A Brave leap from Profit Maximization to Value Maximization

As defined by Prof Amlan Mitra in his presentation on business sustainable development is Meeting the needs of the present generation without compromising the ability of future generation to meet their own meets. Talks about Value ma imi!ation of an organi!ation rather focusing myopically on profit ma imi!ation. There are three tools for sustainable development. They are" # $. %conomic leg &. %nvironment leg '. (ocial leg. Although the concept originated in )nited (tates but this concept is slowly and strongly being accepted in *ndian +ompanies. The fact, that there has been an increasing trend in voluntary sustainability reporting by *ndian businesses can be taken as a serious indication of their dedication towards evolving into sustainable enterprises. The +arbon -isclosure Pro.ect, *ndia saw a '/0 increase in the reporting from *ndian companies in the periods &112 to &1$$, similarly the 3lobal 4eporting *nitiative 534*6 received 770 more sustainability disclosures from *ndian businesses, in the same period. (ustainability as a concept among *ndian businesses caught up only towards the middle of the decade. 8et us take an e ample of (iemens that is practicing this concept in *ndian boundaries successful and its implication on its business and its economy. (iemens defines sustainability, as (ustainability is a key pillar of the corporate strategy at (iemens, with the three areas 9 environment, economy and society 9 governing all the activities at the organi!ation. Also the three tools adopted and used by (iemens are as follows. Environmental Sustainability *n *ndia, (iemens has put in place various initiatives for creating a sustainable environment. This includes making employees, suppliers, business partners and customers environmentally conscious but also encouraging all stakeholders to choose approaches that support sustainable environment. A few initiatives in the area of (ustainability are" o 3reen building initiative under the %nergy %fficiency Program o +orporate citi!enship program that promotes social development by creating a viable economic future o 4ain water harvesting at factories

o (ewage Treatment Plants o %nvironment Portfolio with energy efficient 5green products6 o 4ecycling and 4euse (iemens: e panding environmental portfolio offers relevant answers to the nation:s energy and sustainability challenges. Apart from allowing customers to en.oy the benefit of lower energy costs, higher productivity and profitable businesses, the society benefits through improved environmental care and living standards. Economic Sustainability As part of its strategy to conduct business in a sustainable manner, (iemens focuses on profitable business growth while ensuring that it adheres to ethical standards of doing business. The company;s focus continues to be on improving operational efficiencies through process and cost optimi!ation measures. To meet this ob.ective, it concentrates on the professional management of the multiple pro.ects that it implements and the risks that are associated with these pro.ects using the latest pro.ect management tools available globally. Social Sustainability (ustainability at (iemens includes corporate citi!enship as well as occupational health and safety. (iemens:s corporate citi!enship initiative promotes social development by creating a viable economic future and thus strives to be an integral part of society. (iemens: sustainability initiatives were reward with the <ombay +hamber of +ommerce = *ndustry +ivic Awards &1$$#$& in the (ustainable %nvironmental *nitiatives category. (iemens has worked toward improving awareness of occupational health and safety at all its locations in *ndia. %fforts include constantly improving and integrating its occupational health and safety methods, processes and systems on a continual basis. At last * would conclude *t is the combination of these three elements that ensures that business is sustainable for all stakeholders. The country was full of natural, sustainable processes before it became a >developing economy.> *f it can find ways to combine those old ways with economic advancement, it could be a model for how to develop without destroying culture and the environment. (o, it will be a brave leap for corporate houses to change their mindset from profit ma imi!ation to Value

ma imi!ation.