Jan 12

Fact 1:

Green is a huge movement in both America and Eastern Europe. Whenever I visit a plant or company in America, I usually get a huge spiel about how green or environmentally friendly the company is. However, not once during our factory visits have we heard about environmentally friendly practices. Even if a company may be green, they don’t advertise it, unlike companies in the US. However, when it comes to the financial, HR, marketing or supply chain aspects of business, practices here are relatively similar to practices in the US.

Fact 2:

In “The World is Flat”, Friedman talks about getting the big players to do the right things for the wrong reasons. An example he gives is that it is good that McDonalds is putting pressure on its suppliers to meet certain standards. Also, many other companies are doing the same thing by setting compliance levels on a host of issues such as labor, waste, etc. It can be assumed that pressure from the big players is affecting companies here in India.

Fact 3:

An interesting comment I recently read about regarded the phenomenon of “green development.” All of the developed countries in the world first focused on development of their economies. After they were significantly developed, they focused on green practices. Now, countries such as China and India are being forced to develop while staying environmentally friendly. Environmentally friendly practices are frequently criticized as being stifling to development. Therefore, it is a paradox many countries are facing now. Either they protect the environment, or fuel economic growth.

Therefore:

Is it fair that big corporations are placing so much pressure on suppliers from developing nations; those that have so little in terms of material goods? One reason I see that very little emphasis is placed on social responsibility is because the companies don’t care about it. They would much rather pursue a fatter bottom line as that is what investors want. However, fueling this mindset is the fact Indians don’t make choices based on environmental factors. They make choices based on a whole different set of factors (which won’t be reflected here as it is irrelevant). In the past, Americans didn’t care about the environment, and that is the mindset Indians are in currently.

I believe green practices will only begin to take a foothold into society here when development becomes greater, and people have enough disposable income to make choices not on necessity, but on principle. In the US, people are willing to pay a premium for green products. Also, the government isn’t shy about axing wealth creating projects if environmental damage is possible. However, should the government of India turn down a project that can help millions of poverty stricken people because a lake can become polluted? It is much more difficult for them to justify that action. It will be interesting to see if environmental practices become the norm here in India later rather than sooner, or if an entirely new, environmentally friendly, path towards development is created.

Can India keep growing rapidly while placating environmentalists?