MODULE-4

Social-technological environment is an imp factor which is beyond the control of business. These factors should be analysed before formulating business strategies. Socio cultural-technological environment.

Social environment means the social organisation & development of social institutions etc. more educated society leads to good social environment.

A companys social obligation is to operate in an ethically, socially and environmentally responsible ways as a requirement for corporate citizenship.

Corporate Social Responsibility is a commitment to improve community wellbeing through discretionary business practices and corporate resources. By Philip Khotler

recognising our responsibilities as industrialists, we will devote ourselves to the progress and development of society and well being of people through our business activities, thereby enhancing the quality of life throughout the world .

Contribution to Society Fairness and Honesty Cooperation and team Spirit Untiring Effort for Improvement Courtesy and Humility Adaptability Gratitude Profit is the reward and measure of contribution to society

Companies that got into trouble due to CSR issues

DASANI MINERAL WATER ( PART OF COCA-COLA )

McDonalds was forced to withdraw an advert that claimed that after selecting its potatoes, we peel them, slice them, fry them and thats it. This omitted par-frying the chips, freezing them, adding a dextrose solution and salt.

IBM UK Reinventing Education Partnership programme Interactions and sharing of knowledge through a web-based technology - the Learning Village software. Culture of openness and sharing of good practice

Infosys motivating their employees for NGOs

Cause Related Marketing Corporate social Marketing Cause Promotions Socially Responsible Business Practices Corporate Philanthropy Community Volunteering

Provides funds, in-kind contributions, or other organization resources to increase awareness and concern about a social cause. TV Campaign on voting importance

Commits to making a contribution or donating a percentage of revenues to a specific cause based on product sales e.g. donate 10% of the price of each product sold

It is the first time that the worlds leading companies have made a commitment to channel a portion of their profits from sales of specially designed products to the Global Fund to support AIDS programmes for women and children in Africa."

Supports the development and/or implementation of a behavior change campaign

Makes a direct contribution to a charity or cause, most often in the form of cash grant, donations, and/or in-kind /service .

Supports and encourages employees, retail partners, and/or franchise members to volunteer their time to support local community organization and causes.

Adopts and conducts discretionary business practices and investments that support social causes to improve community wellbeing and protect the environment e.g. community trade, environmental friendly Process. -- Body Shop magazine

Take Good Care of the Environment and the Community; The Community and the Environment will take good care of you

Primary Involvement - Relationships with customers, suppliers and employees Secondary Involvement - Relationships and impacts ancillary to use products sold

Social Obligation - Meet minimum regulations, do what is required by law, no more Social Responsibility - Go beyond what is required by law, mitigate negative effects Social Responsiveness - Proactive approach, promote positive change

Social obligation : comply with EPA, state and local laws Social responsibility :clean up pollution beyond requirements Social responsiveness :develop technology to reduce pollution

Social obligation : Comply with wage and hour laws minimum benefits Social responsibility :provide added benefits to keep out unions. Social responsiveness :improve quality of work life.

Ethical dimension Ethical issues Sound investment strategy Pollution free environment Protecting the interest of the consumer Regional imbalances

Social report should take care of efforts and contributions towards social & environmental responsibilities. Environmental factors 1.Social factor Consumer care community care Environmental care Society care &

Natural resources i.soil,land ii. Plant & animals iii. Forests etc.

Resource endowments Weather & climate factors Topographic factors Location aspects scenery

Flood Draughts Earthquakes Cyclone Heat & cold waves Volcanic eruptions

EA means planning for sustainable use of resources ,protection & conservation of ecological system by education,training and awareness and legislation. Co-operation with the Govt and non- Govt organisations at all stages. It includes providing clean water ,protection of forests from further degradation and at the same time have meaningful project assist the social development

1991 is the base for advance technology in India. Technology policy of the Govt is significant element of the technology environment. Access to global technology could help the firms to improve their competitiveness & retain their place in the world market. Ex.reliance

To attain technological competence through access to global technology and be self reliant by making maximum use of scarce resources effectively. To open employment opportunities. To adopt modernisation process and competitive technique to increase productivity and sales. To utilize inner skills and capabilities to the full extent to create new ideas to develop quality products

To develop & encourage the competitive domestic firms to acquire the place in the global market To contribute qualitative products which involve cost effectiveness and reliable performance.

Know how & technical expertise in the form of feasibility studies,plans,diagrams,models, instructions,guides,formulae,engineering designs, skill & managerial training. Provide technical knowledge required for installation, operation,functioning,trouble shooting, servicing as per need. The assignment of sale & licensing of all forms of intellectual property (IP) except trade mark.

OPERATIONAL LEVEL :Mfg skills,QC,trouble shooting,maintainance & procurement skills. DUPLICATIVE LEVEL:Scope is higher than the mfg.investment capability required to expand capacity purchase & integrate FT. ADAPTIVE LEVEL :Self reliance level imported technology are adapted & improved ,design & engineering skills are imparted. INNOVATIVE LEVEL:Innovative skills based on formal R&D that are required to generate newer technology or products.

FDI Sources of funds are: IBRD (reconstruction development) IFC ADB Public & mutual fund investment in foreign companies. TECHNOLOGY LICENSING AGREEMENT JOINTVENTURES

Training or Employment of Technical Experts Supply of component,machinery & equipment Licensing agreement Design transfer Turn-key-projects

Selection of Technology Absorption

IT relief on R&D expenditure. Exemption from the payment of customs duty on goods imported for use in Govt. funded R&D projects. Excise duty waiver for 3 years on goods produced using indigenously developed technology duty patented in USA ,Japan or in any country of European Union

Provision of accelerated Dep. Allowances on P&M developed on the basis of indigenous technology. Direct financial support to R&D centre. Tax deduction for sponsored research programs. TECHNOLOGY PROMOTION FOR SELF-RELIANCE Annual national conference (Department of Science &Industrial Research) -DSIR Partial financial support Assistance to develop program (Program Aimed at technologicalSelf Reliance ) -PASER Consultancy support (CDC)-Consultancy Development Centre

Indias R&D expenditure is still low compared to major industrial economies, in dollar terms, on a per capita basis and in terms of its ratio to GDP (about 0.8 percent of GDP in 2005 according to official estimates). According to UNESCO data, Indias R&D expenditure has increased from 10 billion dollars in 1996 to 20 billion dollars in 2000, making it the seventh largest country, in that year, for gross domestic expenditure on R&D (GERD) measured at PPP.

China was the fourth largest country with R&D expenditure, estimated at 49 billion dollars in 2000 (UNESCO 2005). On the other hand, a large share of government R&D outlays in India is not utilized effectively, especially compared to spending in the private sector.

In 2003, inventors from India filed almost 1,200 U.S. patent applications, up from 58 in 1990; and inventors from China filed 1,034 U.S. patent applications, up from 111 in 1990 (NSF 2006).

The Indian-based R&D centers of companies such as Texas Instruments, General Electric,IBM, HewlettPackard, Intel, Cypress Semiconductors, ST Microsystems andUnilever have contributed significantly to a sharp rise in patent filings from India in the 2000. Major Indian firms that showed an increase in patents granted in the first half of the 2000s include CSIR, Ranbaxy, Dabur, Dr. Reddys Research Foundation, Orchid Pharmaceuticals,Biocon, Torrent Pharmaceuticals, Aurobindo Pharma and Wockhardt limited

NISSAT (national information system for science and technology ) It operates in the directions of improvement in the existing information handling tools and techniques for the growth of indigenous technologies. The system supports 12 major information networks in the country and many of these have access to international database. Technical collaborations Technical-cum-financial collaborations

FIPB (Promotion board ) FIPC (promotion council) FIIA (implementation agency) IP&ID (investment promotion & infrastructure cell) SIA (secretariat for industrial assistance ) RBI BUSINESS OMBUDSMAN

Imp of energy Educate about energy conservation Operational improvement Process improvement Installation of additional facilities for recovering waste heat and other energy recycling devices.

60-70% of energy is importing 4 lakh crores to bridge the energy shortfall in next 15 years. Per capita consumption of energy is lower in india 1345 units -16522 units in canada. Indian industries consume 50% of energy produced Required: Lack of energy conservation attitude & sensitivity Lack of knowledge and database Education & training on energy conservation

Transport industry --40% Industrial sector -25% Agriculture 9% Household -19% Others 7%

Source/technology Biogas plant Biomas based power Efficient wood Solar energy Small hydro Wind energy Ocean thermal Sea wave power

Potential/availability 12 x 1000000 17000MW 12 X 100000 5 MILLION Whr/yr 10000 mw 20000 mw 50000 mw 20000 mw

Potential exploited 2.7 x 1000000 70 mw 20 x 1000000 25 mw 250 mw 1000 mw Nil Nil

Tidal power

9000 mw

nil

Tidal energy is the result of the sun and the moons gravitational pull on the tides.When the earth rotates, the tides move ebbing and flowing. The change in the water level between high tide and low tide creates tidal currents in coastal areas, which can be forceful enough to drive a turbine. Tidal power is believed to be the next generation renewable power, and is considered to be competitive with wind power in the future.

There was a time to die for the nation , now it is the time to live for the nation