september-october 2008 issue 05

a specialized csr journal

10 cover story
pakistan’s water problems:
do we enough
care to act?

hearkens
13 the state
rainwater harvesting

1 6 hy
dropo we
water power r
in pakistan

rt
po corruption:
2 0 re ter and
wa ve partnership
cti
a destru

-retre ats & ec

o- m odels
2 6 eco
teri gram ecological retrea
t

tation al
3 6 csr: a repu opport
unity
social responsi
corporate bility:
a rep uta tion at risk
ORD
CROSSW

A Publication of Asiatic Public Relations Network (Pvt.) Ltd.

regulars
6 global briefs
people - planet - profits

20 report
water and corruption: a destructive partnership

24 social partnership
pani ghar - case study of a social enterprise

34 breather
CROSSWORD

strategic humour
Editor-in-Chief
47 book in focus Zohare Ali Shariff
the sustainable enterprise fieldbook
Editorial Director
48 musings Khadeeja Balkhi
whose water is it anyway? Managing Editor
Rutaba Ahmed

Research, Distribution & Development

features Raza Tahir
Mehfooz Aleem

9 letter Creatives
governance call Kamran Rauf
Umair Anwar
10 cover story Reprint
pakistan's water problems: do we care enough to act? In line with our mission,
we encourage reproduction of
13 the state hearkens material, provided tbl and content partners
are given credit
rainwater harvesting
Publisher
16 hydropower Asiatic Public Relations Network
(Private) Limited
water power in pakistan
Printed at
26 eco-retreats & eco-models Nikmat Printers, Karachi
teri gram ecological retreat Disclaimer
The views expressed in tbl are the
28 profile in sustainability authors’ and not necessarily shared by
tbl and/or APR
towards 'a truly water-sustainable business on a global scale' - coca-cola
Declaration
31 crossword From the office of
District Coordination Officer,
32 csr in africa City District Government Karachi
csr and sustainable development in africa: water of life NO.DCO/DDO/LAW/CDGK/109/2007,
Karachi
Dated May 22, 2007
36 csr: a reputational opportunity
corporate social responsibility: a reputation at risk Subscription, advertising and
feedback at:
39 urbanization and cities
megacities, megaproblems, megasolutions tbl: triple bottom-line

42 ethical consumerism Address: A-7, Street 1,

tackling the social impacts of consumerism today and not tomorrow Bath Island, Clifton,
Karachi, Pakistan.
44 carrots only, no sticks
Tel: (92-21)-5837674, 5823334
Fax: (92-21)-5867103
the carrot-trousered philanthropist E-mail: feedforward@tbl.com.pk
Web: www.tbl.com.pk
46 tbl ingress
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tbl sept-oct 08 1
 acknowledgement
The tbl team expresses its profound gratitude to
the companies whose names appear here, for their
agreement to support this publication. Bringing
out a knowledge-based publication like tbl
involves considerable effort and costs. It may not
have been possible to bring out tbl in its
present format without the invaluable support
and contribution of our Founder Sponsors.
Through their support to tbl our Founder
Sponsors have confirmed that they share our
Mission of disseminating triple bottom-line
knowledge to a diversified group including
corporate, social development and general
business groups. We believe that helping to spread
awareness of true CSR is in itself an element of
CSR. By becoming our sponsors, the following
companies have taken that vital first step with us
in our journey to facilitate awareness and
understanding of true CSR in our country.
The term ‘Triple Bottom-Line’ (TBL), which
translates into “People, Planet, Profits,”
captures an expanded spectrum of values and
criteria for measuring organisational (and
societal) success - social, environmental and
economic.
Through our masthead we personify the term
TBL. Essentially, our ‘bottom line’ is a grey
bar with a burgundy border which runs
through the masthead, at some points
overlapping the letters and running under
them at others. Here ‘t’ stands for triple and is
represented through the three shades of the
letter. The ‘b’ stands for bottom and it sits
below our grey line with the line going
through it - since this magazine is a below the
line activity, the two gel in together. The ‘l’
stands for line and the letter sits comfortably
on top of the grey ‘bottom’ line.
2 sept-oct 08 tbl
National Foods Limited
Founder Sponsor
English Biscuit Manufacturers
(Private) Limited
Founder Sponsor
mr tbl
Mr. Tanveer B. Lone is indeed a
busy man, laden with his strug-
gle for the truth in the
Sustainability industry. His first
name, Tanveer, according to our
wonderful Ferozsons
Urdu-English dictionary means
'illuminating'. We feel he is sometimes the
seeker of enlightenment, and at others, the
seemingly lone bearer. Driven towards his
destination – the true light of CSR – he
sometimes feels like a lone voice buried amidst
the complex factors he confronts on the way.
Yet as he sets forth, oft-alone on this journey,
he knows he will meet companions along the
sub-paths his journey takes, merging at
destinations common with him. There will be
occasions where we can all relate to him. At
times, though his capitalist-training-bred
financial focus may fluster us and his
understanding towards disseminating the true
implications of the triple bottom-line. Watch
out for Mr. TBL, as he shares his views and
thoughts in articles and other features in this
issue! Feel free to share ideas with Mr. TBL that
might help clear the oft-murky waters he'll
encounter in his expedition at
feedforward@tbl.com.pk
 editor’s note

every drop counts

S
tarting off with our previous issue, our
editorial team had decided to dedicate
three consecutive issues to the three
components of the triple bottom-line. Hence
the previous issue focused on people and
this 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 and
we will have a great 'profits' story to tell
you. Not to be missed!
Coming back to the current issue, what better subject to
focus on than water - the element which gives Earth the
title of the Blue Planet. Apparently the most abundant
planetary resource, used with gay abandon, water is an
input in practically all human activities, be it agricul-
ture or industry or commerce or the home. But fresh
water is only about 2.5 percent of all water on Earth
and like most other natural resources, fresh water too is
fast becoming scarce. The difference being that whereas
one can still envisage life without coal or oil or gas or
other minerals, life without water is inconceivable.
Water resources are becoming scant so fast that, as
many experts put it, future wars will be fought over
water, 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 it
comes to the Earth's natural resources, including water,
the even more unfortunate fact is that the people or
nations who can do something about alleviating short-
ages are also the ones who not only consume these the
most but who also seem to be least bothered to do any-
thing about it at all.
This issue includes a write-up about The
Coca-Cola Company and its plans to
become water neutral globally by year 2010.
When you are informed that over a billion
servings of Coca-Cola are consumed in the
world every single day and when you are
also told that besides the flagship brand
Coke, the Company also produces about
400 other brands, you can well imagine the
amount of water The Coca-Cola Company
uses. Then, besides being the base for a number of
brands, including Coke, water is also used by the
Company for washing of glass bottles. So, if the
Company has gone ahead and taken steps to become
one hundred percent water neutral - put back as much
water as it consumes - one needs to commend this. And
one hope that other companies, across different indus-
tries and not only in the soft drinks business, will be
similarly inspired to make their contribution to the
preservation of what is ultimately the most valuable of
all natural resources.
At a personal level and at the risk of sounding clichéd,
we need to remember that every drop counts. No one is
going to tell you or me to save that drop every time we
turn on the tap. Only our conscience will make the dif-
ference.
Sincerely,

The corporate sector and especially industry has a dual

role to play as far as water is concerned. On the one
hand it needs to reduce its water consumption and on
the other hand it needs to develop and employ new
technologies to treat used water, to eliminate toxic sub- Zohare Ali Shariff
stances and make it reusable for different purposes. Editor in Chief

This publication is being sent complimentary to 1500 decision-makers and opinion-formers in the corporate sector, the government,
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tbl strongly believes in knowledge dissemination and sharing. Please feel free to share tbl contents with your peers and teams - of
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tbl sept-oct 08 3
 letters to the editor
T I
he content and layout is
excellent. TBL contains
valuable content and
material which will help corpo-
rate executives understand the
dynamics of Corporate Social
Responsibility (CSR) and also
help them to apply it as one of
the guiding principles in their
organisations. I congratulate
you on this wonderful initiative.
Brigadier Maqsood Ahmad
Afridi (Retd.)
Public Relations Department
Fauji Fertilizer Company Limited
Rawalpindi
I
received my fourth issue of
Triple Bottom-line and
would like to compliment
you on the wide range of good
articles that you have been able
to collect for your magazine,
which has pioneered a new
direction of thought.
In these times of stress when
the mind is focused on hard and
tough nuts to crack, your maga-
zine provides a cool diversion
in the battle for survival which
most of us are fighting these
days.
I remember along with the first
issue you asked me for my com-
ments which I put off for a later
date and more issues, now your
interview of Kerstin Dietrich in
this latest issue has prompted
me to felicitate you and
acknowledge the good work
being done.
Sohail P. Ahmed
Chief Executive
Thal Engineering
Karachi
4 sept-oct 08 tbl
have written for your
publication since the March
issue. Overall, I have to say
that the publication is very
good. It looks very professional
and the articles are very
interesting.
Miriam Katz
Freelance Writer & Journalist
Canada
I
read TBL and had to write to
commend you on an
excellent effort. I would,
however, like to read more on
what local firms are doing and
what public sector support is
being garnered in this respect.
Seemin Shafi
Head Corporate Communications
Faysal Bank Limited
Karachi
Dear readers,
Thank you for sharing with
us your valuable comments
and feedback.
Mr. Afridi, we appreciate
your thoughts on TBL. TBL
is the key to the long-term
competitiveness and success
of our business community
and will continue to serve as
a platform for dissemination
of triple bottom-line
knowledge and tools.
Mr. Ahmed, how encoura-
ging to read your thought-
ful, specific feedback. We're
glad you enjoyed the
interview. And pleasantly
surprised to hear that to
some, our content provides
relief from the grueling
battle for survival. Thank
you! Do continue to interact
with TBL.
Ms. Katz, thank you for
taking the time to write to
us and for sharing with us
your feedback on TBL.
Ms. Shafi, thank you for
your compliments on TBL
and for your valuable
suggestions. In future issues,
we will continue to publish
material on local firms and
their CSR-related initiatives.
We look forward to our
readers' feedback and active
contribution and we hope
that over time TBL will
become an important
platform for the sharing of
knowledge and best
practices.
 welcome on board
The tbl team is honoured to introduce our editorial
advisory board. Comprised of diverse leaders and
practitioners, our goal is that the board will steer
our efforts to their highest potential. In each issue
of tbl, we will highlight a member of our editorial
advisory board. Ayesha Tammy Haq
Member

Corporate lawyer, legal and media consultant.

Concurrently a freelance journalist and host of a
weekly current affairs television programme. Based
in Karachi.

Anwar Rammal
Chairperson

Chairman of Asiatic Public Relations (Private)

Limited, Pakistan’s leading communications and PR
Habiba Hamid
agency, affiliated internationally with Hill &
Member
Knowlton. Also Chairman of JWT, Pakistan. Based in
Karachi. Founder of Saracen Consulting, a corporate gover-
nance and responsibility consulting firm. Currently
articulating the Dubai Model of sustainable develop-
ment. Based in Dubai.

Khadeeja Balkhi
Executive Member

Sustainability and CSR consultant and international- Abrar Hasan

ly experienced business and gender journalist. Based Founder Sponsor Member
in Karachi.
Chief Executive of National Foods Limited,
Pakistan’s pioneering multi-category food company.
Innovative businessman and industry leader. Based
Khawar Masood Butt in Karachi.
Founder Sponsor Member

Khawar Masood Butt is

Chairman and MD of EBM since
1985. He also serves as
Chairman and MD of Sat Net,
an Internet Communication
Solutions Provider launched in 1999. Vivian Lines
Member
An active member of various cultural and social
entities, he is a life member of Layton Rehmatullah President and Chief Operating Officer of Hill &
Trust, WWF, Arts & Crafts Institute, among others. Knowlton’s Asia Pacific Region and concurrently
He is also a member of the Institute of Directors, President and CEO Southern Asia. Based in
London. He played cricket at the national level from Singapore.
1950 - 1960 and was selected to tour England as
Vice Captain of the Pakistan Juniors Cricket Eleven
in 1954.

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

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

tbl sept-oct 08 5
 global briefs
PEOPLE
IFC Partners with Global
Reporting Initiative to Improve
Corporate Reporting on Gender
Issue
A 12-month research and consul-
tation project has been launched
in September by IFC, a member of
the World Bank Group, and the
Global Reporting Initiative (GRI)
to help private enterprises world-
wide create new opportunities for
women, adopt best practices in
sustainability reporting, and
improve their bottom lines.
The project is expected to help
develop a Gender Sustainability
Reporting Resource Guide that
will complement the GRI's inno-
vative Sustainability Reporting
Framework, the most widely used
and recognized global framework
for nonfinancial reporting. The
GRI framework links elements of
effective sustainability manage-
ment systems with indicators that
can drive continuous improve-
ment of company performance.
This project is part of a larger IFC-
GRI partnership to help compa-
nies adopt sustainability reporting
as a tool for improving environ-
mental, social, and business per-
formance. The governments of
Germany, Iceland, and
Switzerland are lead sponsors of
the project.
Rachel Kyte, IFC Vice President
for Business Advisory Services,
said, "Adding a gender perspec-
tive to existing nonfinancial
reporting frameworks will help
private companies win recogni-
tion as diversity leaders by work-
ers, investors and consumers."
Sean Gilbert, Director of
Sustainability Reporting
6 sept-oct 08 tbl
Framework at GRI said that GRI
will provide practical, hands-on
guidance for reporting on gender
issues through extensive consulta-
tions with GRI's global network.
The new guide is intended for
companies that want to establish
themselves as leaders in manag-
ing gender issues. It will demon-
strate the value of creating busi-
ness opportunities for women,
provide guidance on improving
gender management through sus-
tainability reporting, and help
improve the quality and scope of
gender reporting by including
new categories such as "women as
consumers," "women as entrepre-
neurs in the supply chain," and
"women as part of the
community."
CSR TRENDS: A Practical, In-
depth Tool for CSR Reports
CSR TRENDS 2008, a practical
and in-depth tool for organiza-
tions and practitioners, was
released recently by Canadian
Business for Social Responsibility
(CBSR) and Craib Design &
Communications. CSR TRENDS is
an overview of trends and best
practices in the ever-expanding
field of corporate social responsi-
bility reporting. It surveyed 75
Canadian and international
reports and reviewed a larger
group of 250 reports for best prac-
tices. Best practice reports:
Address tough questions
posed by stakeholder groups -
91 percent of reporters
described specific stakeholder
engagement methods and 64
percent provided results or
responses from engagement
initiatives.
Place their information in
global context by using exter-
nal guidelines - 71 percent of
reporters used the Global
Reporting Initiative (GRI)
guidelines, while 20 percent
used the UN Global Compact
principles.
Use the web effectively,
including interactive time-
lines, maps, games, "create
your own report" capabilities,
and more.
New reporters and those with
years of experience will benefit
from current case studies, statis-
tics and useful visual examples in
a number of areas of reporting.
The CSR trends survey can help
companies create a framework for
their own reports.
Environmental Crimes Rampant
and Under-investigated, Report
Says
Environmental crimes such as ille-
gal logging, trade in endangered
species, illegal fishing, and trade
in banned refrigerants are ram-
pant and growing, according to a
report from the nonprofit
Environmental Investigation
Agency. Organized crime net-
works are raking in over $10
billion a year through commission
of environmental crimes, and
national and international police
organizations are doing little to
stop them, the report charges.
"Even if we bring intelligence to
the attention of authorities, often
the political will is not there," said
EIA's Debbie Banks. "We really
need to see environmental crime
treated as seriously as narcotics
and arms. At the moment, that's
not happening."
Some of the recent growth in
environmental crimes is due in
part to "the proliferation of inter-
national and regional environ-
mental agreements, [which lead]
to more controls on a range of
commodities," the report says. "It
is also due to mutations in the
operations of criminal syndicates
which have been diversifying
their operations into new areas
like counterfeiting and environ-
mental crime.

PLANET
Greening the Internet
A recent study by McKinsey, a
consultancy firm, and the Uptime
Institute, a think tank, predicts
that by 2020 the carbon footprint
of the computers that run the
internet will be larger than that of
air travel. Data centres consumed
1 percent of the world's electricity
in 2005.
According to Google, "computing
centres are located on a ship or
ships, anchored in a water body
from which energy from natural
motion of the water may be
captured, and turned into electri-
city and/or pumping power for
cooling pumps to carry heat
away." The increasing number of
data centres necessary to cope
with the massive information
flows generated on popular
websites has prompted companies
to look at radical ideas to reduce
their running costs.
The supercomputers housed in
the data centres use massive
amounts of electricity to ensure
they do not overheat. As a result
the internet is not very green.
Google has announced plans to
launch its own "computer navy" -
supercomputers which will
enable operation of its internet
search engines on barges
anchored up to seven miles
(11km) offshore. The "water-based
data centres" would use wave
energy to power and cool their
computers, reducing Google's
costs.
Rich Miller, the author of the
datacentreknowledge.com blog,
stated that Google's computer
navy solution is: "Really
innovative, outside-the-box
thinking". Technology experts
said it is an unexpected but clever
solution.
Microsoft is also looking into
building a data centre in the cold
climes of Siberia, and in Japan,
Sun Microsystems, a technology
firm, plans to send its computers
down an abandoned coal mine,
using water from the ground as a
coolant. Sun said it could save $9
million (£5 million) of electricity
costs a year and use half the
power the data centre would have
required if it were at ground
level.
Green Power for Mobile
Programme in Developing
World
The Green Power for Mobile
programme, an initiative of the
GSM Association, will transition
mobile phone towers which
currently run on off-grid power to
renewable energy. This pro-
gramme will save about 600
million gallons of diesel. A news
story on treehugger, the leading
media outlet dedicated to driving
sustainability mainstream, states
that the end objective of this ini-
tiative is "to use renewable energy
to power 118,000 mobile phone
base stations - the sites that
receive and transmit calls - by
2012. New and existing off - grid
sites currently running on diesel
generators will be targeted first.
Powering these base stations with
solar, wind or biofuel will save
600 million gallons of diesel fuel
each year".
The Green Power for Mobile pro-
gramme has already begun in
some places: The Pacific Island of
Vanuatu has 17 stations running
on wind or solar; 30 stations in
Kenya are running on wind and
solar. In Andhra Pradesh, India
350 stations are currently running
on an 80/20 mix of diesel and
waste cooking oil, but in the
future this is expected to be a
50/50 mix, with sustainable
grown biofuels replacing the
waste cooking oil.
In the Wake of The Hurricane..
Hurricane Ike left a big mess
behind as it passed over
Galveston, Texas, and other Gulf
Coast areas, but the mess wasn't
just from debris. Just as with
Hurricane Katrina, the combina-
tion of destructive high winds
and subsequent flooding have
created a toxic soup that's poten-
tially dangerous to residents,
cleanup crews, and the environ-
ment. Floodwaters have mixed
with gasoline, paints, household
chemicals, and construction
debris (some containing asbestos)
to make an unpleasant, icky,
potentially hazardous mess that
could also cause respiratory
problems when it dries into dust.
"Quite frankly, we are reaching a
health crisis for those that are
remaining on the island," said
Galveston city manager Steve
LeBlanc. Plenty of standing water
has also led to a boom in
mosquitoes and the county has
been asked to spray the area to
kill the larvae.
Hurricane Ike has also messed
with area wildlife. Ike's storm
surge helped turn some fresh-
water wetlands as far as 20 miles
inland into salty marshes hostile
to many freshwater fish, as well
as other wildlife. "[The salt
infusion] exasperates everything
that needs freshwater," said Jim
Sutherlin, superintendent of a
Gulf Coast wildlife area. Algae
blooms have also been a problem;
caused by untreated sewage
rushing into Galveston Bay after
the storm, algae blooms have
been sucking oxygen out of the
water, leaving little available for
marine life. Ike's high winds also
shredded many mulberry trees
that migrating birds depend on
for fuel to cross the Gulf of
Mexico.
Shared by Grist, an online environmental news magazine
tbl sept-oct 08 7
PROFITS
Recycled Messenger Bags Cut
Costs Considerably
The new Hewlett-Packard laptop
"will be displayed on shelves
wearing only the HP Protect
Messenger Bag", at Wal-Mart.
Scandalous! But actually, there's
no need to avert your eyes: the
HP Pavilion dv6929 is served up
in a recycled, reusable messenger
bag instead of a box, cutting card-
board and plastic packaging by 97
percent. Thinking outside the box
helped HP win Wal-Mart's Home
Entertainment Design Challenge,
which judged suppliers' products
on attractive design, environmen-
tal innovation, and less-wasteful,
less-toxic packaging. Wal-Mart
says 25 percent less truck space is
now 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 at
Wal-Mart and Sam's Club, can
recycle an old PC for free.
Shared by Grist, an online environmental news magazine
New Study Calls for National
Commitment to Increase
Energy Efficiency in Low-
income Homes
An estimated 25 million low-
income families in America strug-
gle with increased utility and
energy costs due to inefficiently
built housing. A new study by
Enterprise Community Partners,
'Bringing Home the Benefits of
Energy Efficiency to Low-Income
Households: A Case for a
National Commitment', calls for a
national commitment to rehabili-
tate and retrofit low-income hous-
ing with energy-efficient features
that will offer substantial financial
savings for residents and ensure
long-term gains in environmental
and energy sustainability.
8 sept-oct 08 tbl
The Department of Housing and
Urban Development (HUD) cur-
rently spends more than $4 billion
each year to pay utilities in gov-
ernment-assisted properties. Yet,
these funds cover only a fraction
of the families and individuals in
need of financial help. In contrast,
with an annual investment of $5
billion during a ten-year span to
rehabilitate low-income homes,
considerable gains can be made in
energy savings, carbon reduction
and cost savings to the renters
and homeowners.
CSRwire states that "the report
recommends a comprehensive,
10-point plan that would, among
other aspects, be able to: Build
capacity to implement low-cost
improvements; Ensure climate
change 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 would
engage public-private partner-
ships to help overcome the mar-
ket barrier of financing the cost of
improvements. The points also
offer suggestions for federal sup-
port to incorporate private capital
investment such as credit
enhancements and tax incentives
as structures to diversify direct
governmental spending".
"A national commitment to bring
home the benefits of energy effi-
ciency to low-income families in
their homes would save families
money, cut carbon emissions and
create hundreds of thousands of
good green jobs, " said Stockton
Williams, senior vice president
and chief strategy officer of
Enterprise Community Partners.
Shared by Grist, an online environmental news magazine
Pledge to Deliver Access to
Financial Services Worldwide
A pattern of exclusion from access
to financial services persists
around the world and surfaces in
developed and emerging
economies alike. An estimated 2
billion consumers worldwide lack
access to basic financial services,
including nearly 50 percent of
citizens in new EU member states,
70 percent of the population in
Mexico and places like Tanzania
where bank account ownership
rates dip as low as 5 percent. The
Clinton Global Initiative (CGI)
aims to deliver accessible,
affordable and empowering
financial services to at least 5
million consumers worldwide
who do not currently have
adequate access to financial
products and services that meet
their needs. CGI's objective is to
direct resources and focus
attention on improving access to
financial services, a solution CGI
views as key to alleviating
poverty throughout the world.
MPOWER Ventures, a socially
committed venture fund, today
announced a five-year commit-
ment to the CGI. "This commit-
ment keeps our mission in focus
and the collective efforts of the
MPOWER group of companies
squarely aimed at the positive
impact we seek to achieve by
providing affordable and
accessible financial services..."
said Roy Sosa, founding partner,
MPOWER Ventures. Innovations
like prepaid debit cards have been
a powerful solution for bringing
unbanked consumers into the
financial mainstream in the U.S.
and Europe.
The venture fund aims to develop
more such innovative solutions
and breakthrough products
capable of reaching previously
inaccessible markets and will
bring underserved consumers
around the world a broad range
of financial services, including the
ability to deposit and withdraw
funds, transfer funds, make
purchases and accept payments
anywhere, anytime.
Compiled by Rutaba Ahmed

governance call
T
he Corporate Leaders Group
on Climate Change (CLG)
wrote a letter to the leaders
of the UK's major political parties,
to call for "transformational
change" across the economy to
meet the scale of the threat posed
by climate change.
The CLG brings together business
leaders from major UK, EU and
international companies who
believe that there is an urgent
need to develop new and longer-
term policies for tackling climate
change. The Group is developed
by the University of Cambridge
Programme for Industry and the
Prince of Wales's Business and
Environment Programme.
The letter states that: "Climate
change poses global social, envi-
ronmental and economic risks
and demands a transformational
change in how we manage our
economy. Incremental change will
not do... We must deliver deep
and rapid cuts in greenhouse gas
emissions to mitigate severe cli-
mate change, and must adapt our
economy, environment and infra-
structure to cope with the climatic
changes we are already predicted
to face. The global economic
downturn may cause some to
question whether the UK can
afford to act so boldly, but we
believe that action cannot be
delayed, and furthermore, that
decisive action will stimulate eco-
nomic activity and job creation in
certain key sectors as well as
reduce costs in the medium to
long term."
The group has recommended that
the UK adopt a 'working assump-
tion' that a legally-binding deal
will be signed by all countries at
the UN Framework Convention
on Climate Change negotiations
in Copenhagen next year, imply-
ing that "the European Union
should cut greenhouse gas emis-
sions by 30 percent by 2020, not
20 percent".
The CLG offers strong support for
The Climate Change Bill currently
in Parliament as a "crucial frame-
work for emissions reduction" but
calls for an "urgent cross-party
effort to develop a comprehensive
package of policy measures to
change every major sector of the
economy".
It describes some of the "key ele-
ments" of the package, including
higher energy efficiency stan-
dards, support for low-carbon
technologies and products, "bold
new specifications" for public sec-
tor procurement and measures to
deliver a robust carbon market.
On this last point, the group sup-
ports the "progressive shift to auc-
tioning of allowances" under the
EU's Emissions Trading Scheme.
The Corporate Leaders Group
recognises that international
action is needed to tackle "this
global problem" but states that if
the UK is to continue to offer
credible and effective global lead-
ership, "Government and business
must now work together to
demonstrate real change on the
ground by delivering the new
projects and practices that are
needed to create a low climate-
risk economy".
In conclusion, the CLG, in its
letter, emphasizes that: "Business
and Government must now work
together to ensure all parts of the
country see the tangible change
that is essential for climate change
mitigation and adaptation. Full
transformation to a low climate-
risk economy will take several
decades, but it will be the steps
that are taken in the next five
years that will be crucial if we are
to meet the scale of the threat
posed by climate change and to
grasp the business opportunities
created by moving to a low
climate risk economy."
letter
Quotes from members of
the CLG on Climate
Change
James Smith, Chairman of Shell
UK said: "Tackling climate change
is the pro-growth strategy for busi-
ness. The technological solutions
are broadly known. What we now
need are projects to build a low
CO2 energy system in the UK."
Lucy Neville-Rolfe, Group Director
of Corporate and Legal Affairs,
Tesco said: "Consumers account
directly and indirectly for 60% of
carbon emissions. They are there-
fore key to achieving the revolution
in green consumption needed if we
are to move to a low carbon econ-
omy. Government and business
are interdependent on climate
change and we must work togeth-
er to engage consumers - saving
energy, recycling and conserving
resources."
Neil Carson, CEO, Johnson
Matthey said: "Public procurement
drives one third of the UK econo-
my but, to date, attempts to 'green'
procurement have largely failed.
The public sector should be setting
bold, new and sustainable specifi-
cations for the products and serv-
ices it buys. These would help
drive innovation and investment,
and bring advanced products to
the market, delivering real savings
in carbon and saving money for
both consumers and the taxpayer."
tbl sept-oct 08 9
 cover story

pakistan's water problems:

do we
care enough
to act?
by simi kamal
for tbl

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.

10 sept-oct 08 tbl
Pakistan, A Water-Scarce Country
An arid country, Pakistan depends heavily on
annual glacier melts and monsoon rains. Water from
these sources flows down the rivers and out to the
sea. En route, there are seepages into the ground,
where water-bearing rocks or aquifers absorb and
store this water. Most parts of the country receive
scant rainfall and have little or no access to surface
water. Pakistan Water Partnership (PWP) states that
in Pakistan the total available surface water is about
153 million acre feet (MAF) and the total ground
water reserves are approximately 24 MAF, of which
a substantial part has been mined without allowing
for natural recharge. Currently estimated at 160
million, the population of Pakistan is set to double
in 2.5 decades. This means that the per capita
availability of water will decrease. There is likely to
be a net decrease, rather than an increase in the
country’s water resources, due to a number of
factors including population growth, climate change,
and exploitation of water.
By international standards, Pakistan was already a
water-scarce country in 1992 at 1700m3 available per
capita, according to UNFPA/Ministry of Population
Welfare. By 2003, Pakistan’s per capita availability
“ Everyone understands that water is essential to life. But many are only
just 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)
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 a
water-scarce country at 1200 m3 per capita per year.
According to water specialist Simi Kamal, based on
current projections, water availability (per capita)
will be 855m3 by the year 2020.
We have already used up everything that exists in
our water cycle and we do not have additional
sources of water to mobilize. When we say we are
putting up another dam or reservoir, it doesn’t
necessarily mean there will be additional water
coming in; we are just re-appropriating what’s
already in the system.
Hrdro Problems
Our water resource base continues to be degraded
because of pollution, atrophy, overuse of surface
water and over-exploitation of groundwater. Large
tracts of land have been rendered uncultivable due
to water logging and salinity, direct results of mis-
managed irrigation. Unsafe drinking water is
responsible for numerous diseases including
dysentery, diarrhea, typhoid, cholera, malaria and
gastroenteritis. UNICEF estimates that 200,000
children in Pakistan die annually due to diarrhoeal
diseases alone.
The Indus delta has been reduced to one partially
active creek and there is no water flowing down-
stream of the Kotri Barrage for almost the entire
year. Our mangrove forests, previously some of the
largest in the world, have been reduced from 0.6
million acres to 0.25 million acres, said Simi Kamal
and Jairath at the Asia Pacific Regional Consultation
in Dhaka. The mix of sweet and sea water maintains
a very critical balance in the coastlines. If that
balance is destroyed, then the entire water system is
affected and will, over time, be felt right up to the
watersheds. Pakistan is dependent on a single river
system and we cannot afford to take any more
chances with the water/sediment/salt balance of the
Indus Basin.
The Irrigation System of Pakistan
Pakistan has the largest contiguous irrigation system
in the world. However, owing to the poor state of
”
infrastructure, about two-thirds is lost due to poor
transmission and seepage. This means that about 68
MAF is potentially usable water if the canal system
is adequately repaired and maintained. Of the total
sweet water availability of approximately 144 MAF,
97 percent is already used in agriculture. We have a
situation where instead of improving farming meth-
ods to conserve water and increase productivity,
agricultural landowners demand more water, only
to maintain some of the lowest productivity rates in
the world per unit of water and per unit of land.
All debates on water conservation, however, are
cuffed by the constant refrain on dams and water
sharing among provinces. Safeguards are needed.
The Solution?
The seeds of conflict on water in Pakistan, therefore,
are sowed by nothing more than hydrology and this
needs to be recognized. We cannot solve a very
complex geographical, hydrological, economic and
environmental problem through politicking. The
discussion on water distribution, therefore, should
tbl sept-oct 08 11
 “ 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 things
Or vanish heavenward on vapour's wings:
Nor does it mathematically fall
with 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
”
be in relation to uses and users, not among political you and I are the government; and at the level of a
or administrative units. This means, a discussion in company or private enterprise, the heads are the
terms of head, middle and tail farmlands in irrigated government. The political process itself should
areas; and in terms of water for survival, subsistence hence be the will of the citizens. In the end, it is the
and pastoral livelihoods in non-irrigated areas. Rain- amalgamation of policies, regulations, guidelines
fed and arid areas should also be a part of the and actions that will help us solve water problems,
debate on water equity and water use. In addition, which are likely to get more complicated due to
uses of water other than agriculture - for domestic climate change and environmental instability.
use, for industry, for urban areas, and for the envi-
ronment - should all be incorporated for a robust
References
water policy for Pakistan.
Pakistan Water Vision, Pakistan Water Partnership, 2001, pp 5-6

There is a need to recognize that just because certain
water-related practices have gone on for centuries
does not mean that they are allowed to continue in
the face of a world in turmoil. We need to change
the way we think about water, the way we use
water and the way we dispose off wastewater.
A Collective Approach is Needed
Individuals and corporate citizens must engage with
decision-makers across the board regarding rational
and responsible use of water. Industries, agricultural
industries and corporations must move to pollution
control, micro-irrigation, recycling and reuse of
water on bigger scales. Once these can be demon-
strated, only then can the gigantic problems of
wastage through the irrigation system and through
leakages in municipal water supply be taken up.
Our first hurdle is the unfortunate habit of laying
everything at the door of "the government". But
what is this government? At the level of the home,
Population Stabilization - A Priority for Development, , Government of
Pakistan, 2003
Pakistan's Water Economy Running Dry, The World Bank, 2006, pp
xiv - xv
Detailed discussion available in Kamal S, Women and Water: Issues
of 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 at
the Grassroots, Asia Pacific Regional Consultation, Dhaka, 2002,
pp 4
About the Writer
Simi Kamal is an internationally known geographer and
water specialist, who chairs many private and non-profit
organizations, 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 480
reports, papers, book chapters, articles and handbooks to her credit.

12 sept-oct 08 tbl
 the state hearkens

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

he areas affected by the

T 2005 earthquake com-

prise some of the most
idyllic places in Pakistan. by zaheer hussain gardezi
for tbl
However, life in these areas is
becoming increasingly
difficult, particularly in recent
years due to the increasing
scarcity of water. This has
forced several people to even
abandon their ancestral vil-
lages - something previously
unimaginable for them.

The earthquake further

deteriorated the water supply
situation, destroying over four
thousand existing water
supply schemes and affecting
yields of water sources. It is
estimated that the yields of
these sources decreased by
40 percent due to the
earthquake.

The Earthquake Rehabilita-

tion/Reconstruction Authority
(ERRA) took up the responsi-
bility of reconstruction and
rehabilitation of the affected
water supply schemes. And
the herculean task was
undertaken on war footings in
collaboration with develop-
ment partners and affected
communities.
Water Harvesting Pond for Livestock - Muzaffarabad, Azad Jammu Kashmir

tbl sept-oct 08 13
 Sustainable Solution to
Water Scarcity
ERRA realizes that rebuilding
the affected water supply
schemes, even when new
structures surpass the old
structures in terms of quality
and reliability, is not the
solution to the acute water
scarcity in this region. What
are needed are innovative
structures that ensure a sus-
tainable supply of water. As
more than 90 percent people
live in scattered rural hamlets,
huge projects relying on
lifting water from large water
bodies lying thousands of feet
below in a valley or water
sources high on the mountain
tops provide neither viable
nor cost-effective solutions.
Huge promise lies in rain-
water. The earthquake affect-
ed areas receive an average
rainfall of 1,500 millimetres,
higher than in any other part
of Pakistan. Even if a small
fraction of this rainfall is har-
vested, this can significantly
help overcome the problem of
water scarcity. The rooftops of
the new houses, constructed
under ERRA's Rural Housing
programme, are made of CGI
sheets. Rainwater flowing
down these sheets is clean and
safe for human use after har-
vesting.
The residents here are familiar
with the concept of rainwater
harvesting (RWH). Till twenty
years ago, each household in
these areas would have a
small pond at its disposal.
These small reservoirs, which
stored rainwater, were an
important pillar in the liveli-
hood of the farming families
as they provided water for
14 sept-oct 08 tbl
irrigation and for the drinking
needs of farm animals.
However, water stored in
these ponds was not consid-
ered fit for human consump-
tion.
RWH in Northern Pakistan
provides a plausible alterna-
tive and supplementary
source of water in this situa-
tion: where existing water
sources are fast depleting.
ERRA has decided to provide
a sustainable and alternative
solution by reviving and
developing the age old prac-
tice of rainwater harvesting.
The WatSan Programme at
ERRA estimates that no less
than 90,000 litres of water
(20,000 gallons) can easily be
collected every year from a
small house of roof-size 30
feet by 11 feet.
RWH Success Pillars
There are three basic compo-
nents to rainwater harvesting:
catchment, gutters and pipes
and a storage system.
The CGI sheet roof serves as
an effective catchment surface.
Rainwater flushes quickly and
the accumulated water is
quite clean, compared to other
roofing systems. It can then be
stored in water storage con-
tainers or can even be charged
into aquifers through any
structure like dug well, perco-
lation well, boreholes,
recharge trenches or water
ponds.
Proper care while collecting
water through sloping roofs
yields high benefits. It is esti-
mated by ERRA that around
10 to 15 percent of the water is
utilized as drinking water
while 85 to 90 percent is used
for daily washing, bathing
and other activities.
RWH benefits include:
Supplementing the existing
water schemes and provid-
ing water facilities in the
most decentralized man-
ner.
The provision of an ample
water supply for domestic
use will promote better
sanitation-related practices.
Plans to Extend RWH for
Domestic, Agri Uses
In accordance with its Build-
Back-Better Policy, ERRA has
prepared a plan to popularize
rainwater harvesting for
domestic as well as agri-
cultural purposes. Under this
programme, 50 union councils
facing acute water shortage
will be supported to set up
rainwater harvesting
structures. A comprehensive
project worth Rs. 761 million
has been prepared for this
purpose. Having received
approval from the ERRA
board, project papers have
been forwarded to the
Executive Committee of
National Economic Council
(ECNEC) for approval, and
the project has passed the first
tier of approval. The Planning
Division of Pakistan has
greatly appreciated this
initiative and assured
mobilization of resources for
timely implementation of the
project. ERRA has shared this
idea with all its partner
organizations in the WATSAN
sector. Donors and doers both
appear quite keen on
supporting ERRA in
transforming this dream into
reality.
Springs on Rooftops
Situated on the top of a mountain, the idyllic village of
Chitrah Topi is located 17 kilometres from the city of
Bagh in Azad Jammu and Kashmir (AJK). As residents
of this village testify, living on a mountain top comes at
a price. "A mountain top is not an easy place to live,
because water flows downstream and you do not find
many springs or streams flowing down your way,"
explains a resident.
Until a few months ago, two thousand residents of
Chitrah Topi, particularly women, faced a difficult situ-
ation. As gendered division of labour ordains, almost
the entire burden of ensuring domestic water supply
fell 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 take
up to eight hours, everyday. Some donkey carts
brought water to the village, charging Rs. 30 to 40 for a
5-gallon container. But buying water was not an option
for most residents of this low-income mountain village.
This situation worsened as a result of the October 2005
earthquake, as most water sources in the area dried up
or changed their course, making it even harder to
attain water for domestic consumption. It appeared
that there was no end to this problem, until ERRA
introduced the rainwater harvesting project in the
village through its partner organization, the Maqsood
Welfare society. As a result of ERRA's initiative to
promote RWH in earthquake affected areas, the society
Water Scarcity: A Problem of The Past
Hullar Syedan, a picturesque village in district Bagh,
AJK is one of the places where the practice of rooftop
RWH emerged and evolved, in response to people's
needs. Fifteen years ago, the villagers faced severe
water shortages. The village had some communal
wells, which were kept locked and elderly women
were made custodians of these keys to ensure equal
distribution of water among the village residents. The
villagers also had four ponds built, generations ago.
These ponds were used to store rainwater and were
cleaned every year. However, these ponds and wells
used to dry up if it did not rain for a month or so.
When this happened, the villagers had to take their
cattle to distant places for grazing and watering. The
women used to carry water from streams located miles
away.
In the 1970's, many people from these villages moved
to the Middle East for better employment. This
resulted in improved economic situation by 1980 and
people built houses with sloping roofs. Upon their
About the Writer
Zaheer Hussain Gardezi is Director, WatSan Programme, Earthquake Rehabilitation/Reconstruction Authority (ERRA), Islamabad. He
has over 18 years of experience in community-based physical infrastructure and social sector projects in the areas of rural water supply
and sanitation. His valuable experiences include working with multiple community-based organisations to plan and design cost-effective
basic infrastructure development schemes.
was able to obtain funding from Oxfam GB for a pilot
project in Chitrah Topi village.
Apart from two schools and a large mosque, a list of 25
houses was drawn for supporting construction of
rooftop rainwater harvesting facilities. The project,
which started about four months back, benefits apart
from residents of these houses, more than 470 children
and 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 of
the village discovered that there were springs flowing
from the rooftops.
Once harnessed, these springs ensure safe and clean
water. As a result of the project, women have been
freed from the drudgery of carrying water everyday
and people are growing kitchen gardens in their
homes. For the school children, toilets have been made
useable for the first time.
"Life has changed for the 200 girls studying at our
schools. The lack of toilet facilities discouraged girl
children from studying and it made life miserable for
the teachers as well. Thanks to the new RWH facility,
we now have safe and fresh water available for all of
our needs," says Haleema, a teacher at Government
Girls High School at Chitrah Topi.
own initiative, villagers started collecting water
coming down from the rooftops in cans and pots. In a
few years, all houses with a sloping roof had a water
tank and toilet. These tanks could store a large volume
of water. Periods of drought saw them using their
water carefully so that supply could last till the next
rainy season.
In 1996, with the collaboration of the local government
of Azad Kashmir, a large water pumping scheme was
completed with the capacity to provide water to 2,500
people. The residents are running the water supply
scheme on a self-help basis. They have set up a
committee for the maintenance of the water supply
schemes. Every household makes a monthly contri-
bution to keep the system running. Along with this
scheme, people are still using RWH to augment their
water supplies. During the months of rain, pressure on
the water supply decreases as people switch to the
water collected through RWH. Water scarcity is now a
problem of the past.
tbl sept-oct 08 15
 hydropower

water power
in pakistan
by miriam katz
for tbl

W
ith the realities of climate change and the
depletion of fossil fuels, renewable energy is
now in the spotlight. Currently, wind and solar
power have been in the news, but there are also many
other sources of energy that would benefit the environ-
ment and the developing world. These sources include
wave and tidal power in addition to small hydro. In
China and India, small hydro is quite popular and there
are 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 with
reference to its applicability in Pakistan. This will include
an analysis of the history of these technologies, the condi-
tions needed for successful projects and the benefits and
drawbacks. The second part of the article will look at

16 sept-oct 08 tbl
small hydro and why it is the best
option for Pakistan at this time.
Wave and tidal power are good
technologies; however, the bene-
fits of small hydro are much
greater, especially for Pakistan's
developing economy.
An Explanation and History of
Wave Power
Many companies have developed
different ways of using wave
power, but the two basic princi-
ples behind the designs remain
the same. The first design
involves the waves moving into a
chamber where the water rises
and falls. At the top of the
chamber, there is a hole out of
which air is forced, which drives
a generator. The other type of
design involves a long tube with
hinges, which moves up and
down due to the motion of waves.
This motion moves hydraulic
fluid, which drives a generator.
A power cable then moves this
electricity to where it is needed.
The first design was used for the
very first commercial wave power
station, which is situated on Islay
island in Scotland. This project
began producing power in
November 2000 and provides
enough power for 400 homes,
according to Nayyer Alam
Zaigham, Professor & Director,
Institute of Environmental
Studies, University of Karachi.
The second design was used for
the Pelamis, which was also
developed in Scotland, but the
first project will soon be installed
off the coast of Portugal. The
Pelamis produces enough energy
for 1500 Portuguese homes, as can
be found using the Pelamis wave
energy converter. Pelamis was
developed by the student of
Professor Salter at the University
of Edinburgh.
Wave power began in France in
1799 with a patent that used wave
power to drive heavy machinery;
however, it was not until the
1970s when wave power was
taken seriously. At the University
of Edinburgh, Prof. Salter devel-
oped what is known today as
Salter's Duck. Salter's Duck
looked like very large boxes that
were attached to the ocean floor.
As the waves moved them back
and forth, the mechanical energy
became electrical energy, which
drove a generator. Salter's Duck
was able to capture 90 percent of
the wave motion and 90 percent
of that could be turned into elec-
trical energy, which is very
impressive. In addition, at the
time the Duck was completed, the
cost of the electricity was the
same as nuclear power; however,
the nuclear power industry was
able to lobby the government to
cancel financial support for wave
power in 1982, as stated in an
article on Economist.com. This
set back the cause of wave power
for many years; however, other
forms of energy such as tidal have
shown promise.
Tidal Power
Tidal power is potentially very
useful because tides are very
reliable. However, only 40 sites in
the world have been found that
are suitable because there must be
a five meter difference between
high and low tides.
There are two types of tidal
power stations: the first is built
across an estuary and looks
similar to a dam. Inside the dam,
there are tunnels that the water
passes through. The water then
turns a turbine. The other type of
tidal power station looks like
underwater wind turbines, but
the size is usually limited to 25 to
50 megawatts (MW), according to
the Pembina Institute which
works to advance sustainable
energy solutions in Canada. The
largest tidal power station was
built in northern France in 1966
and it produces 240 MW of
electricity.
Benefits of Wave and Tidal
Power
Wave and tidal power have many
benefits. A 40 MW wave power
station, which is being proposed
off the coast of Cornwall,
England, will save 300,000 tons of
carbon dioxide over 25 years.
In addition, the net potential for
both wave and tidal power is
greater than wind and solar
because water is 850 times denser
than wind, which pushes the
turbines faster, according to the
Ocean Energy Council (OEC).
Also, because many cities are
situated in port areas, the power
can be used right where it is
needed. This is important
because, as electricity moves
through transmission systems,
some of the power is lost and
cannot be recovered. Both tidal
and wave power are fairly
inexpensive to maintain and tidal
power is very predictable. Tidal
power cannot harm any marine
life because underwater animals
can often sense turbine movement
and their sound. In addition,
because tidal power requires a
high current, there will never be
any animals feeding in those
areas because plants cannot grow.
Challenges of Wave and Tidal
Power
Wave and tidal power also have
many challenges that need to be
resolved in order for these types
of powers to be successful.
Generally, the best waves are
situated in temperate zones,
which means that Pakistan is not
suitable for wave power. This is
because west winds are often
found in the temperate zones,
which are the best for wave
power. Also, strong winds over
large areas as well as a location
near the continental shelf are
much more favourable for wave
power because it ensures a
disparity between wave height
and wave length.
Sites such as these are very rare,
as mentioned above. Wave power
is also much younger than wind
or 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 young
also means that the power
generated costs more than other
sources of power. Currently,
wave power costs approximately
7.5 cents per kilowatt hour (kWh)
compared to 3 cents for natural
gas, according to the OEC.
Tidal power also faces many
challenges. One of the main
problems is that shore birds
depend on the tide to uncover
mud flats in order for them to
feed; tidal power changes this
quite drastically. The cost of tidal
power per kWh is 12 cents, which
is quite high. This cost would take
many years to recover, which is
not attractive for the developing
world. Lastly, according to the
OEC, tidal power has a very low
capacity factor of 20 to 35 percent
whereas nuclear power stations
experience a 90 percent capacity
factor, says E. Michael Blake in an
article published in the Nuclear
News magazine of the American
Nuclear Society.
Thus, although nuclear power is a
more questionable energy source,
capacity factor is very important
because if the capacity factor is
higher, it ensures that power will
be produced more frequently. The
reason why tidal power has such
a low capacity factor is that tides
are only predictable for part of the
day and thus, there is no constant
supply of energy.
Small vs. Large Hydro
Due to the challenges just men-
tioned, Pakistan is not suitable for
wave and tidal power. However,
Pakistan has had some experience
with small hydro and there is a
continuing interest in the
technology. Currently, Pakistan
has 108 MW of small hydro,
which consists of nine projects.
There are also 10 MW under
construction and 180 MW
planned, according to the
International Energy Agency.
However, Pakistan has the
potential for 46,000 MW of hydro-
18 sept-oct 08 tbl
electricity, which includes large
and small installations; at present,
only 6459 MW are installed, states
engineer Abdul Waheed Bhutto.
Furthermore, he states that many
people now realize that large
dams are not suitable for the
environment, economy and
people because dams cause the
flooding of villages and towns,
which means that the government
must spend money to resettle
people; the Kalabagh dam, for
example, will cost the government
Rs. 2 billion in resettlement costs.
In addition, because reservoirs
often contain decaying biomass,
greenhouse gases are emitted.
Large hydro is often accompanied
by corruption, which is discussed
in the next section.
Forms and Effects: What
Corruption in Hydropower
Looks Like
Grand corruption can occur in the
form of bid-rigging and illicit
payments, which are often
Why fighting corruption is a long-term interest of all stakeholders
STAKEHOLDER GROUP
Electricity consumers
Impacted communities
Electricity utilities
Governments
Public hydropower
developers/ operators and
IPPs
Contractors and equipment
suppliers
Source: Global Corruption Report 2008, Transparency International
disguised by channeling them
through agents or subcontractors.
Irregularities with environmental
impact assessments can arise
during the planning phase. In
India, an accounting firm commis-
sioned to conduct an EIA for two
dams was caught in 2000 copying
large sections of an EIA for
another project 145 kilometers
away. After a civil society watch
group spotted the plagiarism and
posted the information on its
website, the contractor said it
would rewrite the document.
Vulnerabilities continue during
project operation and mainte-
nance. These can include corrup-
tion related to service access and
provision, misappropriation or
misuse of fees, illegal connections,
failure to honour social and
environmental mitigation
commitments, patronage and
abuse of funds in resettlement
activities, and failure to honor
benefit-sharing. If these vulnera-
bilities were addressed, the bene-
CORROSIVE EFFECTS OF CORRUPTION
Less affordable and reliable electricity
Less access for the poor
Slower pace of service expansion
More high-impact or ‘bad’ projects
Higher adverse livelihood impacts and
impoverishment risks
Fewer funds for compensation, mitigation and
benefit-sharing
Fewer mitigation commitments for sustainable
management
Higher costs of bulk energy or own supply
Higher borrowing and equity costs
Less money for service expansion and improvement
Delayed, overpriced or expensive infrastructure
Higher power sector costs
Higher repayments for sovereign loans or guarantees
Setbacks for social policies
Slower economic growth and job creation for projects
that depend on improved electricity service
No level playing field for fair competition
Approvals procured through bribes can be rescinded,
terminating the project
Disqualification from office or criminal prosecution
Distorted and unfair competition
Higher and wasted tender expenses
Approvals procured through bribes can be rescinded,
terminating the project
Criminal prosecution, fines, blacklisting and
loss of reputation
Financial loss
fits that would flow to people and
the environment would be
considerable. Direct cost savings
may start at US$ 5-6 billion
annually if contractor bid prices
decreased by 10 percent, which
was suggested by Transparency
International.
If corruption leads to cost over-
runs that eat into funds originally
earmarked for maintenance,
proper functioning may be put at
risk, reducing the long-term
benefits. Corruption can also
hamper the expansion of
electricity ser-vices in developing
countries by driving up costs,
delaying projects and lowering
service quality and reliability,
especially in rural areas
considered low priorities. The
table, printed in the Global Water
Corruption 2008 report by
Transparency International,
summarizes the impact of
corruption on hydropower.
How Small Hydro Works
Most small hydro systems work
on the same principle known as
run of river. One of the main
benefits of this is the absence of a
reservoir, which means no towns
are flooded. The water at the high
point of the river is fed through a
pipe, which turns a small
generator. After this, the water
re-enters the river, which means
that there are no environmental
consequences and the system
needed is fairly small.
These systems last for about 25
years and very little maintenance
is needed. Small hydro has three
different categories: pico, mini
and micro, which are below 5
kilowatts (kW), 1 MW and 100
kW respectively, explain Taylor,
Dr. Upadhyay and Laguna
(Project Manager, European Small
Hydro Association) in a review
on small hydro in developing
countries published on
Renewable Energy World.
Vietnam is one of Asia's leaders in
pico hydro where a 300 watt unit
costs $20 and produces enough
power for one family.
Benefits of Small Hydro
Small hydro has many benefits,
both for the environment and for
Pakistani society. Small hydro
produces no greenhouse gas
emissions after it is built. In
addition, unlike tidal power, the
ecosystem is not adversely
affected. Pico hydro only requires
a 1-metre drop in height, which
means the technology is guaran-
teed to work more of the time
than wave power, which depends
on very large waves.
With regards to society, small
hydro guarantees that there will
be electricity available more of the
time, which means that children
can study at night and women
can also make handicrafts for
markets, which gives them more
economic power in society. In
addition, women are given even
more free time because they do
not have to collect firewood
anymore.
Pakistan can also benefit from the
experience and knowledge of its
neighbour India, which has 1694
MW of small hydro installed.
Lastly, it is very important to note
that many people in rural
Pakistan do not have electricity
and small hydro is very well
suited to many of these areas
because it does not have to be
connected to the grid. Another
option is to build grids that only
cover one village or town, which
is a very popular option in China,
India and Vietnam because small
hydro can easily be connected to
this type of grid, state Taylor,
Upadhyay and Laguna.
Thus, small hydro is by far the
best option available for Pakistan
due to the presence of many
rivers, the environmental and
societal benefits as well as the
drawbacks of wave and tidal
power. It is now up to the govern-
ment to put in place policies that
would allow people to purchase
these systems cheaply. If Pakistan
is able to independently produce
power, this would greatly
increase the number of jobs and
the benefit to society.
References
Nayyer Alam Zaigham and Zeeshan Alam
Nayyer "Prospects of Renewable Energy
Sources in Pakistan"
<http://www.energy.com.pk/RenewEnerPak
istanNAZ.pdf>
Wikipedia "Pelamis Wave Energy
Converter"
<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: Tidal
Power"
<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: A
small gain to an already large number"
<http://www.ans.org/pubs/magazines/nn/do
cs/2007-5-3.pdf>
International Energy Agency "International
Small Hydro Atlas: Pakistan"
<http://www.small-
hydro.com/index.cfm?Fuseaction=coun-
tries.country&Country_ID=60>
Abdul Waheed Bhutto "Small Hydro-power
Units for Remote Villages"
<http://my.reset.jp/~adachihayao/060829M.
htm>
Simon Taylor, Drona Upadhyay and Maria
Laguna "Flowing to the East: Small Hydro
in Developing Countries"
<http://www.esha.be/fileadmin/esha_files/d
ocuments/publications/articles/REW_06-
1_Laguna.qxd.pdf>
About the Writer
Miriam Katz is a freelance writer based in
London. She currently writes for the
Environmental Peace Review. Her areas of
interest include environmental issues, renewable
energy, biofuels and climate change. She holds
a Bachelors in Arts degree in Political Science
and Environmental Studies from the University of
Toronto. She can be reached at
m.il.katz@gmail.com
tbl sept-oct 08 19
 report: global water corruption

water and corruption:

a destructive partnership
report by Transparency International

he Global Corruption Report 2008 is the first report to assess how corruption affects

T all 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 the
corruption challenge needs to be recognised in the many global policy initiatives for
environmental sustainability, development and security that relate to water.

Putting lives, livelihoods and sustainable devel-
opment at risk
Nearly 1.2 billion people in the world do not have
guaranteed access to water and more than 2.6 billion
are without adequate sanitation, with devastating
consequences for development and poverty
reduction. In the coming decades the competition
for water is expected to become more intense. Due
to overuse and pollution, water-based ecosystems
are considered the world's most degraded natural
resource. Water scarcity already affects local regions
on every continent, and by 2025 more than 3 billion
people could be living in water-stressed countries.
In developing countries, about 80 percent of health
problems can be linked back to inadequate water
and sanitation, claiming the lives of nearly 1.8
million children every year and leading to the loss
of an estimated 443 million school days for the chil-
dren who suffer from water-related ailments.
Water: a high-risk sector for corruption
This Report draws some preliminary conclusions
about 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 risks
of corruption.
Informal providers, often vulnerable to corrup-
tion, continue to play a key role in delivering
water to the poor.

This Report argues that the crisis of water is a crisis

Corruption in water most affects those with the
of water governance, with corruption as one root
weakest voice.
cause. Corruption in the water sector is widespread
and makes water undrinkable, inaccessible and
unaffordable. Water is scarce, and becoming more so.

20 sept-oct 08 tbl

Urgent action is needed to mobilise all
stakeholders to develop practical
ways of tackling corrupt practices in the
many and varied parts of the water sector.
This is the central message of the Global
Corruption Report 2008.
The global water crisis: a crisis of governance
The story of corruption in the water sector is a story
of corruption in resources and services vital for life
and development. It is also the story of a sector in
crisis. Each year millions of people die of water-
borne diseases because access to safe drinking water
and adequate sanitation has not been prioritized. In
2004 more than 1 billion people lacked access to safe
drinking water and 2 billion did not have access to
adequate sanitation - and, despite successes in many
regions, the population without access to water serv-
ices is increasing. Corrupt practices exacerbate these
gaps, removing investment that might be used to
extend services to the poor, diverting finance from
the maintenance of deteriorating infrastructure and
taking 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 and
authority over water and how countries manage
their water affairs. And yet, despite the imperatives
of water for citizens' livelihoods and a country's
growth, 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, and
weak capacity and limited awareness leave citizens
and non-governmental organisations (NGOs) in
many countries unable to demand change.
The nature and scope of corruption
Corruption - 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 the
water sector.
When bureaucratic or petty corruption occurs, a
hierarchy of public servants abuse their power to
extract small bribes and favours. A water meter
reader offers to reduce a customer's bill in return for
payment or a utility official only responds to water
service complaints when favours are traded. When
grand corruption happens, a relatively small cadre
of public and private sector actors are involved and
the rewards are high. For example, public funds for
a rural water network are diverted into the pockets
of 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 are
manipulated to favour the interests of a few
influential water users or service providers at the
expense 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 determine
the outcome of personnel management decisions -
such as payments to individuals for transfers and
appointments to lucrative positions.
Between public officials and private actors. This
includes forms of bribery and fraud that occur in
relation to licensing, procurement and construc-
tion. Collusion or bid-rigging is typical of
tendering processes in developed and developing
countries and involves both international and
national actors.
Between public officials and users/citizens/
consumers. These practices, known as administra-
tive or petty corruption, enable poor and non-poor
households, farmers and other users to get water,
get it more quickly or get it more cheaply. The
series of corrupt practices in the sector extends
from policy capture, to large and small public-
private transactions in construction and
operations, to interactions at the point of service
delivery, which together can be plotted on a water
'value chain'.
The framework shown in table 1 highlights these
three sets of interactions in terms of the functions of
the water sector: a cycle of policy-making and
regulation, budgeting and planning, financing,
programme design and management, tendering and
procurement, construction, operation and mainte-
nance, and monitoring and enforcement functions.
The corruption risk map provides a framework for
identifying these stakeholder incentives, potential
conflicts of interests and the points along the water
value chain that are most vulnerable to capture.
The impact of corruption: putting billions of lives
at stake
The impact of corruption can be described in finan-
cial, economic, environmental and sociopolitical
terms, and can also involve issues of security.
Financial
Weak governance and endemic corruption exact a
social impact that financial calculations can never
estimate. The barriers to access fall disproportionate-
ly on the poor in all regions. Chronically low levels
of access are found among poorer households and,
accordingly, many households find ways - often
tbl sept-oct 08 21
creative ways - of obtaining water informally. They
vary the sources from which they obtain water and
pay higher prices when they can afford it. The
poorest households in countries such as El Salvador,
Jamaica and Nicaragua spend more than 10 per cent
of their income on water while their cohorts in rich
nations such as the United States pay only a third as
much.
Economic
Poverty is multidimensional and household costs
are not all financial. Whether poor households
engage in corrupt transactions or not, they suffer
due to the inefficiencies that corruption produces.
Where corruption removes or increases the costs of
access to water effects can be measured in terms of
lost days, human development and lives. Close
linkages have been found between access to safe
water and infant mortality, girls' education and the
prevalence of waterborne disease.
Water is also a key driver of growth, being an
indispensable input to production (in agriculture,
industry, energy and transport). Currently, the
extremely low levels of hydraulic infrastructure and
limited water resources management capacity in the
poorest countries undermine attempts to manage
variability in water availability. Water reservoir
storage capacity (per capita) in countries such as
Morocco or India is less than one-tenth of the
volume that Australia has in place. Corruption
reduces the levels of investment in infrastructure,
reduces resilience to shocks and undermines growth.
Environmental
The impact of corruption in water can also be
environmental. The lack of infrastructure for water
management 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 management
challenge almost without precedent. The
ever-increasing impact of climate change and the
lack of human and financial capacity to manage the
water legacy result in far greater shock in
developing countries, making the poorest countries
ever more vulnerable. Corrupt practices that
increase pollution, deplete groundwater and
increase salinity are evident in many countries and
are closely linked to deforestation and desertification
across the globe. Stemming the leakage of funds
from the sector is vital to address these issues.
Sociopolitical
The importance of water - on health, poverty,
development and the environment - underscores
how it is fundamentally linked to questions of
power and security. Corruption can turn the control
of water into a force that aggravates social tensions,
22 sept-oct 08 tbl
political frictions and regional disputes.
The drivers of corruption
Government institutions are not well structured to
deal with these informal water providers or the
forms of bribery that develop. Another driver of
corruption in the water sector is related to the fact
that the demand for accountability is very limited in
developing 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 and
responsibilities of all these stakeholders results in a
lack of transparency and accountability and,
inevitably, in a severe asymmetry of information
between 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, water
displays the resource allocation and procurement-
related abuses which arise when the public and
private sectors meet. As water services and resource
management is one of the functions of a country's
administrative or civil service, the sector also
confronts a different set of obstacles: low capacity,
low wages, lack of clear rules and regulations, and
dysfunctional institutions. These conditions make it
susceptible to the common practices of fraud,
bribery, embezzlement and favouritism.
Understanding the channels where corruption can
occur helps in its prevention. Mapping makes it
possible to identify 'hot spots', in a particular
context, where corruption tends to concentrate along
the water value chain framework shown in table 1.
Ultimately, however, corruption scenarios play out
very differently in different contexts. Political
regimes, legal frameworks, the degree of decentra-
lisation, regional disparities, power relations,
cultural norms and levels of accountability
(for example, between state and civil society) will
influence 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
 social partnership
case study of a social enterprise
A pseudonym 'Paniwala'
(PW) has been used to
disguise the identity of
the leading entrepreneur
behind 'Pani Ghar', a
social enterprise estab-
lished two years ago to
provide safe drinking
water at affordable
prices. The social enter-
prise as a company was
wounded up while the
pilot outlet still functions
in Lahore.
Mr. Paniwala (PW) looks
back to a year ago when
his negotiations with a
major international social
venture fund were almost
finalized, before they sud-
denly collapsed and so
did his dream to start a
revolutionary social
enterprise for providing
safe drinking water to the
poor in a financially
sustainable way.
24 sept-oct 08 tbl
pani ghar
by ali salman
for tbl
Background
Potable water in Pakistan is pol-
luted, and the health situation is
getting worse. This has been con-
firmed by National Water Quality
Monitoring reports issued by the
Pakistan Council for Research in
Water Resources (PCRWR).
Keeping this in mind, many
companies have launched bottled
water. However, they are catering
to the rich. A liter of bottled water
costs Rs. 22; in jumbo packs of 19
liters, this price drops to Rs. 6 per
liter: still a price, which the poor
and lower income groups cannot
afford. The Economist (November
9, 2006) estimates that the
spending on drinking water by an
average household does not cross
over 5 percent of their monthly
income. It translates into the fact
that to afford clean drinking
water through bottled water
companies, the monthly
household income should be
more than Rs. 50,000; whereas
according to the Economic Survey
of Pakistan, the per capita income
of Pakistan is $850 or Rs. 4,250 per
month as per 2006 prices.
Pani Ghar: Beginning of an Idea
Concerned about the water situa-
tion (for example, lack of potable
water) in poor communities, Mr.
PW began to think of ways to
provide this precious resource -
water - at a large scale to the poor
in a for-profit business model. He
thus analyzed various options
including the government
expenditure and compared
household costs per annum.
Investment
Per Household
(Rs.)
Household 18,000
Filters
Pani Ghar 6,000
Government 8,464
Plants
Bottling Company 43,200
Assumption:
Everything else equal, the above table
compares household costs for each option.
Next, PW undertook professional
market research to estimate the
demand of drinking water in
specified locations while keeping
a price point of Re. 1 per liter. The
market research yielded several
insights and confirmed that a
sizable demand exists at the
community level for buying clean
drinking water regularly. Once
PW had determined the demand
level in these areas, he explored
technologies available in the
market. His purpose was to find a
'medium size ultra violet filtration
plant, which could be placed in
an exclusive shop and could
supply water to a community of
around 1,000 households'.
Competitive Analysis
PW also conducted a competitive
analysis. He identified that
household filters pose an
immediate threat to his idea. But
his research exposed the inade-
quacy and uselessness of these
filters. Many target customers opt
to use boiled water; however,
boiling water is recommended
only for emergencies and scientifi-
cally proven to be counter-pro-
ductive, if used regularly. A low-
cost technology is water purifying
crystals. However, while this
technology may satisfy social con-
cerns, it does not satisfy commer-
cial requirements. The govern-
ment has spent 12 billion rupees
in its project 'Clean Drinking
Water for All'. The project aims to
install more than 6,000 filtration
plants - one in each union council
of the country - by the end of
2008. Only 600 were installed and
this project has unfortunately
taken the well-known downward
trajectory associated with most
government-run projects.
Pani Ghar: Commissioning
Phase
PW identified a local manufac-
turer of water filtration plants,
who had developed a prototype.
This, for PW was a dream come
true. PW signed partnership
agreement with him and a
company was established: Pani
Ghar. Much to the disappoint-
ment of this young entrepreneur,
a year later, this would prove to
be 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 rapid
assessment of Pani Ghar.
Unanticipated Problems in Pani
Ghar and PW's Strategy
Pani Ghar was located on Multan
road in Ittefaq town, a congested
urban area near Mansura, Lahore.
Although this outlet was
operational for almost a year, the
number of customers was low.
The management faced various
unanticipated problems. These
problems included unwillingness
of people to buy 'uncertified
water', slow sales, poor market-
ing, lack of monitoring and com-
petition from household filters.
When PW assumed charge of
Pani Ghar, he took specific steps
to address each issue. He
appointed a business graduate
and delegated sales, quality
management and marketing to
him. This brought positive results
rather quickly. After six months,
Pani Ghar's revenue doubled and
the enterprise achieved self-
sufficiency. Some sixty plus
households became regular
customers of Pani Ghar. These
households belonged to the
lower-middle group and became
loyal customers.
Scaling up Pani Ghar
When the house was put in
relative order, PW began to work
on an investment which would
help him scale up the project. He
believed in the concept of
economies of scale and knew that
a well-paid professional manage-
ment would make sense, once the
operations were wide enough.
PW prepared a plan to open ten
outlets in Punjab and sought the
help of a major social investor.
Initial response was positive and
a long, taxing process of
communication ensued.
Lack of Internal Coherence
While the enterprise was doing
well at the operational and
business development levels, it
faced an internal management
challenge. PW's partner began to
mistrust PW regarding his
engagement with the venture
fund and spending money on
systems and management. The
partner was of the opinion that
spending money on quality
control and management support
was not needed at this stage and
should be put off. However, PW
insisted that for long-term benefit,
this short-term expenditure
should be absorbed. This conflict
left both shareholders in bad
taste. PW was asked by his
partner to quit and wind up the
company. The potential social
investor also took note of the
internal management conflicts
and concluded that it is not a safe
investment. Apart from learning
several lessons about the
marketing of a social enterprise,
PW also learnt an important
lesson the hard way:
The social entrepreneur
should remain independent
at least until the pilot phase
of the product is successful.
Dependency on an external
factor, including an organi-
zation or an investment in
the initial phase can be fatal.
In the last quarter of 2007, Pani
Ghar was wound up as a
company, though the lone outlet
still continues to operate
profitably. PW's dream was not
realized but his initiative
provided great insights and a
useful knowledge base for similar
initiatives.
About the Writer
Ali Salman currently works as a senior partner
at Development Pool - a consulting firm and
teaches Economics. Ali specializes in economic
analysis, entrepreneurship, policy formulation
and business models. He has worked in the
private, public and development sectors of
Pakistan for over ten years. Besides various
publications, the book 'Alternative Youth Policy'
is to his credit. He engaged in good governance
reforms, citizens-government liaison and policy
research during a two year period at Planning
Commission, Government of Pakistan. Ali did his
Masters in Economics from Boston University as
a Fulbright Scholar; his MA in Development
Studies as Royal Netherlands Fellow; and an
MBA from Quaid-i-Azam University, Islamabad.
tbl sept-oct 08 25
 eco-retreats & eco-models

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

teri gram ecological retreat

by kurt archer
for tbl

I
rony of the times: a world
class ecological model of excel-
lence emerged in one of the
top polluting cities in Asia.
Found in the outskirts of New
Delhi, in an upscale development
town named Gurgaon, is the Teri
Gram campus. The Energy and
Resource Institute (TERI) was
founded by the Tata family in the
1970s as a way to model India
towards a more energy efficient
future. Today it is known as a
centre of excellence, in India and
around the world, with offices in
Europe, Asia and the Middle East.
Dr. R.K. Pauchauri leads the
institute. He won a Nobel Prize
for environmental protection in
2004 - the same year as Al Gore
was awarded for his work with
an 'Inconvenient Truth’, which
made waves throughout out the
world raising awareness towards
the urgency of climate change.
Teri: A Model of Excellence
Located far from urban noise, the
Teri Gram campus is most
notably known as a retreat with
cricket, golf and other outdoor
activities. However, what makes
it renowned is its complete
reliance upon renewable
resources.
Arriving at the campus you must
park at the gate and to tour the
compound, board an electronic
car, its symbolic green colour
blending well with the campus
horizon. As the main retreat
building nears, you will first
notice its very modern and
sophisticated design surrounded
by forests and green fields.
The main foyer is lit only using
sunlight, streaming in through a
skylight window that spans most
of the roof; placed upon which
are photovoltaic solar panels.
Solar Energy and Biomass
Gasification
The building uses no air
conditioning facility, and relies
completely upon solar energy and
biomass gasification to provide
the much needed energy for the
building. In fact, the building
consumes 10.7 kW per day of
solar energy from those photo-

26 sept-oct 08 tbl
voltaic panels, while up to 100 or
150 kW are produced through the
process of biomass gasification.
The biomass gasification machine
is akin to an incinerator and burns
natural products such as wood
and cedar chips broken down into
small nuggets. The heat produced
is used to heat water tanks and
power a generator. Burning at
temperatures of 1200ºC, very little
thermal energy is lost in the
process. Most of the wood chips
are taken from scraps on the
facility grounds, while others are
bought from outside producers.
For those curious as to where the
ash is sent after the burning is
complete, you might appreciate
knowing that some of it, if still
high in its carbon content ratio,
can be used as a bond to stick
sawdust chips together into
nuggets. The unusable
remainders are dug into the earth.
Since the product had no
chemical properties, there is no
risk to the soil.
The generator itself is only run
when needed, so there is no
unnecessary burning and wastage
of energy. The operating cost
overtime for implementing such a
system is equal to about fourteen
Indian Rupees per kilowatt hour,
including the purchasing of
woodchip material.
Ancient Greek Design Model
for Conserving Energy
The design of the building itself is
modelled after an ancient Greek
design. Instead of air condition-
ing, they run cooling pipes
through the ground: dug to 4
meters below-surface, and run-
ning about 70 meters along the
building. The only energy used
here is to run a large fan that
cools the air and blows it along
the pipes into the room chambers
ahead.
This alone will not fully cool
down the room, so based on the
simple science of thermodyna-
mics, and the rule that heat
Bio-gas Fuel inputs
These timber and loose foliage pellets are used
to power the Bio-Gasification unit. Some are
found on site, others are purchased through
suppliers. All products are 100 percent natural,
and chemical free.
always rises, the Greeks designed
heat chimneys that run up the
building emitting small amounts
of heat that help suck any hot air
into the chimneys and out into the
fresh air. When used in combi-
nation with the wind tunnels it
provides a cool and comfortable
temperature, even in the heat of
the Delhi afternoons.
Waste Water Management
No self-contained facility is
complete without managing the
waste that it inevitably produces.
Aside from using only recyclable
materials instead of plastics,
waste itself is reduced dramati-
cally at Teri Gram.
However, the sewage waste is
what is most alarming in how it is
treated: completely naturally by
plants from the Phramites
Austravlis family. Sewage water
enters a small pond where these
water born plants grow, and over
a short period of time, the plants
begin consuming the waste
produced until there is only water
left, and all traces of acidic
material or methane have been
consumed by these carnivorous
plants. What comes out from the
other end is clear, usable water.
Teri does not stop here though.
They are also experimenting with
a special purification filter that
removes the remaining microbes
that were left in the fauna treated
water and after passing through
this filter, it can easily be clean
enough to drink. While research
is underway to find more efficient
usages of the water produced
through this system, most of this
water currently is used to water
gardens and fields.
GM to Conserve Plant
Species?
A trip to Teri usually ends with a
visit to the tissue culture planta-
tion. Here thousands of plant
species are being cut and repro-
duced using genetic modification
(GM) techniques, essentially
cloning high yielding plants. This
does not contribute favourably to
biodiversity. In other words, they
are not interested in replicating
eco-systems but rather maintain-
ing certain species of plant that
would have otherwise died out
due to various reasons associated
with soil and ecological degrada-
tion. The facility employed state
of the art methods at engineering
and growing high yield crops,
which are then sent all over India
and the world. This article of
course cannot get into the
controversies associated with GM
technologies.
The Teri Gram retreat can serve
as a role model in the world of
ecological design, and its place in
Asia gives it a unique stronghold
in an area where most of the
population is still quite unaware
of the harmful effects of environ-
mental degradation. One can only
hope its model can be replicated
throughout industry and design
schools all over the
continent - and beyond.
About the Writer
Kurt Archer has been passionate about youth
volunteerism since 2000 when he delivered
presentations on child rights awareness with
UNICEF. He has experience in youth training,
public speaking and civil society engagement.
Kurt is currently touring through Asia identifying
best case practises for positive environmental
changes. He studied Political Science from
Carleton University.
tbl sept-oct 08 27
 profile in sustainability
towards 'a truly water-sustainable
business on a global scale'
- coca-cola
A
ccording to the
International Water
Management Institute
(IWMI's) Comprehensive
Assessment of Water Manage-
ment in Agriculture, one-third of
the world population faces some
form of water scarcity. A recent JP
Morgan Report states that by
2025, this is expected to rise to
two-thirds, due to climate change
and increasing urbanization and
population growth. The
Intergovernmental Panel on
Climate Change (IPCC) report on
'Climate Change and Water'
predicts that global population
will rise from about six billion
today to 8.7 billion by year 2050;
which means that much more will
be needed to feed the growing
population. Already about
seventy percent of the water used
worldwide is used for agriculture.
It is quite clear that the future for
fresh water does not look bright.
Especially when you also consider
that all the fresh water there is
today will be all the fresh water
that will be there in the years to
come. It is a resource that will not
increase in quantity over time.
The IPCC goes on to say that the
unprecedented challenges from
population growth, pollution,
climate change and problems of
allocation of water pose a severe
threat to ecosystems worldwide,
posing a further serious threat to
fresh water availability as in
water-stressed areas, people and
ecosystems are particularly vul-
nerable to decreasing and more
variable precipitation. An estimat-
ed third of the world's population
28 sept-oct 08 tbl
currently lives in water-stressed
countries. This is set to increase to
two-thirds within 25 years. Africa
and Asia are already hard-hit by
water stress. Increasing popula-
tions will create more pressure in
the coming decades.
Source: United Nations Environment
Programme (UNEP)
The Impact of the Water Crises
on Sustainability of Businesses
In this scenario, everyone around
the world, particularly in water-
stress areas, needs to become
increasingly aware of the water
challenges and needs to act now
to proactively address the loom-
ing water crisis. Within the corpo-
rate sector, industries that have
water as a key input must partic-
ularly consider the impact of
decreasing water resources on the
sustainability of their businesses.
Such organizations must focus on
developing strategies and solu-
tions now to counter future
expected water shortages, or face
the risk of closing down their
businesses.
For the international beverage
giant Coca-Cola, water is a vital
resource. It is the main ingredient
used in nearly every beverage
that the company makes.
"Without access to safe water sup-
ply, our business simply cannot
exist," says Coca-Cola's Chairman
and CEO, Neville Isdell.
Coca-Cola sells 1.5 billion bever-
ages a day in over 200 countries
and territories across the planet.
At Coke's bottling plants, it takes
2.5 litres of water to produce one
litre of its product. In 2006, Coca-
Cola and its bottlers used 290 bil-
lion litres of water to produce its
beverages - equivalent, for
instance, to one-fifth of the daily
water usage of the U.S.A. Forty
percent of that went into drinks.
The other 60 percent was
consumed by the firm's supply
chain and in the production of
ingredients.
Clearly Coca-Cola cannot do
without water. No surprise there-
fore that last year, Coca-Cola
announced its bold commitment
to achieve 'water neutrality' by
year 2010, in collaboration with
the WWF. The concept of water
neutrality was created by Pancho
Ndebele at the 2002 Johannesburg
World Summit for Sustainable
Development (WSSD).
Waterneutral.org defines water
neutrality as "reducing the water
footprint of an individual (or
entity), and where appropriate,
balancing (off-setting) the remain-
ing use in a meaningful way".
Coca-Cola and WWF
Conservation Partnership
At the WWF Annual Conference
in Beijing last year, Coca-Cola
pledged to increase water efficien-
cy in its global beverage
operations and become 'water
neutral'. That means that the com-
pany will work to replace all the
water it uses in production of its
beverages - every drop of water it
uses to produce beverages would
be returned to the earth or com-
pensated for through conserva-
tion and recycling programmes.
Earlier, in June 2007, Coca-Cola
had already announced its collab-
oration with WWF to help con-
serve and protect freshwater
resources. It committed $20 mil-
lion over five years to WWF to
help conserve seven of the
world's major freshwater river
basins that span more than twen-
ty countries in North America,
Europe, Africa and Asia. Their
challenges vary greatly, from
dams that have outgrown their
usefulness to agricultural run-off
issues to loss of habitat due to
development and land reclama-
tion. According to WWF, these
waters were chosen "because of
their biological distinctiveness,
opportunity for meaningful con-
servation gains, and potential to
advance issues of resource protec-
tion."
So how will Coca-Cola execute its
commitment to Water Neutrality?
"For us that means reducing the
amount of water used to produce
our beverages, recycling water
used for manufacturing processes
so it can be returned safely to the
environment, and replenishing
water in communities and nature
through locally relevant projects,"
said Isdell at the WWF Annual
Conference.
Coca-Cola's Water Neutrality
Initiative: The Three Rs
Coca-Cola's water neutrality pro-
gramme has 3 core components:
Reduce, Recycle, and Replenish.
These were explained by Isdell at
the WWF Annual Conference:
To Reduce, Coca-Cola will set
"specific water efficiency targets
for global operations by 2008 to
be the most efficient user of water
among peer companies". This is a
key element of the Coca-Cola -
WWF partnership.
To Recycle, the company will
return "all the water that it uses
for manufacturing processes to
the environment at a level that
supports aquatic life and agricul-
ture", by 2010. Coca-Cola's water
treatment standards are more
stringent than many local stan-
dards and nearly 85 percent of its
manufacturing facilities have
implemented these standards. As
part of its water neutrality pro-
gramme, the Company has
pledged to align 100 percent of its
manufacturing facilities with
these stringent water treatment
standards by 2010.
To Replenish, Coca-Cola will
"expand support of healthy water-
sheds and sustainable communi-
ties to balance the water used in
its finished beverages". This will
include a wide range of initia-
tives, such as watershed protec-
tion, community water access,
rainwater harvesting, reforesta-
tion and agricultural water use
efficiency.
The company will focus, along
with its partners such as WWF,
UNDP and USAID, to identify the
locations and projects where the
need is the greatest, and where it
can have a positive impact on
communities and ecosystems. It
will also focus on reducing water
use in its supply chain, beginning
with sugar, where it will expand
its existing collaboration on the
'Better Sugar' Initiative.
Coca-Cola continues to work with
- and learn from - its bottling
partners in developing and imple-
menting responsible water man-
agement and community engage-
ment in water stressed regions.
CCC=CSR, Using Companies'
Core Competences
Understanding that water stew-
ardship is essential for its busi-
ness and safe water is vital to the
sustainability of the communities
it serves, forms the guiding prin-
ciple for Coca-Cola to launch a
comprehensive strategy to work
with partners worldwide on
water conservation initiatives.
As we know, CSR is today recog-
nized as being much more than
corporate philanthropy, which
gave birth to it. True CSR means
that a company's responsibility to
society first of all starts with
ensuring that it produces high
quality products, and it does this
with the least environmental
impact and with the most benefits
for its stakeholders and the com-
munity. Jeff Seabright, Coca-
Cola's vice president of environ-
ment and water resources,
emphasizes that, "Increasingly the
real relevance is using the compa-
ny's core competence to address
issues that are of societal con-
cern".
Walking the Talk
Coca-Cola's water-conservation
efforts are to be seen as going
beyond altruism: they relate
directly to the company's own
sustainability. Literally, as it is
trying to ensure the continuing
availability of a crucial ingredient.
Businesses that do not address
looming shortages of non-substi-
tutable inputs run the risk of
plant closures and sullied reputa-
tions, says Marc Levinson, lead
author of the JP Morgan Report.
Coca-Cola's vision is to 'establish
a truly water-sustainable business
on a global scale'. Water steward-
ship is a growing global issue
whose impacts are felt at the local
level. The Company realises that a
strategy 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 and
implemented 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 freshwater
challenges we face in this century in a more impactful way than either of us could do alone", said Neville
Isdell at the WWF Annual Conference. The definition of synergy, realized.
Plachimada Plant Case: The
Business Challenge for
Sustainability
The Plachimada Plant Case is an exam-
ple of how Coca-Cola overcame and
handled a business challenge success-
fully. In 2002, residents of Plachimada,
a village in India's southern state of
Kerala, accused the company's bottling
plant there of depleting and polluting
groundwater. Two years later, the local
government forced Coke to shut down
the plant. In 2006, when a New Delhi
research group found high levels of
pesticides in Coca-Cola and PepsiCo's
locally produced soft drinks, several
Indian states banned their sale.
The incidents were particularly worri-
some because they hurt Coca-Cola's
brand in a market that is key to future
growth. Coca-Cola denied polluting
water and sucking wells dry in India and
presented evidence to support this, but
Jeff Seabright admits it mishandled the
controversy on the PR front.
"If people perceive that we're using
water at their expense, that's not a
sustainable operation," Seabright said,
highlighting the importance of
perception-management. "We sell a
brand. For us, having goodwill in the
community is an important thing."
In December 2007, Coca-Cola spent
$10 million to establish the Coca-Cola
India Foundation, which has installed, to
date, 320 rainwater harvesting
structures, to collect and recharge the
groundwater tables. Rainwater
harvesting facilities are constructed to
maximize yield and are designed to
channel runoff into holding reservoirs
that recharge ground water throughout
the dry season, hence turning India's
rain-rich monsoon season into a
year-round water asset.
Coca-Cola continues to work with the
local government and the community to
help combat water scarcity, ensure a
sustainable supply of and access to
clean water and expand the use of
rainwater harvesting technology in India.
The above example demonstrates how
a company realized that its sustainability
is built on the growth of its business and
equally important, its' triple bottom-line
initiatives.
30 sept-oct 08 tbl
Coca-Cola's Water Conservation Initiatives in China
Coca-Cola is also working with partners on conservation projects in water-
stressed areas throughout the world. Climate change is likely to impact fresh
water availability, particularly in South, East and Southeast Asia, specifically in
large river basins such as Changjiang in China. According to the IPCC Report,
'Climate Change and Water', there is ample evidence (observational records
and climate projections) that freshwater resources are vulnerable and have the
potential 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 funding
social and environmental projects across China. The country is home to roughly
20 percent of the world's population, but has only about 7 percent of the world's
water. Water scarcity could constrain China's future development if not
effectively managed, environmentalists say. That kind of pressure is one of the
reasons why Coke has partnered with local NGOs to promote environmental
education, rainwater harvesting and river conservation in China, and why the
company's Chinese bottling plants are on the cutting-edge of the company's
conservation and recycling efforts. Between 2004 and 2007, Coke's 37 bottling
plants in China reduced water usage by a substantial 27 percent.
Coca-Cola has its biggest bottling plant in Shanghai, China. At this plant, plastic
bottles and aluminium cans zoom by on conveyer belts, weaving in and out of
massive machines that shape, clean and fill them. Grimy wastewater generated
from 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 be
utilised for street-cleaning, car-washing and other secondary uses. Leaking
pipes have been fixed to save water, and a dry lubricant is used to keep
conveyer belts running smoothly with less water.
Physical water scarcity: More
than 75 percent of river flows
are allocated to agriculture,
industries or domestic purposes
(accounting for recycling of
return flows). This definition of
scarcity - relating water availabil-
ity to water demand - implies
that dry areas are not necessari- Little or no water scarcity Not estimated Approaching physical
water scarcity
ly water-scarce, e.g., Mauritania. Physical water scarcity Economic water scarcity
Approaching physical water scarcity: More than 60 percent of river flows are
allocated. These basins will experience physical water scarcity in the near
future.
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 additional
blue and green water, but human and financial capacity are limiting.
Little or no water scarcity: Abundant water resources relative to use. Less than
25 percent of water from rivers is withdrawn for human purposes.
Source: International Water Management Institute (IWMI)
References
Kirby, Alex. Water Scarcity: A looming About the Writer
crises. <http://news.bbc.co.uk/2/hi/sci-
ence/nature/ 3747724.stm> Rutaba Ahmed is Managing Editor
of TBL. She holds a Bachelors in
IPCC Technical Paper IV on Climate Business Management from
Change and Water. University of Georgia, USA and a Masters in
<http://www.ipcc.ch/pdf/technical- Communications Studies from University of
papers/ccw/chapter1.pdf> Leeds, UK.
 crossword

CROSSWORD

Across
2. Power derived from the force or energy of moving water
4. The effort to increase the well-being of humankind
5. To treat or process so as to make suitable for reuse
7. A person or group that has an investment, share etc
10. A situation favourable for attainment of a goal
12. Combination or interaction of social and economic factors
16. The only CSR magazine in Pakistan
17. The difference between ethical and non ethical returns
18. Without this function, your CSR may go wild
Down
1. Exercising authority
3. To enable or permit
6. To keep up or keep going, as an action or process
7. ...Of change
8. Social and cultural forces that shape the life of a person
9. Too many of these, but it is all for their sake
11. Make more of this, to do more
13. What we must do to keep everyone on board
14. Save it, to save yourself
15. Bottomlines corporate citizens usually have

tbl sept-oct 08 31
 csr in africa

csr and sustainable

development in
africa:
water of life
by camila flatt
for tbl

ccording to the traditional African philosophy of Ubuntu, we discover and affirm our own humanity

A through 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 rigid
walls. 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 of
responsible companies in Africa because the informal sector is so omnipotent in many African countries,
often carving out 50 percent of the economy.

Why Africa?
When africapractice was set up, people asked why a
communications company would want to involve
themselves with corporate citizenship or CSR in
Africa. What people didn't realise was that
communication is vital in promoting responsible
development and investment into Africa.
africapractice, headquartered in London, provides
strategic communications, corporate citizenship and
environmental consulting services and works with
clients to enhance their performance and communi-
cate their commitment to African development.
We believe that an ethical and responsibly acting
private sector can do incredible things to alleviate
poverty in Africa, particularly in Sub-Saharan
Africa. It generates wealth, increases productivity,
and accounts for its environmental and social
impacts. Our view is that businesses should aim to
act ethically and responsibly in order to be a
sustainable business in Africa. The upshot is that by
being a good corporate citizen, you can play your
part in alleviating poverty and delivering
sustainable development.
Another distinguishing feature of African economies
that determines how CSR is played out is the lack of
publicly-listed companies. There are only 19 stock
exchanges on the 56-country continent and apart
from the Johannesburg, Egyptian and Nigerian
Stock Exchange, African stock markets are relatively
small and unsophisticated. Most businesses
therefore do not feel the pressure from socially
responsible investors or international civil society
groups to apply global CSR standards.
Governance and Communications
African businesses in general, especially private
companies, do not face the same level of pressure
and scrutiny as those in the West. Outside South
Africa and some North African countries,
government regulation on environmental and social
impacts are weakly enforced and civil society
groups have a relatively quiet voice when it comes
to corporate injustice.
Though African businesses see themselves as the
community and therefore any action they do as
socially responsible, this does not mean they should
not be held accountable for their actions. Barring
NGOs, multinational corporations are leading this
movement by localising their global CSR strategies

32 sept-oct 08 tbl
and policies to their African
operations and instilling values of
respect and responsibility. They
do this by using three communi-
cation tools to engage and
enthuse their employees, from
directors to employees.
The first is to raise awareness
within the company about
issues as wide-ranging as
codes of conduct, environ-
mental impact, accountability,
and consumer satisfaction.
The second is to align corpo-
rate values with a company's
non-financial activities. For
example, Cadbury's value of
'working together to create
brands people love' is an
umbrella for its CSR activities
like ethical sourcing and
procurement.
The third is recognition and
celebration. Two-way
communication and feedback
is vital to instil respect and
learn about what works for a
particular group of people or
situation.
Leading multinationals also set
themselves targets and monitor
their progress towards these
targets. We are familiar with the
types of targets companies have
set themselves such as reducing
water use or carbon emissions by
a certain percentage or donating a
certain amount to community
investment projects. In Africa,
due to the current state of affairs,
these initiatives can have a
profound impact in helping to
alleviate poverty.
Water of Life
Since 2006, Diageo, a leading
premium drinks company, has set
itself a target to reach one million
people in Africa with clean
drinking water each year until
2015. It began measuring the
impact of this initiative in 2007,
commissioning an external
evaluation of their projects to find
out exactly how many people are
being reached and understanding
the impact clean drinking water
has on these beneficiaries.
At the end of 2007, Diageo was
reaching just over 840,000 people
with clean drinking water and the
company was beginning to see
other benefits accruing to the
beneficiaries, such as increased
school attendance due to
improved health, increased crop
production for their subsistence
farms, and less incidences of
abuse and attacks at night while
women went to fetch water.
United Nations Millennium
Development Goals
1. Eradicate extreme poverty and
hunger
2. Achieve universal primary
education
3. Promote gender equality and
empower women
4. Reduce child mortality
5. Improve maternal health
6. Combat HIV/AIDS, Malaria, and
other diseases
7. Ensure environmental sustainability
8. Develop a global partnership for
development
What was also important to
Diageo was communicating these
results, both internally and
externally. Diageo created a social
network called the 'Water of Life
Social Network'. Members consist
of Diageo employees and Diageo
partners who help implement the
programme. The network allows
employees to discuss with each
other and understand what
challenges they each face and
what best practices are out there.
It is particularly useful for the
Global Diageo team to communi-
cate with their operating business
in Africa, such as Guinness
Nigeria or East African Breweries
to stay abreast with updates.
To empower their operating
businesses, Diageo also created an
advocacy toolkit to communicate
the results and impact of the 1
Million Challenge to key stake-
holders. It allows consistency of
messages and helps their African
businesses to lobby national
governments to prioritise water
and sanitation issues up the
national agenda. A Water of Life
Handbook is also in the making.
This handbook is an A to Z guide
for Diageo's operating businesses
to implement Water of Life
projects. It covers everything from
selecting the appropriate projects,
the do's and don'ts of engaging
with partners and what
sustainability means.
Sustainable Development
Because Diageo started to
measure and monitor the impact
of its CSR project, it is now able to
see how this initiative - which
started as a philanthropic contri-
bution - is now contributing to the
sustainable development of its
communities. Diageo's emphasis
on communicating their results
was central to them wanting to
make a real and meaningful
impact to their communities.
It is the combination of companies
promoting responsible and ethical
standards to their operations and
viewing themselves as part of the
communities in which they
operate - the Ubuntu philosophy,
which challenges traditional
concepts of CSR into one that fos-
ters sustainable development on
the continent. We believe that
communication, through
stakeholder engagement and
advocacy is the lynchpin to
transforming philanthropic
corporate donations into sustain-
able poverty reducing activities.
About the Writer
Camilla Flatt is a CSR consultant working for
africapractice, a strategic communications and
corporate citizenship consultancy working to
promote responsible investment and
development in Africa. Her work currently
focuses on water supply and sanitation as well
as carbon, trends and development in African
CSR legislations, and stakeholder engagement.
She read Geography at the University College
London and attained her Masters in Environment
and Development at the London School of
Economics. She can be reached at
cflatt@africapractice.com.
tbl sept-oct 08 33
 breather

34 sept-oct 08 tbl
tbl sept-oct 08 35
 csr: a reputational opportunity

corporate social
responsibility:
a reputation at risk
by arif zaman
for tbl

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

A
s the economic world turns upside down, the
issue 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. This
can also be seen in the broader context of confidence
- by customers, employees, shareholders, and also
communities - in business policy and its translation
into practice. Corporate Social Responsibility (CSR)
has provided opportunities for companies to align
their 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 'corporate
citizenship' and 'corporate social responsibility'. The
Commonwealth Business Council (CBC) uses the
term corporate citizenship with a definition devel-
oped from the work of the World Business Council
on Sustainable Development: "Corporate citizenship
is the commitment of business to contribute to sus-
tainable economic development, working with
employees, their families, the local community and
society at large to improve the quality of life of all
stakeholders". For the Federation of Pakistani
Chambers of Commerce and Industry (FPCCI), CSR
is "the strategic and practical link between inclusive
development and economic growth realised by
business behaviour that generates a trustworthy rep-
utation with the commitment of key stakeholders. Its
effectiveness is directly dependent upon an organi-
sation's implementation of its values, corporate
governance, business relationships and impacts".
According to the FPCCI, CSR should be viewed as
an umbrella term for a variety of activities, which
share the following features:
Companies have a responsibility for their impact
on society and the natural environment,
sometimes beyond legal compliance and liability
of 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 with
wider 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 right
thing'.
2. Sustainability of the markets companies rely
upon for income.
3. Brand image and reputation.
4. Employee/stakeholder motivation.
5. To enable the company to respond proactively
to changing stakeholder agendas and be able to
cooperate effectively under a range of business
conditions.
6. To account positively on its performance to
stakeholders in a way that will enhance the
company's reputation.
7. To provide managers with a framework for
managing the business in a more holistic
manner.

36 sept-oct 08 tbl

Stakeholders and Society
There is currently an almost bewildering array of
international CSR initiatives. However, stakeholders
such as governments, businesses, and civil society
groups have identified a range of significant
weaknesses in current approaches to promoting
CSR. These need to be remembered as an increasing
number of companies in Pakistan pursue a 'beyond
philanthropy' model of CSR:
An over-proliferation of CSR initiatives at the
international level and lack of clarity about how
these initiatives relate to each other;
An excessive focus on getting businesses to
make commitments to CSR and not enough
focus on enabling them to implement them;
An absence of credible monitoring and
verification processes;
A lack of effective mechanisms of redress for
communities affected by companies that flout
national or international norms on sustainable
development or human rights;
A lack of engagement with developing country
governments and their sustainable development
priorities (for example, economic development
and poverty reduction);
A failure to bridge the governance gap created
by weak public sector governance of the private
sector in many developing countries;
Limited impact on sustainable development
goals; and
A lack of government involvement and/or
investment in international CSR initiatives,
which is contributing significantly to their
underperformance.
Despite the volumes of paper and the number of
events, the CSR (and corporate governance debate)
in Europe and the USA, while contributing to
heightened awareness of the issues, has significant
drawbacks which are seldom acknowledged.
Eight Problems with CSR Today
1. Reputational risks of CSR advocates: variable
standards and a lack of transparency by a grow-
ing number of (western) NGOs which undertake
advocacy, consultancy and third-party auditing,
all too often in tandem, continues to constrain
confidence in the processes involved.
2. A lack of understanding of how corporate gov-
ernance links to CSR: There is an imbalance in
the CSR debate which fails to distinguish where
CSR relates - and does not relate - to corporate
governance. In this area recent developments by
the CBC and also the OECD are of note. At the
same time, the significance of developments in
Asia, especially Japan, which links the two areas
is being increasingly recognised. Moreover, in
developing countries it is important to highlight
not just why but how responsible behaviour and
good governance can contribute to a more
favourable investment climate.
3. A lack of understanding of what CSR means -
and how it is perceived - outside a European/
North American / Christian context: This has
several dimensions. As Canon in Japan has
noted, "the Anglo-Saxon debate on corporate
responsibility seems to be centred only on their
historical and social criteria, which naturally
deal with Catholicism, Protestantism and
Western European Individualism". In addition,
there is a risk that a strong and sustained focus
on China and India does not crowd out visibility
for 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 exports
from developing countries for supply chains of
global companies can contribute to SME
development and poverty alleviation: The
private sector is the main driving force of
industrial development in virtually all countries
and - through changing patterns of international
production, investment and trade - shapes the
economic 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 essential
prerequisite for triggering economic dynamism,
enhancing productivity, transferring and diffus-
ing new industrial technologies, maintaining
competitiveness, contributing to entrepreneur-
ship development and ultimately poverty
reduction, and reduced social and business risk.
5. A lack of sectoral specific context: A profusion
tbl sept-oct 08 37
 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 has
focused on its input-oriented economic and tech-
nological aspects. This view is being increasingly
challenged. The increasing focus on sustainable
development, corporate governance, social
responsibilities and ethics, and social auditing
and standards represents a significant shift in
the growth paradigm which acknowledges that
social conditions also affect the rates of produc-
tivity growth. The approach of the Asian
Productivity Organisation (APO), of which
Pakistan and India are founder members, has
helped to highlight the link between CSR and
productivity in an Asian context.
7. An insufficient focus on capacity-building, train-
ing, and development, especially in developing
countries: A unique gathering of global compa-
nies, major investors and international policy-
makers at the UN in Tokyo in November 2003
agreed that there has been too little focus in CSR
and governance in these areas. Management
education can play a critical role - by building
the 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 substitute
for activities which build the confidence and
trust 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 APO
which now spans a range of 20 Asian countries
is key and much-needed. The SAARC Chamber
can also play a role in sharing knowledge and
building capability at a regional level.
8. An industry which has issues with training,
quality, transparency, and measurement:
Although now changing, many people who
work in CSR - as suppliers and consultants -
often lack a sufficiently broad or deep private
sector background and are too often from NGOs
or academia.
However, it is clear that the CSR agenda also has
some important strengths:
The high levels of commitment shown by some
key leadership companies;
The capacity for innovation and openness to
38 sept-oct 08 tbl
change shown by a range of international CSR
initiatives;
The openness of leadership companies and CSR
initiatives to working in partnership with a wide
range of stakeholders; and
The growing recognition that a CSR agenda
must address public sector governance issues
and scale up the impact of CSR activities to
improve the delivery of sustainable
development at a systemic level.
The elephant in the room is getting bigger
There is one area where CSR - certainly as perceived
in the West - has too long been ignored but where
alienation, articulation and anger make this no
longer possible: minority rights and status. As
Amartya Sen, a Nobel laureate and chair of the
Commonwealth Commission on Respect and
Understanding (2007) said, "civil paths to peace also
demand the removal of gross economic inequalities,
social humiliations and political disenfranchisement,
which can contribute to generating confrontation
and hostility".
The business case for connecting CSR to the status
and empowerment of minorities is clear - it is based
on moral fairness, the need for social stability and
cohesion but also recognises that as economic power
shifts, India and the UK will need to connect more,
not less, to centres in the Gulf and beyond. As the
CBC Guidelines on Business Principles (2007) made
clear, "a wide perspective is now seen as essential
for directors of high performing boards in which
diversity is not just desirable in itself but also for
ensuring an organisation is better equipped to
leverage opportunities from changing trading
relationships in emerging markets". By showing
leadership 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 Corporate
Responsibility and Corporate Governance,' Royal Institute of
International Affairs, London, 2003. See:
www.chathamhouse.org.uk/publications/papers/download/-
/id/137/file/3110_madeinjapan.pdf
SustainAbility Gearing Up (report for UN Global Compact Meeting
24/06/04)
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 Writer
Arif Zaman is Adviser, Commonwealth Business
Council (CBC), and also serves as Principal of the
Reputation Institute and Visiting Faculty, Henley
Business School. He is also a member of the CSR
Standing Committee at the Federation of Pakistan
Chamber of Commerce and Industry.
m
urbanization and cities

egacities
egaproblems
egasolutions

by faye mallet
for tbl

he world's fastest growing cities are found in either Asia or Africa.

T Out of the 20 fastest growing cities in the world, ten, are in China.

Take emerging megacity, Shenzhen: A small town until 1980, Shenzhen

experienced an unparalleled population and economic boom after being
designated a free trade zone. Today, Shenzhen has more than 7 million
inhabitants, due largely to its prime location on the Pearl River delta - the
age-old trend of civilizations to gravitate towards water sources. This is
23 times its population only thirty years ago, according to the UN.

tbl sept-oct 08 39
Massive urbanization has arrived in China. If Urban Migrants
current trends prove correct, the country's urban A report released by Deutsche Bank Research in
population will reach 1 billion by 2030. March of this year, 'Megacities: Boundless Growth?'
cites the growth of cities as fastest in those countries
New research released by the McKinsey Global with a "big gap between rural and urban incomes."
Institute (MGI) estimates 320 million more people The larger the difference between urban incomes
will be added to China's cities by 2025. This is more and rural incomes, the faster cities expand.
than the entire population of the
United States today, just over 305
million. Megacities of
Currently, China has a hundred
cities with a population of over one Rank Urban Area Population
million. In 20 years, it will add more
than a hundred more cities of this c. 2005
size, and at least six more mega-
cities containing populations over 1. Tokyo, Japan 35.2 million
10 million people.
2. Mumbai, India 18.2 million
While this exponential growth will
have a positive impact on the coun- 3. Mexico City, Mexico 19.4 million
try's GDP (MGI estimates increases
up to 20 percent), it also carries seri- 4. Sao Paulo, Brazil 18.3 million
ous challenges and consequences.
5. New York, United States 18.7 million
To meet what is considered an
"unprecedented transformation" in 6. Delhi, India 15.0 million
history, governments at both
national and local levels must 7. Shanghai, China 14.5 million
proactively implement policies now.
8. Calcutta, India 14.3 million
Decisions that China makes today
will determine whether its cities 9. Jakarta, Indonesia 13.2 million
struggle to cope with growth (e.g.
like Mexico City, Mumbai or Sao 10. Dhaka, Bangladesh 12.4 million
Paulo) or emerge as "world-class"
megacities, with new markets and With 230 million migrants expected to move from
opportunities for business. the countryside into China's "new" cities, MGI
forecasts that migration will account for about 70
"To understand the dynamics of the megacities is percent of urban population growth over the next
also to understand their dilemmas," writes Dr. two decades. Most people migrate to cities expecting
George Bugliarello, University Professor and higher wages and an improvement in their standard
Chancellor , Polytechnic University, Brooklyn, New of living.
York.
In many instances, they also don't have much of a
Megacities are where both problems and opportu- choice. One of the reasons why more megacities are
nities are visible on a larger scale. What happens in forming at this particular time is history is because
megacities have a greater impact on the rest of the of the loss of arable land. In China alone some 3,000
world. The UN's 'State of the World Population to 6,0000 square kilometers of farmland are estima-
2007' notes that: "No country in the industrial age ted to be lost each year, cites Deutsche Bank
has ever achieved significant economic growth with- Research.
out urbanization."
The reasons? Industrialization, unsustainable
"Urbanization is unavoidable," states Chief of the farming methods, and climate change.
UN Populations Fund's Resource Mobilization
Branch, Jean-Noel Wetterwald. "The concentration of The Deutsche Bank research cites other reasons why,
people concentrate the problems, but also concen- soon, most of the world will live in cities. Among
trate the solutions." these include:

40 sept-oct 08 tbl
 Population Growth: become one of China's major economic hubs, and
Megacities are largely the result of longer life spans out of all the megacities in China, is purported to be
due to advances in hygiene and medicine. the "fastest-growing urban center on the planet."

Technological Revolution: If the day he spent in Chongqing is "typical," says

"Globalization and digitization" drive the economic The Guardian writer Jonathan Watts, then "builders
development of megacities because of the way they will lay 137,000 square meters of new floor space for
cluster markets and skilled workers together. residential blocks, shopping centres and factories.
The economy will grow by 99
million yuan. There will be 568
the Future deaths, 813 births and the arrival of
1,370 people from the countryside."
Projected Population Watts points out the incongruities
2015 in this emerging metropolis. From
the "bangbang army" -a 100,000-
strong crew of porters who carry
35.5 million heavy bundles of goods between
Chongqing's markets and earn
21.9 million approximately 20 Yuan a day (USD
$2.9) - to the new, richer urbanites
21.6 million who have moved "off the land and
into the sky."
20.5 million
Implications
19.9 million Urbanites tend to produce less and
consume more, making demand
18.6 million for energy and water one of the
biggest dilemmas of our times.
17.2 million
MGI forecasts the demand for
17.0 million energy in China's urban areas is
likely to more than double; and
16.8 million demand for water will increase by
70 to 100 percent.
15.2 million Source
Forbes.com

Opportunities for Investment:

More investment opportunities are to be found in
cities than in rural areas.

Mega-problems
Dr. Bugliarello, Editor-in-Chief of The Bridge, the
quarterly publication of the National Academy of
Engineering, states that "Megacities are currently
experiencing rapid growth with which they cannot
cope."

This creates a host of problems, including:

population growth; poverty increase; infrastructure
problems 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.
This article is under © Copyright 2003-08 of Galt
Western Personnel and has been tailored for TBL
Staggering Urbanization with permission from the Galt Global Review,
Chongqing is a good illustration: Built along the www.galtglobalreview.com.
Yangtze River, this former port town has grown to

tbl sept-oct 08 41
 ethical consumerism

tackling the social impacts of consumerism

today and not tomorrow

n the context of an increasingly globalised

I world, 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 on
the consumer's part in relation to the ethical
nature of the products they buy. It is therefore up
to the Pakistani business community to awaken
the social conscience of consumers in order to
protect the rights of people at both ends of the
value chain.

Consumerism and its Social people's

Impact
Consumerism can be described as
the idea that people consume as a
means of satisfying their wants
and happiness. They consume the
products that they believe reflect
and reinforce their personal
identity. It is consumption that
transcends consuming 'what you
need' in favour of consuming
'what you want'
This consumer culture is evident
in most areas of the world.
However, the social consequences
of such an unconscious consumer
culture are being magnified with
the increasing geographical reach
of supply chains spanning across
different countries.
At the heart of this problem is the
alienation of the consumer from
the producer in favour of a
relationship between the
consumer and a commodity. All
notions of a moral relationship
between the consumer and the
producer are forgotten in favour
of the price and desirability of a
certain product. Not on the
integrity of value chain invested
in delivering that product.
The impact of this is that often
unconscious
consumer
choices are
encouraging
the manipulation of a worker's
rights on the other side of the
world.
An apt example from Pakistan: In
the late 1990's a number of stories
exposed the use of child labour in
the Sialkot football production
industry. For consumers of foot-
balls in the U.S., this came as a
complete surprise - not
necessarily because the con-
sumers didn't know about child
labour but more because they
never considered how or where
their product was made in the
first place. Such an attitude is
unsustainable for the company,
the consumer and the producer.
Awakening the Awareness of
Consumers
The fact that such a report on the
football industry in Pakistan came
to light is evidence that some
consumers are awakening to the
realities of consumer culture.
People are becoming more aware
of the global challenges the world
is facing in relation to issues such
as human rights and the
environment. As a result, they are
gradually assessing society's
consumption habits in relation to
these challenges.
This is especially the case in much
of Europe and North America. A
recent study by GFK NOP looked
at consumers attitudes to ethical
business within Europe.
According to the study, con-
sumers are most interested in
three things when judging how
ethical a company is:
1) Do they ensure fair treatment
of employees?
2) Do they promote care for the
environment?
3) Do they ensure good working
conditions and fair prices for
local producers / suppliers?
In addition, the study found
trends suggesting people are
taking these factors more into
account. For example, nearly one
third (31 percent) of consumers
claim they are willing to pay a

42 sept-oct 08 tbl
5-10 percent premium for an
ethical product over a conven-
tional one. 60 percent said they
would be more open to buying
ethical brands if they had better
information on what companies
are doing.
Although consumers' ability to
take action through their con-
sumption habits depends on
factors such as social status and
geographical location, this is a
trend that companies worldwide
need to take into account.
Taking Action Now Rather Than
Later
The challenge this poses for
Pakistan is two-fold. Not only do
Pakistani corporations need to
ensure they are protecting the
rights of the consumer; they also
need to ensure they are protecting
the rights of the producer.
Although the consequences of not
doing so are not imminent, the
trends of increasing consumer
awareness in the face of consumer
and worker rights violations
cannot be ignored.
Employee Rights
In the wake of the football
scandal, top brands such as Nike
cancelled their contracts with
suppliers in Pakistan. Just as
exploitation of workers can bring
financial benefit (at the cost of the
workers) to parts of the supply
chain, public accountability can
bring the supply chain altogether
to a halt.
Suppliers in Pakistan face the
challenge of remaining compe-
titive in a global market place at
the same time as ensuring human
rights standards are met.
A good benchmark being used by
many suppliers is the
International Labour code set by
the United Nations through the
International Labour
Organisation. Although the
conventions it contains remain
contentious, it does offer a guide-
line to standards on issues such as
freedom of association, health and
safety and child labour.
It was in fact abiding to these
standards that allowed Pakistani
suppliers to attract Nike back to
Sialkot. Silver Star Group, Nike's
suppliers, now requires all their
workers to be registered as full-
time employees. They are paid
hourly wages and are eligible for
social benefits. It was only when
these standards were enforced
that Nike agreed to start
producing in Pakistan once more.
Adequate Reporting - Enforcing
Consumer Rights
Enforcing consumer rights is
dependent on a relationship
between the consumer and
retailer. Unbeknown to many,
there is an organisation in
Pakistan that recognises the
importance of this relationship.
The 'Consumer Rights
Commission of Pakistan', an inde-
pendent non-governmental entity
working to promote consumer
rights, outlines what it believes to
be 'consumer rights' and 'con-
sumer responsibilities'.
Especially important when it
comes to consumer rights is 'con-
sumer information' and 'con-
sumer education'. Consumers
have the right to know how the
products they consume are
produced so they are able to
make an informed consumption
choice. Not providing this
information calls into question the
social integrity of a company.
Realisation of this is evident in
many multinational companies
who report on their supply
chains. Cadbury, for instance,
reports on their supply of cocoa
through initiatives such as the
Cadbury Cocoa Partnership
geared at securing the economic,
social and environmental
sustainability of Cocoa farmers in
Ghana, India, Indonesia and the
Caribbean.
The point is that these companies
are staying ahead of the game.
Although these reporting mecha-
nisms may have little impact on
consumer choice for some
industries at the moment, they are
aware of the rising awareness of
consumers and so are proactively
meeting consumer rights as
opposed to reacting to them later.
Marketing - Appealing to the
Senses
Corporations are beginning to see
the marketing opportunity pre-
sented by ethical products and so
are bringing the ethical angle into
their 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 as
global problems are increasingly
connected to consumption habits,
people strive to identify
themselves as socially responsible
citizens. Such an identity shapes
their consumption habits. This
means that ethical goods are not
being consumed purely because
they are ethical, but also because
of the feel good factor they bring
to the consumer. This feel good
factor can be targeted in the mar-
keting of various commodities.
Investing in the Future
Social awareness and activism is
not currently at a place in
Pakistan where it will majorly
impact consumer habits, just as
worker mobilisation and rights
isn't at a place where it will pro-
mote and enforce better labour
standards. However it is up to
companies to secure the social
rights of their stakeholders and it
is far better to get into the habit of
doing this now rather than later.
About the Writer
Andrew is currently based in Karachi and works
with the JS Group's CSR Initiatives. He has
come here through the AIESEC leadership
development programme and has actively been
involved in connecting students with companies
in CSR based forums in the UK. He has also
written about his experiences of Pakistan for the
BBC.
tbl sept-oct 08 43
 carrots only, no sticks
the carrot-trousered
philanthropist
by sarah wakefield
for tbl
"…And it was there I
learnt that to grow the
best carrots you should
put the compost in the
bottom of the hole…now
my carrots go down to
Australia!"
M
ichael Hopkins, eminent
socio-economist, ex-
International Labour
Organisation, Professor at
Middlesex University, now
Managing Director of his own
Corporate and Social Research
Company, spoke over a spicy din-
ner about visiting Sri Lanka. Here
he not only discovered how to
make his carrots grow, but also
what difference a major corpora-
tion could make in a poor village
through investing in a local farm-
ing project. Hopkins spoke of one
local villager who he named 'Mr.
Magic' due to his amazing veg-
etable-growing abilities and his
commitment to the project.
Despite his world-traveled
44 sept-oct 08 tbl
expertise on vegetables, Hopkins
was in Manchester to share his
ideas, on development and the
role that corporations should
have, with the UMSU
Challenging Orthodoxies Society.
Grey suited with red tie and
matching triangular hanky, his
dress was that of smart eccentrici-
ty, mirroring his chosen role as
academic businessman. With the
same relish he employed when
crunching on his popadoms later,
he peppered his rather dense talk
with slick, controversial headline
winners.
“The UN's core budget is $1.25
billion per year, how can they be
effective with this? That's equiva-
lent to 4 percent the New York
City Annual Budget - the cost of
their fire department. I sat next to
Kofi Anann [ex UN Secretary-
General] on a plane a few weeks
ago; I turned to him and said
‘Kofi, what happened to eradicat-
ing povert?’”
After half a century and $1 trillion
in development aid, 2.65 billion
people, or nearly half of mankind,
live on less than $2 a day and the
figures have grown over the past
decade as some of the poorest
economies travel backwards.
Hopkins' general stance is that
governments and international
organizations grouped under the
UN have failed to curb the
increase of poverty and under-
development. Now is the time for
corporations to step in and use
Corporate Social Responsibility
(CSR) to assist development and
help the most disadvantaged in
the world get a leg up. Hopkins
feels that development in a
country is best measured by an
increase in life expectancy, as this
indicates higher quality of life in
terms of medical care and food,
and controversially enough, he
doesn't think happiness is a factor
in this (perhaps implying that
developed nations don't rank all
that high in happiness anyway).
In one of his books, The Planetary
Bargain, Hopkins suggests, "CSR
is concerned with treating the
stakeholders of the firm ethically
or in a responsible manner.
'Ethically or responsible' means
treating stakeholders in a manner
deemed acceptable in civilized
societies…"
In non-economist speak, this
means that massive businesses
should start looking after their
workers, shareholders and the
environment around them. This
may involve training workers in
more efficient farming methods,
offsetting carbon emissions, or in
the case of beverage manufactu-
rers, not encouraging poor people
with no access to dental care to
buy a sugary, fizzy drink.
The reason they should start to
look at their CSR is because
there's profit to be made in it;
consumers like to feel they have
invested 'ethically' by purchasing
from a corporate citizen. We only
need to look at the growth of
fair-trade and organic labelled
products on our shelves to
acknowledge that consumers are
becoming more aware of where
the goods they buy come from.
In spite of this, Hopkins' worry
now is that corporations are
getting away with investing in
'green' initiatives rather than in
people. He argued it is far easier
to look at a picture of a melting
ice cap and resolve to help, than
look at a picture of a person
stretched past humanity due to
horrific circumstances (war,
famine, genocide, sweatshops)
and find the empathy to support
them.
One may be forgiven for
becoming skeptical about the way
Hopkins believes the world can
be changed when told that his
company writes the CSR pro-
grammes for many big players,
including the UN. This is a game
for the academic businessman:
analyze what companies should
be doing and then get them to
pay you for implementing it.
However, when asked about what
his aims are, he employed an
almost childish charm in the only
softly spoken sentence of the
night saying, "To leave the world
a better place than it was when I
came." It seems a strange thing in
today's world to find an
economist with ethical views and
dreams, beyond the giddy heights
(or plummeting vales) of the stock
market.
Hopkins was pushed into ques-
tioning dialogue by members of
the Challenging Orthodoxies
Society. "Are massive corpora-
tions really the answer when they
have trampled their developing
world producers into the ground
through sweatshops and aggres-
sive marketing? Can we, at a
grass roots level either as students
or employees, make a difference
to these huge corporations'
policies?"
The answer was "No," as it is
apparently a top down decision,
at least at the moment.
But surely the steps being made
in international policy are
groundbreaking and hold much
promise? Hopkins countered that
there have always been ground-
breaking developments and here
we still are, with Sub-Saharan
Africa the only continent in the
world still developing backwards.
However, when he talks down
international schemes he's keen to
impress he has worked within the
system. When in the UN depart-
ment of the International Labour
Organization he became notori-
ous for writing a paper in which
he suggested they all take a 50
percent pay cut and the profits go
into development. Here the ghost
of socialism drifts into his outlook
which has very much adapted to
play within the capitalist system.
His latest book puts forward a
practical plan about how corpo-
rations can best use their billions
to help the poor. Given that many
corporations hold turnovers
greater than that of individual
countries, it makes sense to
involve them in investing in areas
that need it the most - in a year
Ford Motor Company sales are
greater than Norway's Gross
Domestic Product (GDP), and
Philip Morris's tobacco sales
every year are greater than the
GDP of New Zealand.
Perhaps it is misguided to dismiss
the international community and
Non Governmental
Organisations, as so often they
lead the way when it no longer
becomes profitable for a corpo-
ration to stay in an area. They
often are the ones left to pick up
the debris of disloyal and fickle
capitalist ventures.
Hopkins' ideals seem to be free of
the usual business desire for
profit alone, but as he walked
away from the glowing lights of
Rusholme it remains to be seen if
the dreams of an economist and
his carrots will take root, or
become riddled with the rot ever
present in the capitalist world of,
The Corporation.
About the Writer
Sarah Wakefield is Student Direct’s Features
Editor. Student Direct is the largest student
newspaper in the UK, and its serves the
University of Manchester.
tbl sept-oct 08 45
 tbl content

tbl ingress
TBL gives you the
opportunity to share your
company's and/or your
individual initiatives and
achievements. We will be
happy to publish your
CSR related initiatives,
given that they fall within
the general parameters
and guidelines of the
publication.

TBL encourages
individuals, public and
private corporations, sole
proprietors and
educational institutions to
communicate their

"
corporate citizenship,
sustainability, and socially A good company delivers excellent
responsible activities and
initiatives. Share your products and services, and a great
thoughts, comments,
questions. company does all that and strives to make

"
the world a better place.
"Never doubt that a
small group of thought- - William Ford Jr., Chairman, Ford Motor Co.
ful, committed citizens
can change the world.
Indeed it is the only
thing that ever has."
- Margaret Mead, American
Cultural Anthropologist.

We all have our strengths.

Assess them. Analyze
them. Criticize them.

We can all be mentors in

our fields and encourage
others to take their stance
for building a socially
responsible society.

46 sept-oct 08 tbl

sustenance of enterprise
"In the world of today, managers and leaders of organizations, in both
the private sector and civil society, are being challenged as never
before to find ways to play a pro-active role in addressing the concerns
of sustainable development". They are often overwhelmed by a shower
of conflicting messages from the media, shareholders, customers,
employees, and NGOs.
T
he Sustainable Enterprise
Fieldbook is useful for
managers as it “teaches them
how to strike a better balance,
moving from an "either/or"
mind-set to one that holistically
embraces social, environmental and
economic issues simultaneously”.
The Sustainable Enterprise
Fieldbook, a realistic and practical
hardback, has been put together by
an outstanding assortment of
experts from business (Microsoft,
Sony, Philips, and AIG), consultan-
cies, and academia. It has been
edited by Jeana Wirtenberg [PhD]
with William G. Russell and David
Lipsky [PhD] in collaboration with
The Enterprise Sustainability Action
Team. Its aim is to teach and guide
leaders, managers, practitioners,
students, and professors in every
sector of society, and in every
industry, to create a successful and
sustainable enterprise.
Each chapter demonstrates -
through models, tools, cases, stories,
and examples from a wide range of
companies - how to integrate
sustainability into the day-to-day
realities of running a business.
Managers are coached, facilitated,
and guided to enable them to create
a better balance between the short
and long-term, to help them become
change agents in their organizations
and 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 stated
that the book “captures the essence,
energies, experiences and best prac-
tices that emerged through the col-
laborative efforts of our community
of co-authors”. The purpose of the
book, how to use it, current reality
[the true condition of our world
today], 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 the
Foundation for a Sustainable
Enterprise', John D. Adams
describes Mental Models as "the
constructs we bring to any situation
that we are attempting to impact.
They include what we know - what
we value - what we believe - what
we assume - out of which emerges a
context for action or inaction'". A
case study [Appreciative Inquiry
case study: Executive MBA candi-
dates] is cited by Theresa McNichol.
Appreciatibe Inquiry (AI) “focuses
on assets, resulting in the uncover-
ing of a wealth of latent talent and
creativity that was just waiting to be
tapped”. Using AI, individuals in
systems start to work beyond mere
function and co-create an entity that
excels.
Section 3 focuses on the topic of
'Developing a Sustainability
Strategy'. In essence, this chapter
defines the unique qualities of
sustainability strategies, lays out the
business case for corporate sustain-
ability, provides examples of
customized ways in which firms are
pursuing a sustainability advantage,
and describes a seven-step model
for structuring the sustainability
strategy formulation process.
Part 3 of the book, titled 'Embracing
and Managing Change
Sustainability', features sections on
managing the change to a sustain-
able enterprise, employee engage-
ment for a sustainable enterprise,
and sustainable enterprise metrics
and measurement systems.
Part 4, titled 'Connecting,
book in focus
by fariha rashed
for tbl
Integrating, and Aligning Toward
the Future', features sections such as
Sustainable globalization and
Transorganizational collaboration
and sustainability networks.
Sustainable globalization represents
a breakthrough and a fundamental
change in how people approach
doing business in a global world in
the 21st century.
Part 5 is the final part of the book
and it includes one section: 'A New
Beginning - When it All Comes
Together'. Written by Jeana
Wirtenberg, David Lipsky and
William G. Russell, they talk about
arriving at a new beginning, which
"contains the crucial possibilities of
creating a sustainable future;
success is our only option". The
writers discuss the common threads
that run through the entirety of the
book that hold some keys to
accelerating the progress of sustain-
ability. They also discuss sharing of
the Sustainability Pyramid with the
readers, which was developed as a
part of a study of the world's most
sustainable companies.
The Sustainable Enterprise
Fieldbook offers an ingredient that
has been missing in the vast
outpouring of information on
organizations and sustainability: a
holistic integration of solutions,
which will make the journey
personal for each reader. It is
comprehensive and focuses on the
human side of sustainable
enterprise. It is a must-read for
anyone trying to make sustain-
ability happen in the real world.
tbl sept-oct 08 47
musings
whose water is it
anyway?
by praetor
for tbl
I
heard this crazy idea for water
harvesting, which on reflection did not
seem that crazy after all. If one is able to
collect all the water flow from all the air-
conditioners operating night and day in a
large city like Karachi, how many MGD
water can one generate? Yours truly was an
instant convert to the idea at an individual
level. Now my bedroom air-conditioner's
water flow goes into a garden bucket, which
invariably is at least half-full by the
morning, and my wife uses the 'harvested'
resource to water her potted plants soon
after dawn. (Yes, she's a committed early
riser!)
There is a lot of talk around about rainwater
harvesting. Indeed there are already
sufficient success stories around the world to
not only prove that it can be done, but more
importantly to emphasize that it must be
done, wherever it rains.
Ultimately water conservation needs to be a
habit at the individual level. In the same
way locking your front door at night-time is.
I wish one could say also: in the same way
as stopping at red traffic lights is. But that's
history in the land of the five (mostly dry)
rivers. It's also another story. Perhaps even a
CSR opportunity for an OMC or a vehicles
manufacturing company to run a public
service message campaign on television, to
inculcate a responsible, law-abiding driving
habit in our worthy citizens.
48 sept-oct 08 tbl
Getting back to water and the individual.
Ever considered spending just a little money
to upgrade your domestic water outflows to
conserve water? Okay, here is what it takes.
A separate sink in the kitchen in which
everything is washed that requires only
water for washing and no soap or deter-
gents. Like fruits, vegetables, meat, poultry,
some crockery and cutlery and your hands
too. 'Dirty' water from this sink flows into a
200 litres capacity fibreglass tank outside. A
flexible hose pipe leads from the tank to
your garden. Two hundred litres of water is
effectively re-used.
If you want to go the whole hog, have the
water from your bathroom sinks, showers
and tubs go into a holding tank and from
there into a basic sand filter. And then into
another tank which holds the filtered water
for various domestic uses. Spend a little
more on multi-stage filtering and you will
have recycled water you can wash your
floors with every day. I can almost feel some
of you out there snorting in derision.
Probably because you can afford not to go
through all this. Enough water to waste,
enough money to keep the tanker mafia
happily in business. But hey, give someone
else a break! The water you recycle saves
water elsewhere, which somebody more in
need can use. So make a start, because
Praetor says so.