������ �� � � ����� � � �����

���������� �� �����������������

�� ������

���������

��������� �

��������������������

�������������

�� ������������ �������� ���

��������������������������

�������

�� ������� ����� ���������� ��� �����

�� ��������������������

�����������

�������

�� ����� ���������������������������

���������������

�� ����������� �������������� ������������������

������

������������� ��������������������������������������

���

���

���

global briefs

report

social partnership

breather

book in focus

musings

regulars6

people - planet - profits

20

24

strategic humour34

47

water and corruption: a destructive partnership

the sustainable enterprise fieldbook

48whose water is it anyway?

letter

cover story

the state hearkens

hydropower

eco-retreats & eco-models

profile in sustainability

crosswordcsr in africa

csr: a reputational opportunity

urbanization and cities

ethical consumerism

carrots only, no sticks

tbl ingress

features

10

9

13

16

26

28

31

32

36

Editor-in-ChiefZohare Ali Shariff

Editorial DirectorKhadeeja Balkhi

Managing EditorRutaba Ahmed

Research, Distribution & DevelopmentRaza TahirMehfooz Aleem

CreativesKamran RaufUmair Anwar

ReprintIn line with our mission,we encourage reproduction of material, provided tbl and content partnersare given credit

PublisherAsiatic Public Relations Network (Private) Limited

Printed atNikmat Printers, Karachi

DisclaimerThe views expressed in tbl are the authors’ and not necessarily shared by tbl and/or APR

DeclarationFrom the office of District Coordination Officer,City District Government Karachi NO.DCO/DDO/LAW/CDGK/109/2007,KarachiDated May 22, 2007

Subscription, advertising and feedback at:

tbl: triple bottom-line

Address: A-7, Street 1,Bath Island, Clifton,Karachi, Pakistan.

Tel: (92-21)-5837674, 5823334Fax: (92-21)-5867103E-mail: feedforward@tbl.com.pkWeb: www.tbl.com.pk

Subscribe to a full year of tbl (6 issues) at the special rate of Rs.1,000 and save the cost of an issue.If you wish to subscribe to tbl, or unsubscribe, please write to us at feedforward@tbl.com.pk

pakistan's water problems: do we care enough to act?

governance call

rainwater harvesting

water power in pakistan

teri gram ecological retreat

towards 'a truly water-sustainable business on a global scale' - coca-cola

csr and sustainable development in africa: water of life

corporate social responsibility: a reputation at risk

megacities, megaproblems, megasolutions

tackling the social impacts of consumerism today and not tomorrow

the carrot-trousered philanthropist44

46

42

39

tbl sept-oct 08 1

pani ghar - case study of a social enterprise C

RO

SS

WO

RD

2 sept-oct 08 tbl

The term ‘Triple Bottom-Line’ (TBL), whichtranslates into “People, Planet, Profits,” captures an expanded spectrum of values andcriteria for measuring organisational (andsocietal) success - social, environmental andeconomic.

Through our masthead we personify the termTBL. Essentially, our ‘bottom line’ is a greybar with a burgundy border which runsthrough the masthead, at some points overlapping the letters and running underthem at others. Here ‘t’ stands for triple and isrepresented through the three shades of theletter. The ‘b’ stands for bottom and it sitsbelow our grey line with the line goingthrough it - since this magazine is a below theline activity, the two gel in together. The ‘l’stands for line and the letter sits comfortablyon top of the grey ‘bottom’ line.

Mr. Tanveer B. Lone is indeed abusy man, laden with his strug-gle for the truth in theSustainability industry. His firstname, Tanveer, according to ourwonderful Ferozsons Urdu-English dictionary means'illuminating'. We feel he is sometimes the seeker of enlightenment, and at others, theseemingly lone bearer. Driven towards his destination – the true light of CSR – he sometimes feels like a lone voice buried amidstthe complex factors he confronts on the way.Yet as he sets forth, oft-alone on this journey,he knows he will meet companions along thesub-paths his journey takes, merging at destinations common with him. There will beoccasions where we can all relate to him. Attimes, though his capitalist-training-bred financial focus may fluster us and his understanding towards disseminating the trueimplications of the triple bottom-line. Watchout for Mr. TBL, as he shares his views andthoughts in articles and other features in thisissue! Feel free to share ideas with Mr. TBL thatmight help clear the oft-murky waters he'llencounter in his expedition atfeedforward@tbl.com.pk

mr tbl

The tbl team expresses its profound gratitude tothe companies whose names appear here, for theiragreement to support this publication. Bringingout a knowledge-based publication like tblinvolves considerable effort and costs. It may nothave been possible to bring out tbl in its present format without the invaluable supportand contribution of our Founder Sponsors.

Through their support to tbl our FounderSponsors have confirmed that they share ourMission of disseminating triple bottom-line knowledge to a diversified group including corporate, social development and general business groups. We believe that helping to spreadawareness of true CSR is in itself an element ofCSR. By becoming our sponsors, the followingcompanies have taken that vital first step with usin our journey to facilitate awareness and understanding of true CSR in our country.

acknowledgement

English Biscuit Manufacturers (Private) Limited

Founder Sponsor

National Foods Limited

Founder Sponsor

Starting off with our previous issue, oureditorial team had decided to dedicatethree consecutive issues to the three

components of the triple bottom-line. Hencethe previous issue focused on people andthis one focuses on the planet. The next one,which will also be the last issue of the cur-rent calendar year, will be about profits andwe will have a great 'profits' story to tellyou. Not to be missed!

Coming back to the current issue, what better subject tofocus on than water - the element which gives Earth thetitle of the Blue Planet. Apparently the most abundantplanetary resource, used with gay abandon, water is aninput in practically all human activities, be it agricul-ture or industry or commerce or the home. But freshwater is only about 2.5 percent of all water on Earthand like most other natural resources, fresh water too isfast becoming scarce. The difference being that whereasone can still envisage life without coal or oil or gas orother minerals, life without water is inconceivable.Water resources are becoming scant so fast that, asmany experts put it, future wars will be fought overwater, not oil.

The unfortunate reality of life is that the value of anything is only really appreciated when it is not available or when it is in short supply. And when itcomes to the Earth's natural resources, including water,the even more unfortunate fact is that the people ornations who can do something about alleviating short-ages are also the ones who not only consume these themost but who also seem to be least bothered to do any-thing about it at all.

The corporate sector and especially industry has a dualrole to play as far as water is concerned. On the onehand it needs to reduce its water consumption and onthe other hand it needs to develop and employ newtechnologies to treat used water, to eliminate toxic sub-stances and make it reusable for different purposes.

This issue includes a write-up about TheCoca-Cola Company and its plans tobecome water neutral globally by year 2010.When you are informed that over a billionservings of Coca-Cola are consumed in theworld every single day and when you arealso told that besides the flagship brandCoke, the Company also produces about400 other brands, you can well imagine theamount of water The Coca-Cola Company

uses. Then, besides being the base for a number ofbrands, including Coke, water is also used by theCompany for washing of glass bottles. So, if theCompany has gone ahead and taken steps to becomeone hundred percent water neutral - put back as muchwater as it consumes - one needs to commend this. Andone hope that other companies, across different indus-tries and not only in the soft drinks business, will besimilarly inspired to make their contribution to thepreservation of what is ultimately the most valuable ofall natural resources.

At a personal level and at the risk of sounding clichéd,we need to remember that every drop counts. No one isgoing to tell you or me to save that drop every time weturn on the tap. Only our conscience will make the dif-ference.

Sincerely,

Zohare Ali ShariffEditor in Chief

every drop counts

This publication is being sent complimentary to 1500 decision-makers and opinion-formers in the corporate sector, the government,NGO sector, international institutions and academia. Recognising that your sphere of work has the potential to compliment and reinforce the essence of our mission, we have taken the liberty to present tbl to you. It is also available at selected outlets.

We would love to hear from you. Please do contact us at feedforward@tbl.com.pk with your thoughts, feedback and input from your corporate or social practices.

tbl strongly believes in knowledge dissemination and sharing. Please feel free to share tbl contents with your peers and teams - ofcourse we know you’ll give tbl the credit when you share our work.

tbl sept-oct 08 3

editor ’s note

4 sept-oct 08 tbl

letters to the editor

The content and layout isexcellent. TBL containsvaluable content and

material which will help corpo-rate executives understand thedynamics of Corporate SocialResponsibility (CSR) and alsohelp them to apply it as one ofthe guiding principles in theirorganisations. I congratulateyou on this wonderful initiative.

Brigadier Maqsood AhmadAfridi (Retd.)Public Relations DepartmentFauji Fertilizer Company LimitedRawalpindi

Ireceived my fourth issue ofTriple Bottom-line andwould like to compliment

you on the wide range of goodarticles that you have been ableto collect for your magazine,which has pioneered a newdirection of thought.

In these times of stress whenthe mind is focused on hard andtough nuts to crack, your maga-zine provides a cool diversionin the battle for survival whichmost of us are fighting thesedays.

I remember along with the firstissue you asked me for my com-ments which I put off for a laterdate and more issues, now yourinterview of Kerstin Dietrich inthis latest issue has promptedme to felicitate you andacknowledge the good workbeing done.

Sohail P. AhmedChief Executive Thal EngineeringKarachi

Ihave written for your publication since the Marchissue. Overall, I have to say

that the publication is verygood. It looks very professionaland the articles are very interesting.

Miriam KatzFreelance Writer & Journalist Canada

Iread TBL and had to write tocommend you on an excellent effort. I would,

however, like to read more onwhat local firms are doing andwhat public sector support isbeing garnered in this respect.

Seemin ShafiHead Corporate CommunicationsFaysal Bank LimitedKarachi

Dear readers,

Thank you for sharing withus your valuable commentsand feedback.

Mr. Afridi, we appreciateyour thoughts on TBL. TBLis the key to the long-term competitiveness and successof our business communityand will continue to serve asa platform for disseminationof triple bottom-line knowledge and tools.

Mr. Ahmed, how encoura-ging to read your thought-ful, specific feedback. We'reglad you enjoyed the interview. And pleasantlysurprised to hear that tosome, our content providesrelief from the grueling battle for survival. Thankyou! Do continue to interactwith TBL.

Ms. Katz, thank you for taking the time to write tous and for sharing with usyour feedback on TBL.

Ms. Shafi, thank you foryour compliments on TBLand for your valuable suggestions. In future issues,we will continue to publishmaterial on local firms andtheir CSR-related initiatives.

We look forward to ourreaders' feedback and activecontribution and we hopethat over time TBL willbecome an important platform for the sharing ofknowledge and best practices.

welcome on board

Anwar Rammal Chairperson

Chairman of Asiatic Public Relations (Private)Limited, Pakistan’s leading communications and PRagency, affiliated internationally with Hill &Knowlton. Also Chairman of JWT, Pakistan. Based inKarachi.

Ayesha Tammy Haq Member

Corporate lawyer, legal and media consultant.Concurrently a freelance journalist and host of aweekly current affairs television programme. Basedin Karachi.

Abrar Hasan Founder Sponsor Member

Chief Executive of National Foods Limited,Pakistan’s pioneering multi-category food company.Innovative businessman and industry leader. Basedin Karachi.

Vivian Lines Member

President and Chief Operating Officer of Hill &Knowlton’s Asia Pacific Region and concurrentlyPresident and CEO Southern Asia. Based inSingapore.

Habiba HamidMember

Founder of Saracen Consulting, a corporate gover-nance and responsibility consulting firm. Currentlyarticulating the Dubai Model of sustainable develop-ment. Based in Dubai.

The tbl team is honoured to introduce our editorialadvisory board. Comprised of diverse leaders andpractitioners, our goal is that the board will steerour efforts to their highest potential. In each issueof tbl, we will highlight a member of our editorialadvisory board.

vision and mission

Vision: To steadily facilitate the germination of sustainable visions for organisational growth, sharing specific triple bottom-line knowledge and tools

Mission Statement: To disseminate triple bottom-line knowledge to a diversified group includingcorporate, social development and general business groups primarily through a specialised journal,expanding in accordance with organisational capacity and market readiness

Khawar Masood Butt Founder Sponsor Member

Khawar Masood Butt isChairman and MD of EBM since1985. He also serves asChairman and MD of Sat Net,an Internet Communication

Solutions Provider launched in 1999.

An active member of various cultural and socialentities, he is a life member of Layton RehmatullahTrust, WWF, Arts & Crafts Institute, among others.He is also a member of the Institute of Directors,London. He played cricket at the national level from1950 - 1960 and was selected to tour England asVice Captain of the Pakistan Juniors Cricket Elevenin 1954.

tbl sept-oct 08 5

Khadeeja Balkhi Executive Member

Sustainability and CSR consultant and international-ly experienced business and gender journalist. Basedin Karachi.

6 sept-oct 08 tbl

global briefs

IFC Partners with GlobalReporting Initiative to ImproveCorporate Reporting on GenderIssueA 12-month research and consul-tation project has been launchedin September by IFC, a member ofthe World Bank Group, and theGlobal Reporting Initiative (GRI)to help private enterprises world-wide create new opportunities forwomen, adopt best practices insustainability reporting, andimprove their bottom lines.

The project is expected to helpdevelop a Gender SustainabilityReporting Resource Guide thatwill complement the GRI's inno-vative Sustainability ReportingFramework, the most widely usedand recognized global frameworkfor nonfinancial reporting. TheGRI framework links elements ofeffective sustainability manage-ment systems with indicators thatcan drive continuous improve-ment of company performance.

This project is part of a larger IFC-GRI partnership to help compa-nies adopt sustainability reportingas a tool for improving environ-mental, social, and business per-formance. The governments ofGermany, Iceland, andSwitzerland are lead sponsors ofthe project.

Rachel Kyte, IFC Vice Presidentfor Business Advisory Services,said, "Adding a gender perspec-tive to existing nonfinancialreporting frameworks will helpprivate companies win recogni-tion as diversity leaders by work-ers, investors and consumers."

Sean Gilbert, Director ofSustainability Reporting

Framework at GRI said that GRIwill provide practical, hands-onguidance for reporting on genderissues through extensive consulta-tions with GRI's global network.

The new guide is intended forcompanies that want to establishthemselves as leaders in manag-ing gender issues. It will demon-strate the value of creating busi-ness opportunities for women,provide guidance on improvinggender management through sus-tainability reporting, and helpimprove the quality and scope ofgender reporting by includingnew categories such as "women asconsumers," "women as entrepre-neurs in the supply chain," and"women as part of the community."

CSR TRENDS: A Practical, In-depth Tool for CSR ReportsCSR TRENDS 2008, a practicaland in-depth tool for organiza-tions and practitioners, wasreleased recently by CanadianBusiness for Social Responsibility(CBSR) and Craib Design &Communications. CSR TRENDS isan overview of trends and bestpractices in the ever-expandingfield of corporate social responsi-bility reporting. It surveyed 75Canadian and internationalreports and reviewed a largergroup of 250 reports for best prac-tices. Best practice reports:

Address tough questionsposed by stakeholder groups -91 percent of reportersdescribed specific stakeholderengagement methods and 64percent provided results orresponses from engagementinitiatives.Place their information inglobal context by using exter-nal guidelines - 71 percent ofreporters used the GlobalReporting Initiative (GRI)guidelines, while 20 percentused the UN Global Compactprinciples.Use the web effectively,including interactive time-

lines, maps, games, "createyour own report" capabilities,and more.

New reporters and those withyears of experience will benefitfrom current case studies, statis-tics and useful visual examples ina number of areas of reporting.The CSR trends survey can helpcompanies create a framework fortheir own reports.

Environmental Crimes Rampantand Under-investigated, ReportSaysEnvironmental crimes such as ille-gal logging, trade in endangeredspecies, illegal fishing, and tradein banned refrigerants are ram-pant and growing, according to areport from the nonprofitEnvironmental InvestigationAgency. Organized crime net-works are raking in over $10 billion a year through commissionof environmental crimes, andnational and international policeorganizations are doing little tostop them, the report charges.

"Even if we bring intelligence tothe attention of authorities, oftenthe political will is not there," saidEIA's Debbie Banks. "We reallyneed to see environmental crimetreated as seriously as narcoticsand arms. At the moment, that'snot happening."

Some of the recent growth inenvironmental crimes is due inpart to "the proliferation of inter-national and regional environ-mental agreements, [which lead]to more controls on a range ofcommodities," the report says. "Itis also due to mutations in theoperations of criminal syndicateswhich have been diversifyingtheir operations into new areaslike counterfeiting and environ-mental crime.

PEO

PLE

tbl sept-oct 08 7

Greening the InternetA recent study by McKinsey, aconsultancy firm, and the UptimeInstitute, a think tank, predictsthat by 2020 the carbon footprintof the computers that run theinternet will be larger than that ofair travel. Data centres consumed1 percent of the world's electricityin 2005.

According to Google, "computingcentres are located on a ship orships, anchored in a water bodyfrom which energy from naturalmotion of the water may be captured, and turned into electri-city and/or pumping power forcooling pumps to carry heataway." The increasing number ofdata centres necessary to copewith the massive informationflows generated on popular websites has prompted companiesto look at radical ideas to reducetheir running costs.

The supercomputers housed inthe data centres use massiveamounts of electricity to ensurethey do not overheat. As a resultthe internet is not very green.

Google has announced plans tolaunch its own "computer navy" -supercomputers which willenable operation of its internetsearch engines on bargesanchored up to seven miles(11km) offshore. The "water-baseddata centres" would use waveenergy to power and cool theircomputers, reducing Google'scosts.

Rich Miller, the author of the datacentreknowledge.com blog,stated that Google's computernavy solution is: "Really innovative, outside-the-box

thinking". Technology expertssaid it is an unexpected but cleversolution.

Microsoft is also looking intobuilding a data centre in the coldclimes of Siberia, and in Japan,Sun Microsystems, a technologyfirm, plans to send its computersdown an abandoned coal mine,using water from the ground as acoolant. Sun said it could save $9million (£5 million) of electricitycosts a year and use half thepower the data centre would haverequired if it were at groundlevel.

Green Power for MobileProgramme in DevelopingWorldThe Green Power for Mobile programme, an initiative of theGSM Association, will transitionmobile phone towers which currently run on off-grid power torenewable energy. This pro-gramme will save about 600 million gallons of diesel. A newsstory on treehugger, the leadingmedia outlet dedicated to drivingsustainability mainstream, statesthat the end objective of this ini-tiative is "to use renewable energyto power 118,000 mobile phonebase stations - the sites thatreceive and transmit calls - by2012. New and existing off - gridsites currently running on dieselgenerators will be targeted first.Powering these base stations withsolar, wind or biofuel will save600 million gallons of diesel fueleach year".

The Green Power for Mobile pro-gramme has already begun insome places: The Pacific Island ofVanuatu has 17 stations runningon wind or solar; 30 stations inKenya are running on wind andsolar. In Andhra Pradesh, India350 stations are currently runningon an 80/20 mix of diesel andwaste cooking oil, but in thefuture this is expected to be a50/50 mix, with sustainablegrown biofuels replacing thewaste cooking oil.

In the Wake of The Hurricane..Hurricane Ike left a big messbehind as it passed overGalveston, Texas, and other GulfCoast areas, but the mess wasn'tjust from debris. Just as withHurricane Katrina, the combina-tion of destructive high windsand subsequent flooding havecreated a toxic soup that's poten-tially dangerous to residents,cleanup crews, and the environ-ment. Floodwaters have mixedwith gasoline, paints, householdchemicals, and constructiondebris (some containing asbestos)to make an unpleasant, icky,potentially hazardous mess thatcould also cause respiratory problems when it dries into dust."Quite frankly, we are reaching ahealth crisis for those that areremaining on the island," saidGalveston city manager SteveLeBlanc. Plenty of standing waterhas also led to a boom inmosquitoes and the county has

been asked to spray the area tokill the larvae.

Hurricane Ike has also messedwith area wildlife. Ike's stormsurge helped turn some fresh-water wetlands as far as 20 milesinland into salty marshes hostileto many freshwater fish, as wellas other wildlife. "[The salt infusion] exasperates everythingthat needs freshwater," said JimSutherlin, superintendent of aGulf Coast wildlife area. Algaeblooms have also been a problem;caused by untreated sewage rushing into Galveston Bay afterthe storm, algae blooms havebeen sucking oxygen out of thewater, leaving little available formarine life. Ike's high winds alsoshredded many mulberry treesthat migrating birds depend onfor fuel to cross the Gulf ofMexico.

PLAN

ET

Shared by Grist, an online environmental news magazine

8 sept-oct 08 tbl

Recycled Messenger Bags CutCosts ConsiderablyThe new Hewlett-Packard laptop"will be displayed on shelveswearing only the HP ProtectMessenger Bag", at Wal-Mart.Scandalous! But actually, there'sno need to avert your eyes: theHP Pavilion dv6929 is served upin a recycled, reusable messengerbag instead of a box, cutting card-board and plastic packaging by 97percent. Thinking outside the boxhelped HP win Wal-Mart's HomeEntertainment Design Challenge,which judged suppliers' productson attractive design, environmen-tal innovation, and less-wasteful,less-toxic packaging. Wal-Martsays 25 percent less truck space isnow needed to schlep the com-puter to stores, cutting transporta-tion costs by 31 percent. In addi-tion, purchasers of the $798 lap-top, which is available only atWal-Mart and Sam's Club, canrecycle an old PC for free.

New Study Calls for NationalCommitment to IncreaseEnergy Efficiency in Low-income HomesAn estimated 25 million low-income families in America strug-gle with increased utility andenergy costs due to inefficientlybuilt housing. A new study byEnterprise Community Partners,'Bringing Home the Benefits ofEnergy Efficiency to Low-IncomeHouseholds: A Case for aNational Commitment', calls for anational commitment to rehabili-tate and retrofit low-income hous-ing with energy-efficient featuresthat will offer substantial financialsavings for residents and ensurelong-term gains in environmentaland energy sustainability.

The Department of Housing andUrban Development (HUD) cur-rently spends more than $4 billioneach year to pay utilities in gov-ernment-assisted properties. Yet,these funds cover only a fractionof the families and individuals inneed of financial help. In contrast,with an annual investment of $5billion during a ten-year span torehabilitate low-income homes,considerable gains can be made inenergy savings, carbon reductionand cost savings to the rentersand homeowners.

CSRwire states that "the reportrecommends a comprehensive,10-point plan that would, amongother aspects, be able to: Buildcapacity to implement low-costimprovements; Ensure climatechange legislation supports low-income home energy efficiency;Green the revitalization of dis-tressed public housing communi-ties; and Incentivize major finan-cial institutions to finance energy-efficient very low-income homes.These recommendations wouldengage public-private partner-ships to help overcome the mar-ket barrier of financing the cost ofimprovements. The points alsooffer suggestions for federal sup-port to incorporate private capitalinvestment such as creditenhancements and tax incentivesas structures to diversify directgovernmental spending".

"A national commitment to bring home the benefits of energy effi-ciency to low-income families intheir homes would save familiesmoney, cut carbon emissions andcreate hundreds of thousands ofgood green jobs, " said StocktonWilliams, senior vice presidentand chief strategy officer ofEnterprise Community Partners.

Pledge to Deliver Access toFinancial Services Worldwide A pattern of exclusion from accessto financial services persistsaround the world and surfaces in

developed and emergingeconomies alike. An estimated 2billion consumers worldwide lackaccess to basic financial services,including nearly 50 percent of citizens in new EU member states,70 percent of the population inMexico and places like Tanzaniawhere bank account ownershiprates dip as low as 5 percent. TheClinton Global Initiative (CGI)aims to deliver accessible, affordable and empowering financial services to at least 5 million consumers worldwidewho do not currently have adequate access to financial products and services that meettheir needs. CGI's objective is todirect resources and focus attention on improving access tofinancial services, a solution CGIviews as key to alleviating poverty throughout the world.

MPOWER Ventures, a sociallycommitted venture fund, todayannounced a five-year commit-ment to the CGI. "This commit-ment keeps our mission in focusand the collective efforts of theMPOWER group of companiessquarely aimed at the positiveimpact we seek to achieve by providing affordable and accessible financial services..."said Roy Sosa, founding partner,MPOWER Ventures. Innovationslike prepaid debit cards have beena powerful solution for bringingunbanked consumers into thefinancial mainstream in the U.S.and Europe.

The venture fund aims to developmore such innovative solutionsand breakthrough products capable of reaching previouslyinaccessible markets and willbring underserved consumersaround the world a broad rangeof financial services, including theability to deposit and withdrawfunds, transfer funds, make purchases and accept paymentsanywhere, anytime.

PROF

ITS

Shared by Grist, an online environmental news magazine

Shared by Grist, an online environmental news magazine

Compiled by Rutaba Ahmed

tbl sept-oct 08 9

letter

The Corporate Leaders Groupon Climate Change (CLG)wrote a letter to the leaders

of the UK's major political parties,to call for "transformationalchange" across the economy tomeet the scale of the threat posedby climate change.

The CLG brings together businessleaders from major UK, EU andinternational companies whobelieve that there is an urgentneed to develop new and longer-term policies for tackling climatechange. The Group is developedby the University of CambridgeProgramme for Industry and thePrince of Wales's Business andEnvironment Programme.

The letter states that: "Climatechange poses global social, envi-ronmental and economic risksand demands a transformationalchange in how we manage oureconomy. Incremental change willnot do... We must deliver deepand rapid cuts in greenhouse gasemissions to mitigate severe cli-mate change, and must adapt oureconomy, environment and infra-structure to cope with the climaticchanges we are already predictedto face. The global economicdownturn may cause some toquestion whether the UK canafford to act so boldly, but webelieve that action cannot bedelayed, and furthermore, thatdecisive action will stimulate eco-nomic activity and job creation incertain key sectors as well asreduce costs in the medium tolong term."

The group has recommended thatthe UK adopt a 'working assump-tion' that a legally-binding dealwill be signed by all countries atthe UN Framework Conventionon Climate Change negotiationsin Copenhagen next year, imply-ing that "the European Unionshould cut greenhouse gas emis-sions by 30 percent by 2020, not20 percent".

The CLG offers strong support forThe Climate Change Bill currentlyin Parliament as a "crucial frame-work for emissions reduction" butcalls for an "urgent cross-partyeffort to develop a comprehensivepackage of policy measures tochange every major sector of theeconomy".

It describes some of the "key ele-ments" of the package, includinghigher energy efficiency stan-dards, support for low-carbontechnologies and products, "boldnew specifications" for public sec-tor procurement and measures todeliver a robust carbon market.On this last point, the group sup-ports the "progressive shift to auc-tioning of allowances" under theEU's Emissions Trading Scheme.

The Corporate Leaders Grouprecognises that internationalaction is needed to tackle "thisglobal problem" but states that ifthe UK is to continue to offercredible and effective global lead-ership, "Government and businessmust now work together todemonstrate real change on theground by delivering the newprojects and practices that areneeded to create a low climate-risk economy".

In conclusion, the CLG, in its letter, emphasizes that: "Businessand Government must now worktogether to ensure all parts of thecountry see the tangible changethat is essential for climate changemitigation and adaptation. Fulltransformation to a low climate-risk economy will take severaldecades, but it will be the stepsthat are taken in the next fiveyears that will be crucial if we areto meet the scale of the threatposed by climate change and tograsp the business opportunitiescreated by moving to a low climate risk economy."

governance call

Quotes from members ofthe CLG on ClimateChange

James Smith, Chairman of ShellUK said: "Tackling climate changeis the pro-growth strategy for busi-ness. The technological solutionsare broadly known. What we nowneed are projects to build a lowCO2 energy system in the UK."

Lucy Neville-Rolfe, Group Directorof Corporate and Legal Affairs,Tesco said: "Consumers accountdirectly and indirectly for 60% ofcarbon emissions. They are there-fore key to achieving the revolutionin green consumption needed if weare to move to a low carbon econ-omy. Government and businessare interdependent on climatechange and we must work togeth-er to engage consumers - savingenergy, recycling and conservingresources."

Neil Carson, CEO, JohnsonMatthey said: "Public procurementdrives one third of the UK econo-my but, to date, attempts to 'green'procurement have largely failed.The public sector should be settingbold, new and sustainable specifi-cations for the products and serv-ices it buys. These would helpdrive innovation and investment,and bring advanced products tothe market, delivering real savingsin carbon and saving money forboth consumers and the taxpayer."

10 sept-oct 08 tbl

pakistan's water problems:

do we care enough

to act?Water pollution, discharge

of effluents and unsafe

drinking water are factors

among others that pose a

threat to human wellbeing

and Pakistan’s eco-

system. While some do

not have water to drink,

others waste it in vast

quantities. Witness the

women carrying water on

their heads for miles in

the scorching heat on one

hand, and crops under

flood irrigation and the

cars of the rich being

hosed down in the cities,

on the other.

by simi kamalfor tbl

cover story

tbl sept-oct 08 11

Pakistan, A Water-Scarce CountryAn arid country, Pakistan depends heavily on annual glacier melts and monsoon rains. Water fromthese sources flows down the rivers and out to thesea. En route, there are seepages into the ground,where water-bearing rocks or aquifers absorb andstore this water. Most parts of the country receivescant rainfall and have little or no access to surfacewater. Pakistan Water Partnership (PWP) states thatin Pakistan the total available surface water is about153 million acre feet (MAF) and the total groundwater reserves are approximately 24 MAF, of whicha substantial part has been mined without allowingfor natural recharge. Currently estimated at 160 million, the population of Pakistan is set to doublein 2.5 decades. This means that the per capita availability of water will decrease. There is likely tobe a net decrease, rather than an increase in thecountry’s water resources, due to a number of factors including population growth, climate change,and exploitation of water.

By international standards, Pakistan was already awater-scarce country in 1992 at 1700m3 available percapita, according to UNFPA/Ministry of PopulationWelfare. By 2003, Pakistan’s per capita availability

of water declined to the extent that it was catego-rized as a water-stress country by the World Bank,surpassing Ethiopia and on par with African coun-tries such as Libya and Algeria. Pakistan is now awater-scarce country at 1200 m3 per capita per year.According to water specialist Simi Kamal, based oncurrent projections, water availability (per capita)will be 855m3 by the year 2020.

We have already used up everything that exists inour water cycle and we do not have additionalsources of water to mobilize. When we say we areputting up another dam or reservoir, it doesn’t necessarily mean there will be additional water coming in; we are just re-appropriating what’salready in the system.

Hrdro ProblemsOur water resource base continues to be degradedbecause of pollution, atrophy, overuse of surfacewater and over-exploitation of groundwater. Largetracts of land have been rendered uncultivable dueto water logging and salinity, direct results of mis-

managed irrigation. Unsafe drinking water isresponsible for numerous diseases including dysentery, diarrhea, typhoid, cholera, malaria andgastroenteritis. UNICEF estimates that 200,000 children in Pakistan die annually due to diarrhoealdiseases alone.

The Indus delta has been reduced to one partiallyactive creek and there is no water flowing down-stream of the Kotri Barrage for almost the entireyear. Our mangrove forests, previously some of thelargest in the world, have been reduced from 0.6million acres to 0.25 million acres, said Simi Kamaland Jairath at the Asia Pacific Regional Consultationin Dhaka. The mix of sweet and sea water maintainsa very critical balance in the coastlines. If that balance is destroyed, then the entire water system isaffected and will, over time, be felt right up to thewatersheds. Pakistan is dependent on a single river system and we cannot afford to take any morechances with the water/sediment/salt balance of theIndus Basin.

The Irrigation System of PakistanPakistan has the largest contiguous irrigation systemin the world. However, owing to the poor state of

infrastructure, about two-thirds is lost due to poortransmission and seepage. This means that about 68MAF is potentially usable water if the canal systemis adequately repaired and maintained. Of the totalsweet water availability of approximately 144 MAF,97 percent is already used in agriculture. We have asituation where instead of improving farming meth-ods to conserve water and increase productivity,agricultural landowners demand more water, onlyto maintain some of the lowest productivity rates inthe world per unit of water and per unit of land.

All debates on water conservation, however, arecuffed by the constant refrain on dams and watersharing among provinces. Safeguards are needed.

The Solution?The seeds of conflict on water in Pakistan, therefore,are sowed by nothing more than hydrology and thisneeds to be recognized. We cannot solve a very complex geographical, hydrological, economic andenvironmental problem through politicking. The discussion on water distribution, therefore, should

Everyone understands that water is essential to life. But many are onlyjust now beginning to grasp how essential it is to everything in life – food,energy, transportation, nature, leisure, identity, culture, social norms, and

virtually all the products used on a daily basis.World Business Council for Sustainable Development (WBCSD)

“”

12 sept-oct 08 tbl

be in relation to uses and users, not among politicalor administrative units. This means, a discussion interms of head, middle and tail farmlands in irrigatedareas; and in terms of water for survival, subsistenceand pastoral livelihoods in non-irrigated areas. Rain-fed and arid areas should also be a part of thedebate on water equity and water use. In addition,uses of water other than agriculture - for domesticuse, for industry, for urban areas, and for the envi-ronment - should all be incorporated for a robustwater policy for Pakistan.

There is a need to recognize that just because certainwater-related practices have gone on for centuriesdoes not mean that they are allowed to continue inthe face of a world in turmoil. We need to changethe way we think about water, the way we usewater and the way we dispose off wastewater.

A Collective Approach is NeededIndividuals and corporate citizens must engage withdecision-makers across the board regarding rationaland responsible use of water. Industries, agriculturalindustries and corporations must move to pollutioncontrol, micro-irrigation, recycling and reuse ofwater on bigger scales. Once these can be demon-strated, only then can the gigantic problems ofwastage through the irrigation system and throughleakages in municipal water supply be taken up.

Our first hurdle is the unfortunate habit of layingeverything at the door of "the government". Butwhat is this government? At the level of the home,

you and I are the government; and at the level of acompany or private enterprise, the heads are thegovernment. The political process itself shouldhence be the will of the citizens. In the end, it is theamalgamation of policies, regulations, guidelinesand actions that will help us solve water problems,which are likely to get more complicated due to climate change and environmental instability.

References

Pakistan Water Vision, Pakistan Water Partnership, 2001, pp 5-6

Population Stabilization - A Priority for Development, , Government ofPakistan, 2003

Pakistan's Water Economy Running Dry, The World Bank, 2006, ppxiv - xv

Detailed discussion available in Kamal S, Women and Water: Issuesof Entitlement, Access and Equity, in Pakistani Women in Context,World Bank, Oct 2005, pp 79-106

Vision and Programme Document, Indus Delta Partnership, 2001,quoted in Kamal S and J Jairath, Addressing Water and Poverty atthe Grassroots, Asia Pacific Regional Consultation, Dhaka, 2002, pp 4

About the Writer

Simi Kamal is an internationally known geographer andwater specialist, who chairs many private and non-profitorganizations, and is widely recognized for her research-based contributions to water and environmental

conservation, building collaborative stakeholder platforms and citizens'action groups, as well as fundraising and campaigning. She has over 480reports, papers, book chapters, articles and handbooks to her credit.

The rain is plenteous but, by God's decree,Only a third is meant for you and me;

Two-thirds are taken by the growing thingsOr vanish heavenward on vapour's wings:

Nor does it mathematically fallwith social equity on one and all.The population's habit is to grow

in every region where the water's low:Nature is blamed for failings that are Man's,

and well-run rivers have to change their plans.Sir Alan Herbert

“

”

tbl sept-oct 08 13

the state hearkens

by zaheer hussain gardezifor tbl

rainwater harvesting:sustainable water supply solution in pakistan's mountainous areas?

The areas affected by the2005 earthquake com-prise some of the most

idyllic places in Pakistan.However, life in these areas isbecoming increasingly difficult, particularly in recentyears due to the increasingscarcity of water. This hasforced several people to evenabandon their ancestral vil-lages - something previouslyunimaginable for them.

The earthquake further deteriorated the water supply situation, destroying over fourthousand existing water supply schemes and affectingyields of water sources. It isestimated that the yields ofthese sources decreased by40 percent due to the earthquake.

The Earthquake Rehabilita-tion/Reconstruction Authority(ERRA) took up the responsi-bility of reconstruction andrehabilitation of the affectedwater supply schemes. Andthe herculean task was undertaken on war footings incollaboration with develop-ment partners and affectedcommunities.

Water Harvesting Pond for Livestock - Muzaffarabad, Azad Jammu Kashmir

14 sept-oct 08 tbl

Sustainable Solution toWater Scarcity ERRA realizes that rebuildingthe affected water supplyschemes, even when newstructures surpass the oldstructures in terms of qualityand reliability, is not the solution to the acute waterscarcity in this region. Whatare needed are innovativestructures that ensure a sus-tainable supply of water. Asmore than 90 percent peoplelive in scattered rural hamlets,huge projects relying on lifting water from large waterbodies lying thousands of feetbelow in a valley or watersources high on the mountaintops provide neither viablenor cost-effective solutions.

Huge promise lies in rain-water. The earthquake affect-ed areas receive an averagerainfall of 1,500 millimetres,higher than in any other partof Pakistan. Even if a smallfraction of this rainfall is har-vested, this can significantlyhelp overcome the problem ofwater scarcity. The rooftops ofthe new houses, constructedunder ERRA's Rural Housingprogramme, are made of CGIsheets. Rainwater flowingdown these sheets is clean andsafe for human use after har-vesting.

The residents here are familiarwith the concept of rainwaterharvesting (RWH). Till twentyyears ago, each household inthese areas would have asmall pond at its disposal.These small reservoirs, whichstored rainwater, were animportant pillar in the liveli-hood of the farming familiesas they provided water for

irrigation and for the drinkingneeds of farm animals.However, water stored inthese ponds was not consid-ered fit for human consump-tion.

RWH in Northern Pakistanprovides a plausible alterna-tive and supplementarysource of water in this situa-tion: where existing watersources are fast depleting.ERRA has decided to providea sustainable and alternativesolution by reviving anddeveloping the age old prac-tice of rainwater harvesting.The WatSan Programme atERRA estimates that no lessthan 90,000 litres of water(20,000 gallons) can easily becollected every year from asmall house of roof-size 30feet by 11 feet.

RWH Success Pillars There are three basic compo-nents to rainwater harvesting:catchment, gutters and pipesand a storage system.The CGI sheet roof serves asan effective catchment surface.Rainwater flushes quickly andthe accumulated water isquite clean, compared to otherroofing systems. It can then bestored in water storage con-tainers or can even be chargedinto aquifers through anystructure like dug well, perco-lation well, boreholes,recharge trenches or waterponds.

Proper care while collectingwater through sloping roofsyields high benefits. It is esti-mated by ERRA that around10 to 15 percent of the water isutilized as drinking waterwhile 85 to 90 percent is used

for daily washing, bathingand other activities.

RWH benefits include: Supplementing the existingwater schemes and provid-ing water facilities in themost decentralized man-ner.

The provision of an amplewater supply for domesticuse will promote bettersanitation-related practices.

Plans to Extend RWH forDomestic, Agri UsesIn accordance with its Build-Back-Better Policy, ERRA hasprepared a plan to popularizerainwater harvesting fordomestic as well as agri-cultural purposes. Under thisprogramme, 50 union councilsfacing acute water shortagewill be supported to set uprainwater harvesting structures. A comprehensiveproject worth Rs. 761 millionhas been prepared for thispurpose. Having receivedapproval from the ERRAboard, project papers havebeen forwarded to theExecutive Committee ofNational Economic Council(ECNEC) for approval, andthe project has passed the firsttier of approval. The PlanningDivision of Pakistan has greatly appreciated this initiative and assured mobilization of resources fortimely implementation of theproject. ERRA has shared thisidea with all its partner organizations in the WATSANsector. Donors and doers bothappear quite keen on supporting ERRA in transforming this dream intoreality.

tbl sept-oct 08 15

Situated on the top of a mountain, the idyllic village ofChitrah Topi is located 17 kilometres from the city ofBagh in Azad Jammu and Kashmir (AJK). As residentsof this village testify, living on a mountain top comes ata price. "A mountain top is not an easy place to live,because water flows downstream and you do not findmany springs or streams flowing down your way,"explains a resident.

Until a few months ago, two thousand residents ofChitrah Topi, particularly women, faced a difficult situ-ation. As gendered division of labour ordains, almostthe entire burden of ensuring domestic water supplyfell on the shoulders of women, or, literally speaking,on their necks. Women had to walk four to five kilome-tres every day to fetch water, an ordeal that could takeup to eight hours, everyday. Some donkey cartsbrought water to the village, charging Rs. 30 to 40 for a5-gallon container. But buying water was not an optionfor most residents of this low-income mountain village.

This situation worsened as a result of the October 2005earthquake, as most water sources in the area dried upor changed their course, making it even harder toattain water for domestic consumption. It appearedthat there was no end to this problem, until ERRAintroduced the rainwater harvesting project in the village through its partner organization, the MaqsoodWelfare society. As a result of ERRA's initiative topromote RWH in earthquake affected areas, the society

was able to obtain funding from Oxfam GB for a pilotproject in Chitrah Topi village.

Apart from two schools and a large mosque, a list of 25houses was drawn for supporting construction ofrooftop rainwater harvesting facilities. The project,which started about four months back, benefits apartfrom residents of these houses, more than 470 childrenand teachers of two schools and a large section of com-munity visiting the Jamia Mosque for prayers.

Soon after completion of the project, the heavy mon-soon rains poured down from the skies. Residents ofthe village discovered that there were springs flowingfrom the rooftops.

Once harnessed, these springs ensure safe and cleanwater. As a result of the project, women have beenfreed from the drudgery of carrying water everydayand people are growing kitchen gardens in theirhomes. For the school children, toilets have been madeuseable for the first time.

"Life has changed for the 200 girls studying at ourschools. The lack of toilet facilities discouraged girlchildren from studying and it made life miserable forthe teachers as well. Thanks to the new RWH facility,we now have safe and fresh water available for all ofour needs," says Haleema, a teacher at GovernmentGirls High School at Chitrah Topi.

Springs on Rooftops

Hullar Syedan, a picturesque village in district Bagh,AJK is one of the places where the practice of rooftopRWH emerged and evolved, in response to people'sneeds. Fifteen years ago, the villagers faced severewater shortages. The village had some communalwells, which were kept locked and elderly womenwere made custodians of these keys to ensure equaldistribution of water among the village residents. Thevillagers also had four ponds built, generations ago.These ponds were used to store rainwater and werecleaned every year. However, these ponds and wellsused to dry up if it did not rain for a month or so.When this happened, the villagers had to take theircattle to distant places for grazing and watering. Thewomen used to carry water from streams located milesaway.

In the 1970's, many people from these villages movedto the Middle East for better employment. This resulted in improved economic situation by 1980 andpeople built houses with sloping roofs. Upon their

own initiative, villagers started collecting water coming down from the rooftops in cans and pots. In afew years, all houses with a sloping roof had a watertank and toilet. These tanks could store a large volumeof water. Periods of drought saw them using theirwater carefully so that supply could last till the nextrainy season.

In 1996, with the collaboration of the local governmentof Azad Kashmir, a large water pumping scheme wascompleted with the capacity to provide water to 2,500people. The residents are running the water supplyscheme on a self-help basis. They have set up a committee for the maintenance of the water supplyschemes. Every household makes a monthly contri-bution to keep the system running. Along with thisscheme, people are still using RWH to augment theirwater supplies. During the months of rain, pressure onthe water supply decreases as people switch to thewater collected through RWH. Water scarcity is now aproblem of the past.

Water Scarcity: A Problem of The Past

About the Writer

Zaheer Hussain Gardezi is Director, WatSan Programme, Earthquake Rehabilitation/Reconstruction Authority (ERRA), Islamabad. Hehas over 18 years of experience in community-based physical infrastructure and social sector projects in the areas of rural water supplyand sanitation. His valuable experiences include working with multiple community-based organisations to plan and design cost-effectivebasic infrastructure development schemes.

With the realities of climate change and the depletion of fossil fuels, renewable energy isnow in the spotlight. Currently, wind and solar

power have been in the news, but there are also manyother sources of energy that would benefit the environ-ment and the developing world. These sources includewave and tidal power in addition to small hydro. InChina and India, small hydro is quite popular and thereare also a few projects in Pakistan; however, the govern-ment could do much more to promote water power.

This article will first examine wave and tidal power withreference to its applicability in Pakistan. This will includean analysis of the history of these technologies, the condi-tions needed for successful projects and the benefits anddrawbacks. The second part of the article will look at

hydropower

by miriam katzfor tbl

16 sept-oct 08 tbl

water powerin pakistan

small hydro and why it is the bestoption for Pakistan at this time.Wave and tidal power are goodtechnologies; however, the bene-fits of small hydro are muchgreater, especially for Pakistan'sdeveloping economy.

An Explanation and History ofWave PowerMany companies have developeddifferent ways of using wavepower, but the two basic princi-ples behind the designs remainthe same. The first designinvolves the waves moving into achamber where the water risesand falls. At the top of the chamber, there is a hole out ofwhich air is forced, which drivesa generator. The other type ofdesign involves a long tube withhinges, which moves up anddown due to the motion of waves.This motion moves hydraulicfluid, which drives a generator. A power cable then moves this electricity to where it is needed.The first design was used for thevery first commercial wave powerstation, which is situated on Islayisland in Scotland. This projectbegan producing power inNovember 2000 and providesenough power for 400 homes,according to Nayyer AlamZaigham, Professor & Director,Institute of EnvironmentalStudies, University of Karachi.The second design was used forthe Pelamis, which was alsodeveloped in Scotland, but thefirst project will soon be installedoff the coast of Portugal. ThePelamis produces enough energyfor 1500 Portuguese homes, as canbe found using the Pelamis waveenergy converter. Pelamis wasdeveloped by the student ofProfessor Salter at the Universityof Edinburgh.

Wave power began in France in1799 with a patent that used wavepower to drive heavy machinery;however, it was not until the1970s when wave power wastaken seriously. At the Universityof Edinburgh, Prof. Salter devel-

oped what is known today asSalter's Duck. Salter's Ducklooked like very large boxes thatwere attached to the ocean floor.As the waves moved them backand forth, the mechanical energybecame electrical energy, whichdrove a generator. Salter's Duckwas able to capture 90 percent ofthe wave motion and 90 percentof that could be turned into elec-trical energy, which is veryimpressive. In addition, at thetime the Duck was completed, thecost of the electricity was thesame as nuclear power; however,the nuclear power industry wasable to lobby the government tocancel financial support for wavepower in 1982, as stated in an article on Economist.com. Thisset back the cause of wave powerfor many years; however, otherforms of energy such as tidal haveshown promise.

Tidal PowerTidal power is potentially veryuseful because tides are very reliable. However, only 40 sites inthe world have been found thatare suitable because there must bea five meter difference betweenhigh and low tides.

There are two types of tidalpower stations: the first is builtacross an estuary and looks similar to a dam. Inside the dam,there are tunnels that the waterpasses through. The water thenturns a turbine. The other type oftidal power station looks likeunderwater wind turbines, butthe size is usually limited to 25 to50 megawatts (MW), according tothe Pembina Institute whichworks to advance sustainableenergy solutions in Canada. Thelargest tidal power station wasbuilt in northern France in 1966and it produces 240 MW of electricity.

Benefits of Wave and TidalPowerWave and tidal power have manybenefits. A 40 MW wave powerstation, which is being proposed

off the coast of Cornwall,England, will save 300,000 tons ofcarbon dioxide over 25 years. In addition, the net potential forboth wave and tidal power isgreater than wind and solarbecause water is 850 times denserthan wind, which pushes the turbines faster, according to theOcean Energy Council (OEC).

Also, because many cities are situated in port areas, the powercan be used right where it isneeded. This is importantbecause, as electricity movesthrough transmission systems,some of the power is lost and cannot be recovered. Both tidaland wave power are fairly inexpensive to maintain and tidalpower is very predictable. Tidalpower cannot harm any marinelife because underwater animalscan often sense turbine movementand their sound. In addition,because tidal power requires ahigh current, there will never beany animals feeding in thoseareas because plants cannot grow.

Challenges of Wave and TidalPowerWave and tidal power also havemany challenges that need to beresolved in order for these typesof powers to be successful.

Generally, the best waves are situated in temperate zones,which means that Pakistan is notsuitable for wave power. This isbecause west winds are oftenfound in the temperate zones,which are the best for wavepower. Also, strong winds overlarge areas as well as a locationnear the continental shelf aremuch more favourable for wavepower because it ensures a disparity between wave heightand wave length.

Sites such as these are very rare,as mentioned above. Wave poweris also much younger than windor solar power and the cance-llation of the UK wave power programme did not aid that. The

tbl sept-oct 08 17

fact that wave power is youngalso means that the power generated costs more than othersources of power. Currently,wave power costs approximately7.5 cents per kilowatt hour (kWh)compared to 3 cents for naturalgas, according to the OEC.

Tidal power also faces many challenges. One of the main problems is that shore birdsdepend on the tide to uncovermud flats in order for them tofeed; tidal power changes thisquite drastically. The cost of tidalpower per kWh is 12 cents, whichis quite high. This cost would takemany years to recover, which isnot attractive for the developingworld. Lastly, according to theOEC, tidal power has a very lowcapacity factor of 20 to 35 percentwhereas nuclear power stationsexperience a 90 percent capacityfactor, says E. Michael Blake in anarticle published in the NuclearNews magazine of the AmericanNuclear Society.

Thus, although nuclear power is amore questionable energy source,capacity factor is very importantbecause if the capacity factor ishigher, it ensures that power willbe produced more frequently. Thereason why tidal power has sucha low capacity factor is that tidesare only predictable for part of theday and thus, there is no constantsupply of energy.

Small vs. Large HydroDue to the challenges just men-tioned, Pakistan is not suitable forwave and tidal power. However,Pakistan has had some experiencewith small hydro and there is acontinuing interest in thetechnology. Currently, Pakistan

has 108 MW of small hydro,which consists of nine projects.There are also 10 MW under construction and 180 MWplanned, according to theInternational Energy Agency.

However, Pakistan has the potential for 46,000 MW of hydro-

electricity, which includes largeand small installations; at present,only 6459 MW are installed, statesengineer Abdul Waheed Bhutto.Furthermore, he states that manypeople now realize that largedams are not suitable for the environment, economy and people because dams cause theflooding of villages and towns,which means that the governmentmust spend money to resettlepeople; the Kalabagh dam, forexample, will cost the governmentRs. 2 billion in resettlement costs.In addition, because reservoirsoften contain decaying biomass,greenhouse gases are emitted.Large hydro is often accompaniedby corruption, which is discussedin the next section.

Forms and Effects: WhatCorruption in HydropowerLooks LikeGrand corruption can occur in theform of bid-rigging and illicitpayments, which are often

disguised by channeling themthrough agents or subcontractors.Irregularities with environmentalimpact assessments can arise during the planning phase. InIndia, an accounting firm commis-sioned to conduct an EIA for twodams was caught in 2000 copyinglarge sections of an EIA for another project 145 kilometersaway. After a civil society watchgroup spotted the plagiarism andposted the information on itswebsite, the contractor said itwould rewrite the document.Vulnerabilities continue duringproject operation and mainte-nance. These can include corrup-tion related to service access andprovision, misappropriation ormisuse of fees, illegal connections,failure to honour social and environmental mitigation commitments, patronage andabuse of funds in resettlementactivities, and failure to honorbenefit-sharing. If these vulnera-bilities were addressed, the bene-

STAKEHOLDER GROUP CORROSIVE EFFECTS OF CORRUPTION

Electricity consumers Less affordable and reliable electricityLess access for the poorSlower pace of service expansion

Impacted communities More high-impact or ‘bad’ projectsHigher adverse livelihood impacts and impoverishment risksFewer funds for compensation, mitigation and benefit-sharingFewer mitigation commitments for sustainable management

Electricity utilities Higher costs of bulk energy or own supplyHigher borrowing and equity costsLess money for service expansion and improvementDelayed, overpriced or expensive infrastructure

Governments Higher power sector costsHigher repayments for sovereign loans or guaranteesSetbacks for social policiesSlower economic growth and job creation for projects that depend on improved electricity service

Public hydropower No level playing field for fair competitiondevelopers/ operators and Approvals procured through bribes can be rescinded,IPPs terminating the project

Disqualification from office or criminal prosecution

Contractors and equipment Distorted and unfair competitionsuppliers Higher and wasted tender expenses

Approvals procured through bribes can be rescinded,terminating the projectCriminal prosecution, fines, blacklisting and loss of reputationFinancial loss

Why fighting corruption is a long-term interest of all stakeholders

18 sept-oct 08 tbl

Source: Global Corruption Report 2008, Transparency International

fits that would flow to people andthe environment would be considerable. Direct cost savingsmay start at US$ 5-6 billion annually if contractor bid pricesdecreased by 10 percent, whichwas suggested by TransparencyInternational.

If corruption leads to cost over-runs that eat into funds originallyearmarked for maintenance, proper functioning may be put atrisk, reducing the long-term benefits. Corruption can alsohamper the expansion of electricity ser-vices in developingcountries by driving up costs,delaying projects and loweringservice quality and reliability,especially in rural areas considered low priorities. Thetable, printed in the Global WaterCorruption 2008 report byTransparency International, summarizes the impact of corruption on hydropower.

How Small Hydro WorksMost small hydro systems workon the same principle known asrun of river. One of the main benefits of this is the absence of areservoir, which means no townsare flooded. The water at the highpoint of the river is fed through apipe, which turns a small generator. After this, the water re-enters the river, which meansthat there are no environmentalconsequences and the systemneeded is fairly small.

These systems last for about 25years and very little maintenanceis needed. Small hydro has threedifferent categories: pico, miniand micro, which are below 5kilowatts (kW), 1 MW and 100kW respectively, explain Taylor,Dr. Upadhyay and Laguna(Project Manager, European SmallHydro Association) in a reviewon small hydro in developingcountries published onRenewable Energy World.Vietnam is one of Asia's leaders inpico hydro where a 300 watt unit

costs $20 and produces enoughpower for one family.

Benefits of Small HydroSmall hydro has many benefits,both for the environment and forPakistani society. Small hydroproduces no greenhouse gasemissions after it is built. In addition, unlike tidal power, theecosystem is not adversely affected. Pico hydro only requiresa 1-metre drop in height, whichmeans the technology is guaran-teed to work more of the timethan wave power, which dependson very large waves.

With regards to society, smallhydro guarantees that there willbe electricity available more of thetime, which means that childrencan study at night and womencan also make handicrafts formarkets, which gives them moreeconomic power in society. Inaddition, women are given evenmore free time because they donot have to collect firewood anymore.

Pakistan can also benefit from theexperience and knowledge of itsneighbour India, which has 1694MW of small hydro installed.Lastly, it is very important to notethat many people in ruralPakistan do not have electricityand small hydro is very wellsuited to many of these areas

because it does not have to beconnected to the grid. Anotheroption is to build grids that onlycover one village or town, whichis a very popular option in China,India and Vietnam because smallhydro can easily be connected tothis type of grid, state Taylor,Upadhyay and Laguna.

Thus, small hydro is by far thebest option available for Pakistandue to the presence of manyrivers, the environmental andsocietal benefits as well as thedrawbacks of wave and tidalpower. It is now up to the govern-ment to put in place policies that

would allow people to purchasethese systems cheaply. If Pakistanis able to independently producepower, this would greatlyincrease the number of jobs andthe benefit to society.

References

Nayyer Alam Zaigham and Zeeshan AlamNayyer "Prospects of Renewable EnergySources in Pakistan"<http://www.energy.com.pk/RenewEnerPakistanNAZ.pdf>

Wikipedia "Pelamis Wave EnergyConverter"<http://en.wikipedia.org/wiki/Pelamis_Wave_Energy_Converter>

The Economist "The Coming Wave"<http://www.economist.com/search/dis-playstory.cfm?story_id=11482565>

Pembina Institute "Energy Source: TidalPower"<http://re.pembina.org/sources/tidal>

Ocean Energy Council "Wave Energy"<http://www.oceanenergycouncil.com/index.php/Wave-Energy/Wave-Energy.html>

E. Michael Blake "U.S. Capacity Factors: Asmall gain to an already large number"<http://www.ans.org/pubs/magazines/nn/docs/2007-5-3.pdf>

International Energy Agency "InternationalSmall Hydro Atlas: Pakistan"<http://www.small-hydro.com/index.cfm?Fuseaction=coun-tries.country&Country_ID=60>

Abdul Waheed Bhutto "Small Hydro-powerUnits for Remote Villages"<http://my.reset.jp/~adachihayao/060829M.htm>

Simon Taylor, Drona Upadhyay and MariaLaguna "Flowing to the East: Small Hydroin Developing Countries"<http://www.esha.be/fileadmin/esha_files/documents/publications/articles/REW_06-1_Laguna.qxd.pdf>

About the Writer

Miriam Katz is a freelance writer based inLondon. She currently writes for theEnvironmental Peace Review. Her areas of interest include environmental issues, renewableenergy, biofuels and climate change. She holdsa Bachelors in Arts degree in Political Scienceand Environmental Studies from the University ofToronto. She can be reached atm.il.katz@gmail.com

tbl sept-oct 08 19

20 sept-oct 08 tbl

Putting lives, livelihoods and sustainable devel-opment at riskNearly 1.2 billion people in the world do not haveguaranteed access to water and more than 2.6 billionare without adequate sanitation, with devastatingconsequences for development and poverty reduction. In the coming decades the competitionfor water is expected to become more intense. Dueto overuse and pollution, water-based ecosystemsare considered the world's most degraded naturalresource. Water scarcity already affects local regionson every continent, and by 2025 more than 3 billionpeople could be living in water-stressed countries.

In developing countries, about 80 percent of healthproblems can be linked back to inadequate waterand sanitation, claiming the lives of nearly 1.8 million children every year and leading to the lossof an estimated 443 million school days for the chil-dren who suffer from water-related ailments.

This Report argues that the crisis of water is a crisisof water governance, with corruption as one rootcause. Corruption in the water sector is widespreadand makes water undrinkable, inaccessible andunaffordable.

Water: a high-risk sector for corruptionThis Report draws some preliminary conclusionsabout why water is especially vulnerable to corruption.

Water governance spills across agencies.

Water management is viewed as a largely techni-cal issue in most countries.

Water involves large flows of public money.

Private investment in water is growing in countries already known to have high risksof corruption.

Informal providers, often vulnerable to corrup-tion, continue to play a key role in deliveringwater to the poor.

Corruption in water most affects those with theweakest voice.

Water is scarce, and becoming more so.

report: global water corruption

a destructive partnershipwater and corruption:

The Global Corruption Report 2008 is the first report to assess how corruption affectsall aspects of water - and reflects on what more can be done to ensure that corruption does not continue to destroy this basic and essential resource, one that is

so fundamental to the lives of people all over the planet. This report shows that thecorruption challenge needs to be recognised in the many global policy initiatives for environmental sustainability, development and security that relate to water.

report by Transparency International

tbl sept-oct 08 21

Urgent action is needed to mobilise allstakeholders to develop practicalways of tackling corrupt practices in themany and varied parts of the water sector.This is the central message of the GlobalCorruption Report 2008.

The global water crisis: a crisis of governanceThe story of corruption in the water sector is a storyof corruption in resources and services vital for lifeand development. It is also the story of a sector incrisis. Each year millions of people die of water-borne diseases because access to safe drinking waterand adequate sanitation has not been prioritized. In2004 more than 1 billion people lacked access to safedrinking water and 2 billion did not have access toadequate sanitation - and, despite successes in manyregions, the population without access to water serv-ices is increasing. Corrupt practices exacerbate thesegaps, removing investment that might be used toextend services to the poor, diverting finance fromthe maintenance of deteriorating infrastructure andtaking cash from the pockets of the poor to pay esca-lated costs and bribes for drinking water.

At the heart of these failures is the crisis of gover-nance in water - a crisis in the use of power andauthority over water and how countries managetheir water affairs. And yet, despite the imperativesof water for citizens' livelihoods and a country'sgrowth, water governance has not been prioritized.Institutional dysfunction, poor financial manage-ment and low accountability mean that many gov-ernments are not able to respond to the crisis, andweak capacity and limited awareness leave citizensand non-governmental organisations (NGOs) inmany countries unable to demand change.

The nature and scope of corruptionCorruption - the abuse of entrusted power for personal gain - can be found in a vast range of interactions at all levels and in all aspects of thewater sector.

When bureaucratic or petty corruption occurs, ahierarchy of public servants abuse their power toextract small bribes and favours. A water meterreader offers to reduce a customer's bill in return forpayment or a utility official only responds to waterservice complaints when favours are traded. Whengrand corruption happens, a relatively small cadreof public and private sector actors are involved andthe rewards are high. For example, public funds fora rural water network are diverted into the pocketsof ministry officials or a large dam construction contract is captured by a group of colluding compa-nies. When state capture occurs, the decision-making

process and enforcement of water policies aremanipulated to favour the interests of a few influential water users or service providers at theexpense of the broader public.

Typically there are three sets of corrupt interac-tions:

Between public officials and other public officials.This includes corrupt practices in resource alloca-tion. It can also involve using bribes to determinethe outcome of personnel management decisions -such as payments to individuals for transfers andappointments to lucrative positions.

Between public officials and private actors. Thisincludes forms of bribery and fraud that occur inrelation to licensing, procurement and construc-tion. Collusion or bid-rigging is typical of tendering processes in developed and developingcountries and involves both international andnational actors.

Between public officials and users/citizens/consumers. These practices, known as administra-tive or petty corruption, enable poor and non-poorhouseholds, farmers and other users to get water,get it more quickly or get it more cheaply. Theseries of corrupt practices in the sector extendsfrom policy capture, to large and small public-private transactions in construction and operations, to interactions at the point of servicedelivery, which together can be plotted on a water'value chain'.

The framework shown in table 1 highlights thesethree sets of interactions in terms of the functions ofthe water sector: a cycle of policy-making and regulation, budgeting and planning, financing, programme design and management, tendering andprocurement, construction, operation and mainte-nance, and monitoring and enforcement functions.The corruption risk map provides a framework foridentifying these stakeholder incentives, potentialconflicts of interests and the points along the watervalue chain that are most vulnerable to capture.

The impact of corruption: putting billions of livesat stakeThe impact of corruption can be described in finan-cial, economic, environmental and sociopoliticalterms, and can also involve issues of security.

FinancialWeak governance and endemic corruption exact asocial impact that financial calculations can neverestimate. The barriers to access fall disproportionate-ly on the poor in all regions. Chronically low levelsof access are found among poorer households and,accordingly, many households find ways - often

22 sept-oct 08 tbl

creative ways - of obtaining water informally. Theyvary the sources from which they obtain water andpay higher prices when they can afford it. The poorest households in countries such as El Salvador,Jamaica and Nicaragua spend more than 10 per centof their income on water while their cohorts in richnations such as the United States pay only a third asmuch.

EconomicPoverty is multidimensional and household costsare not all financial. Whether poor householdsengage in corrupt transactions or not, they sufferdue to the inefficiencies that corruption produces.Where corruption removes or increases the costs ofaccess to water effects can be measured in terms oflost days, human development and lives. Close linkages have been found between access to safewater and infant mortality, girls' education and theprevalence of waterborne disease.

Water is also a key driver of growth, being an indispensable input to production (in agriculture,industry, energy and transport). Currently, theextremely low levels of hydraulic infrastructure andlimited water resources management capacity in thepoorest countries undermine attempts to managevariability in water availability. Water reservoir storage capacity (per capita) in countries such asMorocco or India is less than one-tenth of the volume that Australia has in place. Corruptionreduces the levels of investment in infrastructure,reduces resilience to shocks and undermines growth.

EnvironmentalThe impact of corruption in water can also be environmental. The lack of infrastructure for watermanagement whether man-made (e.g. dams, inter-basin transfers, irrigation, water supply) or natural (e.g. watersheds, lakes, aquifers, wetlands)in developing countries presents a managementchallenge almost without precedent. The ever-increasing impact of climate change and thelack of human and financial capacity to manage thewater legacy result in far greater shock in developing countries, making the poorest countriesever more vulnerable. Corrupt practices thatincrease pollution, deplete groundwater andincrease salinity are evident in many countries andare closely linked to deforestation and desertificationacross the globe. Stemming the leakage of fundsfrom the sector is vital to address these issues.

SociopoliticalThe importance of water - on health, poverty, development and the environment - underscoreshow it is fundamentally linked to questions ofpower and security. Corruption can turn the controlof water into a force that aggravates social tensions,

political frictions and regional disputes.

The drivers of corruptionGovernment institutions are not well structured todeal with these informal water providers or theforms of bribery that develop. Another driver ofcorruption in the water sector is related to the factthat the demand for accountability is very limited indeveloping countries.

The existence of state and non-state actors, systems,service levels and institutions creates a highly complex sector. The lack of clarity in the roles andresponsibilities of all these stakeholders results in alack of transparency and accountability and,inevitably, in a severe asymmetry of informationbetween user, provider and policy-maker.

In addition, water has many linkages to other sectors that are particularly vulnerable to corruption.As part of the high-risk construction sector, waterdisplays the resource allocation and procurement-related abuses which arise when the public and private sectors meet. As water services and resourcemanagement is one of the functions of a country'sadministrative or civil service, the sector also confronts a different set of obstacles: low capacity,low wages, lack of clear rules and regulations, anddysfunctional institutions. These conditions make itsusceptible to the common practices of fraud,bribery, embezzlement and favouritism.

Understanding the channels where corruption canoccur helps in its prevention. Mapping makes it possible to identify 'hot spots', in a particular context, where corruption tends to concentrate alongthe water value chain framework shown in table 1.

Ultimately, however, corruption scenarios play outvery differently in different contexts. Politicalregimes, legal frameworks, the degree of decentra-lisation, regional disparities, power relations, cultural norms and levels of accountability (for example, between state and civil society) willinfluence the patterns and risks.

The Global Corruption Report 2008 is by Transparency International,a global civil society organisation leading the fight against corruption.It is edited by Dieter Zinnbauer and Rebecca Dobsan.

tbl sept-oct 08 23

24 sept-oct 08 tbl

A pseudonym 'Paniwala'(PW) has been used todisguise the identity of

the leading entrepreneurbehind 'Pani Ghar', a

social enterprise estab-lished two years ago toprovide safe drinking

water at affordableprices. The social enter-prise as a company waswounded up while the

pilot outlet still functionsin Lahore.

Mr. Paniwala (PW) looksback to a year ago whenhis negotiations with a

major international socialventure fund were almostfinalized, before they sud-

denly collapsed and sodid his dream to start a

revolutionary socialenterprise for providing

safe drinking water to thepoor in a financially

sustainable way.

social partnership

pani gharcase study of a social enterprise

by ali salmanfor tbl

Background Potable water in Pakistan is pol-luted, and the health situation isgetting worse. This has been con-firmed by National Water QualityMonitoring reports issued by thePakistan Council for Research inWater Resources (PCRWR).Keeping this in mind, many companies have launched bottledwater. However, they are cateringto the rich. A liter of bottled watercosts Rs. 22; in jumbo packs of 19liters, this price drops to Rs. 6 perliter: still a price, which the poorand lower income groups cannotafford. The Economist (November9, 2006) estimates that the spending on drinking water by anaverage household does not crossover 5 percent of their monthlyincome. It translates into the factthat to afford clean drinkingwater through bottled water companies, the monthly household income should bemore than Rs. 50,000; whereasaccording to the Economic Surveyof Pakistan, the per capita incomeof Pakistan is $850 or Rs. 4,250 permonth as per 2006 prices.

Pani Ghar: Beginning of an Idea Concerned about the water situa-tion (for example, lack of potablewater) in poor communities, Mr.PW began to think of ways to

provide this precious resource -water - at a large scale to the poorin a for-profit business model. Hethus analyzed various optionsincluding the government expenditure and compared household costs per annum.

Next, PW undertook professionalmarket research to estimate thedemand of drinking water inspecified locations while keepinga price point of Re. 1 per liter. Themarket research yielded severalinsights and confirmed that a sizable demand exists at the community level for buying cleandrinking water regularly. Once

Assumption: Everything else equal, the above table compares household costs for each option.

Investment Per Household(Rs.)

Household 18,000Filters

Pani Ghar 6,000

Government 8,464Plants

Bottling Company 43,200

tbl sept-oct 08 25

PW had determined the demandlevel in these areas, he exploredtechnologies available in the market. His purpose was to find a'medium size ultra violet filtrationplant, which could be placed inan exclusive shop and could supply water to a community ofaround 1,000 households'.

Competitive AnalysisPW also conducted a competitiveanalysis. He identified that household filters pose an immediate threat to his idea. Buthis research exposed the inade-quacy and uselessness of these filters. Many target customers optto use boiled water; however,boiling water is recommendedonly for emergencies and scientifi-cally proven to be counter-pro-ductive, if used regularly. A low-cost technology is water purifyingcrystals. However, while thistechnology may satisfy social con-cerns, it does not satisfy commer-cial requirements. The govern-ment has spent 12 billion rupeesin its project 'Clean DrinkingWater for All'. The project aims toinstall more than 6,000 filtrationplants - one in each union councilof the country - by the end of2008. Only 600 were installed andthis project has unfortunatelytaken the well-known downwardtrajectory associated with mostgovernment-run projects.

Pani Ghar: CommissioningPhase PW identified a local manufac-turer of water filtration plants,who had developed a prototype.This, for PW was a dream cometrue. PW signed partnershipagreement with him and a company was established: PaniGhar. Much to the disappoint-ment of this young entrepreneur,a year later, this would prove tobe the beginning of an end.

PW assumed charge of this business and managed the sales, operations and quality of the outlet. He also conducted a rapidassessment of Pani Ghar.

Unanticipated Problems in PaniGhar and PW's StrategyPani Ghar was located on Multanroad in Ittefaq town, a congestedurban area near Mansura, Lahore.Although this outlet was operational for almost a year, thenumber of customers was low.The management faced variousunanticipated problems. Theseproblems included unwillingnessof people to buy 'uncertifiedwater', slow sales, poor market-ing, lack of monitoring and com-petition from household filters.

When PW assumed charge ofPani Ghar, he took specific stepsto address each issue. Heappointed a business graduate

and delegated sales, quality management and marketing tohim. This brought positive resultsrather quickly. After six months,Pani Ghar's revenue doubled andthe enterprise achieved self-sufficiency. Some sixty plushouseholds became regular customers of Pani Ghar. Thesehouseholds belonged to thelower-middle group and becameloyal customers.

Scaling up Pani GharWhen the house was put in relative order, PW began to workon an investment which wouldhelp him scale up the project. Hebelieved in the concept ofeconomies of scale and knew thata well-paid professional manage-ment would make sense, once theoperations were wide enough.PW prepared a plan to open tenoutlets in Punjab and sought thehelp of a major social investor.Initial response was positive anda long, taxing process of communication ensued.

Lack of Internal CoherenceWhile the enterprise was doingwell at the operational and business development levels, itfaced an internal managementchallenge. PW's partner began tomistrust PW regarding hisengagement with the venturefund and spending money on

systems and management. Thepartner was of the opinion thatspending money on quality control and management supportwas not needed at this stage andshould be put off. However, PWinsisted that for long-term benefit,this short-term expenditureshould be absorbed. This conflictleft both shareholders in badtaste. PW was asked by his partner to quit and wind up thecompany. The potential socialinvestor also took note of theinternal management conflictsand concluded that it is not a safeinvestment. Apart from learningseveral lessons about the marketing of a social enterprise,PW also learnt an important lesson the hard way:

The social entrepreneurshould remain independent at least until the pilot phaseof the product is successful.Dependency on an externalfactor, including an organi-zation or an investment inthe initial phase can be fatal.

In the last quarter of 2007, PaniGhar was wound up as a company, though the lone outletstill continues to operate profitably. PW's dream was notrealized but his initiative provided great insights and a useful knowledge base for similarinitiatives.

About the Writer

Ali Salman currently works as a senior partnerat Development Pool - a consulting firm andteaches Economics. Ali specializes in economicanalysis, entrepreneurship, policy formulationand business models. He has worked in the private, public and development sectors ofPakistan for over ten years. Besides variouspublications, the book 'Alternative Youth Policy'is to his credit. He engaged in good governancereforms, citizens-government liaison and policyresearch during a two year period at PlanningCommission, Government of Pakistan. Ali did hisMasters in Economics from Boston University asa Fulbright Scholar; his MA in DevelopmentStudies as Royal Netherlands Fellow; and anMBA from Quaid-i-Azam University, Islamabad.

26 sept-oct 08 tbl

Irony of the times: a worldclass ecological model of excel-lence emerged in one of the

top polluting cities in Asia.

Found in the outskirts of NewDelhi, in an upscale developmenttown named Gurgaon, is the TeriGram campus. The Energy andResource Institute (TERI) wasfounded by the Tata family in the1970s as a way to model Indiatowards a more energy efficientfuture. Today it is known as acentre of excellence, in India andaround the world, with offices inEurope, Asia and the Middle East.Dr. R.K. Pauchauri leads the institute. He won a Nobel Prizefor environmental protection in2004 - the same year as Al Gore

was awarded for his work withan 'Inconvenient Truth’, whichmade waves throughout out theworld raising awareness towardsthe urgency of climate change.

Teri: A Model of ExcellenceLocated far from urban noise, theTeri Gram campus is mostnotably known as a retreat withcricket, golf and other outdooractivities. However, what makesit renowned is its completereliance upon renewableresources.

Arriving at the campus you mustpark at the gate and to tour thecompound, board an electroniccar, its symbolic green colourblending well with the campus

horizon. As the main retreatbuilding nears, you will firstnotice its very modern andsophisticated design surroundedby forests and green fields.The main foyer is lit only usingsunlight, streaming in through askylight window that spans mostof the roof; placed upon whichare photovoltaic solar panels.

Solar Energy and BiomassGasificationThe building uses no air conditioning facility, and reliescompletely upon solar energy andbiomass gasification to providethe much needed energy for thebuilding. In fact, the building consumes 10.7 kW per day ofsolar energy from those photo-

teri gram ecological retreat

eco-retreats & eco-models

by kurt archerfor tbl

Phragmites AustraulisThese plants are responsible for breaking down material waste and absorbing its remainingnutrients for its own growth, leaving clear, odourless water behind. The facility uses most ofthe water on gardens around the retreat, some gets filtered further into drinkable water.

tbl sept-oct 08 27

voltaic panels, while up to 100 or150 kW are produced through theprocess of biomass gasification.

The biomass gasification machineis akin to an incinerator and burnsnatural products such as woodand cedar chips broken down intosmall nuggets. The heat producedis used to heat water tanks andpower a generator. Burning attemperatures of 1200ºC, very littlethermal energy is lost in theprocess. Most of the wood chipsare taken from scraps on the facility grounds, while others arebought from outside producers.For those curious as to where theash is sent after the burning iscomplete, you might appreciateknowing that some of it, if stillhigh in its carbon content ratio,can be used as a bond to sticksawdust chips together intonuggets. The unusable remainders are dug into the earth.Since the product had no chemical properties, there is norisk to the soil.

The generator itself is only runwhen needed, so there is nounnecessary burning and wastageof energy. The operating costovertime for implementing such asystem is equal to about fourteenIndian Rupees per kilowatt hour,including the purchasing ofwoodchip material.

Ancient Greek Design Modelfor Conserving EnergyThe design of the building itself ismodelled after an ancient Greekdesign. Instead of air condition-ing, they run cooling pipesthrough the ground: dug to 4meters below-surface, and run-ning about 70 meters along thebuilding. The only energy usedhere is to run a large fan thatcools the air and blows it alongthe pipes into the room chambersahead.

This alone will not fully cooldown the room, so based on thesimple science of thermodyna-mics, and the rule that heat

always rises, the Greeks designedheat chimneys that run up thebuilding emitting small amountsof heat that help suck any hot airinto the chimneys and out into thefresh air. When used in combi-nation with the wind tunnels it provides a cool and comfortabletemperature, even in the heat ofthe Delhi afternoons.

Waste Water ManagementNo self-contained facility is complete without managing thewaste that it inevitably produces.Aside from using only recyclablematerials instead of plastics,waste itself is reduced dramati-cally at Teri Gram.

However, the sewage waste iswhat is most alarming in how it istreated: completely naturally byplants from the PhramitesAustravlis family. Sewage waterenters a small pond where thesewater born plants grow, and overa short period of time, the plantsbegin consuming the waste produced until there is only waterleft, and all traces of acidic material or methane have beenconsumed by these carnivorousplants. What comes out from theother end is clear, usable water. Teri does not stop here though.They are also experimenting witha special purification filter that

removes the remaining microbesthat were left in the fauna treatedwater and after passing throughthis filter, it can easily be cleanenough to drink. While researchis underway to find more efficientusages of the water producedthrough this system, most of thiswater currently is used to watergardens and fields.

GM to Conserve PlantSpecies?A trip to Teri usually ends with avisit to the tissue culture planta-tion. Here thousands of plantspecies are being cut and repro-duced using genetic modification(GM) techniques, essentiallycloning high yielding plants. Thisdoes not contribute favourably tobiodiversity. In other words, theyare not interested in replicatingeco-systems but rather maintain-ing certain species of plant thatwould have otherwise died outdue to various reasons associatedwith soil and ecological degrada-tion. The facility employed stateof the art methods at engineeringand growing high yield crops,which are then sent all over Indiaand the world. This article ofcourse cannot get into the controversies associated with GMtechnologies.

The Teri Gram retreat can serveas a role model in the world ofecological design, and its place inAsia gives it a unique strongholdin an area where most of the population is still quite unawareof the harmful effects of environ-mental degradation. One can onlyhope its model can be replicatedthroughout industry and designschools all over the continent - and beyond.

About the Writer

Kurt Archer has been passionate about youthvolunteerism since 2000 when he delivered presentations on child rights awareness withUNICEF. He has experience in youth training,public speaking and civil society engagement.Kurt is currently touring through Asia identifyingbest case practises for positive environmentalchanges. He studied Political Science fromCarleton University.

Bio-gas Fuel inputsThese timber and loose foliage pellets are usedto power the Bio-Gasification unit. Some arefound on site, others are purchased through suppliers. All products are 100 percent natural,and chemical free.

towards 'a truly water-sustainable business on a global scale'- coca-cola

profile in sustainability

According to theInternational WaterManagement Institute

(IWMI's) ComprehensiveAssessment of Water Manage-ment in Agriculture, one-third ofthe world population faces someform of water scarcity. A recent JPMorgan Report states that by2025, this is expected to rise totwo-thirds, due to climate changeand increasing urbanization andpopulation growth. TheIntergovernmental Panel onClimate Change (IPCC) report on'Climate Change and Water' predicts that global populationwill rise from about six billiontoday to 8.7 billion by year 2050;which means that much more willbe needed to feed the growingpopulation. Already about seventy percent of the water usedworldwide is used for agriculture.

It is quite clear that the future forfresh water does not look bright.Especially when you also considerthat all the fresh water there istoday will be all the fresh waterthat will be there in the years tocome. It is a resource that will notincrease in quantity over time.

The IPCC goes on to say that theunprecedented challenges frompopulation growth, pollution, climate change and problems ofallocation of water pose a severethreat to ecosystems worldwide,posing a further serious threat tofresh water availability as inwater-stressed areas, people andecosystems are particularly vul-nerable to decreasing and morevariable precipitation. An estimat-ed third of the world's population

currently lives in water-stressedcountries. This is set to increase totwo-thirds within 25 years. Africaand Asia are already hard-hit bywater stress. Increasing popula-tions will create more pressure inthe coming decades.

The Impact of the Water Criseson Sustainability of BusinessesIn this scenario, everyone aroundthe world, particularly in water-stress areas, needs to becomeincreasingly aware of the waterchallenges and needs to act nowto proactively address the loom-ing water crisis. Within the corpo-rate sector, industries that havewater as a key input must partic-ularly consider the impact ofdecreasing water resources on thesustainability of their businesses.Such organizations must focus ondeveloping strategies and solu-tions now to counter futureexpected water shortages, or facethe risk of closing down theirbusinesses.

For the international beveragegiant Coca-Cola, water is a vitalresource. It is the main ingredientused in nearly every beveragethat the company makes.

"Without access to safe water sup-ply, our business simply cannotexist," says Coca-Cola's Chairmanand CEO, Neville Isdell.

Coca-Cola sells 1.5 billion bever-ages a day in over 200 countriesand territories across the planet.At Coke's bottling plants, it takes2.5 litres of water to produce onelitre of its product. In 2006, Coca-Cola and its bottlers used 290 bil-lion litres of water to produce itsbeverages - equivalent, forinstance, to one-fifth of the dailywater usage of the U.S.A. Fortypercent of that went into drinks.The other 60 percent was consumed by the firm's supplychain and in the production ofingredients.

Clearly Coca-Cola cannot dowithout water. No surprise there-fore that last year, Coca-Colaannounced its bold commitmentto achieve 'water neutrality' byyear 2010, in collaboration withthe WWF. The concept of waterneutrality was created by PanchoNdebele at the 2002 JohannesburgWorld Summit for SustainableDevelopment (WSSD).Waterneutral.org defines waterneutrality as "reducing the waterfootprint of an individual (or entity), and where appropriate,balancing (off-setting) the remain-ing use in a meaningful way".

Coca-Cola and WWFConservation PartnershipAt the WWF Annual Conferencein Beijing last year, Coca-Colapledged to increase water efficien-cy in its global beverage

Source: United Nations EnvironmentProgramme (UNEP)

28 sept-oct 08 tbl

operations and become 'waterneutral'. That means that the com-pany will work to replace all thewater it uses in production of itsbeverages - every drop of water ituses to produce beverages wouldbe returned to the earth or com-pensated for through conserva-tion and recycling programmes.

Earlier, in June 2007, Coca-Colahad already announced its collab-oration with WWF to help con-serve and protect freshwaterresources. It committed $20 mil-lion over five years to WWF tohelp conserve seven of theworld's major freshwater riverbasins that span more than twen-ty countries in North America,Europe, Africa and Asia. Theirchallenges vary greatly, fromdams that have outgrown theirusefulness to agricultural run-offissues to loss of habitat due todevelopment and land reclama-tion. According to WWF, thesewaters were chosen "because oftheir biological distinctiveness,opportunity for meaningful con-servation gains, and potential toadvance issues of resource protec-tion."

So how will Coca-Cola execute itscommitment to Water Neutrality?

"For us that means reducing theamount of water used to produceour beverages, recycling waterused for manufacturing processesso it can be returned safely to theenvironment, and replenishingwater in communities and naturethrough locally relevant projects,"said Isdell at the WWF AnnualConference.

Coca-Cola's Water NeutralityInitiative: The Three RsCoca-Cola's water neutrality pro-gramme has 3 core components:Reduce, Recycle, and Replenish.These were explained by Isdell atthe WWF Annual Conference:

To Reduce, Coca-Cola will set"specific water efficiency targetsfor global operations by 2008 tobe the most efficient user of wateramong peer companies". This is akey element of the Coca-Cola -WWF partnership.

To Recycle, the company willreturn "all the water that it usesfor manufacturing processes tothe environment at a level thatsupports aquatic life and agricul-ture", by 2010. Coca-Cola's watertreatment standards are morestringent than many local stan-dards and nearly 85 percent of itsmanufacturing facilities haveimplemented these standards. Aspart of its water neutrality pro-gramme, the Company haspledged to align 100 percent of itsmanufacturing facilities withthese stringent water treatmentstandards by 2010.

To Replenish, Coca-Cola will"expand support of healthy water-sheds and sustainable communi-ties to balance the water used inits finished beverages". This willinclude a wide range of initia-tives, such as watershed protec-tion, community water access,rainwater harvesting, reforesta-tion and agricultural water useefficiency.

The company will focus, alongwith its partners such as WWF,UNDP and USAID, to identify thelocations and projects where theneed is the greatest, and where itcan have a positive impact oncommunities and ecosystems. Itwill also focus on reducing wateruse in its supply chain, beginningwith sugar, where it will expandits existing collaboration on the'Better Sugar' Initiative.

Coca-Cola continues to work with- and learn from - its bottlingpartners in developing and imple-menting responsible water man-

agement and community engage-ment in water stressed regions.

CCC=CSR, Using Companies'Core CompetencesUnderstanding that water stew-ardship is essential for its busi-ness and safe water is vital to thesustainability of the communitiesit serves, forms the guiding prin-ciple for Coca-Cola to launch acomprehensive strategy to workwith partners worldwide onwater conservation initiatives. As we know, CSR is today recog-nized as being much more thancorporate philanthropy, whichgave birth to it. True CSR meansthat a company's responsibility tosociety first of all starts withensuring that it produces highquality products, and it does thiswith the least environmentalimpact and with the most benefitsfor its stakeholders and the com-munity. Jeff Seabright, Coca-Cola's vice president of environ-ment and water resources,emphasizes that, "Increasingly thereal relevance is using the compa-ny's core competence to addressissues that are of societal con-cern".

Walking the TalkCoca-Cola's water-conservationefforts are to be seen as goingbeyond altruism: they relatedirectly to the company's ownsustainability. Literally, as it istrying to ensure the continuingavailability of a crucial ingredient.Businesses that do not addresslooming shortages of non-substi-tutable inputs run the risk ofplant closures and sullied reputa-tions, says Marc Levinson, leadauthor of the JP Morgan Report.Coca-Cola's vision is to 'establisha truly water-sustainable businesson a global scale'. Water steward-ship is a growing global issuewhose impacts are felt at the locallevel. The Company realises that astrategy to combat water scarcity,

tbl sept-oct 08 29

conserve water and ensure a sustainable supply of clean water, must be driven by a global vision andimplemented in collaboration with local community stakeholders and other global partners like the WWF.

"WWF and Coca-Cola are two powerful brands with a history of building credible connections on the initiatives we support. By working together, they intend to harness this power to address the freshwaterchallenges we face in this century in a more impactful way than either of us could do alone", said NevilleIsdell at the WWF Annual Conference. The definition of synergy, realized.

About the Writer

Rutaba Ahmed is Managing Editorof TBL. She holds a Bachelors inBusiness Management from

University of Georgia, USA and a Masters inCommunications Studies from University ofLeeds, UK.

ReferencesKirby, Alex. Water Scarcity: A loomingcrises. <http://news.bbc.co.uk/2/hi/sci-ence/nature/ 3747724.stm>

IPCC Technical Paper IV on ClimateChange and Water.<http://www.ipcc.ch/pdf/technical-papers/ccw/chapter1.pdf>

Physical water scarcity: Morethan 75 percent of river flowsare allocated to agriculture,industries or domestic purposes(accounting for recycling ofreturn flows). This definition ofscarcity - relating water availabil-ity to water demand - impliesthat dry areas are not necessari-ly water-scarce, e.g., Mauritania.

Approaching physical water scarcity: More than 60 percent of river flows areallocated. These basins will experience physical water scarcity in the nearfuture.Economic water scarcity: Water resources are abundant relative to water use,with less than 25 percent of water from rivers withdrawn for human purposes,but malnutrition exists. These areas could benefit by development of additionalblue and green water, but human and financial capacity are limiting.

Little or no water scarcity: Abundant water resources relative to use. Less than25 percent of water from rivers is withdrawn for human purposes.Source: International Water Management Institute (IWMI)

Coca-Cola's Water Conservation Initiatives in ChinaCoca-Cola is also working with partners on conservation projects in water-stressed areas throughout the world. Climate change is likely to impact freshwater availability, particularly in South, East and Southeast Asia, specifically inlarge river basins such as Changjiang in China. According to the IPCC Report,'Climate Change and Water', there is ample evidence (observational recordsand climate projections) that freshwater resources are vulnerable and have thepotential to be strongly impacted by climate change, with wide-ranging consequences for human societies and ecosystems. Coca-Cola continues to partner with major multinational companies in fundingsocial and environmental projects across China. The country is home to roughly20 percent of the world's population, but has only about 7 percent of the world'swater. Water scarcity could constrain China's future development if not effectively managed, environmentalists say. That kind of pressure is one of thereasons why Coke has partnered with local NGOs to promote environmentaleducation, rainwater harvesting and river conservation in China, and why thecompany's Chinese bottling plants are on the cutting-edge of the company'sconservation and recycling efforts. Between 2004 and 2007, Coke's 37 bottlingplants in China reduced water usage by a substantial 27 percent.

Coca-Cola has its biggest bottling plant in Shanghai, China. At this plant, plasticbottles and aluminium cans zoom by on conveyer belts, weaving in and out ofmassive machines that shape, clean and fill them. Grimy wastewater generatedfrom the cleaning of water filters and the heating and cooling of drinks, is shunted to a separate building behind the factory where it is treated so it can beutilised for street-cleaning, car-washing and other secondary uses. Leakingpipes have been fixed to save water, and a dry lubricant is used to keep conveyer belts running smoothly with less water.

30 sept-oct 08 tbl

Plachimada Plant Case: TheBusiness Challenge forSustainability

The Plachimada Plant Case is an exam-ple of how Coca-Cola overcame andhandled a business challenge success-fully. In 2002, residents of Plachimada,a village in India's southern state ofKerala, accused the company's bottlingplant there of depleting and pollutinggroundwater. Two years later, the localgovernment forced Coke to shut downthe plant. In 2006, when a New Delhiresearch group found high levels of pesticides in Coca-Cola and PepsiCo'slocally produced soft drinks, severalIndian states banned their sale.

The incidents were particularly worri-some because they hurt Coca-Cola'sbrand in a market that is key to futuregrowth. Coca-Cola denied pollutingwater and sucking wells dry in India andpresented evidence to support this, butJeff Seabright admits it mishandled thecontroversy on the PR front.

"If people perceive that we're usingwater at their expense, that's not a sustainable operation," Seabright said,highlighting the importance of perception-management. "We sell abrand. For us, having goodwill in thecommunity is an important thing."

In December 2007, Coca-Cola spent$10 million to establish the Coca-ColaIndia Foundation, which has installed, todate, 320 rainwater harvesting structures, to collect and recharge thegroundwater tables. Rainwater harvesting facilities are constructed tomaximize yield and are designed tochannel runoff into holding reservoirsthat recharge ground water throughoutthe dry season, hence turning India'srain-rich monsoon season into a year-round water asset.

Coca-Cola continues to work with thelocal government and the community tohelp combat water scarcity, ensure asustainable supply of and access toclean water and expand the use of rainwater harvesting technology in India.

The above example demonstrates howa company realized that its sustainabilityis built on the growth of its business andequally important, its' triple bottom-lineinitiatives.

Little or no water scarcity Not estimated Approaching physicalwater scarcity

Physical water scarcity Economic water scarcity

tbl sept-oct 08 31

Across2. Power derived from the force or energy of moving water4. The effort to increase the well-being of humankind5. To treat or process so as to make suitable for reuse7. A person or group that has an investment, share etc10. A situation favourable for attainment of a goal12. Combination or interaction of social and economic factors16. The only CSR magazine in Pakistan17. The difference between ethical and non ethical returns18. Without this function, your CSR may go wild

Down1. Exercising authority3. To enable or permit6. To keep up or keep going, as an action or process7. ...Of change8. Social and cultural forces that shape the life of a person9. Too many of these, but it is all for their sake11. Make more of this, to do more13. What we must do to keep everyone on board14. Save it, to save yourself15. Bottomlines corporate citizens usually have

crossword

CR

OS

SW

OR

D

csr in africa

csr and sustainabledevelopment inafrica: water of lifeby camila flattfor tbl

Why Africa?When africapractice was set up, people asked why acommunications company would want to involvethemselves with corporate citizenship or CSR inAfrica. What people didn't realise was that communication is vital in promoting responsibledevelopment and investment into Africa. africapractice, headquartered in London, providesstrategic communications, corporate citizenship andenvironmental consulting services and works withclients to enhance their performance and communi-cate their commitment to African development.

We believe that an ethical and responsibly actingprivate sector can do incredible things to alleviatepoverty in Africa, particularly in Sub-SaharanAfrica. It generates wealth, increases productivity,and accounts for its environmental and socialimpacts. Our view is that businesses should aim toact ethically and responsibly in order to be a sustainable business in Africa. The upshot is that bybeing a good corporate citizen, you can play yourpart in alleviating poverty and delivering sustainable development.

Another distinguishing feature of African economies

that determines how CSR is played out is the lack ofpublicly-listed companies. There are only 19 stockexchanges on the 56-country continent and apartfrom the Johannesburg, Egyptian and NigerianStock Exchange, African stock markets are relativelysmall and unsophisticated. Most businesses therefore do not feel the pressure from sociallyresponsible investors or international civil societygroups to apply global CSR standards.

Governance and CommunicationsAfrican businesses in general, especially privatecompanies, do not face the same level of pressureand scrutiny as those in the West. Outside SouthAfrica and some North African countries, government regulation on environmental and socialimpacts are weakly enforced and civil societygroups have a relatively quiet voice when it comesto corporate injustice.

Though African businesses see themselves as thecommunity and therefore any action they do associally responsible, this does not mean they shouldnot be held accountable for their actions. BarringNGOs, multinational corporations are leading thismovement by localising their global CSR strategies

According to the traditional African philosophy of Ubuntu, we discover and affirm our own humanitythrough our interactions with others. This concept of 'a person is a person through other persons'provides an insight into how Corporate Social Responsibility (CSR) is applied in Africa and how

businesses can stimulate sustainable development.

African companies see themselves as integral to their society, not a separate entity bordered by rigidwalls. They consider their business to be responsible in and of itself, because it provides employment,salaries and products to its community. Even the process of paying taxes is an important feature ofresponsible companies in Africa because the informal sector is so omnipotent in many African countries,often carving out 50 percent of the economy.

32 sept-oct 08 tbl

tbl sept-oct 08 33

and policies to their African operations and instilling values ofrespect and responsibility. Theydo this by using three communi-cation tools to engage andenthuse their employees, fromdirectors to employees.

The first is to raise awarenesswithin the company aboutissues as wide-ranging ascodes of conduct, environ-mental impact, accountability,and consumer satisfaction.

The second is to align corpo-rate values with a company'snon-financial activities. Forexample, Cadbury's value of'working together to createbrands people love' is anumbrella for its CSR activitieslike ethical sourcing and procurement.

The third is recognition andcelebration. Two-way communication and feedbackis vital to instil respect andlearn about what works for aparticular group of people orsituation.

Leading multinationals also setthemselves targets and monitortheir progress towards these targets. We are familiar with thetypes of targets companies haveset themselves such as reducingwater use or carbon emissions bya certain percentage or donating acertain amount to communityinvestment projects. In Africa,due to the current state of affairs,these initiatives can have a profound impact in helping toalleviate poverty.

Water of LifeSince 2006, Diageo, a leading premium drinks company, has setitself a target to reach one millionpeople in Africa with clean drinking water each year until2015. It began measuring theimpact of this initiative in 2007,commissioning an external evaluation of their projects to findout exactly how many people are

being reached and understandingthe impact clean drinking waterhas on these beneficiaries.

At the end of 2007, Diageo wasreaching just over 840,000 peoplewith clean drinking water and thecompany was beginning to seeother benefits accruing to the beneficiaries, such as increasedschool attendance due toimproved health, increased cropproduction for their subsistencefarms, and less incidences ofabuse and attacks at night whilewomen went to fetch water.

What was also important toDiageo was communicating theseresults, both internally and externally. Diageo created a socialnetwork called the 'Water of LifeSocial Network'. Members consistof Diageo employees and Diageopartners who help implement theprogramme. The network allowsemployees to discuss with eachother and understand what challenges they each face andwhat best practices are out there.It is particularly useful for theGlobal Diageo team to communi-cate with their operating businessin Africa, such as GuinnessNigeria or East African Breweriesto stay abreast with updates.

To empower their operating businesses, Diageo also created anadvocacy toolkit to communicatethe results and impact of the 1Million Challenge to key stake-

holders. It allows consistency ofmessages and helps their Africanbusinesses to lobby national governments to prioritise waterand sanitation issues up thenational agenda. A Water of LifeHandbook is also in the making.This handbook is an A to Z guidefor Diageo's operating businessesto implement Water of Life projects. It covers everything fromselecting the appropriate projects,the do's and don'ts of engagingwith partners and what sustainability means.

Sustainable DevelopmentBecause Diageo started to measure and monitor the impactof its CSR project, it is now able tosee how this initiative - whichstarted as a philanthropic contri-bution - is now contributing to thesustainable development of itscommunities. Diageo's emphasison communicating their resultswas central to them wanting tomake a real and meaningfulimpact to their communities.

It is the combination of companiespromoting responsible and ethicalstandards to their operations andviewing themselves as part of thecommunities in which they operate - the Ubuntu philosophy,which challenges traditional concepts of CSR into one that fos-ters sustainable development onthe continent. We believe thatcommunication, through stakeholder engagement andadvocacy is the lynchpin to transforming philanthropic corporate donations into sustain-able poverty reducing activities.

About the Writer

Camilla Flatt is a CSR consultant working forafricapractice, a strategic communications andcorporate citizenship consultancy working to promote responsible investment and development in Africa. Her work currently focuses on water supply and sanitation as wellas carbon, trends and development in AfricanCSR legislations, and stakeholder engagement.She read Geography at the University CollegeLondon and attained her Masters in Environmentand Development at the London School ofEconomics. She can be reached at cflatt@africapractice.com.

United Nations MillenniumDevelopment Goals

1. Eradicate extreme poverty andhunger

2. Achieve universal primary education

3. Promote gender equality andempower women

4. Reduce child mortality5. Improve maternal health6. Combat HIV/AIDS, Malaria, and

other diseases7. Ensure environmental sustainability8. Develop a global partnership for

development

34 sept-oct 08 tbl

breather

tbl sept-oct 08 35

36 sept-oct 08 tbl

csr: a reputational opportunity

a reputation at risk

corporate socialresponsibility:

why it matters, what it means and where it is going

by arif zamanfor tbl

As the economic world turns upside down, theissue of trust - in business, governments,media and pressure groups in particular -

has returned as perhaps one of the most urgent chal-lenges of our time and one that has no borders. Thiscan also be seen in the broader context of confidence- by customers, employees, shareholders, and alsocommunities - in business policy and its translationinto practice. Corporate Social Responsibility (CSR)has provided opportunities for companies to aligntheir activities with broader societal expectations.However, there is still a view that this is window-dressing and does not go to the heart of the busi-ness.

There are many different definitions of 'corporatecitizenship' and 'corporate social responsibility'. TheCommonwealth Business Council (CBC) uses theterm corporate citizenship with a definition devel-oped from the work of the World Business Councilon Sustainable Development: "Corporate citizenshipis the commitment of business to contribute to sus-tainable economic development, working withemployees, their families, the local community andsociety at large to improve the quality of life of allstakeholders". For the Federation of PakistaniChambers of Commerce and Industry (FPCCI), CSRis "the strategic and practical link between inclusivedevelopment and economic growth realised by business behaviour that generates a trustworthy rep-utation with the commitment of key stakeholders. Itseffectiveness is directly dependent upon an organi-sation's implementation of its values, corporategovernance, business relationships and impacts".

According to the FPCCI, CSR should be viewed as

an umbrella term for a variety of activities, whichshare the following features:

Companies have a responsibility for their impacton society and the natural environment, sometimes beyond legal compliance and liabilityof individuals.Companies have a responsibility for the behaviour of others with whom they do busi-ness (for example, suppliers).Business needs to manage its relationship withwider society, whether for reasons of commercial viability or to add value to society.

There are seven reasons why CSR matters:

1. Moral and ethical reasons - to 'do the rightthing'.

2. Sustainability of the markets companies relyupon for income.

3. Brand image and reputation.

4. Employee/stakeholder motivation.

5. To enable the company to respond proactivelyto changing stakeholder agendas and be able tocooperate effectively under a range of businessconditions.

6. To account positively on its performance tostakeholders in a way that will enhance thecompany's reputation.

7. To provide managers with a framework formanaging the business in a more holistic manner.

tbl sept-oct 08 37

Stakeholders and Society

There is currently an almost bewildering array ofinternational CSR initiatives. However, stakeholderssuch as governments, businesses, and civil societygroups have identified a range of significant weaknesses in current approaches to promotingCSR. These need to be remembered as an increasing number of companies in Pakistan pursue a 'beyondphilanthropy' model of CSR:

An over-proliferation of CSR initiatives at theinternational level and lack of clarity about howthese initiatives relate to each other;An excessive focus on getting businesses tomake commitments to CSR and not enoughfocus on enabling them to implement them;An absence of credible monitoring and verification processes;A lack of effective mechanisms of redress forcommunities affected by companies that floutnational or international norms on sustainabledevelopment or human rights;A lack of engagement with developing countrygovernments and their sustainable developmentpriorities (for example, economic developmentand poverty reduction);A failure to bridge the governance gap createdby weak public sector governance of the privatesector in many developing countries;Limited impact on sustainable developmentgoals; andA lack of government involvement and/orinvestment in international CSR initiatives,which is contributing significantly to theirunderperformance.

Despite the volumes of paper and the number ofevents, the CSR (and corporate governance debate)in Europe and the USA, while contributing to

heightened awareness of the issues, has significantdrawbacks which are seldom acknowledged.

Eight Problems with CSR Today1. Reputational risks of CSR advocates: variable

standards and a lack of transparency by a grow-ing number of (western) NGOs which undertakeadvocacy, consultancy and third-party auditing,all too often in tandem, continues to constrainconfidence in the processes involved.

2. A lack of understanding of how corporate gov-ernance links to CSR: There is an imbalance inthe CSR debate which fails to distinguish whereCSR relates - and does not relate - to corporategovernance. In this area recent developments bythe CBC and also the OECD are of note. At thesame time, the significance of developments inAsia, especially Japan, which links the two areasis being increasingly recognised. Moreover, indeveloping countries it is important to highlightnot just why but how responsible behaviour andgood governance can contribute to a morefavourable investment climate.

3. A lack of understanding of what CSR means -and how it is perceived - outside a European/North American / Christian context: This hasseveral dimensions. As Canon in Japan hasnoted, "the Anglo-Saxon debate on corporateresponsibility seems to be centred only on theirhistorical and social criteria, which naturallydeal with Catholicism, Protestantism andWestern European Individualism". In addition,there is a risk that a strong and sustained focuson China and India does not crowd out visibilityfor innovative practice - and an appetite to learn- in other countries in South Asia.

4. A weak understanding of the dynamics of international trade and how diversified exportsfrom developing countries for supply chains ofglobal companies can contribute to SME development and poverty alleviation: The private sector is the main driving force of industrial development in virtually all countriesand - through changing patterns of internationalproduction, investment and trade - shapes theeconomic globalisation process. A vibrant pri-vate sector building on the combined strength,linkages and relationships between large, medi-um, small and micro enterprises, is an essentialprerequisite for triggering economic dynamism,enhancing productivity, transferring and diffus-ing new industrial technologies, maintainingcompetitiveness, contributing to entrepreneur-ship development and ultimately poverty reduction, and reduced social and business risk.

5. A lack of sectoral specific context: A profusion

38 sept-oct 08 tbl

of questionnaires from a growing number of(western) rating agencies with a 'one size fits all'approach for diverse sectors is resulting in ques-tionnaire fatigue on the part of companies.

6. A lack of explicit focus on productivity:Traditionally, the productivity debate hasfocused on its input-oriented economic and tech-nological aspects. This view is being increasinglychallenged. The increasing focus on sustainabledevelopment, corporate governance, socialresponsibilities and ethics, and social auditingand standards represents a significant shift inthe growth paradigm which acknowledges thatsocial conditions also affect the rates of produc-tivity growth. The approach of the AsianProductivity Organisation (APO), of whichPakistan and India are founder members, hashelped to highlight the link between CSR andproductivity in an Asian context.

7. An insufficient focus on capacity-building, train-ing, and development, especially in developingcountries: A unique gathering of global compa-nies, major investors and international policy-makers at the UN in Tokyo in November 2003agreed that there has been too little focus in CSRand governance in these areas. Managementeducation can play a critical role - by buildingthe human capacity and management capability.Events on CSR and corporate governance,whether in Europe or Asia where experts para-chute in with set piece presentations and negli-gible understanding of context, are no substitutefor activities which build the confidence andtrust as well as develop the capabilities and harness the creativity of those directly involved,especially decision-makers among policymakers,companies, and investors from developing countries. In this, a trusted regional inter-goernmental intermediary such as the APOwhich now spans a range of 20 Asian countriesis key and much-needed. The SAARC Chambercan also play a role in sharing knowledge andbuilding capability at a regional level.

8. An industry which has issues with training,quality, transparency, and measurement:Although now changing, many people whowork in CSR - as suppliers and consultants -often lack a sufficiently broad or deep privatesector background and are too often from NGOsor academia.

However, it is clear that the CSR agenda also hassome important strengths:

The high levels of commitment shown by somekey leadership companies;The capacity for innovation and openness to

change shown by a range of international CSRinitiatives;The openness of leadership companies and CSRinitiatives to working in partnership with a widerange of stakeholders; andThe growing recognition that a CSR agendamust address public sector governance issuesand scale up the impact of CSR activities toimprove the delivery of sustainable development at a systemic level.

The elephant in the room is getting biggerThere is one area where CSR - certainly as perceivedin the West - has too long been ignored but wherealienation, articulation and anger make this nolonger possible: minority rights and status. AsAmartya Sen, a Nobel laureate and chair of theCommonwealth Commission on Respect andUnderstanding (2007) said, "civil paths to peace alsodemand the removal of gross economic inequalities,social humiliations and political disenfranchisement,which can contribute to generating confrontationand hostility".

The business case for connecting CSR to the statusand empowerment of minorities is clear - it is basedon moral fairness, the need for social stability andcohesion but also recognises that as economic powershifts, India and the UK will need to connect more,not less, to centres in the Gulf and beyond. As theCBC Guidelines on Business Principles (2007) madeclear, "a wide perspective is now seen as essentialfor directors of high performing boards in whichdiversity is not just desirable in itself but also forensuring an organisation is better equipped to leverage opportunities from changing trading relationships in emerging markets". By showingleadership in this area, international and local companies can change a reputational risk into a reputational opportunity.

References

A. Zaman, 'Made in Japan - Converging Trends in CorporateResponsibility and Corporate Governance,' Royal Institute ofInternational Affairs, London, 2003. See:www.chathamhouse.org.uk/publications/papers/download/-/id/137/file/3110_madeinjapan.pdfSustainAbility Gearing Up (report for UN Global Compact Meeting24/06/04)

UN report available at: www.henleymc.ac.uk/henleyres03.nsf/files/CORR_ReportUNIDO_041103.pdf/$FILE/CORR_ReportUNIDO_041103.pdf. Meeting supported by UK Embassy in Japan, UN,Cable & Wireless, Japan Business Council in Europe and Reuters.

About the WriterArif Zaman is Adviser, Commonwealth BusinessCouncil (CBC), and also serves as Principal of theReputation Institute and Visiting Faculty, HenleyBusiness School. He is also a member of the CSRStanding Committee at the Federation of PakistanChamber of Commerce and Industry.

tbl sept-oct 08 39

megacitiesegaproblemsegasolutions

by faye malletfor tbl

The world's fastest growing cities are found in either Asia or Africa.Out of the 20 fastest growing cities in the world, ten, are in China.

Take emerging megacity, Shenzhen: A small town until 1980, Shenzhenexperienced an unparalleled population and economic boom after beingdesignated a free trade zone. Today, Shenzhen has more than 7 millioninhabitants, due largely to its prime location on the Pearl River delta - theage-old trend of civilizations to gravitate towards water sources. This is23 times its population only thirty years ago, according to the UN.

urbanization and cities

40 sept-oct 08 tbl

Massive urbanization has arrived in China. If current trends prove correct, the country's urbanpopulation will reach 1 billion by 2030.

New research released by the McKinsey GlobalInstitute (MGI) estimates 320 million more peoplewill be added to China's cities by 2025. This is morethan the entire population of theUnited States today, just over 305million.

Currently, China has a hundredcities with a population of over onemillion. In 20 years, it will add morethan a hundred more cities of thissize, and at least six more mega-cities containing populations over10 million people.

While this exponential growth willhave a positive impact on the coun-try's GDP (MGI estimates increasesup to 20 percent), it also carries seri-ous challenges and consequences.

To meet what is considered an"unprecedented transformation" inhistory, governments at bothnational and local levels mustproactively implement policies now.

Decisions that China makes todaywill determine whether its citiesstruggle to cope with growth (e.g.like Mexico City, Mumbai or SaoPaulo) or emerge as "world-class"megacities, with new markets andopportunities for business.

"To understand the dynamics of the megacities isalso to understand their dilemmas," writes Dr.George Bugliarello, University Professor andChancellor , Polytechnic University, Brooklyn, NewYork.

Megacities are where both problems and opportu-nities are visible on a larger scale. What happens inmegacities have a greater impact on the rest of theworld. The UN's 'State of the World Population2007' notes that: "No country in the industrial agehas ever achieved significant economic growth with-out urbanization."

"Urbanization is unavoidable," states Chief of theUN Populations Fund's Resource MobilizationBranch, Jean-Noel Wetterwald. "The concentration ofpeople concentrate the problems, but also concen-trate the solutions."

Urban MigrantsA report released by Deutsche Bank Research inMarch of this year, 'Megacities: Boundless Growth?'cites the growth of cities as fastest in those countrieswith a "big gap between rural and urban incomes."The larger the difference between urban incomesand rural incomes, the faster cities expand.

With 230 million migrants expected to move fromthe countryside into China's "new" cities, MGI forecasts that migration will account for about 70percent of urban population growth over the nexttwo decades. Most people migrate to cities expectinghigher wages and an improvement in their standardof living.

In many instances, they also don't have much of achoice. One of the reasons why more megacities areforming at this particular time is history is becauseof the loss of arable land. In China alone some 3,000to 6,0000 square kilometers of farmland are estima-ted to be lost each year, cites Deutsche BankResearch.

The reasons? Industrialization, unsustainable farming methods, and climate change.

The Deutsche Bank research cites other reasons why,soon, most of the world will live in cities. Amongthese include:

Megacities of

Rank Urban Area Population c. 2005

1. Tokyo, Japan 35.2 million

2. Mumbai, India 18.2 million

3. Mexico City, Mexico 19.4 million

4. Sao Paulo, Brazil 18.3 million

5. New York, United States 18.7 million

6. Delhi, India 15.0 million

7. Shanghai, China 14.5 million

8. Calcutta, India 14.3 million

9. Jakarta, Indonesia 13.2 million

10. Dhaka, Bangladesh 12.4 million

tbl sept-oct 08 41

Population Growth: Megacities are largely the result of longer life spansdue to advances in hygiene and medicine.

Technological Revolution: "Globalization and digitization" drive the economicdevelopment of megacities because of the way theycluster markets and skilled workers together.

Opportunities for Investment: More investment opportunities are to be found incities than in rural areas.

Mega-problemsDr. Bugliarello, Editor-in-Chief of The Bridge, thequarterly publication of the National Academy ofEngineering, states that "Megacities are currentlyexperiencing rapid growth with which they cannotcope."

This creates a host of problems, including: population growth; poverty increase; infrastructureproblems in transportation and communications;land and housing pressures (that is, on average,China "concentrates" 5.7 persons to a room, as compared to 0.5 in the US); environmental concerns;economic dependence; and capital scarcity.

Staggering UrbanizationChongqing is a good illustration: Built along theYangtze River, this former port town has grown to

become one of China's major economic hubs, andout of all the megacities in China, is purported to bethe "fastest-growing urban center on the planet."

If the day he spent in Chongqing is "typical," saysThe Guardian writer Jonathan Watts, then "builderswill lay 137,000 square meters of new floor space forresidential blocks, shopping centres and factories.

The economy will grow by 99 million yuan. There will be 568deaths, 813 births and the arrival of1,370 people from the countryside."

Watts points out the incongruitiesin this emerging metropolis. Fromthe "bangbang army" -a 100,000-strong crew of porters who carryheavy bundles of goods betweenChongqing's markets and earnapproximately 20 Yuan a day (USD$2.9) - to the new, richer urbaniteswho have moved "off the land andinto the sky."

ImplicationsUrbanites tend to produce less andconsume more, making demandfor energy and water one of thebiggest dilemmas of our times.

MGI forecasts the demand forenergy in China's urban areas islikely to more than double; anddemand for water will increase by70 to 100 percent.

the Future

Projected Population 2015

35.5 million

21.9 million

21.6 million

20.5 million

19.9 million

18.6 million

17.2 million

17.0 million

16.8 million

15.2 million

This article is under © Copyright 2003-08 of GaltWestern Personnel and has been tailored for TBLwith permission from the Galt Global Review,www.galtglobalreview.com.

SourceForbes.com

42 sept-oct 08 tbl

ethical consumerism

tackling the social impacts of consumerism

today and not tomorrow

In the context of an increasingly globalisedworld, Pakistani corporations face the chal-lenge of protecting the rights of both their con-

sumers and their workers. The nature of con-sumerism implies a lack of consciousness onthe consumer's part in relation to the ethicalnature of the products they buy. It is therefore upto the Pakistani business community to awakenthe social conscience of consumers in order toprotect the rights of people at both ends of thevalue chain.

Consumerism and its SocialImpactConsumerism can be described asthe idea that people consume as ameans of satisfying their wantsand happiness. They consume theproducts that they believe reflectand reinforce their personal identity. It is consumption thattranscends consuming 'what youneed' in favour of consuming'what you want'

This consumer culture is evidentin most areas of the world.However, the social consequencesof such an unconscious consumerculture are being magnified withthe increasing geographical reachof supply chains spanning acrossdifferent countries.

At the heart of this problem is thealienation of the consumer fromthe producer in favour of a relationship between the consumer and a commodity. Allnotions of a moral relationshipbetween the consumer and theproducer are forgotten in favourof the price and desirability of acertain product. Not on theintegrity of value chain investedin delivering that product.

The impact of this is that often

people'sunconsciousconsumerchoices areencouragingthe manipulation of a worker'srights on the other side of theworld.

An apt example from Pakistan: Inthe late 1990's a number of storiesexposed the use of child labour inthe Sialkot football productionindustry. For consumers of foot-balls in the U.S., this came as acomplete surprise - not necessarily because the con-sumers didn't know about childlabour but more because theynever considered how or wheretheir product was made in thefirst place. Such an attitude isunsustainable for the company,the consumer and the producer.

Awakening the Awareness ofConsumersThe fact that such a report on thefootball industry in Pakistan cameto light is evidence that some consumers are awakening to therealities of consumer culture.

People are becoming more awareof the global challenges the worldis facing in relation to issues such

as human rights and the environment. As a result, they aregradually assessing society's consumption habits in relation tothese challenges.

This is especially the case in muchof Europe and North America. Arecent study by GFK NOP lookedat consumers attitudes to ethicalbusiness within Europe.

According to the study, con-sumers are most interested inthree things when judging howethical a company is:

1) Do they ensure fair treatmentof employees?

2) Do they promote care for theenvironment?

3) Do they ensure good workingconditions and fair prices forlocal producers / suppliers?

In addition, the study foundtrends suggesting people are taking these factors more intoaccount. For example, nearly onethird (31 percent) of consumersclaim they are willing to pay a

tbl sept-oct 08 43

5-10 percent premium for an ethical product over a conven-tional one. 60 percent said theywould be more open to buyingethical brands if they had betterinformation on what companiesare doing.

Although consumers' ability totake action through their con-sumption habits depends on factors such as social status andgeographical location, this is atrend that companies worldwideneed to take into account.

Taking Action Now Rather ThanLaterThe challenge this poses forPakistan is two-fold. Not only doPakistani corporations need toensure they are protecting therights of the consumer; they alsoneed to ensure they are protectingthe rights of the producer.Although the consequences of notdoing so are not imminent, thetrends of increasing consumerawareness in the face of consumerand worker rights violations cannot be ignored.

Employee Rights In the wake of the football scandal, top brands such as Nikecancelled their contracts with suppliers in Pakistan. Just asexploitation of workers can bringfinancial benefit (at the cost of theworkers) to parts of the supplychain, public accountability canbring the supply chain altogetherto a halt.

Suppliers in Pakistan face thechallenge of remaining compe-titive in a global market place atthe same time as ensuring humanrights standards are met.

A good benchmark being used bymany suppliers is theInternational Labour code set bythe United Nations through theInternational LabourOrganisation. Although the conventions it contains remaincontentious, it does offer a guide-line to standards on issues such asfreedom of association, health and

safety and child labour.

It was in fact abiding to thesestandards that allowed Pakistanisuppliers to attract Nike back toSialkot. Silver Star Group, Nike'ssuppliers, now requires all theirworkers to be registered as full-time employees. They are paidhourly wages and are eligible forsocial benefits. It was only whenthese standards were enforcedthat Nike agreed to start producing in Pakistan once more.

Adequate Reporting - EnforcingConsumer RightsEnforcing consumer rights isdependent on a relationshipbetween the consumer and retailer. Unbeknown to many,there is an organisation inPakistan that recognises theimportance of this relationship.

The 'Consumer RightsCommission of Pakistan', an inde-pendent non-governmental entityworking to promote consumerrights, outlines what it believes tobe 'consumer rights' and 'con-sumer responsibilities'.

Especially important when itcomes to consumer rights is 'con-sumer information' and 'con-sumer education'. Consumershave the right to know how theproducts they consume are produced so they are able tomake an informed consumptionchoice. Not providing this information calls into question thesocial integrity of a company.

Realisation of this is evident inmany multinational companieswho report on their supplychains. Cadbury, for instance,reports on their supply of cocoathrough initiatives such as theCadbury Cocoa Partnershipgeared at securing the economic,social and environmental sustainability of Cocoa farmers inGhana, India, Indonesia and theCaribbean.

The point is that these companiesare staying ahead of the game.

Although these reporting mecha-nisms may have little impact onconsumer choice for some industries at the moment, they areaware of the rising awareness ofconsumers and so are proactivelymeeting consumer rights asopposed to reacting to them later.

Marketing - Appealing to theSensesCorporations are beginning to seethe marketing opportunity pre-sented by ethical products and soare bringing the ethical angle intotheir marketing approaches.Marks & Spencer alone are investing £200 million in a five-year plan to become per-ceived as a truly ethical business.

The reason for this is that companies are realising that asglobal problems are increasinglyconnected to consumption habits,people strive to identify themselves as socially responsiblecitizens. Such an identity shapestheir consumption habits. Thismeans that ethical goods are notbeing consumed purely becausethey are ethical, but also becauseof the feel good factor they bringto the consumer. This feel goodfactor can be targeted in the mar-keting of various commodities.

Investing in the FutureSocial awareness and activism isnot currently at a place inPakistan where it will majorlyimpact consumer habits, just asworker mobilisation and rightsisn't at a place where it will pro-mote and enforce better labourstandards. However it is up tocompanies to secure the socialrights of their stakeholders and itis far better to get into the habit ofdoing this now rather than later.

About the Writer

Andrew is currently based in Karachi and workswith the JS Group's CSR Initiatives. He hascome here through the AIESEC leadershipdevelopment programme and has actively beeninvolved in connecting students with companiesin CSR based forums in the UK. He has alsowritten about his experiences of Pakistan for theBBC.

44 sept-oct 08 tbl

carrots only, no sticks

"…And it was there Ilearnt that to grow thebest carrots you shouldput the compost in thebottom of the hole…nowmy carrots go down toAustralia!"

Michael Hopkins, eminentsocio-economist, ex-International Labour

Organisation, Professor atMiddlesex University, nowManaging Director of his ownCorporate and Social ResearchCompany, spoke over a spicy din-ner about visiting Sri Lanka. Herehe not only discovered how tomake his carrots grow, but alsowhat difference a major corpora-tion could make in a poor villagethrough investing in a local farm-ing project. Hopkins spoke of onelocal villager who he named 'Mr.Magic' due to his amazing veg-etable-growing abilities and hiscommitment to the project.

Despite his world-traveled

expertise on vegetables, Hopkinswas in Manchester to share hisideas, on development and therole that corporations shouldhave, with the UMSUChallenging Orthodoxies Society.

Grey suited with red tie andmatching triangular hanky, hisdress was that of smart eccentrici-ty, mirroring his chosen role asacademic businessman. With thesame relish he employed whencrunching on his popadoms later,he peppered his rather dense talkwith slick, controversial headlinewinners.

“The UN's core budget is $1.25billion per year, how can they beeffective with this? That's equiva-

lent to 4 percent the New YorkCity Annual Budget - the cost oftheir fire department. I sat next toKofi Anann [ex UN Secretary-General] on a plane a few weeksago; I turned to him and said‘Kofi, what happened to eradicat-ing povert?’”

After half a century and $1 trillionin development aid, 2.65 billionpeople, or nearly half of mankind,live on less than $2 a day and thefigures have grown over the pastdecade as some of the pooresteconomies travel backwards.

Hopkins' general stance is thatgovernments and internationalorganizations grouped under theUN have failed to curb the

the carrot-trousered philanthropistby sarah wakefieldfor tbl

tbl sept-oct 08 45

increase of poverty and under-development. Now is the time forcorporations to step in and useCorporate Social Responsibility(CSR) to assist development andhelp the most disadvantaged inthe world get a leg up. Hopkinsfeels that development in a country is best measured by anincrease in life expectancy, as thisindicates higher quality of life interms of medical care and food,and controversially enough, hedoesn't think happiness is a factorin this (perhaps implying thatdeveloped nations don't rank allthat high in happiness anyway).

In one of his books, The PlanetaryBargain, Hopkins suggests, "CSRis concerned with treating thestakeholders of the firm ethicallyor in a responsible manner.'Ethically or responsible' meanstreating stakeholders in a mannerdeemed acceptable in civilizedsocieties…"

In non-economist speak, thismeans that massive businessesshould start looking after theirworkers, shareholders and theenvironment around them. Thismay involve training workers inmore efficient farming methods,offsetting carbon emissions, or inthe case of beverage manufactu-rers, not encouraging poor peoplewith no access to dental care tobuy a sugary, fizzy drink.

The reason they should start tolook at their CSR is becausethere's profit to be made in it; consumers like to feel they haveinvested 'ethically' by purchasingfrom a corporate citizen. We onlyneed to look at the growth of fair-trade and organic labelledproducts on our shelves toacknowledge that consumers arebecoming more aware of wherethe goods they buy come from.

In spite of this, Hopkins' worrynow is that corporations are getting away with investing in'green' initiatives rather than inpeople. He argued it is far easierto look at a picture of a melting

ice cap and resolve to help, thanlook at a picture of a personstretched past humanity due tohorrific circumstances (war,famine, genocide, sweatshops)and find the empathy to supportthem.

One may be forgiven for becoming skeptical about the wayHopkins believes the world canbe changed when told that hiscompany writes the CSR pro-grammes for many big players,including the UN. This is a gamefor the academic businessman:analyze what companies shouldbe doing and then get them topay you for implementing it.

However, when asked about whathis aims are, he employed analmost childish charm in the onlysoftly spoken sentence of thenight saying, "To leave the worlda better place than it was when Icame." It seems a strange thing intoday's world to find an economist with ethical views anddreams, beyond the giddy heights(or plummeting vales) of the stockmarket.

Hopkins was pushed into ques-tioning dialogue by members ofthe Challenging OrthodoxiesSociety. "Are massive corpora-tions really the answer when theyhave trampled their developingworld producers into the groundthrough sweatshops and aggres-sive marketing? Can we, at agrass roots level either as studentsor employees, make a differenceto these huge corporations' policies?"

The answer was "No," as it isapparently a top down decision,at least at the moment.

But surely the steps being madein international policy aregroundbreaking and hold muchpromise? Hopkins countered thatthere have always been ground-breaking developments and herewe still are, with Sub-SaharanAfrica the only continent in the

world still developing backwards.However, when he talks down

international schemes he's keen toimpress he has worked within thesystem. When in the UN depart-ment of the International LabourOrganization he became notori-ous for writing a paper in whichhe suggested they all take a 50percent pay cut and the profits gointo development. Here the ghostof socialism drifts into his outlookwhich has very much adapted toplay within the capitalist system.

His latest book puts forward apractical plan about how corpo-rations can best use their billionsto help the poor. Given that manycorporations hold turnoversgreater than that of individualcountries, it makes sense toinvolve them in investing in areasthat need it the most - in a yearFord Motor Company sales aregreater than Norway's GrossDomestic Product (GDP), andPhilip Morris's tobacco salesevery year are greater than theGDP of New Zealand.

Perhaps it is misguided to dismissthe international community andNon GovernmentalOrganisations, as so often theylead the way when it no longerbecomes profitable for a corpo-ration to stay in an area. Theyoften are the ones left to pick upthe debris of disloyal and ficklecapitalist ventures.

Hopkins' ideals seem to be free ofthe usual business desire for profit alone, but as he walkedaway from the glowing lights ofRusholme it remains to be seen ifthe dreams of an economist andhis carrots will take root, orbecome riddled with the rot everpresent in the capitalist world of,The Corporation.

About the Writer

Sarah Wakefield is Student Direct’s FeaturesEditor. Student Direct is the largest studentnewspaper in the UK, and its serves theUniversity of Manchester.

46 sept-oct 08 tbl

tbl ingress

A good company delivers excellent

products and services, and a great

company does all that and strives to make

the world a better place.

"

"- William Ford Jr., Chairman, Ford Motor Co.

TBL gives you the opportunity to share yourcompany's and/or yourindividual initiatives andachievements. We will behappy to publish yourCSR related initiatives,given that they fall withinthe general parametersand guidelines of the publication.

TBL encouragesindividuals, public andprivate corporations, sole proprietors and educational institutions tocommunicate their corporate citizenship, sustainability, and sociallyresponsible activities andinitiatives. Share yourthoughts, comments, questions.

"Never doubt that asmall group of thought-ful, committed citizenscan change the world.Indeed it is the onlything that ever has." - Margaret Mead, American

Cultural Anthropologist.

We all have our strengths.Assess them. Analyzethem. Criticize them.

We can all be mentors inour fields and encourageothers to take their stancefor building a sociallyresponsible society.

tbl content

sustenance of enterprise"In the world of today, managers and leaders of organizations, in boththe private sector and civil society, are being challenged as neverbefore to find ways to play a pro-active role in addressing the concernsof sustainable development". They are often overwhelmed by a showerof conflicting messages from the media, shareholders, customers,employees, and NGOs.

The Sustainable EnterpriseFieldbook is useful for managers as it “teaches them

how to strike a better balance, moving from an "either/or" mind-set to one that holisticallyembraces social, environmental andeconomic issues simultaneously”.

The Sustainable EnterpriseFieldbook, a realistic and practicalhardback, has been put together byan outstanding assortment ofexperts from business (Microsoft,Sony, Philips, and AIG), consultan-cies, and academia. It has been edited by Jeana Wirtenberg [PhD]with William G. Russell and DavidLipsky [PhD] in collaboration withThe Enterprise Sustainability ActionTeam. Its aim is to teach and guideleaders, managers, practitioners,students, and professors in everysector of society, and in everyindustry, to create a successful andsustainable enterprise.

Each chapter demonstrates -through models, tools, cases, stories,and examples from a wide range ofcompanies - how to integrate sustainability into the day-to-day realities of running a business.

Managers are coached, facilitated,and guided to enable them to createa better balance between the shortand long-term, to help them becomechange agents in their organizationsand to provide answers to the ques-tion 'How do I make a difference?'.

The Fieldbook begins with Part 1,titled 'Understanding Reality',which includes an inspiring intro-duction and overview. It is statedthat the book “captures the essence,energies, experiences and best prac-tices that emerged through the col-laborative efforts of our communityof co-authors”. The purpose of thebook, how to use it, current reality

[the true condition of our worldtoday], sustainability practices, etc.,and an overview of the book, part-wise, can be found in this section of the book.

In Section 2, titled 'Preparing theFoundation for a SustainableEnterprise', John D. Adamsdescribes Mental Models as "theconstructs we bring to any situationthat we are attempting to impact.They include what we know - whatwe value - what we believe - whatwe assume - out of which emerges acontext for action or inaction'". Acase study [Appreciative Inquirycase study: Executive MBA candi-dates] is cited by Theresa McNichol.

Appreciatibe Inquiry (AI) “focuseson assets, resulting in the uncover-ing of a wealth of latent talent andcreativity that was just waiting to betapped”. Using AI, individuals insystems start to work beyond merefunction and co-create an entity thatexcels.

Section 3 focuses on the topic of'Developing a SustainabilityStrategy'. In essence, this chapterdefines the unique qualities of sustainability strategies, lays out thebusiness case for corporate sustain-ability, provides examples of customized ways in which firms arepursuing a sustainability advantage,and describes a seven-step modelfor structuring the sustainabilitystrategy formulation process.

Part 3 of the book, titled 'Embracingand Managing ChangeSustainability', features sections onmanaging the change to a sustain-able enterprise, employee engage-ment for a sustainable enterprise,and sustainable enterprise metricsand measurement systems.

Part 4, titled 'Connecting,

Integrating, and Aligning Towardthe Future', features sections such asSustainable globalization andTransorganizational collaborationand sustainability networks.Sustainable globalization representsa breakthrough and a fundamentalchange in how people approachdoing business in a global world inthe 21st century.

Part 5 is the final part of the bookand it includes one section: 'A NewBeginning - When it All ComesTogether'. Written by JeanaWirtenberg, David Lipsky andWilliam G. Russell, they talk aboutarriving at a new beginning, which"contains the crucial possibilities ofcreating a sustainable future; success is our only option". Thewriters discuss the common threadsthat run through the entirety of thebook that hold some keys to accelerating the progress of sustain-ability. They also discuss sharing ofthe Sustainability Pyramid with thereaders, which was developed as apart of a study of the world's mostsustainable companies.

The Sustainable EnterpriseFieldbook offers an ingredient thathas been missing in the vast outpouring of information onorganizations and sustainability: aholistic integration of solutions,which will make the journey personal for each reader. It is comprehensive and focuses on thehuman side of sustainable enterprise. It is a must-read for anyone trying to make sustain-ability happen in the real world.

book in focus

tbl sept-oct 08 47

by fariha rashedfor tbl

whose water is it anyway?

Iheard this crazy idea for water harvesting, which on reflection did notseem that crazy after all. If one is able to

collect all the water flow from all the air-conditioners operating night and day in alarge city like Karachi, how many MGDwater can one generate? Yours truly was aninstant convert to the idea at an individuallevel. Now my bedroom air-conditioner'swater flow goes into a garden bucket, whichinvariably is at least half-full by the morning, and my wife uses the 'harvested'resource to water her potted plants soonafter dawn. (Yes, she's a committed earlyriser!)

There is a lot of talk around about rainwaterharvesting. Indeed there are already sufficient success stories around the world tonot only prove that it can be done, but moreimportantly to emphasize that it must bedone, wherever it rains.

Ultimately water conservation needs to be ahabit at the individual level. In the sameway locking your front door at night-time is.I wish one could say also: in the same wayas stopping at red traffic lights is. But that'shistory in the land of the five (mostly dry)rivers. It's also another story. Perhaps even aCSR opportunity for an OMC or a vehiclesmanufacturing company to run a publicservice message campaign on television, toinculcate a responsible, law-abiding drivinghabit in our worthy citizens.

Getting back to water and the individual.Ever considered spending just a little moneyto upgrade your domestic water outflows toconserve water? Okay, here is what it takes.A separate sink in the kitchen in whicheverything is washed that requires onlywater for washing and no soap or deter-gents. Like fruits, vegetables, meat, poultry,some crockery and cutlery and your handstoo. 'Dirty' water from this sink flows into a200 litres capacity fibreglass tank outside. Aflexible hose pipe leads from the tank toyour garden. Two hundred litres of water iseffectively re-used.

If you want to go the whole hog, have thewater from your bathroom sinks, showersand tubs go into a holding tank and fromthere into a basic sand filter. And then intoanother tank which holds the filtered waterfor various domestic uses. Spend a littlemore on multi-stage filtering and you willhave recycled water you can wash yourfloors with every day. I can almost feel someof you out there snorting in derision.Probably because you can afford not to gothrough all this. Enough water to waste,enough money to keep the tanker mafia happily in business. But hey, give someoneelse a break! The water you recycle saveswater elsewhere, which somebody more inneed can use. So make a start, becausePraetor says so.

by praetorfor tbl

48 sept-oct 08 tbl

musings