Business Environment

27 Jun


Imagine that you are in-charge of a major chemical plant, manufacturing points. At present, the general awareness about the mandatory requirements for chemical industry is very low. Even if the compliance record is maintained, it is not disclosed to all employees.

In a recent seminar of the company, many experts from industry associations like Confederation of Indian Industries (CII), conducted the seminar. The dangers of non-compliance of ISO 14001 EMS certification and Trade Sanctions, which are likely to increase, were discussed. Even the senior managers were involved and a lot of serious discussions took place.

After a span of one month, the In-charge (i.e. you!) received a call from the top management, who want you to find out more about the ISO Certification. The management, wants to help you, with the help of other employees to list the critical aspects that have potential environmental impact.

You may be feeling that you have only some vague ideas about air pollution in paint industry and water pollution, due to paint manufacture. You may also recall the newspaper clipping on internationalization of paint manufacturing practices, which states the following points:

i) What are the activities that are critical to the company’s environmental management certification?

ii) List the activities which have potential environmental impacts in a pint industry.

iii) List the legal requirements.

iv) Is there a trade related issue involved in this case

v) Explain, how your company can prepare itself towards certification.



XYZ company is an equal opportunity employer.  XYZ Co has always upheld the spirits of freedom, human welfare, fair practices and fair treatment to all employees. It has the image of a socially responsible company in India. XYZ Co., has never involved itself in any study deals, even if it could bring good profits.

Also, XYZ Co. is a major IT solution provider. XYZ has immense potential for providing consultancy services in the African nations and South East Asian countries. A request was received from an African country, stating that they have an assignment for two years. The following conditions are to be fulfilled.

a) Employees should not bring families with them during the assignment.

b) Women managers should not accompany the team.

c) The country and the collaborating company are not responsible if any accident or any other untoward incidents take place.

Please answer the following questions:

i) Should XYZ Co take up the assignment?

ii) How can XYZ Co maintain business viability and growth without compromising on basic rights and values enshrined? In the mission statement of the company?

iii) What alterations may be sought in the agreement and why?



On the night of December 23, 1983 a dangerous chemical reation occurred in the Union Carbide factory in Bhopal, when a large amount of water got into the MIC i.e. Methyl Isocyanate storage tank. When the leak was detected by workers at 11.30 pm, their eyes began to tear and burn. The rest is history. About 40 tons of MIC poured out of the tank for nearly 2 hours and escaped into air, spreading within 8 km down wind, About 4000 people were killed in sleep or as they fled in terror, hundreds of thousands were injured or effected the victims who were almost entirely the poorest members of the population. The poisonous gas, caused death and left the survivors with lingering disability and diseases.

The Bhopal disaster was a result of the combination of legal, technological, organizational and human errors. The long term effects were made worse by the absence of systems to care for and compensate the victims. Also, the safety standards and maintenance procedure at the Union Carbide plant had been deteriorating and ignored for months.



i) From Bhopal Tragedy, what an industrial manager learns? What safety procedures are to be followed. Study the case deeply and state what were the defects of MIL unit. In view of this case, prepare a disaster management plan, which could cover be useful to a chemical company.

Q 4)

i) List the methods of waste management in the order of preference.

ii) What are the advantages of solid waste incernaton?

iii) Define hazardous waste

iv) List the legal provisions in the Environment Protection Act pertaining to hazardous waste

Q 5)

i) Discuss the role of CPCB (Central Pollution Control Board) in the pollution control activities in India.

ii) Mention the salient points of the 3 Acts:

  • The Air (prevention and control of pollution) Act 1981
  • The Water (prevention and control of pollution) Act 1974
  • The Environment (Protection) Act 1986

iii) Explain the very elements of EIA (Environmental Impact Assessment) – different types of Impact Assessments – the benefits of EIA – The EIA process, key points to remember while conducting an effective EIA.

iv) Compare and contrast “polluter pays principle” with “beneficiary pays principle”.

v) What are the tenets of Risk management – explain the steps involved through a chart.

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