“ Environment ” is used in its widest sense. It means all the external environmental conditions and factors impacting worlds, animate beings and workss. External factors include clime, H2O, noise, temperature, dirt, etc. And the province is empowered to take effectual stairss to better environmental factors. Good environmental public presentation makes good concern sense. Companies that step, manage and pass on their environmental public presentation are inherently good placed. Information about the environmental impact and operational public presentation is utile to stockholders in accessing their relationship with describing entity.
Environmental coverage can be defined as an umbrella term that describes the assorted agencies by which companies unwrap information on their environmental activities, including corporate environmental studies ( CERs ) , which represent merely one signifier of environmental coverage. CERs are publically available, stand-alone studies issued, normally voluntarily, by companies on their environmental activities ( Brophy and Starkey, 1996 ) .
The first voluntary corporate environmental studies were published in the late eightiess and early 1990s, by, for illustration Norsk Hydro, Norway ‘s largest industrial group, and the US chemical company, Monsanto. Agenda 21 ‘ , which was adopted at the United Nations Conference on Environment and Development in Rio de Janeiro in June 1992, encourages concern and industry to pass on their environmental public presentation and to describe ‘annually on their environmental records, every bit good as on their usage of energy and natural resources ‘ and ‘on the execution of codifications of behavior promoting best environmental pattern ‘ .
Organizations engage in environmental coverage as a agency to publically show their committedness to environmental duty and to supply information on their environmental public presentation and enterprises. In Canada, environmental coverage is voluntary and focuses on the environmental impact of organization-level activity.
Pressure is mounting for companies to widen their range for corporate public answerability and many are reacting by mensurating and unwraping their societal impacts.
In March 1999, an exposure bill of exchange of the Guidelines was released for public remark and as portion of a trial period with 21 taking international companies.
New Torahs or voluntary codifications may besides promote companies to describe. For illustration a new UK ordinance, which came into force 3 July 2000, requires occupational financess to include in their statement of investing principles the extent to which societal, environmental or ethical considerations are taken into history in the choice, keeping and realization of investings.
Environmental coverage has known an about explosive growing over the past old ages, as assorted stakeholders have begun to take a greater involvement in the environmental public presentation of the companies.
Environmental coverage is besides a cardinal demand for industrial sites wishing to be registered under the voluntary EU Eco-Management and Auditing Scheme ( EMAS ) . By describing voluntarily a company can construct up expertness in progress of the expected ordinance.
Protection of environmental and preservation of natural resources came to be realized at national and international degrees and a concern for ecology became a war cry. As the concern for environmental jobs increased, the authorities institutionalized the environmental issues through new statute laws and ordinances.
Certain guidelines sing environmental coverage has been issued by many universe organisations such as- Federation des Expert compatibles Europeans ( FEE ) , Financial Accounting Standard Board ( FASB ) , Inter-Government working group on International Standard on Accounting and Reporting ( ISAR ) , Accounting Advisory Forum ( AAF ) . Recent research published by the Green Alliance and the environmental consultancy Entec revealed that 58 % of company respondents to the 2nd “ UK Business and The Environment Trends Survey ” were in favour of mandatory environmental coverage. A parallel interview study undertaken with 50 “ sentiment formers ” showed 72 % degree of support for compulsory environmental coverage.
An organisation usage guidelines given in ISO 14001 to better their Environmental Management System ( EMS ) .
In India 80 companies has been certified for ISO 14001 as an March 1999. Japan has maximal figure of companies certified for ISO 14001 compared to any other state in the universe.
The voluntary European Eco-Management and audit strategy ( EMAS ) besides require that companies certified to the criterion produce environmental statement.
World ‘s top 250 companies now publish their study with consideration of Monetary, Quantitative, Descriptive environmental information.
The UK ACCA award strategy for best environmental study was initiated in 1991. There are award strategies in many other states such as in Sweden, Denmark, Norway and the Netherlands. The first European Environmental Reporting Awards were presented in May 1997, sponsored by professional accounting administrations in the United Kingdom, Denmark and the Netherlands. Since so several other states have joined the strategy.
The regulative model regulating corporate revelation in India includes the Companies Act 1956 and the Securities and Exchange Board of India ( Amendment ) Act 2002. The Companies Act 1956 has been amended several times, and is now known as the Companies ( Amendment ) / ( Second Amendment ) Act 2002.
The Securities and Exchange Board of India ( SEBI ) Act 1992 has led to the constitution of a Board, to protect the involvements of investors in securities, facilitate the development of the securities market, modulate the market of securities, and to supply for the incidents or affairs in relation to that. The construction of the Securities and Exchange Commission ( SEC ) of the US guides the formation of SEBI. The stock exchange ordinance of accounting in India is non really dominant boulder clay now ( Banerjee, 2002 ) .
Environmental studies are now good known as an of import instrument in company environmental direction and are widely used, particularly by big companies in the industrial sector in Europe and North America.
Relevance of the survey
It is a new epoch without any difficult and fast criterions and benchmark. CER is a mean to environmental betterment and greater answerability and non an terminal itself. It is a presentation of study to stockholder ‘s to mensurate the company ‘s attachment to its defined environment policies, ends and aims to take part in corporate end scene.
Aims of the Study
The primary aim of the present survey is to analyse the position of revelation of voluntary environmental information by the companies on the World Wide Web ( www. ) . It farther analyses the quantitative and qualitative revelation on the environmental variables. However, the specific aims of the survey are as: –
To analyze and develop a theoretical background of the construct of corporate environmental coverage
To analyze the corporate coverage model and Torahs in India.
To analyse company-wise environmental revelation position.
To analyse industry-wise environmental revelation position
To analyse the extent and length of environmental revelation.
To analyze and analyse the topographic point of corporate environmental revelation.
Nature of the Study
The present survey is analytical in nature. It has been analyse and measure the corporate environmental coverage information reported on web sites by the selected companies.
Scope of the Study
The proposed survey is based on CER patterns of 36 companies. These companies have been selected from S & A ; P CNX Nifty list of diverse industries. The CER information of the following companies have been collected: –
Company NAME INDUSTRY
Hindalco Industries Ltd. ALUMINIUM
National Aluminum Co. Ltd. ALUMINIUM
Bajaj Auto Ltd. AUTOMOBILES
Hero Honda Motor td. Cars
Mahindra & A ; Mahindra Ltd. AUTOMOBILES
Maruti Udyog Ltd. AUTOMOBILES
Tata Motors Ltd. AUTOMOBILES
ACC Ltd. CAMENT AND CAMENTPRODUCTS
Grasim Industries Ltd. CAMENT AND CAMENT PRODUCT
ITC Ltd. CIGERAETTES
HCL Technologies Ltd. COMPUTER-SOFTWARE
Infosys Technologies Ltd. COMPUTER-SOFTWARE
Tata consultancy Service Ltd. COMPUTER-SOFTWARE
Wipro Ltd. COMPUTER-SOFTWARE
Hindustan Lever Ltd. DIVERSIFIED
ABB Ltd. ELECTRICAL EQUIPMENT
Bharat Heavy Electricals Ltd. ELECTRICAL EQUIPMENT
Siemens Ltd. ELECTRICAL EQUIPMENT
Suzlon Energy Ltd. ELECTRICAL EQUIPMENT
Larsen & A ; Toubro Ltd. ENGINEERING
GAIL ( India ) Ltd. GAS
Dabur India Ltd. PERSONAL CARE
Indian Petrochemicals Corporation Ltd.PETROCHEMICALS
Cipla Ltd. PHARMACEUTICALS
Dr. Reddy ‘s Laboratories Ltd. PHARMACEUTICALS
Glaxosmithklin Pharmaceuticals Ltd. PHARMACEUTICALS
Ranbaxy Laboratories Ltd. PHARMACEUTICALS
Sun Pharmaceuticals industries Ltd. PHARMACEUTICALS
Tata Power Co. Ltd. POWER
Bharat Petroleum Corporation Ltd REFINERIES
Hindustan crude oil Corporation Ltd.REFINERIES
Reliance Industries Ltd. REFINERIES
Steel Authority of India Ltd. STEEL AND STEEL PRODUCTS
Tata Steel Ltd. STEEL AND STEEL PRODUCTS
Bharti Airtel Ltd. TELECOMMUNICATION SERVICES
Videsh Sanchar Nigam Ltd. TELECOMMUNICATION SERVICES
Data Collection Methodology
Contented analysis technique is used to entree the extent of environmental revelation. For this survey, web-sites and one-year study of the 36 companies belonging to the assorted industries from the NIFTY-50 companies for the twelvemonth ended 31st March 2006 have browsed. Therefore, information from web-sites and one-year studies of different companies has been examined to roll up relevant informations by utilizing contents analysis. Contented analysis is a method of codifying the text or the content of a piece of composing into assorted groups and classs based on some selected standards. It involves the choice of analytical classs within the context of the content stuff. In this survey, an indexing process based on content analysis has been constructed to measure the extent of environmental revelation. The intent of this process is to objectively mensurate the information contained in the revelation. Disclosure of the undermentioned environmental revelation variables has examined. The environmental revelation variables have been classified into three classs as specified below. Category one represent variables related to regulative factors i.e. these variables include in this class modulate the activity of the organisation either by presenting the best environmental performing artist or by punishing those who damage the environment. Category two represent variables related to accounting. Category 3rd is a general class, includes those variables, which did non fall into any of the old class.
Regulatory Environmental Disclosure: – Environmental Audit, Conformity with Environmental Laws, Environmental Awards, Environmental Management System, ISO 14001, Continuing under environmental Torahs.
Accounting Environmental Disclosure Variables: – Capital Environmental Expenditure, Revenue Environmental Expenditure, Accounting Policy, Environmental Contingent Liabi
lity.
General Environmental Disclosure Variables: – Emission of Air, Water and Land, Clean Technology, Product Design, Natural Resource Conservation, Environmental Research and Development, Training, Waste Management, Plantation.
A evaluation sheet is developed to mensurate the extent of voluntary environmental revelation of the selected 20 variables. Tonss has been assigned on the footing of presence and absence of an point of environmental information. While delegating the tonss, the quality of revelation has been besides be kept in head. A mark of three is assigned to an point nowadays in the one-year study in pecuniary footings. A mark of two is assigned, if the point was present in quantitative footings. A mark of one is assigned to the point present in descriptive footings. A mark of Zero is assigned to the point non present in the one-year study. The mark of single variables in each class has been added to acquire the entire mark of each of these three classs i.e. regulative mark, accounting mark and general environmental revelation mark. Further, mark of these three classs have been added to acquire entire mark of the company.
Analysis and Interpretation of Data
The collected information has been exhaustively analyzed and interpretated to do relevant decision. The research worker has decided to analyse the information on assorted facets on the footing of per centum methods.
A company gets 3 Markss for each pecuniary information, 2 Markss for each quantitative information and 1 grade for each descriptive information.
:
As per tabular array 1, it presents the regulative environmental revelation position. It shows horizontally, that maximal companies disclouse descriptive statements in their one-year study about environment, but the revelation of environmental information in quantitative term has lesser mark i.e.only 04, because merely 2 ( 5.6 % ) companies unwrap it in their one-year study. In perpendicular signifier, conformity with jurisprudence get highest mark i.e. 23, but merely 5 ( 13.9 % ) companies reported about the punishments levied under the environmental protection act. It includes merely 1 ( 2.8 % ) company attempts In pecuniary term and 4 ( 11.1 % ) companies in descriptive term, because this factormay be the inauspicious impact on the repute of the company. the entire mark of all these revelation variables is 99.
Table-2 nowadayss the Accounting environmental revelation position. It show horizontally that maximal 10 ( 28 % ) companies unwrap the pecuniary position in their one-year study about environment. The entire mark of pecuniary statement is 54, whereas non even a individual company discloses the environmental information in quantitative term. So it has zero value. In descriptive statement, environmental accounting policy has maximum score ie.17, because 17 ( 47.2 % ) companies present such information in their one-year study. In perpendicular signifier, capital environmental outgo gets highest tonss ie.34. Revenue environmental outgo and environmental accounting policy has equall score but pecuniary value for environmental accounting policy is zero. So the entire mark of all these revelation variables is 87.
Figures in paranethesis are figure of companies
Table-3 nowadayss the general environmental revelation position. All the variables which were non included in regulative and accounting environmental revelation are included in general environmental revelation. It shows horizontally that descriptive statement has highest mark Internet Explorer. 99, in which maximal 23 ( 64 % ) companiesshow the environmental information about preparation for their employees and employers. But emanation of air H2O and land has lowest 02 mark. Similarly, quantitative statement has about equall to negative revelation and its mark is 08. In pecuniary term maximal 09 companies show the environmental information about environmental research and development and its mark is highest Internet Explorer. 27. In perpendicular signifier, environmental research and development has highest mark is 50. In this position pecuniary and quantitative statements has about negative mark. The entire mark of all these variables is 143.
The circle shows the class wise revelation position. It has been divided into three parts on the footing of voluntary environmental revelation tabular arraies. These three parts are regulative, accounting and general environmental revelations which is indicated through different colorss such as regulative revelation represented by purple, accounting revelation represented by ruddy and general revelation represented by yellow.these classs indicate the mark of environment information which is disclosed by the companies in their one-year study.
Table 4 represents the company wise revelation position. It shows that, the degree of revelation of voluntary environmental information turned out to be really detering. Very little figure of companies was describing for this information in their one-year studies. Merely 18 ( 50 % ) of the revelation companies falling under thelowest per centum mark class. Whereas merely 2 ( 5.6 % ) companies falling under highest per centum mark class. However, good environmental revelation was found in the one-year studies of Reliance, Ranbaxy, ABB and Mahindra & A ; Mahindra.
Industry wise Disclosure of Environmental Information
In this survey information environment is divided into two parts as per industries:
Polluting industries
Non fouling industries
Polluting industries include- Hindalco industries ltd. , Bajaj Auto limited company, Mahindra & A ; Mahindra Ltd. , Maruti udyog Ltd. , Tata motors Ltd. , IPCL, ABB, BHEL, Simens Ltd. , Larson & A ; Toubro Ltd. , Sozlon Energy Ltd. Etc.
Non fouling industries include- HCL Technologies Ltd. , Tata Consultancy Ltd. , Infosys Technologies Ltd. , Dadur India Ltd. , Bharti Airtel Ltd. , VSNL, Tata Power Ltd. , Hindustan Lever Ltd. , Reliance Industries Ltd. Etc.
Major Findingss
The present survey revealed that maximal companies are cognizant about the environment of their concern, but non even a individual company that represent all the environmental variables in their study.
From the survey of environmental variables, it can be seen that a really little figure of companies indicates environmental information in quantitative term, and in instance of Accounting Environmental Disclosure, the mark of quantitative information is zero ( 0 ) .
It is found from the survey that maximum 29 companies indicate the sum incurred on the research and development of environment. In instance of General environmental variables, highest mark for information on environmental research and development is 50.
The position of voluntary environmental revelation was found to be better in low fouling industries than in the high polluting industries. The position of voluntary environmental revelation was found to be better in the personal attention industries, Electrical Equipment, Refineries and Cement industries. However, no revelation of environmental information was found in the one-year study of the petrochemical industries.
It is revealed from the survey that revelation on emanation of air, H2O & A ; land has lowest mark in general environmental revelation that is 2 merely.
ISO 14001 is an confidence that organisation has an Environmental Management System ( EMS ) that manage its environmental issues but as per survey merely 18 ( 50 % ) companies shows such counsel in their one-year study.
In regulative environmental revelation 21 companies follows the regulations of environment as per conformity with jurisprudence but merely 07 companioes lawfully follows these regulations as per continuing under environmental Torahs.
As per survey merely 12 companies audited their environmental issues to cut down the riskwhich is posed by an organisational activities to natural resources every bit good as to human wellness and safety, but non even a individual company disclosed the consequences and studies of audit in their one-year study.
Environmental outgo is of capital nature. Merely 14 companies disclosed in their one-year study about capital environmetal outgo, but it gets 2nd highest mark Internet Explorer. 34 because maximal 10 ( 28 % ) companies express it in pecuniary term.
A really little sum of companies shows the amount of sum incurred by them on environmental information except research & A ; development and capital environmental outgo. Merely 02 companies explain about the sum incurred on the preparation of their employes.
So far as, the position of revelation of variables was concerned, environmental research and development, preparation of employees, natural resource preservation, capital environmental outgo and conformity with environment Torahs were found to be the most often reported revelation variables. The least reported revelation variables were found to be the punishments under the environmental Torahs, emanation of air, H2O and land, and waste direction.
In our study of selected companies, the most favorite topographic point for the revelation of voluntary environmental information was found to be the Director ‘s Report i.e. about 67 % companies.
Out of these selected companies, no revelation of environmental information was found in the one-year study of Maruti Udyog limited company from car industries and Indian Petrochemicals Corporation limited company from petrochemical industries.
The company wise position of voluntary environmental revelation was found to be really detering. No company could hit even 50 % of the upper limit assigned mark. However, the position of environmental revelation was found better for the companies viz. Reliance, Ranbaxy, Mahindra & A ; Mahindra and ABB companies.
Suggestions
The protection and development of environmental and natural resources become an of import undertaking for the development of each concern unit Hence, it is recommended that corporate sector should better the environment, and aid to safeguard the woods and wildlife of the state harmonizing to the authorities policies. Ii is besides suggested that every company should unwrap, through its board of Director ‘s study, the step taken for the protection of environment and a figure of other regulative and non regulative inititatives taken in the way of environmental protection.
In all the fabrication and non-manufacturing companieseffective and accurate information about environment dramas a singular rolein the success of the full concern. It is besides suggested that all the companies should unwrap maximal information either in pecuniary or non-monetary term about the environment in their one-year study so that 3rd parties may easy analyze the environmental public presentation of the concern unit.
