Vip Ltd. Industry : Moulded Luggage

Vip Ltd. Industry : Moulded Luggage.
JV CAPITAL SERVICES PVT. LTD www. sharetrading. in VIP LTD. INDUSTRY : MOULDED LUGGAGE NSE Symbol : VIPIND CMP 115 RISK PROFILE: MEDIUM BUY TARGET 210 Key Data : 52 week H/L : Market Cap (Rs Cr. ) : Face Value : Beta : P/E : Div % : BV : PBV : (Source : Company) 294/32 314 10 0. 92 26 0. 87 48. 9 2. 3 VIP Industries is engaged in the travel product business. The Company operates in two business segments: luggage & accessories and furniture. The products manufactured by the Company includes plastic moulded suitcase, plastic moulded briefcase and vanity case.
The Company’s portfolio of brands includes V. I. P. , Carlton, Delsey, Footloose, Alfa, Aristocrat and Skybags. The Company’s subsidiaries include Carlton Travel Goods Ltd. and Blow Plast Retail Ltd. INVESTMENT RATIONALE Despite the slowdown in the global trends of economy, the luggage markets performed flat. VIP Industries is the largest player in Indian luggage market. One of the large segment of Indian luggage market is the canteen Store Department (CSD). VIP luggage continues to enjoy a prominent position and is one of the most respected brands in CSD.
Apart from the domestic market, the company also exports sizeable quantity of luggage to Europe & gulf and has presence in Africa & many other countries. With a view to expand and to access the international markets, the company during FY09 has set up a wholly owned subsidiary in UK. The company has also acquired the well known international luggage brand ‘CARLTON’. These developments are expected to augment export sales of the company significantly. The company has been focusing on creating exclusive outlets to increase market share.

Share Holding Pattern (%): 35. 73 % 43. 44 % VALUATION: 12. 90 % 0. 97% 6. 96% Promoters DIIs Others FIIs corporates Relative Performance Analysis: SENSEX VIP IND We are cautiously optimistic for the moulded furniture segment of the company. In case of luggage segment the management of VIP is very positive. The product portfolio of the company has been widened by introducing new products which offers good growth prospects. In FY08, earnings of the company have decreased. Revenues reflect a decrease in income from operation.
Net loss reflects higher administrative, selling and other expenses with increased extraordinary items expenses. Currently the company is trading at a P/E 14. 14x of CY09 EPS. Albeit the price earning ratio of the company is high, we maintain a ‘BUY’ on the stock as it is in an expansion mode with a promising business model. (Rs cr) Financial Summary Year Net Sales Total Expenses PAT EPS FY2005 FY2006 FY2007 FY2008 (Source : JVCS RESEARCH) 297 329 557 544 272 303 404 504 7. 27 7. 9 22 14 4. 73 4. 94 5. 20 6. 60 SEPTEMBER 02’2009 JV CAPITAL SERVICES VIP LTD. INDUSTRY PROFILE
Indian Luggage industry is currently undergoing a consolidation phase. The luggage market comprises of three segments: the premium segment with 15% of total market share, the popular segment and the standard segment. VIP Industries is the most dominant player in the premium segment with a market share of 44% in popular segment The luggage market is dominated by the unorganized sector with 5% market share. Northern & western India are the biggest markets in the industry. The organized sector (8%) is growing at lesser pace when compared to the unorganized sector (25%) 50 200 150 100 50 0 I nde x e d Sa l e s Tr e nds BUSINESS UPDATES: In the moulded furniture segment, VIP industries enjoys a small market share, where the company has a huge potential to grow in this business. The company is now able to get the orders from Pune and is able to successfully execute the same in time. During the year, VIP industries has strengthened its distribution hold by significantly increasing its market presence through opening of new shops for Aristocrat & Alfa Brands across the countries. This will significantly contribute in the balance sheets of the company.
J u n – 08 M a r – 08 D e c – 08 M a r – 09 S e p – 08 J u n – 09 FINANCIAL FORECAST: (Rs cr) Earning Estimates Particulars Mar ‘09 June’09 117 118 8. 5 3. 6 4. 30 -0. 3 1. 0 0. 34 205 172 32 4. 2 29. 9 5. 6 20. 1 7. 10 Sep’09E 112 102 11 4. 0 10 -. 7 4. 9 1. 6 Dec’09E 151 129 24 3. 0 25 4. 8 12. 8 5. 1 25 20 15 10 5 0 I nd e x e d Pr o fi t Tr e nds Net Sales Total Expenditure PBIDT Depreciation PBT 08 08 ar -0 -0 ar -0 n- p- D ec Ju M Se M Ju n- 09 -5 Tax PAT EPS (Source : JVCS RESEARCH) 8 20 10 0 8 9 • 08 08 ar -0 -0 ar -0 n- p- D ec Ju
Se Ju n- 09 – 10 8 8 9 In Q1FY10, the company has posted a turnaround result for the quarter. Net profit for the quarter under review clocked at Rs20cr compared to Rs 1cr only. Healthy performance was due to spurted growth in operating profit by 640bps to 10. 4% % 33% fall in interest cost. During H1CY09, the company has launched school bags section priced range between Rs 300 & Rs 900 and it aims to sell 70000 bags by the end of FY10. The company is planning to expand its retail network in FY10 as the rentals have touched almost bottom.
To grab the change in consumer trend, the company has launched two models with different ranges in hard luggage system. VIP has slashed prices following the decline in prices of raw materials. • Operating Margin Net Margin M M JV CAPITAL SERVICES VIP LTD. OUTLOOK The luggage industry is expected to grow in the current scenario with the factors like: • • Improved travels on month on month basis, passengers carried by various domestic airlines grew by 27% Introduction of new lighter hard luggage with using polycarbonate as basic input. RISK & CONCERNS
A major area of concern for the company is its dependence on China to produce most of the soft luggage. The recent changes in the economic scenario in the world along with the new labour regulations in China and the slowdown of production in China poses a mix of opportunity in terms of reduction of rates but also the threat of rate increases. For hard luggage, the prices of major raw materials have come down in the last quarter thereby the company may get the cost advantage with more scope of better margins. RECOMMENDATION: Currently the stock is trading at a P/E of 14. 9x with an EPS of 8. 10, we maintain a buy on the stock. EPS for CY09 is expected to Rs 14. 19 as company returns back to profitability. Taking the historical P/E of 15x, we arrive at a price target of Rs 212 for a time horizon of 610 months. The price volume trend analysis depicts that the stock is moving in some strong hands. Increasing volumes by major institutional investors gives a clean picture of their keen interest in VIP Industries hence we expect the stock to give handsome returns of more than 80% in next 6 months. JV CAPITAL SERVICES VIP LTD.
Research Desk Sajiv Dhawan Ashit Suri Sanjeev Kapoor Narendra Singh Rajeev Kumar Satyendra Singh Bijaya Swain General Enquiries Managing Director Head of Research Trading Desk Trading Desk Trading Desk Back Office Accounts Dept Tel: 011- 41654860 [email protected] com [email protected] com 011-41654860 011-41654861 011-41654862 [email protected] com 011-41654874 / 75 [email protected] com RISK PROFILE: Low Risk: Fundamentally Sound companies, with low beta. Expected market out-performance is 0—10% Medium Risk: Expected market out-performance is 10-20%.
Preferably for the Investors with a maximum time frame of 6 months. High Risk: High Beta Stocks, expected market out-performance is more than 20%, Preferably for the investors willing to take advantage of market momentum and are aggressive in nature. Disclaimer Appendix This document has been prepared by the Research Desk of M/s JV Capital Services Pvt. Ltd and is meant for use of the recipient Ltd. only and is not for circulation. This document is not to be reported or copied or made available to others. It should not be considered to be taken as an offer to sell or a solicitation to support any security.
The information contained herein is obtained and collated from sources believed reliable and we do not represent it as accurate or complete and it should not be relied upon as such. The opinion expressed or estimates made are as per the best judgment as applicable at that point of time and are subject to change without any notice. JVCS Pvt. Ltd. along with its associated companies/ officers/employees may or may not, have positions in, or support and sell securities referred to herein. Investors are advised to maintain strict stop loss. JV CAPITAL SERVICES

Vip Ltd. Industry : Moulded Luggage

Industry Analysis Paper

Industry Analysis Paper.
Athletic Footwear Industry Analysis When you think of athletic footwear what are your first thoughts? Nike? Under armor? Skechers? K-Swiss? All these companies have a common type of product/category called athletic footwear that they all sell and make a huge profit from. Throughout our analysis we will focus primarily on the United States Market industry compared to the International industry in athletic footwear/ running shoes. Within the United States there is a wide variety of different types of shoes but one of the most trend setting shoes that provide the most income are athletic footwear/ running shoes.
The United States has over 10 billion dollars of revenue of profit that the athletic footwear industry provides and is one of the largest markets for athletic apparel and footwear in the world, which will provide a sufficient analysis for us to determine (Athletic Shoe Stores in the US: Market Research Report, IBISWorld 1999). This will allow us to focus on a market that we are familiar with and will penetrate the industry down to make a more accurate analysis on the industry athletic footwear/ running shoes. We will be analyzing women and men’s retail running shoes through their industry activities.
This will declare an accurate competition level between different competitors throughout the industry’s products. Athletic running footwear has had an extreme demand of athletic apparel due to increasing number of athletes and the growing health awareness among the people of the US (Ken Research in Footwear, Market Research 2013). There is more of a demand for women’s running shoes compared to men with the increase of interest to jogging/running for the women population (Ken Research in Footwear, Market Research 2013). We will be analyzing all aspects of the United States industry within the men and women’s attire of running footwear.

Some of the trends in the general environment of the athletic footwear industry are the economic climate, healthy and active lifestyle, and fashion trends. In every retail industry the current state of the economy can greatly affect the environment. If the economy is in a depression that effects the shopping patterns of their consumers and as a result becomes a threat to the industry. The athletic footwear industry took a hit when the recession decelerated the US economy in 2008 (Smith). Many American’s were struggling financial which led to the athletic footwear industry to take a hit in their profit margins as well.
Companies had to discount their products to keep a high volume of sales (Smith). The economic climate also plays a role in the rising population and disposable income levels of consumers. In 2010, consumers felt more confident financially by having more disposable income and began purchasing items like athletic footwear more frequently (Smith). The industry was able to gain leverage to increase prices and focus the consumer on quality and not price (Smith). The increased level of income allows consumers to afford a premium-priced shoe which is driving the industry’s profit margins today (Smith).
Both income levels and general population are continuously growing which becomes an opportunity for the industry to capture as much of the market as possible. Another trend that is affecting the industry is the healthy and active lifestyle. Obesity is at an all-time high and the lifestyle of healthy living is becoming a major part of our culture (Smith). This trend has encouraged consumers to exercise more and therefore need athletic shoes (Smith). This is a major opportunity for the industry because their product is directly related to the culture change we are headed in.
Finally fashion trends have become a big role in the footwear industry. The market is in demand for innovative designs, styles, and celebrity endorsements. Some consumers in the industry are looking for footwear that is specifically made to help them perform better while others look for shoes as a fashion trend. The current trend of light weight footwear is attractive to runners because it helps them perform better. The industry is currently thriving on profit from running shoes (Townsend). And in 2010 sales surged when the trend of light weight shoes with styles of neon hues hit the market (Townsend).
Consumers are now wearing those bright colored shoes as a fashion trend whether it be on the track or on the city sidewalks (Adams). They are not afraid to pay up for shoes that are comfortable and trendy (Townsend). The industry also uses celebrities in marketing their products to reach consumers. Athletes like Michael Jordan and Lace Armstrong contributed to the success of athletic shoe companies. Many consumers look up to these athletes for motivation and in return will buy shoes because they are wearing the same style or brand of shoe.
These trends are an opportunity for the industry because it allows companies to fill the need of consumers and in return they become profitable. The first threat identified by the five forces framework is the threat of new entrants. New entrants are firms that have either recently started operating in an industry or that threaten to begin operations in an industry soon. The athletic footwear industry is a very difficult industry to come into. This is because of the market in which the footwear industry operates, is highly saturated.
This saturated market combined with the economies of scale in production, research and development, and marketing make a company have to operate in large scale to be cost effective in the industry (Athletic Footwear: Industry Analysis). Also, the main companies in this industry have major cost advantages independent of scale. Their management know-how that they have developed over the years united with their learning curve allows them to dominate this industry (Athletic Footwear: Industry Analysis). The second threat is the threat of rivalry, which is the intensity of competition among a firm’s direct competitors, is high for this industry.
The main factor of the competitiveness of the industry is due to the fact that industry rivals compete aggressively against one another for vital market share. The athletic shoe industry is very old and companies must focus on market share rather than concentrating on market growth. The athletic footwear market is expected to grow at a continual annual growth rate of 1. 8% from 2011 to 2018 to reach 84. 4 billion by 2018 (PRWeb). Non-athletic footwear is the largest market segment and is expected to grow faster than the athletic footwear sector.
Various fashion trends in the market, such as demand for innovative designs and styles and celebrity endorsement, is driving the non-athletic footwear market (PRWeb). This new trend in the footwear industry makes the way companies compete vary vastly from company to company. Innovative companies such as Nike strive for product differentiation as well as massive marketing strategies, but other brands such as Sketchers attempt to capture the low budget appeal. 70% of the market share is made up of the top five players which include Nike, Adidas, Reebok, Puma and New Balance (PRWeb).
Other key companies are Asics, Converse, Sketchers and K-Swiss. The popularity of local manufacturers and growing piracy in developing countries remains the major challenge for global footwear manufacturers (PRWeb). With the new trend of switching from athletic footwear to non-athletic footwear, it makes the threat of substitution very high. The consumers’ ability to buy a non-athletic shoe is effortless, especially due to the increased focus on value for money and looking for simple, hard-wearing shoes that last (Report Linker). When it comes to the suppliers in the athletic shoe industry it has a low threat to the companies.
There are a large number of firms that are able to supply the materials and basic needs of the companies. To add onto the limited threat caused by the suppliers, their industry is not dominated by a small number of firms. The athletic footwear companies are able to exert their extensive power over their suppliers on the three homogeneous raw materials of cotton, rubber, and foam needed to make a shoe (Athletic Footwear: Industry Analysis). Even though the threat of suppliers is not an issue for this industry, the buyers can play a key factor when it comes to the decision making process.
Buyers have a low threat risk because of the vast number of individual buyers, but there are few switching costs for them to switch to a new shoe brand. This causes companies in this industry to focus on the buyer’s needs and wants when it comes to designing a shoe. The five forces model shows that overall profitability can be high for this industry. The cost it takes to produce the actual shoe itself is very low, but the limited amount of major companies that are continually rivaling one another allow them to dominate this industry and make it extremely difficult for new comers to last.
The knowledge and skills that companies such as Nike have acquired over the years allow them to stay on top as well. The companies low production costs and high markup costs allow those firms in this industry to thrive to the point of their limits. But because these companies have grown so large, they must compete viciously against one another for the same customers. The main competitors of Nike in the shoe industry are K-Swiss, Skechers, and Under Armour. These are the publicly traded companies and are in direct competition in shoes. Nike dominates the market and has 42% of domestic market share in the United States (Articlebase).
Recent net sales reports Nike at $24. 12 billion (Market Watch), K-Swiss at $268. 36 million, Skechers at $1. 56 billion, and Under Armour at $1. 83 billion. Nike has been the leader the shoe industry since 1980 when it gained 50% of United States market share (MyBizIQ. com). They have maintained the position as leaders in the shoe industry. Nike has become experts in segmentation and targeting their market (NikeRepository. com). Works Cited “A Marketing Case Study on Nike. ” Articlebase. (2012): n. page. Web. 24 Feb. 2013. <http://www. articlesbase. om/international-marketing-articles/a-marketing-case-study-on-nike-5907782. html>. Adams, Brittany. “Running Shoes Get The High Fashion Treatment. ” Style File RSS. Style. com, 19 July 2012. Web. 24 Feb. 2013. < http://www. style. com/stylefile/2012/07/running-shoes-get-the-high-fashion-treatment/>. “Annual Financials for Nike Inc. Cl B. ” Market Watch (2011): n. pag. Web. 13 Feb 2013. <http://www. marketwatch. com/investing/stock/nke/financials>. “Athletic Shoe Stores in the US: Market Research Report. ” Athletic Shoe Stores in theUS Market Research. N. p. , n. d.
Web. 21 Feb. 2013. <http://www. ibisworld. com/industry/athletic-shoestores. html. > Athletic Footwear: Industry Analysis. 1 May 2006. 16 February 2013 <http://www. docstoc. com/docs/7937512/Athletic-Footwear-Industry-Analysis>. “Nike, Inc. History and Information. ” NikeRepository. com. N. p. , 2010. Web. Web. 13 Feb. 2013. <http://www. nikerepository. com/nike-company-history>. PRWeb. Global Athletic Footwear Industry Analyzed by Transparency Market Research. 26 October 2012. 13 February 2013 <http://www. prweb. com/releases/2012/10/prweb10056776. htm>.
Report Linker. Footwear Industry: Market Research Reports, Statistics and Analysis. 12 February 2013 <http://www. reportlinker. com/ci02119/Footwear. html>. Smith, Gavin. “Athletic Shoe Stores in the US Industry Market Research Report Now Available from IBISWorld. ” Athletic Shoe Stores in the US Industry Market Research Report Now Available from IBISWorld. PRWeb, 30 Nov. 2012. Web. 24 Feb. 2013. <http://www. prweb. com/releases/2012/11/prweb10188965. htm>. “Swooshing to Success. ” MyBizIQ. com. (2013): n. page. Print. <http://www. mybiziq. com/articles/studies/Nike. cfm>. The US Athletic Apparel and Footwear Industry Outlook to 2015 – Evolving Niche Segments in Sportswear. ” By Ken Research in Footwear, Sports Apparel, Apparel. N. p. , n. d. Web. 12 Feb. <http://www. bharatbook. com/market-research-reports/retail-market-research report/the-us-athletic-apparel-and-footwear-industry-outlook-to-2015-evolving niche-segments-in-sportswear. html. > Townsend, Matt. “Fashion Spurs Sales of Athletic Shoes. ” Bangor Daily News RSS. Bloomberg News, 26 May 2012. Web. 24 Feb. 2013. <http://bangordailynews. com/2012/05/26/health/fashion-spurs-sales-of-athletic-shoes/>.

Industry Analysis Paper

Financial Industry Regulatory Authority

Financial Industry Regulatory Authority.
The report analyses the process of “expungement” in detail and does so in a critical manner. The process essentially allows the brokers in the stock market to wipe out any related evidence to their history of financial misconduct from the records that are kept for public access by FINRA (Financial Industry Regulatory Authority). The analysis proceeds on the premise that the expungement process that is available as a resort to the brokers is one of the primary reasons why the financial misconduct is not being able to be curbed. The analysis cites statistics that the brokers who obtain an order of expungement and have their record wiped are more susceptible to be accused of financial misconduct in the future.
FINRA makes available to the public, that is investing in the Stock market, the information related to the brokers online, and an expungement order tends to remove the evidence or traces of infractions in the behavior and conduct of the brokers. This analysis entails the three significant aspects of the way that FINRA functions in respect to the expungement process – firstly, the fact that the expungement process only furthers the infractions that occur, and that the users of this process only tend to deviate more readily in the future;
Secondly, the usage of the expungement process is increasingly gender-based since these differences tend to affect the market reputation accordingly significantly; and thirdly, the analysis shifts towards the online website BrokerCheck which makes available the data related to broker misconduct online, and how the investors react to that data. These points have been analyzed in depth by the analysts, and their related literature has been reviewed.

Undoubtedly, the first aspect that has been analyzed is done concisely and perfectly. The analysis is balanced as it highlights the pros and cons of the data that has been made available to the public by the FINRA via the website BrokerCheck. It is notable that the data available on BrokerCheck was not accurate which necessitated the process of expungement for the brokers since earlier, due to the inaccuracy of the data, they were unfairly penalized. The analysts made use of data that was available on BrokerCheck in order to conclude as to whether prior misconduct and the expungement lead the premise to further misconduct in the future.
However, it is notable that even though the data that has been used is vast and variable, it does not guarantee the accuracy of the results since the data itself is uncertain as to its verifiability. Besides, the report contradicts itself in one way as it states at one point that the expungement process is what will cause misconduct in the future, while on Page 15 of the report, it states that in several of the cases, prior successful expungement contributes to success in the future since those who undergo the successful expungement process tend to learn the process and the procedures.
The analysis has strongly suggested at many points within the study that the broker recidivism and the process of expungement go hand in hand, and that the statistics show that the unsuccessful expungements happen because the arbitrators are becoming a tad bit better at guessing whether granting expungement is likely to result in more misconduct in the future in any given case.
Besides, the assumption that following a successful expungement, the broker with the expunged record is likely to conduct financial misconduct in future is not entirely correct since there are a variety of other considerations as well that take part in deciding it and play a significant role in the decision. Factors such as gender of the broker and the political considerations also play a significant role, and thus, the outcome may differ depending upon the way these factors play out in the life of the broker. Hence, it is not safe to associate a successful expungement with the tendency of recidivism for the brokers since the circumstances may force an altered outcome to present itself.
There are a variety of other factors in this analysis that make the inferences drawn uncertain. One of the primary ones is that the data that has been used is incomplete. Majority of the data that has been made use of in this analysis is only of the registered brokers. However, a minimal consideration has been given to the unregistered brokers.
The conclusions have only been generalized for both the registered and the unregistered brokers. This makes the accuracy of the inference to be doubted. Another instance where the analysis contradicts itself is the inference from the initial phase of the analysis that either the expungement be successful or unsuccessful, the inferences as to the future misconduct can be drawn.
However, at the later stages of the analysis in Panels D and E, it was found that the financial market did not make any differentiation between the brokers who had clean records or the ones who got their records expunged over time, but who had, at one point of time, one or more instances of financial misconduct.
Further, BrokerCheck aptly does not show the records that have been expunged since that would defeat the purpose of the expungement process. It is also to be noted that one of the brokers has had his/her records updated falsely, thereby causing their record to be tarnished. In situations like these, the expungement process is what helps these brokers. Thus, it cannot be said absolutely that the process itself is worth scrapping. All needs to be done is to grant expungement in as limited cases as possible.
However, it is notable that the conclusion that has been drawn by the analysts in this paper may not be entirely up to the mark. Although the inferences have been drawn from pure statistics, it is not without a grain of salt that these inferences should be adopted. Further, the process of approval of an expungement by the arbitrators is not an easy task since the process has set standards of an expungement being granted to a broker who has committed an act that counts as financial misconduct.
No expungement is granted unless those standards are fulfilled, and further reforms are also suggested to be implemented in order to make the expungement process stricter than it earlier was. It also forces the broker to incur high costs when he/she is seeking expungement relief, and that the expungement will not be granted until and unless the panel has been satisfied that the concerned broker deserves the order of expungement to be passed.
Thus, the inferences that have been drawn in this analysis may prove to be incorrect once these proposed amendments to the Expungement rules have been permitted and implemented. These proposed reforms may significantly reduce the number of expungement cases that will come before the Arbitrators.

Financial Industry Regulatory Authority

BskyB Vs. The UK Television Industry

BskyB Vs. The UK Television Industry.
In this report we have analysed the TV industry and how BskyB has had a strong impact in a competitive media sector. We have established that although BskyB has undertaken criticism of losing certain ‘edge’ to some of its channels (supposedly sky one). The BskyB Company as a whole is one, which is most favoured by public and always looked upon as a big competitor against terrestrial channels and other pay per view suppliers such as NTL and Telewest. Introduction In this report our aim is to identify BSkyB’s position within the television industry platform.
The report will navigate through a series of facts and figures and we will be applying strategic tools such as PEST and Porter’s 5 forces to establish key issues about the industry. This report will develop by initially looking at the television industry as a whole by looking at audience levels and trends and establishing BSkyB’s competitors using concise and relevant sources. We will be using both primary and secondary material to assist in our research, which will include books, Internet sites, newspaper articles and sufficient handouts from Richard West.
We intend to clarify that although critics say; that channels such as Sky 1 is losing its ‘edge and innovative abilities’, in the recent months. BSkyB still maintains a firm hold on the British Television Industry, which will also be reflected on in the future. This October digital television will be six years old following the UK market dominated by the satellite platform and one key player, BSkyB established in 1998. Producing entertainment, news and sports programming to 12. 2 million subscribers, BSkyB also offers interactive TV services.

Despite the consolidation of the industry, competition remains intense with its nearest rivals such as Telewest like BskyB, also acts as both a platform provider and content provider. The other significant player is NTL. However we will specifically look at key channels, which have always been competitors with BskyB from the start, these being the terrestrial channels; BBC One and Two, ITV, Channel Four and Channel Five, the audience viewing figures we have used is supplied by; www. barb. co. uk. BBC Terrestrial channels (One and Two):
There is a strong sense that the BBC maintains a personal hold with viewers and therefore it has special responsibilities to uphold. In terms of Public Service Broadcasting the channel is obliged by law than any other terrestrial channels to show a number of genres and live event coverage’s. In terms of BBC Two it concentrates on educative programmes providing serious factual, Arts and Classical musical areas.
The BBC is a key competitor for BSkyB holding the highest annual viewing share of for three consecutive years from 2001 from all the terrestrial channels with the latest figure of 25.6%1(see appendices figure 1 for annual % shares of viewing – individuals- 2001-2003)ITV: ITV is the second competitor to BSkyB closely behind the BBC with 23. 7% shares of viewing for 2003 (see appendices).
ITV commands a strong position in the U. K television market. It is backed by one of the largest programme budgets in Europe and expected to an investment of approximately  850 million in the 12months to 30th September 2004. ITV’s average audience is peak-time between 7. 00pm and 10.30pm pulling in 7 million viewers compared to an average of 2 million viewers for channel four.
Channel Four: In terms of competition with BSkyB, channel four is the second least threat compared to the other terrestrial channels. With a 9. 6% audience viewing share in 2003, the channel does cater for different audiences, its risk taking and its different approach to subjects such as documentaries on religious groups seems to be perceived as providing well for particular groups rather than for the population as a whole.
Channel Five: Channel Five has obligations to provide arts and classical music by the same number of people as ITV. However in terms of audience viewing percentage it is by far the lowest of all terrestrial channels with 6. 5% in 2003. With such a poor audience level it is not a major competitor to BskyB, which has almost had thrice the better audience level than channel five in three years (see appendices) as BskyB had a prestigious reputation channel five is one which is often labelled as ‘tacky’.

BskyB Vs. The UK Television Industry

Marketing Research on Tea Industry in India

Marketing Research on Tea Industry in India.
MARKET RESEARCH ON MAJOR TEA BRANDS IN INDIA Siddhartha Lodha PG-A History of Packed Tea in India The history of tea dates back to 750-500 BC. Researchers have found that the cultivation and consumption of tea has been taking place since more than a thousand years. However, commercial consumption of tea started with the British rule. It has now become a part of the Indian culture. Tea laid it’s foundation in India at the turn of the 20th century, when the major emphasis was on the exports of Tea.
Earliest reference to a domestic market came from MacKay of Brooke Bond. Equipped with capital and premises, Mackay settled down to serious business. Mackay clearly identified his objectives as to pick up teas suitable for Brooke Bond blends at home, rather than getting them at London and to create and make profitable, a packet and blended tea trade in India and generally in the East. In the early 20th Century, much of India was orthodox and all foreign habits were considered alien and against Indian ethos and culture.
In fact, later, when tea was officially promoted by the Tea Market Expansion Board, strong religious pressure groups launched antitea campaigns against tea drinking. The domestic market was very small and hardly able to sustain. Packing material, mainly caddies and cardboard cartons, were imported the UK and the tea was floor-blended and hand-packed. Sales totalled around 17,000 lbs. and the whole operation produced a loss without inclusion of overheads and other costs.

It therefore needed a great commitment to persevere this kind of a venture. Backed by the promotion and propaganda efforts of the Tea Market Expansion Board that became the Indian Tea Board through the pioneering efforts of Brooke Bond (more about this later), a strong demand was created for tea as a beverage and the Indian masses avidly took to tea. However, much of the fallout of this phenomenon went to loose teas because of the price factor, so we see a strange development in the packet teas trade in India.
In the early years, i. e. the first three decades of the century, the trade was predominantly in the hands of foreign companies and the incipient demand was centered on a small segment, introduced to tea through the Western industrial civilization. The early brand names were based on colors — Red label, Violet label, Green label. The first sale record in India was in April 1903 and the entry reads: Red Label … 720 lbs. Violet Label … 300 lbs. Green Label …180 lbs. The fact that Brooke Bond Red Label recorded 720 lbs. as a very auspicious augury for this famous brand, which attained dizzy heights in later years to become the largest selling brand in the world. The early entrepreneurs of packet tea marketing realised that if the trade had to expand, the purchase price of the tea had to be more affordable for their Indian consumer and the tea had to be better presented. In India however, the main consideration was price, one that the lower economic section of the Indians could afford.
When the brands were first launched in the first decade of the century, the cost of the tea in the packet was roughly 60% of the total price. Despite this, prices were considered high. But the demand had been created and was snowballing — opening the floodgates to loose teas, which were at least 20% cheaper than the corresponding tea in packets. Opinions on the worth and prospects of the internal business seemed gloomy. One opinion was that “Indians can never become tea-minded”.
This was based on the English custom of brewing tea in pots, using a long leaf — a leisurely and luxurious habit. It is interesting to note that very early in the century, the marketers of packet tea recognised that if tea had to be made popular among Indians, it had to be presented differently, keeping in mind the Indian cooking habit of boiling. So dust tea was born. ‘Kora’ was the first brand to be introduced by Brooke Bond in paper form packets. The real expansion of the packet business in India came in the early l920s, with the introduction of the direct selling system by Brooke Bond.
As was said earlier, the distribution was left in the hands of distributors and stockists who could do a maintenance job but could not do anything to create demand. The depot system or direct selling system helped in introducing tea to the vast population of India but it meant a heavy investment in marketing in the earlier years. It helped in establishing a two-way communication between the salesman and retailer and cemented a personal relationship between them. For a product like tea, where freshness was an important factor, it helped in ensuring stock rotation.
Under this system, the companies like Brooke Bond and Lipton, who followed suit through their own personnel, called on all retail outlets on a regular basis and supplied tea on a cash-on-delivery basis. There was no need for the retailer to carry any large inventory, as the calls were on a weekly basis. The system backed by the effective propaganda by the Tea Board really sparked off a consumption explosion, taking India to the position of the largest tea-drinking nation in the world. Today tea has become established as a food habit in all socio-economic sections.
In India, tea is an essential item of domestic consumption and is the mostly consumed beverage. Further, tea is the cheapest beverage amongst all the beverages that are available in India and it is very popular amongst all sections of India society. The Indian tea industry engages around 20 lakh of workers, directly and they mainly represents the under privileged sections of the India society. The Tea Business in India registered a total turnover of Rs. 10,000 crore in the previous year. Top Tea Brands in India
Brooke Bond has touched millions of consumers with a range of tea offerings appealing to the diversity of their tastes. It has the strongest foothold amongst any of the tea brands in India and touches the homes of over 500 million consumers. The values and personality of the master brand Brooke Bond reflect a warm, sociable, approachable, perceptive and dependable entity. Brooke Bond is the tea expert that selects the best at every stage – from the garden to the cup. The brand, therefore, is seen to offer the appropriate teas for all tea moments in the consumers’ lives.
Brooke Bond offers a strong portfolio of four sub-brands namely, Brooke Bond Taj Mahal, Brooke Bond Red Label, Brooke Bond Taaza & Brooke Bond 3 Roses. The range offers a full variety of benefits as well as price points to cater to diverse sections of society. For over 4 decades, Taj Mahal has been the gold standard of tea in India. It has been a pioneer of innovations in the Indian tea market First Premium Tea Brand First to introduce tea bags First to usher in new formats and concept, like instant tea – Dessert Tea Brand ambassadors personify the true essence of Taj Mahal (Ustaad Zakir Hussain, Saif Ali Khan)
Red Label contains natural flavonoids that helps improve blood circulation and keeps you healthy. Red Label Natural Care has a mix of 5 Ayurvedic ingredients like Tulsi, Ashwagandha, Mulethi, Ginger and Cardamom. Red Label Dust has strength, taste and comes with the Red Label promise of great quality. Red Label Special has extra-long leaves to give you great taste, colour and superior aroma. Entered the lives of the contemporary Indian housewife in the 1990s. Unique and refreshing blend of tea that’s sprinkled with fresh green tea leaves.
It’s her daily cup of joy that helps her to refresh and connect with her inner self and aspirations. The advertising communication for Taaza is a reflection of this relationship. Chronicle of the aspirations of a housewife over the past two decades. 4th largest tea brand in India with a portfolio pning in both leaf and dust segments. 3 Roses which was synonymous to the trinity of perfect colour, perfect strength and perfect taste 3 Roses stood as the bedrock for strengthening a married couple’s relationship with each other 3 Roses has redefined the nature of relationship shared between married couples in India
Brooke Bond Sehatmand (Arogya) was launched in early 2010. Brooke Bond Sehatmand with Vitamin Power, helps to keep families healthier through their favourite daily beverage 3 cups of Brooke Bond Sehatmand helps to satisfy 50% of the Recommended Dietary Allowance (RDA) of Vitamins B2, B6, B9 and B12 Brooke Bond Sehatmand successfully runs the ‘Sehatmand Parivaar, Sehatmand Bharat’ movement – an initiative to reach and make a difference to 500 million families across villages in India through education on health and nutrition. nd most trusted beverage brand in India Market leader measured by volume and value branded packet tea Has transformed the way beverages are marketed by positioning tea as a catalyst for social change Promotes social awakening and action through its landmark ‘Jaago Re’ marketing campaigns References: 1. History of Packet Tea : http://www. contemporarybrokers. com/item. aspx? id=100 2. Brooke Bond Brands : http://www. brookebondhealth. com/our-brands. asp 3.

Marketing Research on Tea Industry in India

Feasibility Study on Investment in Brazilian Paper and Pulp Industry

Feasibility Study on Investment in Brazilian Paper and Pulp Industry.
IMG-6 Global Business Environment Feasibility study for investment in the Brazilian Paper and Pulp Industry Report By: Ashish Jindal (063011) Avneesh Luthra (063012) Aayush Singhal (063013) Deepak Arora (063014) Feasibility study for investment in the Paper and Pulp industry in Brazil An overview of Brazil Brazil is the largest country in South America. It is the world’s fifth largest country, both by geographical area and by population, with over 192 million people. It is the only Portugese-speaking country in South America. Brazil is the largest national economy in Latin America.
It is the world’s sixth largest economy at market exchange rates and seventh largest in terms of purchasing power parity, as per the International Monetary Fund and the World Bank. Brazil has a mixed economy with abundant natural resources. The Brazilian economy has been predicted to become one of the five largest in the world in the decades to come. It has large and developed agricultural, mining, manufacturing and service sectors, as well as a large labour pool. Brazil’s current GDP is estimated to be $2. 294 trillion and Per Capita GDP $11,769
The Paper and Pulp Industry in Brazil Brazil is the largest producer of paper and pulp in South America. On the world stage, it is the 4th largest producer of pulp with a production of 13,315,000 tonnes and 9th largest producer of paper with 9,428,000 tonnes (2009). Brazil’s Pulp & Paper Production Source: Bracelpa Brazil is predominantly a tropical country. As a result, the soil and climate in most regions of Brazil are favourable to forest growth. The main geographical areas in the paper and pulp industry are the states of Sao Paulo, Parana and Santa Catarina.

Furthermore, eucalyptus trees in Brazil have short growing cycles (approximately 7 years), compared to 10-12 years in Chile and 25 years in the United States. Thus, production of wood in Brazil requires less time and a smaller growing area when compared to Europe and North America, resulting in higher yields. Industry Overview- 222 companies spread in 539 municipalities, located in 18 states. – 2. 2 million hectares of planted area for industrial use. – 2. 9 million hectares of preserved forests- Total certified forest area: 2. 0 million hectares- Exports 2010: US$ 6. billion- Trade Balance 2010: US$ 4. 9 billion- Taxes: R$ 2. 2 billion- Investments: US$ 12 billion in the last 10 years- Jobs: 115 thousand direct jobs (industry 68 thousand, forests 47 thousand) and 575 thousand indirect jobs. | Source: Bracelpa, March 2011 Macro Environmental Analysis Political & Legal environment The Foreign Direct Investment regime in Brazil has been fairly liberal and foreign capital is viewed with sympathy by the large majority of political currents and parties, who see it as a source of employment and modernization of the economy.
The 1990s saw a host of path-breaking liberalisation reforms in the Brazilian economy. Certain investment policies were formulated in the 90s to attract more FDI in to the country. The Central Bank of Brazil simplified the registration procedure for FDI inflows. This led to a decline in the administrative costs associated with the entry of FDI inflows into Brazil. A series of constitutional amendments were enacted within 1995 and 1996, which helped remove constitutional distinction among national companies and foreign companies.
In 2002 Investe Brazil was set up to promote investments in Brazil. Despite a formally well functioning business environment, corruption and bribery are still serious obstacles to doing business in Brazil, especially in business dealings with the government. Multiple corruption scandals have emerged over the years, involving politicians and bureaucrats taking kickbacks from companies in exchange for awarding public contracts. The levels of bureaucracy and lack of transparency in rules make Brazil a difficult country to do business in. Economic Environment
The paper and pulp industry is one of the mainstays of the Brazilian economy. The Brazilian paper and pulp sector is comprised of nearly 200 companies. Most companies in this sector are privately owned. Foreign-owned companies account for about 6% of the output. Therefore, there is great scope for foreign investors to enter into Pulp & Paper Industry in Brazil. Latin American Pulp and Paper Producers Composition in 2010 In recent years, there has been a marked increase in paper consumption in Brazil, which is an important indicator of the economic development of a country.
Between 1997 and 2008, the average annual rate of paper consumption increased by approximately 3% per year, reaching 9 million tons in 2008, according to estimated figures from Bracelpa. Improvements in the purchasing power of Brazil’s citizens have led to growth in the newsprint market (up to 18% in 2009). In the same year, 21% of paper and board and 33% of pulp production was exported. Brazil’s paper industry has potential for growth in both the domestic and export markets. Domestic consumption has huge growth potential, because per capita consumption in Brazil is still low when compared with other developed nations.
Consumption of paper and board in Brazil is close to 44 kg per capita. Furthermore, differences are enormous between the north and south-east parts of the country. In Western Europe, consumption of paper and board is 173 kg and in North-America 333 kg per capita. Social Environment Brazil has skilled labour in abundance. Minimum wages in Brazil are way lower in comparison to other nations. Brazilian legislation is, however, relatively inflexible and outdated in relation to labour costs, making things complicated. A continued shift towards a wealthier population has been apparent in Brazil since 2004.
There has been significant growth in the populations’ real disposable income. Strong consumption (Household consumption above 60%, Government consumption close to 20%) has been supporting Brazil’s growth profile over the past two decades. Formal job creation increased from 1. 2 million jobs in 2009 to 2 million jobs in 2010. The cost of living in Brazil is approximately 30% lower than in the UK and Europe, and for those with a foreign income there is a guarantee of value for money. Technological ; Natural Factors
Brazil’s high technology and natural advantages in forestry make it one of the world’s lowest-cost producers of pulp, and in the last 20 years Brazil has become an important pulp exporter. Brazilian exports of high quality papers to Europe are growing in volume, and expected to increase in the near future. This growing market is truly attractive and one can grab the share in this market by setting up a new industrial venture in Brazil. However, this industry sector is very competitive for reasons like state-of-the-art mills, sound management and well-established plantation forestry technologies.
Furthermore, availability of raw material is not a problem in Brazil as there is huge availability of good quality raw materials required for extracting and manufacturing pulp and paper. By analyzing the rotation and yield comparison of different pulp species in different countries, it is found that Brazil has the best rotation (years) and yield (m3/ha/year). This shorter maturing period also enables Brazilian producers to expedite the process of genetically improving the Eucalyptus species utilized Species| Country| Rotation (years)| Yield (m3/ha/year)| Eucalyptus| Brazil| 7| 44| Eucalyptus| South Africa| 8-10| 20|
Eucalyptus| Chile| 10-12| 25| Pinus spp| Brazil| 15| 38| Pinus spp| Chile| 25| 22| Pinus spp| New Zealand| 25| 22| An association named ABTCP – Brazilian Paper and Pulp Technical Association – is currently one of the most important associations worldwide in its segment. It was established with the purpose of technically qualifying the paper manufacturers in Brazil, in order to raise basis for a sustainable industry. In addition, technological development in the paper ; pulp industry has been supported by the research efforts of major producers and by financing from BNDES, the Brazilian Development Bank.
Opportunities The paper and pulp sector in Brazil is fast becoming the third largest in the world. The financial crisis of 2009 affected the Brazilian pulp and paper industry greatly. Brazil ultimately postponed its investment programmes. However, with the economy showing signs of recovery and emerging market’s increase in demand, those programmes have resumed Over the next seven years, an estimated US$20 billion is going to be invested in the nation’s forest base and in the construction of new mills. 10 new plants are due to be built in Brazil by 2020. At this moment pulp production is at 13. million annual tonnes, by the end of 2017 this is expected to reach 20 million annual tonnes. Also, during the same period, planted forest areas are predicted to grow by 25% and paper production will rise from 9. 3 million tonnes to 12. 5 million tonnes. This has all come about through the new global scenario in the pulp and paper sector. While the international financial crisis reduced global consumption, prices and raw material demand in traditional markets it also opened up opportunities to expand sales in growing markets, in particular China and India.
Challenges The pulpwood market in Brazil has gone through major transformations. From a point where it had the lowest conifer fibre costs in the world, it now is close to the global average. Any rise in fibre costs is a concern for forestry companies as the key factor determining a company’s global cost competitive position remains its raw material base. Brazil also faces a strong challenge as businesses in Brazil have to deal with a number of problems, which includes bulky tax regulations, inefficient government bureaucracy, and corruption.
Brazil has become less competitive in the last few years as a reason of this. Conclusion The Brazilian paper and pulp industry offers enormous potential to potential investors. The industry, with its advantage in terms of rotation, is expected to grow substantially in the coming few years with various investment programmes being in the phase of implementation. There is the challenge of a complex bureaucratic environment but the long term benefits outweigh the costs. FDI is thus recommended. Bibliography http://pulp-paperworld. om/ex1/item/768-abtcp. html http://www. forestry-invest. com/2010/brazil-becomes-world%E2%80%99s-3rd-largest-pulp-and-paper-producer/513 http://www. bracelpa. org. br/bra2/sites/default/files/estatisticas/booklet_eng. p df http://www. roundtownnews. com/rtn-features/rtn-money/item/36741-ten-reasons-to-invest-in-brazil. html ftp://ftp. fao. org/docrep/fao/009/j9425e/j9425e04. pdf http://riotimesonline. com/brazil-news/rio-business/brazil-among-most-expensive-for-business/# http://www. pulpandpapercanada. com/news/the-case-for-brazil/1000225895/

Feasibility Study on Investment in Brazilian Paper and Pulp Industry

Golf Industry

Golf Industry.
This cost may not include a cart at the point of purchase. It is also mentioned that private club golfer spend $2057 annually while public golfer spend an annual $634 (Betide 1996). This is also being a huge reason for membership decline, costs. Private club memberships have been on a downwards slope as high as 13%. Some memberships have reached a point of a 29% decline (Betide 1996). The biggest reason for the membership decline was mentioned above, cost. People Just don’t want to spend high amounts of money for the recreational sport.
With cost comes action, members are not wanting to commute long distances. People are also investing more in their families. This means golfers have less time to go spend hours at a golfer course, so they drop their membership. Just like any other sport, golf requires equipment. This could include clubs, shoes and any other clothing accessory such as hats or gloves. According to 2013 retail sales, shoes are up 8% and irons increased by 4% compared to the boom of 2012 Golf Industry By glutton most profitable company when it comes to golf (Golf Industry 2013).
If you have heard about golf, you have heard about Tailored. Reported in August 2013, Tailored report sales were up by 2% estimating a $1. 012 billion golf equipment and accessory company (Golf Industry 2013). With that being said, throughout the recent recessions total equipment sales for the first six months of 2013 was $1. 41 billion compared to 2012 when sales were $1. 44 billion (Stints 2013). Golfing equipment may be taking a slight hit in sales, but this small decrease should not affect equipment as a whole. Bibliography Betide, Joseph.

Golf Industry

Industry Life Cycle of Nokia Company

Industry Life Cycle of Nokia Company.
Social Sustainability Process Industry Social Sustainability Social Indicators for Sustainable Project and Technology Life Cycle Management in the Process Industry Carin Labuschagne1 and Alan C. Brent1* 1 Chair of Life Cycle Engineering, Department of Engineering & Technology Management, University of Pretoria, Pretoria, 0002, South Africa * Corresponding author (alan. [email protected] ac. za) DOI: http://dx. doi. org/10. 1065/lca2006. 01. 233 Abstract Goal, Scope and Background.
The importance of the social dimension of sustainable development increased significantly during the last decade of the twentieth century. Industry has subsequently experienced a shift in stakeholder pressures from environmental to social-related concerns, where new developments in the form of projects and technologies are undertaken. However, the measurement of social impacts and the calculation of suitable indicators are less well developed compared to environmental indicators in order to assess the potential liabilities associated with undertaken projects and technologies.
The aim of this paper is to propose a Social Impact Indicator (SII) calculation procedure based on a previously introduced Life Cycle Impact Assessment (LCIA) calculation procedure for environmental Resource Impact Indicators (RIIs), and to demonstrate the practicability of the SII procedure in the context of the process industry in South Africa. Methods. A framework of social sustainability criteria has been introduced for the South African process industry.

The social sub-criteria of the framework are further analyzed, based on project and technology management expertise in the South African process industry, to determine whether the criteria should be addressed at project or technology management level or whether they should rather form part of an overall corporate governance policy for new projects and technologies. Furthermore, the proposed indicators for criteria that are considered appropriate for project or technology evaluation purposes are constrained by the type of information that is available, i. e. he calculation methodology relies on the availability of regional or national social information where the project will be implemented, as well as the availability of project- or technology-specific social information during the various phases of the project or technology development life cycle. Case studies in the process industry and statistical information for South Africa are subsequently used to establish information availability for the SII calculation procedure, demonstrate the SII method together with the RII method, and determine the practical use of the SII method.
Results and Conclusion. The case studies establish that social footprint information as well as project- and technology social data are not readily available in the South African process industry. Consequently, the number of mid-point categories that can be evaluated are minimal, which results in an impaired social picture when compared to the environmental dimension. It is concluded that a quantitative social impact assessment method cannot be applied for project and technology life cycle management purposes in industry at present.
Recommendation and Perspective. Following the outcomes of the case studies in the South African process industry, it is recommended that checklists and guidelines be used during project and technology life cycle management practices. Similar to the environmental dimension, it is envisaged that such checklists and guidelines would improve the availability of quantitative data in time, and would therefore make the SII procedure more practical in the future.
Keywords: Life Cycle Impact Assessment (LCIA); Life Cycle Management (LCM); process industry; Resource Impact Indicator (RII); Social Impact Indicator (SII); social sustainability Introduction The last decade of the twentieth century marked significant steps to draw the social dimension of sustainable development into the open [1]. The inclusion of social aspects in the sustainability debate and practice has nevertheless been marginal compared to the attention given to the other two dimensions, especially from a business perspective [1,2,3].
However, stakeholders are forcing companies to address the inclusion of social sustainability by shifting pressure from environmental to social related concerns [4,5]. The social dimension is commonly recognised as the ‘weakest’ pillar of sustainable development due to a lack of analytical and theoretical underpinnings [5] and it is believed that the state of development of indicators or measurements for social business sustainability parallels that of environmental performances about 20 years ago [6].
Nevertheless, there is a definite need for practical tools to introduce social sustainability into business evaluation processes [1,7,8]. This paper proposes a methodology to assess the social sustainability of projects and technologies in the process industry by calculating social impact indicators, and addresses the following two questions: 1) What social criteria must such an assessment methodology consider and measure? 2) How must these criteria be addressed and measured?
To address the first question, a framework of social business sustainability criteria is defined, which is relevant for operational initiatives in the process industry. Social sustainable development indicators are then introduced, demonstrated and discussed, based on the defined framework. Int J LCA 11 (1) 3 – 15 (2006) © 2006 ecomed publishers (Verlagsgruppe Huthig Jehle Rehm GmbH), D-86899 Landsberg and Tokyo • Mumbai • Seoul • Melbourne • Paris 3 Process Industry Social Sustainability Responsibility (CSR) literature and guidelines, and other international guidelines were undertaken (Table 1) [9].
The analysis showed that a comprehensive social sustainability framework should define appropriate criteria to address the company’s impacts on the social systems in which it operates, as well as the company’s relationship with its various stakeholders. A sustainable development framework for operational initiatives was subsequently developed and proposed, the social dimension of which is shown in Fig. 1. Table 2 provides the definitions of the criteria at the different levels of the framework, which are described in detail elsewhere [9]. 1 1. 1 Social Sustainability Criteria Framework
Development of a framework for business management purposes in the process industry The current indicator frameworks that are available to measure overall business sustainability do not effectively address social aspects of sustainability at operational level in the process industry, especially in developing countries such as South Africa [9]. The question arises what the exact scope of social sustainability should entail from a business management perspective. An analysis of current available frameworks, Social Impact Assessment (SIA) guidelines, Corporate Social
Table 1: Analysis of the social criteria addressed by current frameworks and guidelines [9] Name and type of literature Health Education Environment Housing / Living conditions ? ? ? ? ? ? ? ? ? Criteria Society Security / Crime Facilities & Services Population characteristics Community characteristics Economic welfare / Employment ? ? ? ? ? ? ? ? ? ? ? ? Indicator frameworks United Nations 1 ? ? 3 ? ? ? ? ? ? ? Global Reporting Intitiative2 IchemE Sustainability Metrics Wuppertal Indicators 4 European Conceptual Framework for Social Ind. SIA literature Interorganizational Committee on Guidelines and Principles6 Socioeconomic impacts for Energy Efficiency Project for Climate Change Mitigation7 South Sydney Council SIA 8 checklist SIA categories for development 9 projects in South Africa South African social criteria for CDM project evaluation10 Classification of social impacts 11 according to Vanclay Classification of social impacts 11 according to Juslen Classification of social impacts according to Gramling and 11 Freudenburg SIA Series’ Guide to Social Assessment12 Government actions European Greenpaper on CSR World Bank’s Social Analysis 14 Sourcebook SRI Indexes Dow Jones Sustainability Index FTSE 4 GOOD16 JSE SRI Index 17 18 15 13 ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Pressures from international financing organisations ? ? ? ? ? ? ? ? Dominini 400 Index Global Compact19 International standards and guidelines Global Sullivan Principles20 Caux Round Table OECD Guidelines SA 8000 23 21 22 AA 100024 Investors in People CSR standards Ethos Indicators 27 25 26 Ethical Trading Initiative ? 29 ? ? ? ? ? Standards of CSR28 Danish Social Index 4 Int J LCA 11 (1) 2006 Social Sustainability Process Industry
Table 1: Analysis of the social criteria addressed by current frameworks and guidelines [9] (cont’d) Name and type of literature Society Community cohesion Indicator frameworks 1 United Nations 2 Global Reporting Intitiative ? 3 IchemE Sustainability Metrics 4 Wuppertal Indicators European Conceptual Framework ? 5 for Social Ind. SIA literature Interorganizational Committee on ? 6 Guidelines and Principles Socioeconomic impacts for ? Energy Efficiency Project for 7 Climate Change Mitigation 8 South Sydney Council SIA checklist ? SIA categories for development ? 9 projects in South Africa South African social criteria for CDM project evaluation10 Classification of social impacts ? 11 according to Vanclay Classification of social impacts ? 1 according to Juslen Classification of social impacts ? according to Gramling and 11 Freudenburg SIA Series’ Guide to Social ? Assessment12 Government actions 13 European Greenpaper on CSR ? Pressures from international financing organisations World Bank’s Social Analysis ? 14 Sourcebook SRI Indexes 15 Dow Jones Sustainability Index FTSE 4 GOOD16 17 JSE SRI Index 18 Dominini 400 Index International standards and guidelines 19 Global Compact 20 Global Sullivan Principles Caux Round Table21 22 OECD Guidelines 23 SA 8000 ? AA 100024 ? 25 Investors in People ? 26 Ethical Trading Initiative ? CSR standards 27 Ethos Indicators 28 Standards of CSR Danish Social Index29 1
Criteria Society and company (interlinkage) Product Community Stakeholder Training, responsibility involvement participation / education of of company Engagement staff Equity Company internal Fair Human labour rights practices Employee health and safety ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 United Nations Commission on Sustainable Development (2001): Indicators of sustainable development: guidelines and methodologies. United Nations. Available from ;http://www. un. rg/esa/sustdev/ natlinfo/indicators/indisd/indisd-mg2001. pdf;, visited on 19 November 2003 Global Reporting Initiative (2002): Sustainability Reporting Guidelines 2002. Global Reporting Initiative, Boston Institution of Chemical Engineers, (2002): The Sustainability Metrics: Sustainable Development Progress Metrics recommend for use in the Process Industries. Institution of Chemical Engineers. Rugby Spangenberg JH, Bonniot O (1998): Sustainability Indicators – A Compass on the Road Towards Sustainability. Wuppertal Paper 81 Centre for Survey Research and Methodology (ZUMA) (2000): Conceptual Framework and Structure of a European System of Social Indicators.
EuReporting Working Paper no 9, Mannheim Interorganizational Committee on Guidelines and Principles for Social Impact Assessment (1995): Guidelines and Principles for Social Impact Assessment. Environmental Impact Assessment Review 15 (1) 11–43 Vine E, Sathaye J (1999): Guidelines for the Monitoring, Evaluation, Reporting, Verification and Certification of Energy-Efficiency Projects for Climate Change Mitigation. US Environmental Protection Agency through the U. S. Department of Energy under Contract No. DE-AC03-76SF00098 South Sydney Council (2004): The South Sydney Plan: Social Impact Assessment Checklist. ;http://www. sscc. nsw. gov. au/router? model=c=1704;, visited on 21 January 2004. Khosa M (2000): Social Impact Assessment of Development Projects. In: Khosa M (ed), Infrastructure Mandate for Change 1994–1999.
Human Sciences Research Council (HSRC) Publishers, Pretoria Brent AC, Heuberger R, Manzini D (2005): Evaluating projects that are potentially eligible for Clean Development Mechanism (CDM) funding in the South African context: A case study to establish weighting values for sustainable development criteria. Environment and Development Economics 10 (5) 631–649 Vanclay F (2002): Conceptualising social impacts. Environmental Impact Assessment Review 22 (3) 183–211 Branch K, Hooper DA, Thompson J, Creighton J (1984): Guide to Social Assessment: A framework for assessing social change. Westview Press, London European Commission: Employment and Social Affairs (2001): Promoting a European framework for corporate social responsibility. European Communities, Luxembourg Social Analysis and Policy Team (2003): Social Analysis Sourcebook: Incorporating Social Dimensions into Bank-supported projects.
Washington DC, The World Bank: Social Development Department SAM Indexes (2003): Dow Jones Sustainability World Indexes Guide, Version 5. 0. SAM Indexes GmbH, Zollikon-Zurich FTSE (2003): FTSE4Good Index Series: Inclusion Criteria. FTSE The Independent Global Index Company, London Johannesburg Stock Exchange (2004): JSE SRI Index: Background and Selection Criteria. ;http://www. jse. co. za/sri/docs/;, visited on 9 January 2004 Domini Social Investments (2003): The Domini 400 Social IndexSM. Available from ;http://www. domini. com/Social-screening/creation_maintenance. doc_cvt. htm;, visited on 31 December 2003 Kell G (2003): The global compact: origins, operations, progress and challenges.
The Journal of Corporate Citizenship, Autumn, 35–49 Global Sullivan Principles (2003): The Global Sullivan Principles of Social Responsibility. Available from ;http://www. globalsullivanprinciples. org;, visited on 27 December 2003 Caux Round Table (2003): Caux Round Table Principles for Business, English Translation. Available from: ;http://www. cauxroundtable. org/ENGLISH. htm;, visited on 20 January 2003 Organisation for Economic Co-Operation and Development (2000): The OECD Guidelines for Multinational Enterprises 2000 Revision. OECD Publication, Paris Social Accountability International (2003): Overview of SA8000. Available from ;http://www. cepaa. org/SA8000/SA8000. tm;, visited on 4 March 2003 AccountAbility (1999): Overview of the AA1000 framework. AccountAbility Publication, London, available from ;http://www. accountability. org. uk/uploadstore/cms/docs/AA1000%20Overview. pdf;, visited on 29 December 2003 Investors in People UK (2003): The Standard. Available from ;http://iipuk. co. uk/IIP/Internet/InvestorsinPeople/TheStandard/default. htm;, visited on 29 December 2003 Ethical Trading Initiative (2003): Ethical Trading Initiative Homepage. Available from ;http://www. ethicaltrade. org;, visited on 29 December 2003 Ethos Institute for Business and Social Responsibility (2001): ETHOS Corporate Social Responsibility INDICATORS.
Instituto Ethos de Empresas e Responsabillidade Social, Sao Paulo Goodell E (ed) (1999): Social Venture Networks: Standards of Corporate Social Responsibility, Social Venture Networks, San Fransisco Danish Ministry of Social Affairs, KPMG, Socialforskningsinstituttet (2000): Social Index: Measuring a Company’s social responsibility, Danish Ministry of Social Affairs, Copenhagen Int J LCA 11 (1) 2006 5 Process Industry Social Sustainability Social Sustainability Internal Human Resources External Population Macro Social Performance Stakeholder Participation Employment Stability Human Capital Socio- Economic Performance Information Provision Employment Opportunities Employment Renumeration Employment Practices Health Economic Welfare Trading Opportunities Socio- Environmental Performance Collective Audience Selected Audience Stakeholder Influence Education Productive Capital Disciplinary & Security Practices Employee Contracts Equity Housing Monitoring
Decision Influence Potential Stakeholder Empowerment Service Infrastructure Mobility Infrastructure Regulatory & Public Services Community Capital Legislation Enforcement Labour Sources Health & Safety Health & Safety Practices Health & Safety Incidents Capacity Development Sensory Stimuli Cultural Properties Social Pathologies Security Economic Welfare Social Cohesion Research & Development Career Development Fig. 1: Framework to assess the social sustainability of engineering projects and technologies [9] Table 2: Definitions of Social Criteria [9] Internal Human Resources focuses on the social responsibility of the company towards its workforce and includes all aspects of employment.
The criterion addresses a business initiative’s impact on work opportunities within the company, the stability thereof as well as Employment Stability evaluating the fairness of compensation. Disciplinary and secrecy practices as well as employee contracts are addressed under this criterion. These are evaluated to Employment Practices ensure that it complies with the laws of the country, international human rights declarations as well as other human rights and fair employment practice standards. The criterion focuses on the health and safety of the workforce and evaluates preventive measures as well as the occurrence Health & Safety and handling of health and/or safety incidents. Capacity Development The criterion addresses two different, aspects namely research and development, and career development.
External Population focuses on the external impacts of the company’s operational initiatives on a society, e. g. impacts External Population on the availability of services, community cohesion, economic welfare, etc. Human Capital refers to an individual’s ability to work in order to generate an income and encompasses aspects such as health, Human Capital psychological wellbeing, education, training and skills levels. The criterion addresses Health and Education separately. Productive capital entails the assets and infrastructure an individual needs in order to maintain a productive life. The criterion Productive Capital measures the strain placed on these assets and infrastructure availability by the business initiative.
This criterion takes into account the effect of an operational initiative on the social and institutional relationships and networks of Community Capital trust, reciprocity and support as well as the typical characteristics of the community. Macro Social Performance focuses on the contribution of an organisation to the environmental and financial Macro Social Performance performance of a region or nation, e. g. contribution to exports. Socio-Economic Performance This criterion addresses the external economic impact of the company’s business initiatives. Economic welfare (contribution to GDP, taxes, etc. ) as well as trading opportunities (contribution to foreign currency savings, etc. ) are addressed separately.
Socio-Environmental This criterion considers the contributions of an operational initiative to the improvement of the environment for society on a Performance community, regional and national level. The extension of the environmental monitoring abilities of society, as well as the enhancement of legislation and the enforcement thereof, are included in this criterion. Stakeholder Participation focuses on the relationships between the company and ALL its stakeholders (internally and Stakeholder Participation externally) by assessing the standard of information sharing and the degree of stakeholder influence on decision-making. The quantity and quality of information shared with stakeholders are measured.
Information can either be shared openly with all Information Provisioning stakeholders (Collective Audience) or shared with targeted, specific groups of stakeholders (Selected Audience). The degree to which the company actually listens to the stakeholders’ opinion should also be evaluated. Two separate subStakeholder Influence criteria are included: Decision Influence Potential and Stakeholder Empowerment. Internal Human Resources 6 Int J LCA 11 (1) 2006 Social Sustainability Process Industry The conclusion was reached that no social aspect of the ten projects could be found that could not be classified into the criteria framework. In addition, all of the social criteria did not manifest in each asset life cycle phase. However, there may be social aspects that did not manifest in either the case studies or the framework.
Nevertheless, the basis on which the individual case studies were chosen makes these cases adequately representative of the current social environment in which construction, operation, and decommissioning occurs in the process industry. It is subsequently concluded that the framework is complete enough to be used as an initial basis to develop a social assessment methodology, which can incorporate social sustainability into project and technology management practices. The social sustainability framework was further validated by means of a Delphi Technique survey [12]. The survey focused on the relevance of the proposed social criteria for the evaluation of projects or technologies and attempted to answer whether the project team, a functional unit within an organisation, or an organisation’s corporate governance framework should address the different social aspects.
A total of 23 project management experts in a process industry company in South Africa participated in the survey, which established the suitability of the social criteria, as well as the relevance of the criteria in terms of sustainable business practices. The outcomes of the survey support the conclusion reached by the case studies, but also suggest, according to the opinion of project management experts, that all the criteria are not relevant to project and technology management, but should rather manifest as part of corporate policy (Table 3) [11]. 1. 2 Verification and validation of the completeness and relevance of the social criteria of the framework The social sustainability framework was verified by means of case studies testing the completeness and relevance of its criteria.
Since the aim of the framework is to assess the social sustainability of projects and technologies in the process industry, ten case studies were chosen that represent the three phases of the asset, or technology, life cycle with the greatest potential to cause social impacts, i. e. the Construction Phase, the Operation Phase, and the Decommissioning Phase. The rationale for focussing on the three asset life cycle phases, as well as the interaction between asset and project life cycles, can be found in literature [10]. The case studies aimed to describe the significant social impacts that may occur during the life cycle phases in relation to the proposed framework, and to identify any social impacts that cannot be classified into the framework [11]: • The construction of three process industry facilities: an incinerator, a mine, and a gas pipeline. The operation of four chemical manufacturing facilities, one in Germany, one in the USA, and two in different provinces in South Africa. • The decommissioning of three process industry facilities: a cyanide manufacturing plant, an acrylic fibre manufacturing plant, and a mine. Project related documentation, pertaining to each of the case studies, was evaluated and personal interviews were held with project responsible individuals [11]. It must be noted that in case study research it is not easy to generalise results, since statistical analysis cannot necessarily be applied. Cases are not sampling units and cannot be treated as such. Table 3: Delphi Technique survey results [11] Criterion Employment Opportunities Employment Remuneration Disciplinary & Security Practices Employee Contracts Equity & Diversity Labour Sources Health & Safety Practices Health & Safety Incidents Research Development Career Development Health Education Housing Service Infrastructure Mobility Infrastructure Regulatory & Public Services/ Institutional Services Sensory Stimuli Security Cultural Properties Economic Welfare Social Pathologies Social Cohesion Economic Welfare Trading Opportunities Monitoring Legislation Enforcement Information Provisioning Stakeholder Influence Project x The criterion should be addressed by… Business Strategy x x x x x x x x x x x x x x x x x x x x x x x x x x Functional Department x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x Int J LCA 11 (1) 2006 7 Process Industry Social Sustainability CC = Characterisation factor for an impact category (of intervention X) within the pathway. As a first approximation no characterisation factors are assumed and social LCI constituents are considered separately.
NC = Normalisation factor for the impact category based on the social objectives in the region of assessment, i. e. the inverse of the target state of the impact category. The information is obtained from social footprint data in the region of the assessment. And, Significance (or relative importance) of the impact category in a social group based on the distance-to-target method, i. e. current social state divided by the target social state (see section 1. 2). 2 Social Impact Indicator (SII) Calculation Procedure The main focus of this paper is the development and testing of a quantitative social sustainable development indicator calculation method.
A life cycle impact assessment (LCIA) approach has been proposed before for the evaluation of the social impacts of life cycle systems from compiled LCIs [13,14]. An introduced LCIA methodology developed specifically for the South African context, termed the Resource Impact Indicator (RII) approach [15], is thereby used as basis for the development of social indicators. The environmental RII approach considers the current and target ambient state or ecological footprint through a conventional distance-to-target normalisation and weighting calculation procedure [15]. A similar calculation procedure is proposed for Social Impact Indicators (SII), using the four main social criteria (shown in Fig. 1) as Areas of Protection (AoP).
Three of these criteria represent the main groups of social resources on which the company can have an impact, while the fourth criterion represents all relationships between the company and stakeholders. The general SII calculation procedure is described through Eq. 1. (1) Where: SIIG = Social Impact Indicator calculated for a main social resource group through the summation of all impact pathways of all categorised social interventions of an evaluated life cycle system. QX = Quantifiable social intervention (X) of a life cycle system in a midpoint impact category C, i. e. project or technology specific information with regards to social impacts. Table 4: Midpoint categories and evaluation methods [17] Social Impact Indicators (SIIs) Internal Human Resources Midpoint category SC = CS = TS
To develop the calculation method, the same case studies used for the verification of the social criteria (see section 1. 2) were used to compile a list of possible social interventions, i. e. a social Life Cycle Inventory (LCI) of assessed operational initiatives in the process industry. However, the RII method makes use of mid-point categories. To define midpoint categories, the list of social interventions was mapped against the social criteria at various levels within the proposed social sustainability framework. A causal relationship diagram was consequently established for each of the four main social criteria, which define the midpoint categories. These causal diagrams are shown in the Appendix [16].
Three measurement methods are proposed to express the defined midpoint categories in equivalence units (Table 4) [17]: • Established risk assessment approaches, which require a subjective evaluation of the probability of occurrence, the projected frequency of the occurrence, and the potential intensity thereof; Measurement methods to establish equivalence units Quantitative Risk Quantitative Quantitative Risk Qualitative Quantitative Qualitative Quantitative Quantitative Quantitative Quantitative Quantitative Quantitative Quantitative Quantitative Quantitative Qualitative Quantitative Qualitative/Quantitative Quantitative External Population Stakeholder Participation Macro-Social Performance
Permanent internal employment positions Internal Health and Safety situation Knowledge level / Career development Internal Research and Development capacity Comfort level / Nuisances Perceived aesthetics Local employment Local population migration Access to health facilities Access to education Availability of acceptable housing Availability of water services Availability of energy services Availability of waste services Pressure on public transport services Pressure on the transport network / People and goods movement Access to regulatory and public services Change in relationships with stakeholders External value of purchases / supply chain value/Nature of Purchases Migration of clients / Changes in the product value chain/Nature of Sales Improvement of socio-environmental services 8 Int J LCA 11 (1) 2006 Social Sustainability Process Industry
Table 5: Proposed Midpoint Categories for the four main social criteria together with proposed units of equivalence Social AoP Internal Human Resources Midpoint Category Permanent Internal Employment Positions Possible Health and Safety Incidents Internal Research & Development Capacity External Population Comfort Level/Nuisances Units of equivalence Number of employment opportunities equivalent to a specific position Fatality or Disability Injury Rate Cost spend on R capacity Risk of uncomfort/ Kilo tons of pollutants emitted per annum Intervention Information, i. e. project Social Footprint Information needed or technology information Number and type of employment Employment by type, i. e. osition and opportunities created or destroyed full-time/part-time, for municipality Risk of health and safety incidents with prediction of number based on similar previous undertakings Investment by project in R as part of project budget Predicted emissions that can smell or risk of emissions Industry fatal accident or disability injury rate Municipality budget on R or industry budget Emissions and noise level of municipality as well as acceptable levels by standards, e. g. SABS standards Predicted noise levels or risk of noise Aesthetics Level of perceived acceptability Risk of structure and location having a negative impact on aesthetics of community Perceived level of aesthetic acceptability by community Local Employment Fraction of employable community hours Number of permanent job type equivalents Calculation: permanent positions multiplied by conversion factor Employment by type for community or municipality Local Population Migration Access to health facilities Level of short-term demographic changes People per qualified doctor
Predicted change in local population Predicted increase or decrease in ratio, focus only on public health sector Predicted impact on the number of literate adults The predicted need for houses which must be build multiplied by the average size Quantity of water used or supplied Quantity of electricity used or supplied Quantity of waste generated and/or quantity of waste removed from municipal area Number of additional public transport seats required Tons of good transported on roads and or kilometre of road infrastructure provided Percentage of turnover or expenses spend locally Monetary amount spend on services, resources or information that will improve macro environmental performance Predicted Percentage improvement or deterioration in perceived stakeholder trust Demographic profile of community or municipal area National ratio of people per qualified doctor or international ratio Literate adults in municipality area or region Size of municipality area Access to Education Availability of acceptable houses Availability of water services Availability of energy services Availability of waste services Pressure on public transport services Pressure on transport network/ People and goods movement Macro Social Performance Literate adults Zoned residential area per capita Water of drinking quality per capita kWh of electricity per capita Capita per G:h landfill site
Water of drinking quality used by municipality Electricity usage by municipality Landfill sites (type and size) used by municipality Public Transport seats available in municipal area Ton kilometres per capita (in region or nationally) Gross Domestic Product (GDP) per region and/or per industry. Monetary amount spent on Environmental Services by the region, i. e. provincial government or municipal council Perceived stakeholder trust based on community questionnaires or surveys Seat kilometres per capita Ton kilometres per capita External value of purchases Fraction of purchased locallymanufactures goods Improvement of SocioEnvironmental Services Cost spent on SE services per capita Stakeholder Participation Change in relationships with stakeholders Level of stakeholder trust Quantitative evaluation approaches, including, but not limited to, costs and direct measurements in society; and • Qualitative evaluation approaches, which require appropriate subjective scales and associated guidelines, and have been proposed for the industrial ecology and streamlined LCA disciplines (see section 1. 2). The defined midpoint categories, which, from the validation survey (see section 1. 2), are considered appropriate at project or technology management level, together with pro- posed units of equivalence for evaluation purposes are shown in Table 5. The units of equivalence were determined from the characteristics of the social interventions identified from the ten case studies.
The definitions of the midpoint categories make it evident that the normalisation and significance steps will be constrained by what is practicably measurable within a society where an operational initiative, i. e. project or technology (from an industry perspective), will typically occur. The availability of information is likely to differ be- Int J LCA 11 (1) 2006 9 Process Industry tween developed and developing countries. Furthermore, the projection of the social interventions of a project or technology may be problematic or at least differ from case to case. Separate studies may be required for some of the social sustainability criteria, e. g. stakeholder participation, even at project-specific level, which may be problematic. Case Studies to Demonstrate and Test the SII Calculation Method Social Sustainability 3. 1 Construction of an open cast mine 3. 1. 1 Background The SII calculation method was applied to three case studies to determine the current feasibility thereof in terms of data availability. In the third case study, environmental Resource Impact Indicators were also calculated using the RII method [15]. All case studies are set in South Africa and project information was obtained from Environmental Impact Assessment (EIA) studies as well as interviews with members of the respective project teams. Due to the hindsight application of the SII method no additional data could be collected from a project perspective.
Social footprint information was obtained from: • Statistics South Africa [18]; • South African Department of Transport [19]; • South African Council for Scientific and Industrial Research (CSIR) [20]; • South African Department of Health [21]; • South African Department of Labour [22]; • NOSA International [23]; and • Municipal Demarcation Board South Africa [24] and individual municipalities, e. g. some municipalities have undertaken Strategic Environmental Assessments (SEAs) in certain regions of South Africa. In the case studies, mid-point categories were evaluated in respect of whether both project and social footprint information are available, and if the respective information is comparable. It is noted that whereas LCA normally considers a product’s life cycle, these case studies focus on the asset, or technology, life cycle (as described in section 1. 2) with the functional unit being one operational year of the asset.
However, since the asset life cycle and the associate product life cycle interact through the asset’s operational phase [10], the indicators could be translated to a typical product-manufactured functional unit. In 1996 a petrochemical company in South Africa announced its intention to develop an Open Cast Strip Mine on the banks of the Vaal River between the Gauteng and Free State Provinces. The project was motivated on the basis that the reserves of the company’s main mine in the area had reached the end of its economic life and that this posed a threat to the future of a large chemical manufacturer in a nearby town, which was supplied by the mine from 1952.
Ultimately, a threat to the existence of the chemical manufacturer is a direct threat to the existence of the town and in a sense the province since the manufacturer contributes 12% to the geographical economy of the region. The project was met with a lot of resistance from the public, especially owners of riverside properties. The project was stopped after a non-governmental organisation took the company to court and won a legal battle, which changed the mining legislation of South Africa. 3. 1. 2 Available project and social footprint information Tables 6 and 7 summarise the available project information and social footprint information that have been obtained from the Environmental Management Programme Report [25] and the specialist study on the macro social economic impacts [26]. 3. 1. 3 SIIs for the project
The information presented in Tables 6 and 7 highlights the mismatch between available project and social footprint information. SIIs were calculated as far as possible where both appropriate project and social footprint information was available for midpoint categories (Table 8) using Eq. 1. The project will have an overall positive social impact, although job creation could not outweigh the negative impact on the comfort level on the neighbourhoods in a close vicinity to the plant. The overall positive impact is mainly due to the large contribution the project will make to the Gross Geographic Product (GGP) of a relative small area, which relies strongly on mining.
Table 6: Available project social intervention information for the proposed mine Construction Employment Opportunities created Employment Opportunities destroyed Indirect Employment Opportunities Contribution to GDP (added or lost) Reduction in property values Increases in Ambient Noise levels (dBa) on Average Dust (mg/day/m2) 450 people [24:138] Operation 300a employment opportunities over a 20 year life p [24:121] Multiplier effect of 2. 8: 840a a 20 employment opportunities on farmsa [24: 267] Multiplier effect of 2. 8: 1260 R52 million per annum (in 1999/2000) [25:32] 9-19% (year 1–10) [24: 258] ;2 [24: 195] Between ;50–250 [24: 187] 2–6% (after year 10 till mine closure) [24:258] ; 2 [24: 238–239] ;100a [24: 231] a a These values are used as quantifiable social interventions (Qx) in the SII calculation procedure. The South African Rand is equal to approximately 0. 12 Euros (as at the end of October 2005). 10 Int J LCA 11 (1) 2006 Social Sustainability Process Industry
Table 7: Available social footprint information for the region of the proposed mine Labour Force: Potentially Economically Active [25: 55] Total 736,721 100% Estimated ambient noise level (dBA) [24: 97] Time of day Morning Midday Evening Night Over 24 hours Sasolburg GDP (1991) due to kind of activity [25: 59] Mining & Quarrying Dust Pattern [25] March–July August–December January–February Dust Figures [25] September October (2 x sites) November (1 site) a b c Employed 308,826 41. 9% a Unemployed 149,335 20. 3% a Not-economically active 278,560 37. 8% Typical weekday 50. 9 46. 9 41. 4 34. 7 44. 6 b Typical weekend 49. 2 48. 0 46. 9 42. 3 46. 8 b R 259 677 000 per annumc Low Higher Lower 251–500 mg/day/m2 501–1200 mg/day/m 501–1200 mg/day/m 2 2 Moderate Heavy Heavy The sum of these values are the target state for the region. The current tate refers to only the value 308,826. The average of these two values are used as the target state for the region. The current state is assumed equal to the target state. Value used for target and current state for the region. The South African Rand is equal to approximately 0. 12 Euros (as at the end of October 2005) 3. 2 Operation of a chemical facility 3. 2. 1 Background The chemical facility is located on a 6,798 ha industrial site in South Africa. The construction of the site started in the early 1970s and was finished in 1980. It employs approximately 7000 permanent employees. The facility contributes 13% to the economy of the geographic region. 3. 2. Available operation and social footprint information • A Strategic Environmental Assessment of the area; • South African Census Information; and • South Africa’s Compensation Fund Statistics. References of these sources are withheld to protect the company’s identity. Table 9 summarises the available plant information and social footprint information that were obtained. 3. 2. 3 SIIs for the operation The following sources of information were used to calculate SIIs: • The company’s Sustainable Development Report; Table 10 shows the calculated SIIs using Eq. 1. Table 10 shows that the operation of the plant has in total a negative social impact. The positive contribution to GDP
Table 8: Calculated Social Impact Indicators for the proposed open cast mine from the available case study information Area of Protection Internal Human Resources External Population Intervent. Employment Creation Permanent Positions b Noise & Dust 1 Generated 2 Nature of Sales Midpoint Category Permanent Positions Local Employment Comfort Level Intervent. Value 300 in total 2195200 hrs a Normalisation Value (Ts–1) –06 2. 183 x 10 1. 11 x 10 –09 Significance Value (Cs/Ts) 0. 674 0. 674 1 1 1 Midpoint Indicator Value 4. 41 x 10 –04 SII Value 4. 4 x10 –04 1. 65 x 10 –03 –7. 5 x10 –02 –01 External Value of 2. 0 x 10 Macro Social Purchases Performance No information available Stakeholder Participation –01 Final Social Impact Value 1. 5 x10 a Total of 1140 permanent positions at 40 hours per week assumed for 49 weeks (three weeks vacation, etc. ). b A target (and current) state is taken as the weighted average for the region, i. e. 916 mg/day/m2. 1 Since no characterisation factors for noise to dust or dust to noise is available, the midpoint. category was calculated as a weighted average with equal weights to each constituent. 2 The units of equivalence have been changed to contribution to GDP due to the information available. 2 dBA 2 100 mg/d/m R 52 mil. 2. 19 x 10 –03 1. 09 x 10 –03 3. 85 x10 –02 –4. 38 x 10 –01 –1. 09 x 10 –01 2. 0 x 10 –02 Int J LCA 11 (1) 2006 11 Process Industry Social Sustainability
Table 9: Available operational and social footprint information for the region of the chemical facility Interventiona Employees Plant Informationb ± 7,000 Social Footprint Information Target: To have everyone employed excluding people who prefer to be not economically active. Govan Mbeki Municipality: Employed: 60,681 Unemployed: 40,189; Total Labour Force: 100,870. Employable Community Work hours – assuming all full-time employees – 40 hours – 49 weeks (3 weeks leave). 13 019 (target and current state assumed equal). Not available Not available Not available 197 kilo ton 138. 8 kilo ton 394 kilo ton 90 kilo ton (Permit: 101) 44,109. 2 kilo ton Atmospheric Emissions (concentration information from SEA) NOx 1 Hour Maximum NO2 concentration Average of 5 3 receptor points: 539. µg/m Acceptable Target (WHO guideline): 200 µg/m3 (1-hour NOx average) Current State: 1 Hour Maximum NO2 concentration based on maximum predicted concentration: 801 µg/m3 Acceptable Target (WHO guideline): 125 µg/m3 Current State: 24 Hour Maximum SO2 Concentration based on based on maximum 3 predicted concentration: 152 µg/m Target: (1:200 year firm yield) 150 million m per annum Current (predicted 1998/2000 average) 183. 6 million m3 per annum R 49,707 million Not available Not available 3 Indirect Employment Creation ± 21,000 (applying the rule of 3 used in SIAs) Total Injuries Disabling Injury Rate (no/200,000 hours) Health & Safety Incidents (Spillages) Atmospheric Emissions: SO2 NOx VOC H2S CO2 541 0. 59 70 Not available Not available Not available Not available Not available SO2 24 Hour Maximum SO2 Concentration based on average of 5 receptor points: 127. 4 µg/m3 Water Usage – River Water 89,963 m 3 Financial Turnoverc Transportation Incidents Complaints a b R 7835 million 12 36 c
Only those quantifiable social interventions for which plant and social footprint information is available, are used in the SII calculation procedure. All plant information has been obtained from the Sustainable Development Report where the average of data available has been used unless otherwise stated. The South African Rand is equal to approximately 0. 12 Euros (as at the end of October 2005). Table 10: Calculated Social Impact Indicators for the chemical facility from the available case study information Area of Protection Internal Human Resources Intervent. Midpoint Category Permanent Positions Possible Health and Safety Incidents Local Employment Comfort Level Availability of water services External Value of Purchases Intervent.
Value 7,000 541 Normalisation Value (Ts–1) 9. 91 x 10–06 7. 68 x 10 –05 Significance Value (Cs/Ts) 0. 602 1 Midpoint Indicator Value 4. 17 x 10–02 –4. 16 x 10 –02 SII Value Employment Creation Health & Safety Incidents 1. 9 x10–04 External Population Permanent Positions Atmospheric Emissions (SO2) Water Usage 41,167,000 hrs 127. 4 µg/m 89. 963 m 3 3 5. 06 x 10 0. 008 0. 007 –09 0. 602 1. 216 1. 224 0. 125 –1. 239 –0. 734 0. 158 –1. 85 Macro Social Performance Stakeholder Participation Nature of Sales R 7835 mil. 2. 01 x 10 –05 1 0. 158 No information available –1. 69 x10 –01 Final Social Impact Value 12 Int J LCA 11 (1) 2006 Social Sustainability nd employment cannot outweigh the negative impacts on comfort level, people (in the form of health and safety accidents), and the water usage. The biggest social impact is the impact on comfort level due to atmospheric emissions, i. e. secondary environmental impacts. 3. 3 Decommissioning of a fibre manufacturing plant Process Industry In addition, environmental RIIs were calculated using standard RII values, which were calculated for selected process parameters [27]. Table 11 shows the available project and social footprint information. 3. 3. 3 Environmental and social impact indicators 3. 3. 1 Background Tables 12 and 13 show the calculated Social and Environmental Impact Indicators.
The values in Tables 12 and 13 show that although a similar methodology was followed to calculate SIIs compared to RIIs, the indicator outcomes are vastly different. This highlights that the interpretation of indicators remains challenging. Assessing the overall sustainability performance of a project or technology by allowing trade-offs between the contributions and damages should be seriously considered before it is applied. Ultimately, the trade-offs between the different dimensions would be the responsibility of the specific decision-makers, and therefore reflect the preferences of the decision-makers. 3. 4 Conclusions from the case studies In the early 1990s a second-hand acrylic fibre plant from a manufacturing facility in France was dismantled and relocated in the KwaZulu Province of South Africa.
However, the decreasing acrylic fibre market in South Africa, combined with a lack of import protection, led to the decision to decommission the plant in March 2002. The plant manufactured its last products in May 2002, which were sold in August 2002. The plant was dismantled and the site rehabilitated by March 2003. 3. 3. 2 Available project and social footprint information Using the company’s sustainable development report, the Strategic Environmental Assessment (SEA) of the region, as well as the sustainable development indicator data of the municipal area in which the plant operated, the SII calculation procedure was applied to calculate the social impacts. As stated before it is not easy to generalise from case study research.
However, the case studies showed that it is not possible to calculate all social midpoint category indicators, Table 11: Available project and social footprint information for the region of the fibres plant Interventiona Nature of Jobs Project Information 250 employment opportunities lost (5% relocated = 12 ) Social Footprint Information eThekwini unemployment: 591,024 eThekwini employment: 782,933 Target: To have everyone employed excluding people who prefer to be not economically active. Employable Community Work hours – assuming all full-time employees – 40 hours – 49 weeks (3 weeks leave). Indirect Employment Destruction ± 750 (applying the rule of 3 used in SIAs) Work-hours lost due to injuries Disabling Injuries 475. 25 hours 6. Although social footprint information is available the definition of disabling injuries is not given and therefore information is not comparable. Not available Not available eThekwini Emissions 0. 488 kilo ton per annum 0. 111 kilo ton per annum 0. 005 kilo ton per annum 1,429,200 kilo litre per annum 54. 50 kilo ton per annum 54. 50 kilo ton per annum No information available eThekwini – with water loss: 168,090 ML – without water loss: 280,149 ML eThekwini: 9098 GWh per annum Not available Durban South Basin: 45,000 ton per annum Not available GDP of Kwa Zulu Natal: R 113,047 million Disabling Injury Rate (no per 200 000 hours) Health & Safety Incidents (Spillages) Atmospheric Emissions: SO2 NOx VOC Water Usage 2. 375 0. 75 per annum
Energy Usage Solid Waste: General/Domestic Non-Hazardous Industrial Nature of Sales c 48. 384 GWh per annum 5. 25 x 10 m per annum 2. 575 x 10 m per annum b 1,545 tons per annum 2. 675 x 10 m per annum Annual turnover of R 500 million 0. 5 per annum 3 3 3 3 3 3 Stakeholder Complaints a b c Only those quantifiable social interventions for which plant and social footprint information is available, are used in the SII calculation procedure. The South African Department of Water Affairs and Forestry’s minimum requirements for waste density was used for the conversion. The South African Rand is equal to approximately 0. 12 Euros (as at the end of October 2005). Int J LCA 11 (1) 2006 13 Process Industry Social Sustainability
Table 12: Calculated Social Impact Indicators for the decommissioning of the fibres plant from the available case study information Area of Protection Internal Human Resources Intervent. Employment Creation Permanent Positions Energy Usage External Population Water Usage Waste a Generated Atmospheric Emissions (SO2 & NOx)b Macro Social Performance Stakeholder Participation Final Social Impact Value a b c Midpoint Category Permanent Positions Local Employment Availability of energy services Availability of water services Availability of waste services Comfort Level External Value of Purchases Intervent. Value 262 1,983,520 hrs 48. 384 GWh 1,429,200 kl 1 545 t 0. 65 kt SO2 eq. R 500 mil. Normalisation Value (Ts–1) 7. 28 x 10–07 3. 71 x 10 –10 Significance Value (Cs/Ts) 0. 570 0. 570 1 1 1 Midpoint Indicator Value –1. 09 x 10–04 –4. 20 x 10 –04 SII Value –1. 1 x10–04 1. 1 x 10–04 3. 57 x 10 –09 5. 32 x 10–03 5. 10 x 10 –03 5. 47 x10–04 2. 22 x 10–05 2. 84 x 10–02 7. 98 x 10–06 3. 43 x 10–02 1. 04 x 10–02 –3. 99 x 10–03 –4. 0 x10–03 a Nature of Salesc 1 No information available 5. 06 x10 –02 Based on information available the units of equivalence have been changed to domestic waste generated in tons. Comfort level is measured quantitatively in kilo tons SO2 per annum using CML characterisation factors.
The units of equivalence have been changed to contribution to GDP due to the information available. The South African Rand is equal to approximately 0. 12 Euros (as at the end of October 2005). Table 13: Calculated environmental Resource Impact Indicators for the decommissioning of the fibres plant from the available case study information Process Parameter (annual quantities) Waste Electricity used Coal Used Steam used Water used 1,545,000 kg 174,182,400 MJ 46,368,000 kg 354,960,000 kg 1,429,200,000 kg Resource Impact Indicator Water 7. 29 x 10–02 7. 88 x 10 0 2. 60 x 10 7. 00 x 10 8. 84 x 10 4 4 5 Air 2. 33 x 10–06 1. 79 x 10 0 2. 51 x 10 0 1. 81 x10 +04 2 4 Land 4. 2 x 10–02 1. 68 x 10 0 4. 41 0 1. 72 x 10 +02 2 Mined 0 8. 81 x 10 1 1. 67 x 102 1. 52 x 10 0 4. 07 x 10 +02 2 +05 either because of a lack of project information, or because of a lack of social footprint information. In addition, the units of equivalence cannot be fixed since they depend on the available information. This complicates indicator comparisons between various projects. The limitation of available social footprint information results in the fact that only some midpoint category indicators are possible, i. e. permanent positions, water usage, energy usage, nature of sales, and comfort level, which leads to an impaired social picture.
In addition, the midpoint category indicators for water usage, energy usage and comfort level are much higher than permanent positions, thus resulting in a net negative social impact for any proposed development, which may not be a representation of the true social influence of the project or technology. 4 Conclusions and Recommendations sions of sustainable development [29]. The research therefore concludes that a quantitative social impact assessment method cannot be applied for project and technology life cycle management purposes in industry at present. It is emphasised that these conclusions were reached from a process LCA perspective, which is industry sector-wide.
Research with a product LCA focus may lead to different outcomes. Although a comprehensive top-down approach was followed, a bottom-up approach may be more appropriate for product LCAs [30], as the selection of suitable criteria would be constrained to the specific scope of a LCA study. 4. 1 Further steps to quantify social impact indicators A case study independent analysis of available social footprint information in South Africa confirmed the main finding of this paper that social footprint information is not available for all midpoint categories [28]. It is regarded as an international problem that current available statistics are incapable of providing an integrated view of various dimen-
It is proposed that social sustainability should be incorporated into project and technology life cycle management by means of guidelines and checklists. Similar to the environmental dimension, it is envisaged that such checklists and guidelines would improve the availability of quantitative data in time, and would therefore make the SII procedure more practical in the future. Although such guidelines and checklists have been developed from a theoretical perspective [28], practical guidelines and checklists from a project or technology life cycle management perspective are yet to be dem- 14 Int J LCA 11 (1) 2006 Social Sustainability onstrated. Further cases are subsequently required for demonstration and analysis purposes.
While the guidelines and checklists may lead to a paradigm shift in industry towards obtaining and evaluating social impact-related information, it is also suggested that a lesscomprehensive list of social criteria is used as a starting point to develop social LCA-specific methodologies, possibly using those midpoint category indicators that were quantifiable in the case studies of this research, i. e. permanent positions, water usage, energy usage, nature of sales, and comfort level, or other midpoint categories that are currently proposed [30]. However, social issues are highly influenced by cultural perceptions, and it would be best to undertake such a task at national level.
National indicator sets can then be compared and combined on an international level. In addition, it is suggested that the development of data quality standards are required for social criteria, similar to the efforts of SETAC and ISO for the environmental criteria used in LCA today. Such standards would greatly improve the transparency of calculated indicators. References [1] Zadek S (1999): Stalking Sustainability. Greener Management International 26, 21–31 [2] Roberts S, Keeble J, Brown D (2002): The Business Case for Corporate Citizenship, Arthur D. Little, Cambridge [3] Visser W, Sunter C (2002): Beyond Reasonable Greed: Why Sustainable Business is a Much Better Idea! Human & Rousseau, & Tafelberg, Cape Town [4] Holliday CO, Schmidheiny S, Watts P (2002): Walking the Talk: The Business Case for Sustainable Development, Greenleaf Publishing, Sheffield [5] Lehtonen M (2004): The environmental-social interface of sustainable development: Capabilities, social capital, institutions, Ecological Economics 49, 199–214 [6] Ranganathan J (1998): Sustainability Rulers: Measuring Corporate Environmental and Social Performances, Sustainable Enterprise Perspectives, World Resources Institute Publication [7] Hedstrom G, Poltorzycki S, Stroh P (1998): Sustainable Development: The Next Generation of Business Opportunity, Arthur D. Little: Prism-Sustainable Development: How Real, How Soon and Who’s doing what? 4, 5–19 [8] Gladwin TN, Kennelly JJ, Krause T-S (1995): Shifting Paradigms for Sustainable Development: Implications for Management Theory and Research. Academy of Management Review 20, 874–907 [9] Labuschagne C, Brent AC, Van Erck RPG, (2005): Assessing the sustainability performance of industries.
Journal of Cleaner Production 13 (4) 373–385 [10] Labuschagne C, Brent AC (2005): Sustainable Project Life Cycle Management: the need to integrate life cycles in the manufacturing sector. Int J Project Management 23 (2) 159–168 [11] Labuschagne C, Brent AC (2005): Verification and validation of the introduced framework to assess the sustainability performances of industries. Working Paper 2005/01, Department of Engineering and Technology Management, University of Pretoria, Pretoria [12] Labuschagne C, Brent AC (2004): Sustainable Project Life Cycle Management: Aligning project management methodologies with the principles of sustainable development. Proceedings of Process Industry he 2004 PMSA International Conference: Global Knowledge for Project Management Professionals, pp 104–115 [13] Klopfer W (2003): Life-Cycle Based Methods for Sustainable Product Development. Int J LCA 8, 157–159 [14] Brent AC, Labuschagne C (2004): Sustainable Life Cycle Management: Indicators to assess the sustainability of engineering projects and technologies. InLCA/LCM On-line Conference [15] Brent AC (2004): A Life Cycle Impact Assessment procedure with resource groups as Areas of Protection. Int J LCA 9 (3) 172–179 [16] Brent AC, Labuschagne C (2005): Sustainable Life Cycle Management: A case study in the process industry to develop a calculation procedure for social indicators following conventional LCA methods.
Fourth Australian Conference on Life Cycle Assessment, Sydney [17] Brent AC, Labuschagne C (2004): Sustainable Life Cycle Management: Indicators to assess the sustainability of engineering projects and technologies. Proceedings of the IEEE International Engineering Management Conference, Singapore, pp 99–103 [18] Statistics South Africa, Stats Online: The Digital face of Stats SA. Available at: <http://www. statssa. gov. za/> (visited on 18 April 2005) [19] Department of Transport, Department of Transport: Library. Available at: <http://www. transport. gov. za/library/index. html> (visited on 19 April 2005) [20] Council for Scientific and Industrial Research, Council for Scientific and Industrial Research. Available at: <http://www. csir. co. a/> (visited on 19 April 2005) [21] Department of Health, Department of Health: Documents. Available at: <http://www. doh. gov. za/docs/reports-f. html> (visited on 19 April 2005) [22] Department of Labour, Department of Labour: All about accidents. Available at: <http://www. labour. gov. za/subjects/subject_ display. jsp? parCat_id=7833&subject_id=7890> (visited on 19 April 2005) [23] NOSA International, NOSA International: Occupational Safety, Health and Environmental Risk Management. Available at <http://www. nosa-int. com/default1. asp> (visited on 19 April 2005) [24] Municipal Demarcation Board, Municipal Profiles. Available at: <http://www. demarcation. org. a/municprofiles2003/index. asp> (visited on 19 April 2005) [25] Walmsley Environmental Consultants (1997): Environmental Management Programme Report for the Sigma Colliery: North West Strip Operations, Volume II Main Report, Walmsley Environmental Consultants, Report no W220/3, Johannesburg [26] Development Planning and Research cc (1996): Specialist Study 16: Macro Social Economic Impact Assessment of Sigma Colliery’s Proposed North West Strip Operation. Walmsley Environmental Consultants (Pty) LTD, Johannesburg [27] Brent AC, Visser JK (2005): An environmental performance resource impact indicator for life cycle management in the manufacturing industry.
Journal of Cleaner Production 13 (6) 557–565 [28] Labuschagne C (2005): Sustainable project life cycle management: Development of social criteria for decision-making. PhD Thesis, Department of Engineering and Technology Management, University of Pretoria, Pretoria [29] OECD (2004): Measuring Sustainable Development: Integrated Economic, Environmental and Social Frameworks. Organisation for Economic Co-operation and Development, Paris [30] Dreyer LC, Hauschild MZ, Schierbeck J (2005): A Framework for Social Life Cycle Impact Assessment. Int J LCA, OnlineFirst <DOI: <http://dx. doi. org/10. 1065/lca2005. 08. 223> Received: June 3rd, 2005 Accepted: December 1st, 2005 OnlineFirst: December 2nd, 2005 Int J LCA 11 (1) 2006 15
Social Sustainability Process Industry Appendix The causal relationship maps are broken down into 7 diagrams. Four diagrams are used t

Industry Life Cycle of Nokia Company

Csr Strategy of Sport Industry

Csr Strategy of Sport Industry.
Investors They expect returns on investment. They are usually less concerned by CARS and more by financial results. Any decision made has to convince them of the long-term interest of taking that action. Employees They earn the money from the company. A specificity of the sport industry is the tight relationship employees usually have with the brand they are working for. There is a strong hare of values. Community Every brand has to keep up in line with the values of the community. They must ensure the reputation of the brand by following good ethical behavior.
Events Organizer / Committees It represents a complex mutual relation. Events need the brands to bring money wrought sponsorship, but also quality products to ensure quality show while brands need events for exposure and show their strength. Clubs / Athletes As for events, brands will associate its image with clubs or athletes. When taking CARS decisions, it has to respect the values of these stakeholders to avoid conflicts. Competitors When positioning against competitors, CARS can be use as marketing tool.
Governments Local and national government body are major actors in any strategic decision for brands. No’s No’s represent a good way to show concern on social topic for brands. 2. Pros and Cons of CARS for stakeholders Before entering into any CARS strategy for a sporting good brand, it is important to estimate the impact it can possibly have on your stakeholders. First of all lets consider the main positive effects. On the one hand, CARS as a general Cars Strategy of Sport Industry By relish and the brand. It is also a good tool to increase the community base with deeper and stronger values.

Though it has to be consider that a strong positioning can sometimes have the opposite effect with customers no longer identifying with the brand values. On the second hand, social responsibilities are a good way to motivate your employees and thus increase your production and/or quality. It has a positive impact on the unity of all your members and helps create a healthier working environment. This is also a positive way to increase the attractiveness of your company through fair hiring process and rewarding treatments.
Moreover, CARS can increase the company reputation. This will positively impact the business with suppliers but also with governments, event organizers, committees and athletes. Not only these actors will be more willing to work with you, but also your existing partners will benefit from your positive reputation. Nonetheless, even though sport industry share generally the same big values, a strong positioning can once again result in conflicts with potential partner and needs to be taken into consideration.
Nonetheless, CARS cannot only affect positively the entire group of stakeholders. Among the main stakeholders concerned about CARS are the investors. Social Responsibility is broadly understood as spending money and not earning return on investments. And these cost matters get more important when considering medium and small enterprises. Program to reduce environment impacts for example are costly, the same when it comes to relocating decisions. Discussing all possible positive and negative impacts on stakeholders isn’t possible.
Sport industry is a complex structure and the tight links between companies and their stakeholders makes every CARS decision even more important regarding their impact on many stakeholders at the same time. More than in any other industry, CARS are deeply value driven and should reflect the consumer values. Hence it requires to take into consideration all possible impact and strong risk analysis. 3. Risk analysis The prime purpose of including CARS in corporate business is to make the corporate equines activities as well as the corporate culture economically, socially and environmentally sustainable.
It seems the customer satisfaction is only about price and service, but concentrating on only these aspects of business makes them blind folded towards other important changes taking place worldwide that could blow the business out of the water. Some of the drivers pushing business towards CARS include: Inefficiency of the Government In the past, governments have relied only on legislation and regulation to deliver social and environmental objectives in the business sector that has led to certain
There is a growing demand for corporate disclosure from stakeholders, including customers, suppliers, employees, communities, investors, and activist organizations. Increased Customer Interest It has been seen and proved through a survey conducted found that more than one third of surveyed consumers believed that large companies “should do more than give money to solve problems. ” Increased pressure from the Investor Investors are changing the way they analyze companies’ performance, and are making decisions based on ethical concerns too.
Change in employee behavior Employees are increasingly looking beyond paychecks and benefits and seeking out employers whose operating practices match their own principles. In order to hire and retain skilled employees, companies are being forced to improve working conditions. CARS and risk management CARS, particularly for a global company, is related to corporate risk management through two means: by providing intelligence about what those risks are, and by offering and effective means to respond to them.
The key to both, as implied in the above definition, is more effectively “managing stakeholder relationships. ” Stakeholder engagement through CARS programs provides an invaluable source of information about social risks, which is different from simply stakeholder managing. A stakeholder management mind-set focuses the dissemination of information to stakeholders, through public relations or community relations, on decisions already made without completing the feedback loop. This way of managing stakeholders might be ineffective in global operating environments.
Managing stakeholder relationships requires closing the loop; it means truly engaging stakeholders. For any company, only few stakeholders may warrant reaching the highest level of engagement, but managing stakeholder relationships is a key dimension of effective CARS programs for all global companies. Effectively managing stakeholder relationships focuses on issues, problems and opportunities that go far beyond one organization and involve the whole global systems or network.
By integrating the business sensing, learning and innovations gained from CARS programs, companies can better manage their risks and subsequently their economics, social and environmental impacts, in a manner that is roughly analogous to what they learn from their customers, a more well-established form of business intelligence adhering. Generally, companies consider implementing responsibility systems too expensive and besides they can even lead to a number of disadvantages compared to their competitors.
In fact, the cognitive assumption is that higher levels of responsibility will add to unrecoverable costs, because the costs related to an irresponsible corporate behavior are often hidden or unrecognized while the apparent benefits of cutting corners sometimes seem obvious. And environmental problems that in the past. Organizations therefore have to try to follow socially orientated aims, ranging from the protection of the environment as ell the worker’s rights in order to make the economical rule fit the social one.
The interesting socially responsible investment is part of the CARS. It has led to the growth and popularity of investment funds claiming to invest in companies that are socially responsible, and to the growth in the number of enterprises that provide information to investors about the social to environmental performance of companies. This has increased opportunities for trade unionists to obtain leverage over corporate behavior though means such as introducing shareholder resolutions at annual company meeting. Benchmark analysis Before undertaking any kind of CARS action, it important for sporting goods companies to be aware of the different issues existing in the sector and define the priority according to the corporate strategy. According to literature review, 3 mains axes have been define for CARS: environment, economic and society. The environment section is probably the most important for the outdoor sport enterprise as it is strongly related to the main concern of the industry. This section includes respect of nature, preservation of resources such as water, air and soil.
The economic axes deal with the salary of employees and the involvement in the payment of taxes to the community. In addition, the economic responsibility of a company is to provide adapted products that respond to the need of customers, and make profit. The third dimension deals with society: employees’ wellbeing and respect of human rights. CARS actions are understood differently among companies and the operation showed by the main players will respond according to diverse values and priorities. A. Charity: Some outdoor sport brands are helping homeless people by providing apparel to rooter these people against rain, wind and keep them warm.
Volcano launched a campaign to distribute old pair of Jeans all across America. They collected it from customers in store. This action allowed the customers to be directly involved and have a very positive impact. Similarly, the Canadian brand Racketeer created weatherproof Gore Tex cape to distribute to homeless. B. Environment friendly In the outdoor industry, respect of environment is a strong value. Patagonia is probably the brand the most invested in the protection of environment and very concerned about reducing it carbon print.
The company tries to spread their vision about the overcompensation the western society is facing. In November 2013, they to make people buying only what they need. The company is also very transparent on its supply chain and the origin of their raw material. C. Education and improvement of society The CARS actions undertaken by The North Face have for objective to educate young kids and transmit them value of the respect of the environment. In addition, their program “explore the fund” increases access to nature and backcountry to children that may not have this opportunity without this program.
The most important concern for consumer in the outdoor industry is the respect for the environment. In fact, evolving outside, it mandatory for participants to respect nature. According to the 3 dimensions we have define before, a sporting good company can: Environment Make sure to have a echo friendly supply chain and try to limit your carbon print among your different operation Economic Pay taxes to the local community regarding environment regulation. Invest in R&D to develop products involved with a recycling process Society Try to educate people regarding environmental issues
To conclude, we will advise a sporting good company to undertake CARS action on environment protection, and choose the dimension (environment, economic or society) in which the company prefers to operate according to its values. 5. CARS actions to engage Through many company websites, especially sports ones in this case, we observe an increasing trend on communicating the engagements companies are taking. A special section is reserved to CARS explaining the roots of it and the future achievements they have in mind. As a general trend we see the protection of the environment on almost every website, whether Nikkei, Aids, lotto or puma.
For instance, Nikkei interestedly named its environmental engagement the “North Star” with the following table as a guideline: Another major point is to improve working conditions in global supply chains and the industry as a whole. Mainly, the goal is to help build an equitable and empowered work force. The way to do so is by giving work empowerment, a more efficient management system and sustainable manufacturing and sourcing. Moreover, something particular to sports is the concept of community, and Nikkei understood that point very well, that is why we see a strong involvement in the latter since they feed this industry.

Csr Strategy of Sport Industry

Stark Industries essay

Stark Industries essay.
Stark industry is a fictional billion-dollar multinational defense firm in the USA. The company specializes in advance weaponry and dedicates its work for improving weapons used in warfare. The company also is directly linked to supply United States army advanced weapons that helps them fight terrorists around the world. The technology used by stark industry is far advanced than any other companies in the world. This is due to the fact that Tony Stark, their CEO is a genius. To give a brief background on the stark industries weaponry, we must first know what makes it unique. Stark industries was established by Tony Stark’s father. Together with business partner Obadiah Stane, Tony’s father created a billion dollar company that supported United States department of defense in its wars. It was stated in the film that stark industries under Tony’s Dad created the nuclear bomb. Unfortunately stark industries was left hanging when Tony’s father and mother was in traffic accident that killed them both.
At age 21, Tony was force to become the company CEO and inherit his father’s legacy of weapons development. In term of weaponry, Tony Stark’s input on the creation of high tech weapons helped the company become of the best in making innovative weapons. As an MIT graduate at an age of 19, he was great at weapon creations. In the film, we can see his latest weapon is a rocket that can disengage multiple small rockets that can hit multiply targets in one shot. His weapon engineering skills propels the United States army to fight terrorist and ensure their victory in the war of terrorism.
In the comic world of Iron man, Stark Industries plays a vital role in his weapons. The company provided Tony with equipments in which he uses to create his modified armors and new functions in it. We can see that high technology computers Tony is using in his laboratory of weapon creations beneath his house. The equipments are all from stark industries and it helped him in improving the model he used as Iron Man. The machines that created iron man suit were courtesy of Stark Industries. We can say that without stark industries, Tony stark will have a hard time constructing a suit that is as efficient and good as the iron man suit he created using high tech machinery. Without stark industries, the weapons he used in the film such as the homing missile, the automated artificial intelligence in his suit, the energy source of his armor and the photon rays he used to fly and shoot won’t be possible. Iron man’s successful creation and functions is highly dependent on the technology of Stark Industries. We should also put emphasis on the power source of irom man suit. The power source Tony stark used o power up his heart was said to be stark’s industries long time project. This project was first acknowledged as a useless and untested kind of power. By testing it in his own heart and using it his first prototype of the suit, tony stark used stark industry technology and saved his life as well as make him a perfect armor suit. Iron man’s beginnings were clearly dependent on stark industries resources. Related the strength management program of the national guard

As Ceo of Stark Industries, Tony was a typical happy go lucky billionaire. In the film, he is depicted as a womanizer, gambler, arrogant, rich, mischievous and charismatic billionaire. He was shown to be a credible CEO because of his unique skill to create weapons and his charismatic image toward s the press and public. As CEO of stark industries, tony lived up to the expectations of his father and partner Obadiah stane. He delivered the best weapons to the United States Army and he was helping them in winning the fight against terrorism. As a good friend of James Rhodes, one of the high ranking army officials, Tony ensured stark industries’ support for al military programs. Tony supplied the army with the best technology possible. He was even the one who delivers and presents new weapons to soldier to demonstrate its capabilities. As a CEO, he was a little bit irresponsible in terms of being on time for meeting or social events but he means business when it comes to the real event. He is the face of the stark industries and he delivers when needed.
The Core competency of Tony lies in his character. As a CEO and superhero, Tony has a clear mindset on what he must do. Earlier in the film, before Tony stark became iron man, He was focus and motivated to make good weapons. He was hard working and at the same time knows how to enjoy life. His competency in weapon engineering is far beyond of what is required of him. His genius mind earned him a degree in MIT at an age of 19. He graduated top of his class and then after two years was forced to take on a billion dollar firm. He was hard working, intelligent and driven. He also has good interpersonal skill. As CEO, Tony is very charismatic. In a scene in start of the film, he was able to talk to soldier as if they were his friends even though they were on a mission. His also is intimidating. Being the head of a large organization requires power and respect. His personality is perfect for it. He can easily intimidate people and his presence alone can affect people’s feelings. This is one of his competencies as a leader of Stark Industry. As Iron man, Tony showed us that he had an epiphany. He saw what his weapons were doing to the world. He realized that no matter hoe advance and good his weapons are; there is a chance that it will fall on the wrong hands. After being captured by terrorist, he develops a sense of righteousness. He felt that he has a responsibility to help and change the world. This makes him very competent to be CEO and at the same time part time superhero. He clearly understands what is happening. His gained wisdom and is trying to correct his past mistakes through his decision making.
Tony Stark’s values as a person are simple. He wants to see things happen. He is a person that wants change and he sees to it he will play a big role in making it happen. At first Tony thought that by making great weapons he could change the world. He saw stark industries as a savior and helping humanity by keeping terrorist at bay because the US army had bigger guns. Stark’s values were always towards the greater good. The only difference is that after being abducted and seeing the way his company is dealing with terrorist; he slowly changed to another perspective in how to manufacture and use his company’s weaponry to good use. His manufacturing of iron man made him a hero in his own way. His values did not shift from wrong to right. He always had thought of doing something nice for the country. The difference now is that he saw the reality that arms dealing has a darker side especially with a billion dollar corporation. His company’s stock holders were dealing under the table and he was forced as CEO to take things into his own hands. He craved for justice. Iron man was his way of using his technology and stops the evil of the world. He fought off terrorism and destroyed the perpetrator of stark industry’s below the table agreements with terrorist, Obadiah Stane. For a person that values helping others, he was alone. He did not have anyone but his assistant, Pepper. Surprisingly, everyone thought Stark was a womanizer. He would play around with women and dump them by the end of the day. But by the end of the movie it looks like he values love and companionship also. He found love in his assistant Pepper.
Stark Industry’s SWOT analysis based on the film is very interesting to see. For the company’s strength, stark industry has been one fo the top companies in the world in providing military weapons. Their technology is far advanced than any other company around the world. They have great scientist and Tony on board. This means they can create more powerful machineries in the future. Their Ties to the government and SHIELD is also an advantage. They can know the latest threat and try to develop more sophisticated weapons to fend off terrorist. Being a multinational company, they can ship weapons and products around the world in an instant. They have resources that will enable them to further expand and get richer. They have assets like plants, buildings, and infrastructure that is vital in a company’s future. Heir greatest strength of course is Tony Stark.
The company’s weakness lies in the board of directors. Since not everyone is like Tony, the board of directors is made up of rich and arrogant billionaires. They might have a different perspective and their goal is towards making money. By having this goals, they might later on sell arms to terrorist again. Their strengths of having military connection is also their weakness. They have the pressure of providing the United States army with weapons entail to help them in their pursuit of their military interest. If ever there will coe a time that the army will be doing something unethical, Stark industry will be held liable also since they were supplying them with weapons. The facts that board of directors control the decision making process for the company, Tony will have a hard time in convincing them to always play by the book. They might override Tony’s decision any time they feel it is impropriate for the company.
Opportunity wise, the company is expanding. With the new governance of Tony Stark, they company might have great opportunities ahead of them. Since James Rhodes has a good relationship with Tony, he might be able to expand their network by providing them opportunities to manufacture better weapons. Tony also has a keen sense of social responsibility. The company has opportunities to help change the world. Examples of good opportunities are donating to charity, making new inventions that can help mankind, establishing new relations with other sectors of society and help in reforming the wrong doings of the company by helping the development of third world countries. The opportunities are infinite as long as Tony can stay focused on helping the world be a better place. Being CEO he has the responsibility to steer the company to the right path.
With their strengths and opportunities said, threats are also found in the company. Since shareholders and other directors are also part of the company, being overthrown is one problem Tony has to face. Being voted out in a decision that can affect the US army is a dangerous one. Influence of other powerful corrupt politicians can be their threat too. If ever Tony will not be around to supervise the company, many people in the company with dark intentions can easily change the coarse the company has chose to take right now. Terrorism and shortage of supply for their resources will also be threats. Since they are using the world’s resources in their production, natural resource’s scarcity can be a threat to their company. External factors like inflation, the rise of prices in the market can also be threats to their company.
The Vision of the company is simple. Starting out as a weapons firm by Tony’s dad, he envisioned it to supply the US army to change the world by making it a better place. The company’s vision was to make the US army so strong that it can protect people around the world from terrorist. The vision of using powerful weapons and technologies made a slight turn by Tony creation of Iron man. The company’s vision still is to provide the world primarily the American people with safety by providing their army great weapons by it is also focused now on making responsible choices.
The mission of the company is to make the world a better place. This is under the rule of Tony as CEO. His mission is to steer the company from a “under the table” “double dealing” corporation to a socially responsible corporation. The mission is to provide humanitarian help to people in need and help the military in honest ways. It is also their mission to make high end weapons to strengthen the US army.
Tony’s relationship with the management is a little bit of trouble some. His sudden change of being a corporate mogul to a humanitarian is not easily accepted by his peers. Although the biggest threat to him was already gone. He will have a difficult time in ensuring his decisions are supported by the management team. He will also find it difficult to ensure their support for his later on projects that will be goaled at helping people and not ensuring profitable decisions. As a billion dollar company, his management will be centered on making money. He can help strengthen his management support by buying out the shares of people he knows that has corrupt intentions and clean his company of these kind of people. He can also get James Rhodes on board since he plays a big role in their sales as an arms dealer. Rhodes has a good heart and can help the company in making right decisions.
Tony Stark compared to his Stark industry in the film is really different. Tony is a dynamic character and knows boundaries in his actions. As a billionaire, he knows how to enjoy wealth and fame. He has a good heart. He sees to it that his company will be helping make a safer place to live on. Tony Stark is a humorous and happy go lucky. He utilizes his riches to enjoy life and make connections to important people. On the other hand, Stark Industries is a world wide famous weapons dealer. The corporation is serious in making weapons and developing new technology. Under many directors, the company is like any other multination company. They are geared to making tons of money. Their primary goal is to generate as much money as possible no matter what methods are used. They have no intentions of giving back their riches to people unlike Stark. The Stark Industry is a corporation. We cannot excuse that fact people in it are for making money. Tony on the other hand is something else. He wants to use his power and money to help people. He is geared to making changes by elimination threats to the world and creating inventions that will help the world. Tony Stark and Stark Industries are quite opposite in terms if interest but they are really dependent of each other. Without Tony Stark, the company will loose their greatest inventor and CEO. Tony stark on the other hand needs the company to facilitate his research and development of new iron man suits to help him in his missions. The mission Tony has for Stark Industry is to keep its integrity intact and at the same time help hi make an impact in the lives of thousand by helping them.
References
Favreau, J. (2008). Iron Man (Motion Picture).
Carr, B. (2008). Move Review: Iron Man. Retrieved on 8 May 2008 from
http://bryancarr.newsvine.com/_news/2008/05/01/1464703-movie-review-iron-man.

Stark Industries essay