the supervisory and Regulator of Insurance business in Tanzania). o Note: The above committee members comprise of; from the top management to the workers representative. The grouping has taken into consideration the need for higher/top management team commitment on the Environmental management System and the significance for collaboration with other departmental heads workers representative/Trade Union, Intermediaries (brokers/agents/risk-surveyors, loss adjusters etc), and the Insurance Supervisory department, (under the Ministry of Fiance) as a

Supervisory and regulatory body. environment management

All have an important role in National Insurance

towards the development, control, and enhancement of the system Corporation (T) Ltd; and to gain a vision of a sustainable future. * The committee will be responsible for: To first provide the organization with a strategic framework for environmental management (here analysis of the environmental trends and pressures should be presented i.e constraining regulations, legislation, ISO 14001 etc) To analyse the organizations activities for environmental impact (i.e products and services, procurement, marketing, sale and distribution, legal, personnel, Health and Safety, financial and other Public affairs). To design an Environmental Management System (EMS) for the organization with the aim of achieving a systematic approach in addressing corporate Environmental concerns (i.e Management and organization to getting top managements support; Board of Directors involvement; organizational relationships environmental functions; participation of all employees etc. Technology issues research and development, any pollution control, energy conservation or recycling; To develop Environmental policy with current organizational practice and integrations (i.e besides the fully fledged corporate social responsibility as one of its core values but to raise and ensure of personal responsibility and willingness of rank and file members of the insurance community to fly the green flag; just because we dont work in factories belching out columns of acrid smoke or tipping toxins into the water table, does not mean we can avoid our responsibility to raise environmental awareness).

 To

ensure

that

all

environmental

regulations

and

registrations

are

implemented and adhered to; To formulate environmental friendly practices that will reduce financial costs and liabilities and to identify environmental risks related to the insurance industry which may lead to loss of lives, properties/assets of policy holders, but the public in general being a champion of insuring the public at large and thus dealing with life, NIC (T) should notice the human influence on the global climate system, in that changes in weather patterns are causing more insured weather losses. To implement, supervise control and monitor the environmental

management system continuously (noting the environmental value chain); Processes/issues, and Areas of Environmental Relevance to National Insurance Corporation National Insurance Corporation is a professional insurance organization which requires both high degree of labour intensity, integrity all the time, since it is involved in a high degree of customer interaction and customization. This involve further understanding and analyzing risk exposure, assessing through past events and current global concerns uncertainties and determining limits to insurability. Findings equip insurers to develop optimum insurance products where solid information is available on environmental risks, changes in risk magnitude and probability overtime, and the level of risk acceptable to policy holder. (those who opt to purchase insurance covers). However, besides its functional strategies such as operations, marketing, risk management, finance (investments) and human resources that are aimed, at contributing to the organizations ability to achieve and maintain its competitive advantage in the market place, because of theoretical and

practical limits to how well and precisely future risk can be know, insurers face a certain degree of uncertainty most of the time. Therefore, it is only natural that insurers have keen interest in the human (public/subject matter of insurance/property owners etc) environmental performance and risk exposure, as well as systems that are in place for addressing them. Thus insurers need reliable and verifiable data and a Here is where the thorough analysis in order to understand/comprehend the uncertainties associated with loss prevention and indemnification. relationship with Environmental management System is obvious; reliance on information from a well designed EMS that conforms to standards such as ISO 14002, will make the task of detecting or reducing uncertainties more dependable and manageable too. On top of this, the task of analyzing through assessment of continuous good practice in insureds (who had purchased insurance) environmental performance will become a methodical and analytical exercise that augments expert judgment and experience (in insurance practice Risk management programmes are recommended as best practice too). Incorporating Environmental management System and ISO 14001 standards will be of assistance to insurers like National Insurance Corporation as it can adopt a holistic systems view of environment management. Through EMS and ISO 14001 evolution, National Insurance Corporation will be compelled to take a comprehensive and integrated approach to their own environmental management structure and function. NIC (T) will seek products and services that respond to this evolution by establishing long-term relationships with its clients and other stakeholders besides shareholders only. * National Insurance Corporation (future perception issues and areas of environmental management relevance).

NIC (T) understands that providing high quality services today is mandatory, for the long-term success of the organization. Therefore it strives to speak the same language as those in academic and industry, pointing out to mutual crucial issues to attain a high level of profitable business underwriting. This does not mean just quoting higher, premium rates, but rather to be a leading provider of superior risk management solutions at sustainable, premium returns in order to fully realize the insurance industrys potential on the stability and capacity of the corporation as per solvency guidelines. These can make an organization manage risk in general, including environmental risks too. As earlier expressed n the executive summary, National Insurance Corporation as an insurer, cannot avoid responsibility arising from environmental issues such as climate change, transportation, infrastructure, soil erosion to mention but only a few of the exposures which are hazardous to human life and nature as they have a significant impact in the insurance market. Therefore, NIC (T) needs to address the environmental risks; it is only possible if done through the EMS which encompass, economic impacts and which in turn will minimize risk and reduce cost to both NIC (T), and other stakeholders (in terms of high premium and claims of high magnitude) as the EMS will be a guiding program on planning, implementation of operations, corrective measures and monitoring of adherence to standards.

* How to go about NIC (T) ENVIRONMENTAL

MANAGEMENT

SYSTEM

Currently NIC (T) does not have an EMS in place, it will need to incorporate the International Standards Organization (ISO 14001) an environmental management system, which is the overall management system that include organizational structure, planning, activities, responsibilities, practices, procedures, processes and resources for developing, implementing,

achieving, reviewing and maintaining the environmental policy.

This

requires, the demonstration of measurable continuous improvement ISO 14001 covers not only purely formal requirements but also implies the actual environmental performance, the auditing of documents and processes is far from sufficient for either an accreditation or a certification of ISO 14001. Thus, a clearer overall view of all these aspects could be obtained by adopting a matrix including horizontal as well as vertical views of ISO 14001. Such a matrix would encompass the purely formal documentation as well as the environmental performance, and thus any disparities in the interpretation of ISO 14001 could be minimized. Since the insurance industry cannot rely on a more uniform interpretation of ISO 14001, certificate is restricted and should be approached with caution. Quantifying Risk For insurance to exist and the role it plays in risk management, there is a prerequisite for establishing of the insurability, as it relates to the quantifying of risks: deliberations on how large is the likelihood of a certain event occurring, and potential resultant loss? Is there a need for consultants/specialized third party inspection functions, within the context of specific standards like those of ISO 14001 to be adopted? As observed so far this can be of importance to the industry. Another pre-requisite is the setting of the premium for a specific risk under adverse selection/moral hazard situations. How does NIC set premium under this kinds of situations? To understand this, lets look at environmental risk area (a case of ambiguous probability and ambiguous loss scenarios). In USA, USA insurance companies were asked to consider the following scenarios associated with a leak from an underground storage tank First, the probability of a loss occurring was 1 in 100. The loss was expected to be USD

1 million. Subsequently, this basic scenario was changed in three different ways. First, the probability was qualified as uncertain. While the experts disagreed on it, the best of their estimates was 1 in 100. On the loss side, the amounts to be paid varied any where from nil to USD 2 million. The underwriters were then asked to set price for the underground storage tank insurance. Relative to situation where average premium was set for all the underwriters at the following normalized average premium were obtained.

Interrelationship between ambiguity and premium level Figure 1 Situation Non-ambiguous Ambiguous Non-ambiguous Ambiguous Probability Yes Yes No Yes Loss Yes No Yes Yes Relative premium level 1.0 1.4 1.5 1.8

Thus, the conclusion is rather simple: As the underwriter can reduce ambiguity and either the probability and/or the loss side, the premium will be reduced. In other words, if ISO 14001 standards and external inspections auditing and monitoring the risk help reduce ambiguity, then the insurance premium will be become increasingly favourable. Adverse selection and moral hazard If NIC carrier is to survive, it is vital that it avoid problems of adverse selection and mortal hazard. Figure 2 illustrates the adverse selection problem. Adverse selection vs fair premium (example): Figure 2 Kind of risk as to Expected adverse selection probability of suffering a loss Good risk Poor risk Actuarially fair premium 0.1 0.3 100 100 20 Expected loss amount Number of enterprises asking for insurance coverage 50 50

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If NIC will opt to offer an actuarially fair premium of 20 based on all enterprises, only the poor risks will buy the insurance over, namely those expecting a loss of 30. This number represents the probability of 0.3 Any insurer who does multiplied with the expected loss amount of 100.

business on this basis without having made its own risk selection - will soon be out of business. In other words, the less the risk carrier distinguishes the risks (enterprises) giving rise to adverse selection, the more trouble he can expect. Illustrates the problem of moral hazard. Moral hazard vs fair premium (example). Figure 3 Situation hazard Prior to buying insurance cover After buying insurance cover Actuarially fair premium 20 0.3 100 as to moral Expected probability of suffering a loss 0.1 100 Expected loss amount

After an enterprise takes out insurance cover, it does not have to be as convened about the risks attached to its activities as would be the case if it were uninsured. Due to carelessness, the expected probability of 0.1 might increase to 0.3. In conjunction with the estimated amount of loss and the actuarially charged fair premium, the insurance carrier sooner or later faces problems which affect its very survival in the market. Thus, third parties, such as inspectors within the ISO 14000 environmental management system, can play an important role here. By monitoring and

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controlling a risk (enterprise) and trying to improve the insight into the risk situation and the performance achieved by an enterprise, the NIC is enabled to detect and, consequently, to avoid adverse selection and the taps of moral hazard. The importance of Environmental Management System for NIC includes: Just like other insurers in the world elsewhere, National Insurance Corporation see that commitment to reducing pollution would provide the company with an opportunity to create new products for managing risks associated with climate change. For example liase/collaborate with Swiss Re who already have started offering insurance to companies seeking to trade carbon credits. The coverage protects companies in the event that certifications of emission reductions underlying the credit are delayed or rejected. To use energy efficient computers and other machines while processing documents/contracts; Try to enforce our agency and direct businesses to offer less paper (paperless option) so as to save paper and introduction of a companywide paper recycling program. Reducing Claims. As explained above when NIC assist in minimizing environmental risks it automatically reduces loss for risks covered. Eg improving safety and control of remains of cigarette to be discarded will reduce risk of fire in industries or household of the insured. Retain & Attract new policy holders. NIC will charge low Premium to improved risks and thus attract policyholders to implement EMS and also new ones will join NIC Corporate Image. Good corporate image to other insurers and clients. The other insurers will adopt the EMS. More identified issues of environmental relevance to NIC Further identified as issues of environmental relevance to the National Insurance Corporation (T) Ltd includes:

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Change in weather patterns: It can be indicative of storms/flooding risk exposures and can assist to assess the severity/frequency and rate the risk prudently NIC has to make sure proper insurance covers/preventive measures are taken by clients to face any, environmental changes in weather patterns.

Pollution liability Solid wastes and chemical discharge. Here the pollution liability insurance offered by NIC extends to cover third party claims for clean-up bodily injury and property damage, first party claims for property damage (clean-up required by regulators), legal defence costs. Optional contractual liability, business interruption, extra expenses, NIC as insurer insure builders/contractors (contractors all risks cover etc) and new construction or renovations; cover can be extended only to those works that are using eco-friendly processes like metal recycling and sourcing locally to lower fuel costs, as well as eco-friendly materials, such as office walls pre-manufactured to site specifications that minimize construction waste and airborne debris as well as low-emitting paints and carpets;

Transportation, and Non owned disposal site Transportation. This is very important item for the National insurance. Control of accident and safe drive will be one of the NIC agenda to reduce accidents which results to claims and also which results to environmental destruction due to scrap/salvages left after accident

Contractors pollution Liability for contractors, consultants to cover bodily injury, property damage out of covered operations performed by the insured contractor or consultants on a third party property;

Staff Knowledge. Staff of NIC must be aware and trained on environmental management issues.

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Processes. It includes production of policies and covernotes that have to be kept in bundles? With time say one year covernote may be recycled to other uses.

Policy holders. This has been explained in details in the above pages.

A register of environmental aspect/impacts national insurance Corporation Identified act ivies, products and score
ITEM NO. 1. Brown or Pollution issues (resulting form new mining projects in the region/hap hazardous set of operations) ASPECT IMPACT DESCRIPTION - Lack of/or no relevant insurance covers introduced; - Environmental degradation and resultant outbreak of diseases (communicable disease) - No environmental risk or liability insurance/pollution risks (to compensate, victims or communities) x SCORE 1 2 3 4 5 DESCRIPTION Exposure to dust related lung diseases pollution of air water by mining activities; exposure t blasting of explosives/excavate d are as being left dangerous for community nearby. No polluter pay primuple

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ITEM NO. 2. Energy

ASPECT

IMPACT DESCRIPTION Indoor air pollution/electronic magnetic radiation Emissions from use of old mining elevators and diesel engine generators to subsidize when electricity s cut off (power failure)

SCORE 1 2 3 x 4 5 DESCRIPTION Low pollution, devices to reduce electronic or magnetic radiation Efficient/modern elevators..

3.

Change in weather patterns

Deserts Droughts floods etc. poor tourism activities

No droughts, good weather maintained, tourism activities flourish.

4.

Discharge of wastes (sanitation environment)

Standards not adhered to, standards not known, costly, no monitoring/ no of employees/ customers using same utilities.

Standards known and adhered to low cost, monitoring activity in place

5.

Transport

Dirty, damaging, dangerous, polluting

Low pollution, clean environment

6.

Building and infrastructure

Poorly maintained, health and safety hazards, no regard for legal issues

High standards maintained, compliance with all legal issues

7.

Soil erosion and conservation

Staff and consumers not aware of erosion issues

High awareness

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8.

Staff

Low, highly specialized in old and obsolete technologies

High, good general education. Skilled in modern technologies

9.

Management and staff commitment

Zero commitment (lack of efforts to raise awareness by management)

Highly committed to environmental protection

ITEM NO. 11.

ASPECT

IMPACT DESCRIPTION

SCORE 1 2 3 4 5 x DESCRIPTION Available. No problems in accessing finance

Sources of fund

Capital shortage/no budget allocation

EXPLANATION OF SCORING: 1 2 3 4 5 = = = = = High environmental relevance Moderate environmental relevance Low environmental relevance Little environmental relevance No environmental relevance

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A register of Environment related registrations Laws and Regulations with compliance evaluation score and planned action. ENVIRONMENTAL LEGISTRATION/REGULATION Occupational Health and safety Act No.5 of 2003 RELATION WITH TRA OPERATION Related COMPLIANCE SCORE High COMMENTS AND PLAN OF ACTION - To have a efficient control on local and imported health products. - To have a regular review and inspection of such products. Fisheries Act No. 22 of 2003 Related High - To create awareness to policy holders/customer (internal and external) on fishery issues. Forest Act No. 14 of 2002 Related High - To create awareness to policy holders/customer (internal and external). On forestry issues. Plant Protection Act No. 13 of 1997 High - To create awareness to policy holders/customer (internal and external). On plant protection. Consumes Chemicals Act. No. 3 of 2003 Related High - To create awareness to policy holders/customer (internal and external). - To be an indicator of environmental cause of a Environmental Management Act 2004 Directly related High - Having a stronger EMS committee. - Keep on training and creating of environmental awareness. - Continuous review of laws, policies and regulator. - Keep on improving the internal and external work conditions Public health (sewage and drainage) ordinance Cap. Related Medium - To create awareness to internal and external

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336 Town planning ordinance cap. 328 UN convention on combating deforestation, 1994 As above As above Related Medium

customers - Creation awareness on town planning and environmental protection - To fight for cutting down trees - To participate in planting of trees

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NATIONAL INSURANCE CORPORATION ENVIRONMENTAL POLICY STATEMENT.

The National Insurance Corporation (T) Ltd under stands that Everyone has the right to an environment that is not harmful to their health or well-being. Therefore it aspires to go beyond compliance with legislation pertaining to the management of the environment in Tanzania, by committing itself to minimizing environmental risks and take on the tasks for environmental protection. Therefore NIC (T) will strive to meet the insurance needs of its customers through provision of high quality insurance services, but in addition: NIC shall fulfill its objective that stretch beyond the simple well being of the organization, to the promotion of greater corporate social responsibility, particularly with regard to natural environment; NIC shall adapt and recommend for funding of Green Crusade projects in every region(in Tanzania) where they have estate, in collaboration with the surrounding communities. (i.e participating in formation of public gardens and its maintenance; conservation of open space earmarked for public use or playgrounds for children and any greenly project like tree planting and conservation of plants/seed nursery).

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NIC (T) shall confine its decision on who to deal with in supply chain of its raw materials for its various business transaction (products and services) to those which has negative impact on the environment; such decisions will extend to issue of transportation, energy consumption, packing materials, type of chemicals or detergents used for office cleaning and entire environment. (this will all be part of the evaluation and assessment practice to be undertaken on a continuous basis by the department assigned the task). NIC (T) will pursue policies that observe all environmental legislations and regulations as set out by the governing bodies (in Tanzania, Ministry of Environment issues; and NEMC); and in ensuring that all its insurance services and consulting to property owners/homeowners/industrial sector and all insurable risks are insured under the strict environmental protection procedures and that risk management programs are in place as a way to minimize exposure to pollutants and even catastrophic events (or accidents). NIC (T) will have in place a program for training in order to develop greater environmental awareness in business, by reviewing when necessary the way objectives are prioritized to take account of the view points of indirect stakeholders, thus ensuring that the issue of sustainable development is brought on to the corporate agenda. It is expected that the training and raising of awareness and concern for the environment, needs to be expressed through actions of a myriad of actors, and for a revolution in environmental responsibility to be successful it must permeate all levels of employees and the society at large.

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2.1

The Commitment and Responsibilities of National Insurance Corporation (T) (in its entirety to environmental management). The NIC (T) mission statement mentions to provide high quality customer focused insurance services to organizational, commercial and personal line clients through innovative marketing, efficient and effective management of resources etc.. thus maximizing stakeholders returns and remain market leaders. To achieve this NIC is committee to do undertake the following: Develop a suitable environmental policy which will reflect both the extent to which environmental issue are addressed in the organization to which depending these on the values are assigned translated to the into environmental matters by the other stakeholders and the extent values management/organization (NICs) decisions. (This policy should be made public for all employees/public.) To do a performance appraisal of the current procedures /processes and objectives on the set environmental policy by reviewing and asking questions like, - what does NIC (T) have in common with say NEMC objectives (in Tanzania); what are NICs primary ad secondary stakeholders and their respective interests? To develop the Environmental Management System (EMS) which can be evaluated on its aspects of efficacy, effectiveness and efficiency To conduct Environmental analysis by identifying areas of weaknesses and to take corrective measures and change the scene to be more green based.

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To conduct an Environmental Audit and accounting activities, by inventing into the organization the annual environmental reports, as positive step in the direction for efficiency of factor outputs, thus the Pro-environmental jargon; Pollution Prevention Pays PPP; or emulate other acronyms like WOW (Wipe Out Waste); WRAP (Waste Reduction Always Pays). To ensure eco-efficiency is attained and ecological impacts, are reduced (the obvious message being, more efficient use of materials and energy, thus reduce cost, provide a positive effect on company accounts). To make sure ergonomics are included in the Environmental Management System To be vigilant in its professional undertakings by making sure companies that contribute from to accidents, damage or pay losses more through/incurred environmental

premiums; and for others like householders/industries that demonstrate increased security measures or environmental safeguards are rewarded with lower premium charges. (Thus maintain business ethics). To, undertake corporate social responsibility seriously; that mean NIC is aware that it should be held accountable for any of its actions that affect people, their communities and their environment Therefore NIC acknowledges that negative business impacts on people and society;

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3.0

ENVIRONMENTAL MANAGEMENT PROGRAM NIC adopts ISO 14001 which requires the presence of environment Management Programs for achieving its role and objectives. The program focuses on areas that have environmental impacts of high significance. It assigns task and responsibilities in meeting set targets. The table below analyses the Program itself.

Environmental Issues

Aim and target

Activity and action

Responsible

Emissions/polluti on

To collaborate with Swiss Re /other Reinsurers

To put in place/insurance cover to companies seeking to trade in carbon credit

The board of Directors and Top Manageme nt/ Technical staff at reinsurance dept.

Energy/electricit y

To reduce energy consumption

To have low voltage equipment

Procuremen t and all staff

Measure for Success Global commitmen t to reduce pollution and provide an opportunity to create new products for managing risks associated with climate change. Compliance and commitmen t Efficient use of energy/elec tricity and reduction of emissions too.

Time limit

By June 2008

By end of Dec. 2007

A way to work as green company

(1) Switch all computer and other equipment off when not in use even at lunch time. (2) Turn air conditions off open windows instead (3) Take the stairs rather than lift; To promote the use of safe drive, improvement of roads and trained drivers

All staff from top down supervised monitored by senior managers and supervisors

Immediat ely and continuou sly

Transport and company cars

To reduce accidents and removal of scraps

Claims officers

Compliance and commitmen t

Immediat ely

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Raw materials and products

(1) To have environmental friendly materials and products (2) Maximize use of materials

Supplier to bring green raw materials and products Recycle paper; do not print unless essential and reuse envelopes where possible To put in place a special dept. for RISK MANAGEMENT/IN SPECTION

Procuremen t Manageme nt All staff supervised by managers The Board of Directors & top manageme nt

Commitmen t

End of Certain set period Immediat ely and continuou sly By March 2008

Maximizatio n of materials Compliance to risk manageme nt programs minimize impact of loss/severity / frequency Reduced number of smokers reduced fire claims caused by smokers Generated innovative ways to reduce environment al impact

Catastrophes/ fatal accident industrial accidents

To reduce the magnitude of loss of lives/financial losses

Air Pollution (in the office environment)

To reduce smoking and other emission activities

To set a smoking room. To display no smoking signs

Public relation and human resources staff and all smokers Public relations department

Immediat ely

Environmental impact awareness efforts

To educate colleagues/cust omers

- Discussions - Literature on environmental issues

By Decembe r 2007

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4.0

CONCLUSION There is a growing body of opinion that business have a duty to, fulfill objectives that stretch beyond the simple well-being of the organization, to the promotion of greater corporate social responsibility, particularly with regard to natural environment. National Insurance Corporation has analysed the benefits that are available to its business from following a strategy of corporate social responsibility through the implementation of the Environmental Management System. NIC (T) knows that negative business, impacts on people and society, and should be acknowledged and corrected if at all possible. Corporate responsibility, however, does not preclude organizations from making profits, nor does it mean firms acting in a responsible manner cannot be as profitable as other firms that are less responsible. The concept requires organizations to balance the benefits to be gained against the costs of achieving those benefits. An organization like National Insurance Corporation and others in the insurance industry that seek to act in a responsible way would need to compromise and take into account the secondary effects; i.e the externalities responsibilities of business share practice linked when to undertaking the essential work. These the directly functions,

organization performs for society and the influence it has upon the lives of individuals. As said by Americas most famous environmentalist, and through his movie An Inconvenient, Truth Former Democratic Vice President Al Gore, As Wal-Mart embarks on a far reaching plan to adopt business practices that are better for the environment, the world will learn, that there need not be any conflict between the environment and the economy by Al Gore; and this was complemented by Mr. Lee Scott the CEO of Wal Mart saying We will not be measured by our aspirations We will be measured by our actions (From excerpts in FORTUNE magazine of 26th, August 2006/Vol 14).

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5.0

REFERENCES

1. http://www.nictanzania.co.tz/ 2. From the Chartered Insurance Institute CII London www.cii.co.uk 3. Dr. John Mmari Onyari Notes 4. The Business Environment CH 18 (Worthington and Britton) 5. Experts from FORTUNE August, 26, 2006

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