Social & Technological Perspectives-4

7/30/2019 Social & Technological Perspectives-4

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MODULE-4


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Social-technological environment is an impfactor which is beyond the control of

business. These factors should be analysed before

formulating business strategies. Socio cultural-technological environment.


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Social environment means the socialorganisation & development of social

institutions etc. more educated society leads to good social

environment.


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A companys social obligation is to operatein an ethically, socially and environmentally

responsible ways as a requirement forcorporate citizenship.


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Corporate Social Responsibility is a

commitment to improve community well-

being through discretionary businesspractices and corporate resources.

By Philip Khotler


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recognising our responsibilities asindustrialists, we will devote ourselves to the

progress and development of society and wellbeing of people through our businessactivities, thereby enhancing the quality oflife throughout the world .


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Contribution to Society Fairness and Honesty

Cooperation and team Spirit Untiring Effort for Improvement Courtesy and Humility Adaptability Gratitude Profit is the reward and measure of

contribution to society


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Companies that got into trouble due toCSR issues

DASANI MINERAL WATER( PART OF COCA-COLA )


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McDonalds was forced to withdraw anadvert that claimed that after selecting its

potatoes, we peel them, slice them, frythem and thats it. This omitted par-frying the chips, freezing

them, adding a dextrose solution and salt.


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IBM UK Reinventing Education Partnership

programme Interactions and sharing ofknowledge through a web-basedtechnology - the Learning Village software.

Culture of openness and sharing of goodpractice


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Infosys motivating their employees forNGOs


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Cause Related Marketing Corporate social Marketing

Cause Promotions Socially Responsible Business Practices Corporate Philanthropy Community Volunteering


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Provides funds, in-kind contributions, orother organization resources to increase

awarenessand concern about a social cause.TV Campaign on voting importance


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Commits to making a contribution ordonating a percentage of revenues to a

specific cause based on product sales e.g. donate 10% of the price of each product

sold


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It is the first time that the worlds leadingcompanies have made a commitment to

channel a portion of their profits from salesof specially designed products to the Global Fund to support AIDS programmes

for women and children in Africa."


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Supports the development and/orimplementation of a behavior change

campaign


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Makes a direct contribution to a charity orcause, most often in the form of cash grant,

donations, and/or in-kind /service .


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Supports and encourages employees, retailpartners, and/or franchise members to

volunteer their time to support localcommunity organization and causes.


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Adopts and conducts discretionary businesspractices and investments that support

social causes to improve communitywellbeing and protect the environment e.g. community trade, environmental friendly

Process. -- Body Shop magazine


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Take Good Care of the Environment andthe Community;

The Community and the Environmentwill take good care of you


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Primary Involvement - Relationships withcustomers, suppliers and employees

Secondary Involvement - Relationships andimpacts ancillary to use products sold


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Social Obligation - Meet minimumregulations, do what is required by law, no

more Social Responsibility - Go beyond what is

required by law, mitigate negative effects Social Responsiveness - Proactive approach,

promote positive change


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Social obligation : comply with EPA, state andlocal laws

Social responsibility :clean up pollutionbeyond requirements Social responsiveness :develop technology to

reduce pollution


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Social obligation : Comply with wage andhour laws minimum benefits

Social responsibility :provide added benefitsto keep out unions. Social responsiveness :improve quality of

work life.


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Ethical dimension Ethical issues

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


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Social report should take care of efforts andcontributions towards social & environmental

responsibilities.Environmental factors1.Social factor Consumer care community care Environmental care Society care &


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Natural resourcesi.soil,land

ii. Plant & animalsiii. Forests etc.


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Resource endowments Weather & climate factors

Topographic factors Location aspects scenery


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Flood Draughts

Earthquakes Cyclone Heat & cold waves Volcanic eruptions


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EA means planning for sustainable use ofresources ,protection & conservation ofecological system by education,training and

awareness and legislation. Co-operation with the Govt and non- Govt

organisations at all stages.

It includes providing clean water ,protectionof forests from further degradation and at thesame time have meaningful project assist thesocial development


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1991 is the base for advance technology inIndia.

Technology policy of the Govt is significantelement of the technology environment. Access to global technology could help the

firms to improve their competitiveness &

retain their place in the world market.Ex.reliance


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To attain technological competence throughaccess to global technology and be self reliantby making maximum use of scarce resources

effectively. To open employment opportunities. To adopt modernisation process and

competitive technique to increase productivityand sales.

To utilize inner skills and capabilities to the fullextent to create new ideas to develop qualityproducts


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To develop & encourage the competitivedomestic firms to acquire the place in the

global market To contribute qualitative products which

involve cost effectiveness and reliableperformance.


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Know how & technical expertise in the formof feasibility studies,plans,diagrams,models,instructions,guides,formulae,engineering

designs, skill & managerial training. Provide technical knowledge required for

installation, operation,functioning,trouble

shooting, servicing as per need. The assignment of sale & licensing of all

forms of intellectual property (IP) excepttrade mark.


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OPERATIONAL LEVEL :Mfg skills,QC,troubleshooting,maintainance & procurement skills.

DUPLICATIVE LEVEL:Scope is higher than the

mfg.investment capability required to expandcapacity purchase & integrate FT. ADAPTIVE LEVEL :Self reliance level imported

technology are adapted & improved ,design &engineering skills are imparted.

INNOVATIVE LEVEL:Innovative skills based onformal R&D that are required to generate newertechnology or products.


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FDI Sources of funds are:

IBRD (reconstruction development) IFC ADB Public & mutual fund investment in foreign

companies. TECHNOLOGY LICENSING AGREEMENT JOINTVENTURES


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Training or Employment of Technical Experts Supply of component,machinery &

equipment Licensing agreement Design transfer Turn-key-projects


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Selection of Technology Absorption


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IT relief on R&D expenditure. Exemption from the payment of customs

duty on goods imported for use in Govt.funded R&D projects. Excise duty waiver for 3 years on goods

produced using indigenously developed

technology duty patented in USA ,Japan or inany country of European Union


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Indias R&D expenditure is still low compared tomajor industrial economies, in dollar terms, on aper capita basis and in terms of its ratio to GDP

(about 0.8 percent of GDP in 2005 according toofficial estimates). According to UNESCO data, Indias R&D

expenditure has increased from 10 billion dollarsin 1996 to 20 billion dollars in 2000, making it

the seventh largest country, in that year, forgross domestic expenditure on R&D (GERD)measured at PPP.


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China was the fourth largest country withR&D expenditure, estimated at 49 billion

dollars in 2000 (UNESCO 2005). On the other hand, a large share of

government R&D outlays in India is notutilized effectively, especially compared to

spending in the private sector.


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In 2003, inventors from India filed almost1,200 U.S. patent applications, up from 58 in

1990; and inventors from China filed 1,034U.S. patent applications, up from 111 in 1990(NSF 2006).


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The Indian-based R&D centers of companies such asTexas Instruments, General Electric,IBM, Hewlett-Packard, Intel, Cypress Semiconductors, ST

Microsystems andUnilever have contributedsignificantly to a sharp rise in patent filings from Indiain the 2000.

Major Indian firms that showed an increase in patentsgranted in the first half of the 2000s include CSIR,

Ranbaxy, Dabur, Dr. Reddys Research Foundation,Orchid Pharmaceuticals,Biocon, TorrentPharmaceuticals, Aurobindo Pharma and Wockhardtlimited


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NISSAT (national information system forscience and technology )

It operates in the directions of improvement in

the existing information handling tools andtechniques for the growth of indigenoustechnologies.

The system supports 12 major informationnetworks in the country and many of these have

access to international database. Technical collaborations Technical-cum-financial collaborations


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FIPB (Promotion board ) FIPC (promotion council)

FIIA (implementation agency) IP&ID (investment promotion &

infrastructure cell) SIA (secretariat for industrial assistance ) RBI BUSINESS OMBUDSMAN


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Imp of energy

Educate about energy conservation Operational improvement Process improvement Installation of additional facilities for

recovering waste heat and other energyrecycling devices.


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60-70% of energy is importing 4 lakh crores to bridge the energy shortfall in

next 15 years.

Per capita consumption of energy is lower inindia 1345 units -16522 units in canada. Indian industries consume 50% of energy

producedRequired:

Lack of energy conservation attitude & sensitivityLack of knowledge and databaseEducation & training on energy conservation


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Transport industry --40% Industrial sector -25%

Agriculture 9% Household -19% Others 7%


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Source/technology Potential/availability Potential exploited

Biogas plant 12 x 1000000 2.7 x 1000000

Biomas based power 17000MW 70 mw

Efficient wood 12 X 100000 20 x 1000000

Solar energy 5 MILLION Whr/yr 25 mw

Small hydro 10000 mw 250 mw

Wind energy 20000 mw 1000 mw

Ocean thermal 50000 mw Nil

Sea wave power 20000 mw Nil

Tidal power 9000 mw nil


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Tidal energy is the result of the sun and themoons gravitational pull on the tides.When theearth rotates, the tides move ebbing and

flowing. The change in the water level betweenhigh tide and low tide creates tidal currents incoastal areas, which can be forceful enough todrive a turbine.

Tidal power is believed to be the next generationrenewable power, and is considered to becompetitive with wind power in the future.


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

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Social & Technological Perspectives-4