INTRODUCTION OF DISASTER MANAGEMENT

Disaster management(oremergency management) is the term used to designate the efforts of communities or businesses to plan for and coordinate all personnel and materials required to either mitigate the effects of, or recover from, natural or man-made disasters, or acts of terrorism.Disaster management does not avert or eliminate the threats, although their study is an important part of the field. Events covered by disaster management include acts ofterrorism, industrialsabotage,fire,natural disasters(such asearthquakes,hurricanes, etc.),public disorder, industrial accidents, and communication failures.

An emergency and a disaster are two different situations:

An emergency is a situation in which the community is capable of coping. It is a situation generated by the real or imminent occurrence of an event that requires immediate attention and that requires immediate attention of emergency resources.

A disaster is a situation in which the community is incapable of coping. It is a natural or human-caused event which causes intense negative impacts on people, goods, services and/or the environment, exceeding the affected communitys capability to respond; therefore the community seeks the assistance of government and international agencies.

EMERGENCY PLANNING IDEALS

If possible, emergency planning should aim to prevent emergencies from occurring, and failing that, should develop a good action plan to mitigate the results and effects of any emergencies. As time goes on, and more data becomes available, usually through the study of emergencies as they occur, a plan should evolve. The development of emergency plans is a cyclical process, common to many risk management disciplines, such as Business Continuity and Security Risk Management, as set out below:

Recognition or identification of risks

Ranking or evaluation of risks

Responding to significant risks

Tolerate

Treat

Transfer

Terminate

Resourcing controls

Reaction Planning

Reporting & monitoring risk performance

Reviewing the Risk Management framework

There are a number of guidelines and publications regarding Emergency Planning, published by various professional organisations such as ASIS, FEMA and the Emergency Planning College. There are very few Emergency Management specific standards, and emergency management as a discipline tends to fall under business resilience standards.

In order to avoid, or reduce significant losses to a business, emergency managers should work to identify and anticipate potential risks, hopefully to reduce their probability of occurring. In the event that an emergency does occur, managers should have a plan prepared to mitigate the effects of that emergency, as well as to ensure Business Continuity of critical operations post-incident. It is essential for an organisation to include procedures for determining whether an emergency situation has occurred and at what point an emergency management plan should be activated.

IMPLEMENTATION IDEALS

An emergency plan must be regularly maintained, in a structured and methodical manner, ensure it is up-to-date in the event of an emergency. Emergency managers generally follow a common process to anticipate, assess, prevent, prepare, respond and recover from an incident.

Pre-incident training and testing

Emergency management plans and procedures should include the identification of appropriately trained staff members responsible for decision-making when an emergency occurs. Training plans should include internal people, contractors and civil protection partners, and should state the nature and frequency of training and testing.

Testing of a plan's effectiveness should be carried out regularly. In instances where several business or organisations occupy the same space, joint emergency plans, formally agreed to by all parties, should be put into place.

Communicating and assessing incidents.

Communication is one of the key issues during any emergency, pre-planning of communications is critical. Miscommunication can easily result in events escalating unnecessarily.

Once an emergency has been identified a comprehensive assessment evaluating the level of impact and its financial implications should be undertaken. Following assessment, the appropriate plan or response to be activated will depend on a specific pre-set criterion within the emergency plan. The steps necessary should be prioritised to ensure critical functions are operational as soon as possible.

FEATURES OF DISASTER MANAGEMENT

1. Disaster Management Teams: - Worldwide, governments, business and non-business organisation are setting up disaster or crisis management teams in order to manage the disaster. The disaster management teams are broadly divided into three parts namely (1) The Policy Team (2) The management Team (3) The Liaison Team.

2. Systematic Planning: - Disaster management involves systematic planning to avert a disaster, and if it occurs, then systematic planning is required in order to overcome the crisis arising out of disaster, Disaster planning indicates, what to do, when to do, how to do and who is to do certain activities to manage and overcome the problems of disaster.

3. Organising of Resources: - Disaster Management requires proper organising of resources such as manpower, materials, funds, etc., in order to deal with the calamity. Proper organizing of resources will help the disaster management personnel to overcome the problems caused by the calamity or disaster.4. Training to Manpower: -To manage a disaster effectively, there is a need to provide proper training to the disaster management personnel. The training will help to develop and improve Disaster Management skills in the personnel. Training

may help to avert a disaster effectively.

5. Suitability: - Disaster Management is required before and after a disaster. It is suitable before a disaster in order to avert a disaster, or to caution the people and to take proper appropriate measures before the disaster strikes. Disaster Management is also very much required after a disaster takes place in order to undertake rescue, relief and rehabilitation measures at the time of floods, earthquakes.6. Stability: -Normally, disaster management teams lack stability. They are formed just prior to a disaster in order to avert it, whenever possible. However, in advanced countries such as in USA, UK, Japan, etc., some organisations form

more or less permanent Disaster Management teams.

7. Organisation Structure: - Robert F. Littlejohn in his paper on Crisis Management suggested a matrix organisation structure to deal with disaster or crisis in the organisation or in the city or country. The disaster management team is to be headed by a crisis manager.

CHALLENGES OF DISASTER MANAGEMENT

1. Inter-organizational coordination: Collaboration between intervening emergency response agencies cannot be stressed enough.

2.Sharing information: This task can become complicated by the amount of equipment needed and the number of people involved. In most incidences, two-way radios are the only reliable form of communications across distances between mobilized response units. Landline and mobile phones can become overloaded and communication via radio frequency is unreliable due to differing band usage amongst responding agencies.

3.Resource management: A command centre must be established to take control of the distribution of supplemental personnel, equipment, and supplies among multiple organisations and identify which resources have arrived or are en route. Command must also determine where those resources are most needed and brief all agencies or volunteers before entering the disaster scene.

4.When advance warningsare possible: Evacuation from areas of danger can be the most effective life-saving strategy before and during a disaster. Communication channels must be in place to allow numerous agencies access to information about detected potential threats. And clearly defined criteria must be established as to when and where to evacuate so all agencies understand the procedure.

5.The public tends to underestimate risks and downplay warnings:This is especially true if messages are ambiguous or inconsistent. All warnings should be issued from a credible source and information on how to determine individual risk factors must be conveyed to members of the affected population with clear guidelines on what actions should be taken.

6.Search and rescue:This is an important aspect of post-disaster response. But due to its very nature, cannot be planned for in advance as casualties are often treated at the scene. Efforts for search and rescue teams can also become complicated by multiple jurisdictions involved during a disaster as well as by the efforts of bystanders who are trying to help.

7.Using the mass mediator deliver warnings to the public:Local media agencies should be tasked with educating the public on how to avoid health problems post disaster. Information on food and water safety, injury and disease prevention should be disseminated through TV and radio.

8.Triage:Untrained personnel and bystanders involved with the initial search and rescue often bypass established field triage and first aid stations because they do not know where these posts are located or because they want to get the victims to the closest hospital. Established protocols between emergency medical services and area hospitals will ensure more even distribution of casualties.

9.Patient tracking:This issue can arises because most people who are evacuating a scene do not use local shelters and therefore their whereabouts are not recorded through official agencies.

10.Hospital or healthcare agency damage: In the event that local medical facilities are incapacitated or overloaded withdisaster related casualties, an alternate site should be determined prior to an emergency.

11.Volunteer management: Donation and volunteer management can become problematic during a disaster since most efforts are focused on mobilising all available participants and the available resources may exceed needs.

12. Plan for organised improvisation: Be prepared to respond to the disruption of shelters, utilities, communication systems, and transportation. Regardless of how thorough your disaster management plan may be, preplanning must always anticipate the unexpected. And Public health officials must develop mutually agreed procedures, maintaining frequent training exercises to keep their systems coordinated.

ECONOMIC LOSSES OF DISASTER

Disasters can lead to adverse economic effects on humans. The economic effects are:

1. Economic Loss due to Unemployment: Disasters result in economic loss to survivors on account of unemployment. The unemployment may be short term or long term. In the short term, people may remain unemployed due to the destruction of infrastructure, or damage to factories, fields, vehicles, etc. In the long-term, people may remain unemployed due to physical injuries which may not permit individuals to work. For instance, loss of limbs, hands, eye sight, and so on may make the injured persons less employable or not employable at all.

During the disasters, the most affected are the people who work in the unorganized sectors such as fields, self-employed people like auto rickshaw drivers, people whose livelihood depends on livestock, etc. People who work in organized sector may not be affected as they may be adequately compensated even if they may not work during the disaster period.

2. Economic Loss due to Loss of Assets: People suffer economic loss on account of loss of property. Disasters such as earthquakes, Tsunamis, Hurricanes, etc., results in loss to property, which may be difficult to recover. For instance, the soil fertility may get adversely affected on account of earthquakes, hurricanes, etc., and therefore, the fertile land may become useless for cultivation. Also, due to disasters people may lose their valuables such as gold, cash, and other assets.

3. Economic Loss due to Injury: People may suffer economic loss due to physical injury. Lot of money may be spent on recovery. The Government compensation may be limited and at times may not be received at all. For instance, over 5 lakh victims of Bhopal Gas Tragedy are left out of the compensation announced by Government of India in 2010.

4. Economic Loss due to Death of Earning Family Members: Surviving members may suffer economic loss on account of death of earnings family members. In several cases, the surviving members are left without any earning members in the family. Therefore, the surviving members may be under severe stress and strain to survive in the post disaster period.

5. Economic Losses due to Disruption of Infrastructure: Economic losses also take place due to damage and disruption of infrastructure. The income generating opportunities get hampered on account of disruption of economic infrastructure such as electricity supplies, damage to roads, bridges, telecommunications, etc. Therefore, business firms are adversely affected as the production gets hampered.

6. Effect of Poverty Alleviation Projects: There is adverse effect on poverty alleviation projects on account of disasters. Funds or resources allocated for poverty alleviation projects may be diverted by Government authorities for reconstruction rather than spending on poverty alleviation projects. Disaster therefore, induces poverty, by making median households poorer and the poor households destitute, due to their vulnerability and inability to mitigate the losses.

7. Effect on GDP of affected Nations: Major disasters lover economic growth of the affected nations. Lot of funds and resources are diverted for relief and reconstruction efforts, which otherwise would have been utilized for productive purposes such as infrastructure. Lack of infrastructure development demotivates industrial investments, which in turn leads to lower production. Therefore, disasters have an adverse effect on GDP growth of affected nations, at least in the short run.

STRATEGIES FOR COPING WITH DISASTER

During times of uncertainty and heightened anxiety it is especially important for us to focus on taking good care of ourselves physically, mentally and emotionally. You can make the choice to act constructively rather than reacting to what is happening. To act is to take responsibility for your well-being and choose effective coping strategies.

Physical Coping Strategies

1. Adequate rest is the foundation of stress management. Establish a routine and get to bed at a reasonable hour.

1. Exercise is excellent for stress management and will also help you sleep better if its done several hours before bedtime. Talk to your doctor before starting any exercise routine.

1. Eat well-balanced and regular meals.

1. Choose activities that allow you to relax in your off-work time (fish, read, quilt, paint, hunt whatever you like to do).

1. Avoid alcohol and drugs as a means to cope, unless your doctor gives you a needed prescription.

Mental Coping Strategies

1. Get the facts about the problem from reliable sources, rather than relying on the rumor mill to provide information.

2. Recognize that you have time to form a plan, and that you may never have to activate it.

3. Talk it out. Brainstorm your problem-solving ideas with your loved ones to get their input and ideas.

4. Give your thoughts a break from constantly thinking about the what if that scares you. Shift your focus to the here-and-now needs of your loved ones, activities you enjoy, and the things you need to get done.

5. Structure your time. Large segments of unstructured time will tempt your thoughts to center endlessly around what troubles you most, and in doing this, your interpretation of whats happening will become more catastrophic and less objective.

6. Remind yourself of your abilities and strengths. Self-statements such as I can handle this uncertainty get you back in touch with the fact that youre steering your own ship youre not a bottle tossing and turning on lifes seas.

7. Rely on your spirituality. Turn the problem over to your higher power for guidance and strength. We know that the human spirit is very strong.

8. Read inspirational writings to find meaning in what is happening. In The Road Less Traveled, Scott Peck conveys the message that one can manage their life. The context in which we see our life experience makes all the difference.

9. Set short-term goals. What are some things that you want to accomplish in the near future

Emotional Coping Strategies

1. Reach out to people who care, identifying your feelings and fears. Talk out your thoughts and feelings with loved ones.

1. Spend time in enjoyable activities with friends and family.

1. Write out your feelings. Youre dealing with an abstract but very powerful loss the loss of expectations and assumptions. Theres a grief process that accomplishes loss, and that process consists of stages of shock, denial, bargaining, anger, depression and acceptance. Those stages are not smooth and orderly. They surface, retreat and resurface in a disorderly fashion. It helps to recognize what stage of grief youre in. We base much of our lives on the belief that life is reasonably predictable and controllable. We live our lives based upon our expectations for the future. When our beliefs and expectations are challenged or removed, we lose our equilibrium, and our worlds are shaken. You know from previous crises in your life, however, that you will eventually regain your equilibrium.

1. Recognize anger as a secondary emotion. Anger is often a surface emotion that covers up a deeper emotion, such as fear, hurt, or feeling of powerlessness. When you find yourself feeling anger, search for the deeper emotion, and work with it instead. Write about it. Talk about it.

1. Be cautious not to take out your anger on friends and relatives. Itll be much harder for them to be emotionally supportive if theyre feeling attacked by you, and snapping at them will cause you to feel worse about yourself. As stated in 4 above, talk with them about the emotions which underlie your anger, and ask for their cooperation and support.

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PHASES AND PERSONAL ACTIVITIES OF DISASTER MANAGEMENT

Disaster management consists of five phases: prevention, mitigation, preparedness, response and recovery.

Prevention

Prevention was recently added to the phases of emergency management. It focuses on preventing the human hazard, primarily from potential natural disasters or terrorist attacks. Preventive measures are taken on both the domestic and international levels, designed to provide permanent protection from disasters. Not all disasters, particularly natural disasters, can be prevented, but the risk of loss of life and injury can be mitigated with good evacuation plans, environmental planning and design standards. In January 2005, 168 Governments adopted a 10-year global plan for natural disaster risk reduction called the Hyogo Framework.

Mitigation

Personal mitigation is a key to national preparedness. Individuals and families train to avoid unnecessary risks. This includes an assessment of possible risks to personal/family health and to personal property, and steps taken to minimize the effects of a disaster, or take procure insurance to protect them against effects of a disaster.

Preventive or mitigation measures take different forms for different types of disasters. In earthquake prone areas, these preventive measures might include structural changes such as the installation of anEarthquake Valveto instantly shut off the natural gas supply,seismic retrofitsof property, and the securing of items inside a building. The latter may include the mounting of furniture,refrigerators,water heatersand breakables to the walls, and the addition of cabinet latches. In flood prone areas, houses can be built on poles/stilts. In areas prone to prolonged electricityblack-outsinstallation of agenerator. The construction ofstorm cellarsandfallout sheltersare further examples of personal mitigative actions.

On a national level, governments might implement large scale mitigation measures. After the monsoon floods of 2010, the Punjab government subsequently constructed 22 'disaster-resilient' model villages, comprising 1885 single-storey homes, together with schools and health centres.

Preparedness

Preparedness focuses on preparing equipment and procedures for use whena disaster occurs. Preparedness measures can take many forms including the construction of shelters, implementation of anemergency communication system, installation of warning devices, creation of back-up life-line services (e.g., power, water, sewage), and rehearsing evacuation plans. Planning for all different types of events and all magnitudes is of utmost importance, so that when a disaster does occur responders know exactly what their assignments are.

For evacuation, adisaster supplies kitmay be prepared and for sheltering purposes a stockpile of supplies may be created. The preparation of a survival kit such as a "72-hour kit", is often advocated by authorities. These kits may include food, medicine, flashlights, candles and money. Also, putting valuable items in safe area is also recommended.

Response

The response phase of an emergency may commence withSearch and Rescuebut in all cases the focus will quickly turn to fulfilling the basichumanitarianneedsof the affected population. This assistance may be provided by national or international agencies and organizations. Effective coordination of disaster assistance is often crucial, particularly when many organizations respond and local emergency management agency (LEMA) capacity has been exceeded by the demand or diminished by the disaster itself. TheNational Response Frameworkis a United States government publication that explains responsibilities and expectations of government officials at the local, state, federal, and tribal levels. It provides guidance on Emergency Support Functions which may be integrated in whole or parts to aid in the response and recovery process.

On a personal level the response can take the shape either of ashelter in placeor anevacuation. In a shelter-in-place scenario, a family would be prepared to fend for themselves in their home for many days without any form of outside support. In anevacuation, a family leaves the area byautomobileor other mode oftransportation, taking with them the maximum amount of supplies they can carry, possibly including a tent for shelter. If mechanical transportation is not available, evacuation on foot would ideally include carrying at least three days of supplies and rain-tight bedding, atarpaulinand a bedroll of blankets.

Donationsare often sought during this period, especially for large disasters that overwhelm local capacity. Due to efficiencies of scale,moneyis often the most cost-effective donation if fraud is avoided. Money is also the most flexible, and if goods are sourced locally then transportation is minimized and the local economy is boosted. Some donors prefer to send gifts, however these items can end up creating issues, rather than helping. One innovation bySandy volunteers is to use a donation registry, where families and businesses impacted by the disaster can make specific requests, which remote donors can purchase directly via a web site.

Medical considerations will vary greatly based on the type of disaster and secondary effects. Survivors may sustain a multitude of injuries to includelacerations,burns,near drowning, orcrush syndrome.

Recovery

The recovery phase starts after the immediate threat to human life has subsided. The immediate goal of the recovery phase is to bring the affected area back normalcy as quickly as possible. During reconstruction it is recommended to consider the location or construction material of the property.

The most extreme home confinement scenarios include war,famineand severeepidemicsand may last a year or more. Then recovery will take place inside the home. Planners for these events usually buybulkfoods and appropriate storage and preparation equipment, and eat the food as part of normal life. A simple balanced diet can be constructed fromvitamin pills,whole-mealwheat, beans,dried milk, corn, andcooking oil. One should add vegetables, fruits, spices and meats, both prepared and fresh-gardened, when possible.

PRINCIPAL OF DISASTER MANAGEMENT

1. Disaster management is the responsibility of all spheres of government.

No single service or department in itself has the capability to achieve comprehensive disaster management. Each affected service or department must have a disaster management plan which is coordinated through the Disaster Management Advisory Forum

2. Disaster management should use resources that exist for a day-to-day purpose.

There are limited resources available specifically for disasters, and it would be neither cost effective nor practical to have large holdings of dedicated disaster resources. However, municipalities must ensure that there is a minimum budget allocation to enable appropriate response to incidents as they arise, and to prepare for and reduce the risk of disasters occurring.

3. Organisations should function as an extension of their core business.

Disaster management is about the use of resources in the most effective manner. To achieve this during disasters, organisations should be employed in a manner that reflects their day-to-day role. But it should be done in a coordinated manner across all relevant organisations, so that it is multidisciplinary and multi-agency.

4. Individuals are responsible for their own safety.

Individuals need to be aware of the hazards that could affect their community and the counter measures, which include the Municipal Disaster Management Plan, that are in place to deal with them.

5. Disaster management planning should focus on large-scale events.

It is easier to scale down a response than it is to scale up if arrangements have been based on incident scale events. If you are well prepared for a major disaster you will be able to respond very well to smaller incidents and emergencies, nevertheless, good multi agency responses to incidents do help in the event of a major disaster.

1. Disaster management planning should recognise the difference

between incidents and disasters.

Incidents - e.g. fires that occur in informal settlements, floods that occur regularly, still require multi-agency and multi-jurisdictional coordination. The scale of the disaster will indicate when it is beyond the capacity of the municipality to respond, and when it needs the involvement of other agencies.

1. Disaster management operational arrangements are additional

to and do not replace incident management operational arrangement

Single service incident management operational arrangements will need to continue, whenever practical, during disaster operations.

8. Disaster management planning must take account of the type of physical environment and the structure of the population.

The physical shape and size of the Municipality and the spread of population must be considered when developing counter disaster plans to ensure that appropriate prevention, preparation, response and recovery mechanisms can be put in place in a timely manner.

9. Disaster management arrangements must recognise the involvement and potential role of non-government agencies.

Significant skills and resources needed during disaster operations are controlled by non-government agencies. These agencies must be consulted and included in the planning process.

THE IMPACT OF DISASTERS ON DEVELOPMENT PROGRAMMES

Disasters can significantly impede the effectiveness of development resource allocation. The damage is done in many ways and the impacts can be as complex as the economy itself. It is for specific reasons that practitioners explore the issues of lost resources to determine what will no longer be available to the country after a disaster such as assessing the effects of programme interruptions and the switching of crucial resources to other, shorter-term needs as disasters often change the political, economic and social conditions within a country. There will also be a need to consider the negative impacts on investment climates (of the now declared disaster zone) to determine what opportunities will be left to attract local and international investment capital to the area or country that has been devastated by the disaster. And lastly, in what state will the disruption of the non-formal sector leave the disaster area in terms of citizens proceeding with their lives in ways closest to conditions before the disaster. This non-formal sector may involve the way private citizens conduct business in their lives after the disaster.

Vulnerabilities caused by development

Lack of access to education and information often has wider implications and local people may be simply unaware of the options open to them in reducing their vulnerability. Poor people, for example, have fewer assets to invest in resources which may reduce their vulnerability; they may also be unwilling to make any significant investment without clear and obvious benefits. Poor people are also less likely to be in a position to organize collectively to reduce common risks, partially because these groups are usually have a higher proportion of women, young children, elderly people, the sick and disabled. Furthermore, after a disaster, the Introduction to Disaster Management effects of malnutrition and chronic illness put people at additional risk. Although in aggregate terms development will usually contribute to a reduction in vulnerability to natural disasters, any development activity may substantially increase particular types of vulnerability. Illustrations of such development activities are as follows:

Urban development often leads to an influx of low-income groups such as large-scale settlements on marginal land or in high densities with poor quality housing. Buildings may be situated on earthquake faults, in flash-flood zones, or on slopes prone to landslides.

Marine and coastal zone development leads to concentrations of populations exposed to possible storm-surges, high winds, flash floods, and landslide risks. Tourist development can increase potential vulnerability substantially when low-lying beach areas are targets for infrastructure and capital investments. Tsunamis and tropical storms can quickly destroy these improvements as well as placing tourists and workers at substantial risk to death and injury.

Construction of transportation lines and poorly managed forestry programmes will often lead to deforestation and increased risks of landslides.

Water resource management projects, including dams and irrigation schemes, potentially increase risks to large populations, either by displacing natural habitats, increasing risks of severe flooding, or by increasing the risk of dam failure.

Investment in poorly controlled hazardous industries may lead to concentrations of population around the plant; increases in air and water pollution; and exposure to hazards from both chronic and catastrophic release of toxic materials.

Livestock development projects can lead to severe loss of vegetation cover and conditions of near-desertification around specific natural points such as wells.

Agricultural projects promoting cash crops may reduce the production of staple foods.

Each of these examples illustrates the importance of including risk assessment as an integral part of programme planning and evaluation, and highlights the critical importance of training and education in these areas.

EMERGING TRENDS IN GLOBAL BUSINESS ENVIRONMENT

Global economies are so tightly interconnected that companies, governments and industries will soon be forced to cooperate in ways we could not have imagined just a few years ago.

In fact, Ernst&Young believes the six trends are themselves connected by three underlying drivers that have helped establish each trend and perpetuate it.

1. Demographic shifts.Population growth, increased urbanization, a widening divide between countries with youthful and quickly aging populations and a rapidly growing middle class are reshaping not only the business world, but also society as a whole.

2. Reshaped global power structure.As the world recovers from the worst recession in decades, the rise of relationships between the public and private sectors has shifted the balance of global power faster than most could have imagined just a few years ago.

3. Disruptive innovation.Innovations in technology continue to have massive effects on business and society. We're now seeing emerging markets become hotbeds of innovation, especially in efforts to reach the growing middle class and low-income consumers around the globe.

Six global trends, interconnected by three key drivers of change

Winner and losers

As these trends change the ways in which businesses operate, grow and compete, winners and losers inevitably will emerge.

The winners will be easy to spot:

They will be the organizations that constantly monitor broad trends in the external environment, embrace technology and look for talent everywhere, especially among previously neglected segments of the workforce such as women, minorities and older workers.

Regardless of what industry they are in or where they are headquartered, these organizations are looking outward. In so doing, they are navigating multiple jurisdictions and regulatory frameworks while adapting to local environments and attempting to create global workforces.

They are modifying supply chains to leverage shifting labor cost structures and mitigate raw materials' price fluctuations.

They are figuring out how cleantech fits into their growth plans and making it an integral part of their future strategy.

National governments, meanwhile, are seeking ways to meet growth agendas while reducing cost structures and future debt obligations.

Shaping the future

As businesses and governments look to the future, they would do well to remember that executing on their existing strategy may no longer be good enough. They must think more deeply about the opportunities and risks presented by the evolving trends, and the driving forces behind them.

With a different mindset, they can re-imagine what is possible, discovering what they can do that is new, and how best to do it.

Those that succeed may find themselves not just navigating tomorrows global trends, but actually shaping them.

GREEN ECONOMY IN THE CONTEXT OF SUSTAINABLE DEVELOPMENT AND POVERTY ERADICATION

Sustainable development has been the overarching goal of the international community since the UN Conference on Environment and Development (UNCED) in 1992. Amongst numerous commitments, the Conference called upon governments to develop national strategies for sustainable development, incorporating policy measures outlined in the Rio Declaration and Agenda 21. Despite the efforts of many governments around the world to implement such strategies as well as international cooperation to support national governments, there are continuing concerns over global economic and environmental developments in many countries. These have been intensified by recent prolonged global energy, food and financial crises, and underscored by continued warnings from global scientists that society is in danger of transgressing a number of planetary boundaries or ecological limits.

With governments today seeking effective ways to lead their nations out of these related crises whilst also taking into account these planetary boundaries, green economy (in its various forms) has been proposed as a means for catalysing renewed national policy development and international cooperation and support for sustainable development. The concept has received significant international attention over the past few years as a tool to address the 2008 financial crisis as well as one of two themes for the 2012 UN Conference on Sustainable Development (Rio+20). This has resulted in a rapidly expanding literature including new publications on green economy from a variety of influential international organisations, national governments, think tanks, experts, non-government organisations and others.

Despite the growing international interest in green economy, negotiations between Member States on the concept in the lead up to Rio+20 were challenging. This was partly due to the lack of an internationally agreed definition or universal principles for green economy, the emergence of interrelated but different terminology and concepts over recent years (such as green growth, low carbon development, sustainable economy, steady-state economy etc.), a lack of clarity around what green economy policy measures encompass and how they integrate with national priorities and objectives relating to economic growth and poverty eradication, as well as a perceived lack of experience in designing, implementing and reviewing the costs and benefits of green economy policies.

Recent publications on green economy or green growth by the United Nations Environment Program (UNEP), the UN Department of Economic and Social Affairs (UNDESA), the United Nations Conference on Trade and Development (UNCTAD), the International Labour Organisation (ILO), the World Bank, the Organisation for Economic Cooperation and Development (OECD), the Global Green Growth Institute (GGGI), the Green Economy Coalition, Stakeholder Forum, the Green Growth Leaders and many others have begun to address these knowledge gaps and demystify these concepts. Importantly, there is also emerging practice in the design and implementation of national green economy strategies by both developed and developing countries across most regions, including Africa, Latin America, the Asia-Pacific and Europe. This emerging practice can help to provide some important insights and much-needed clarity regarding the types of green economy policy measures, their scope with regard to various sectors and national priorities, and their institutional barriers, risks and implementation costs. This international experience may serve to alleviate concerns regarding the effective integration of green economy policies with national economic and social priorities and objectives, including the achievement of internationally agreed development goals.

GREEN ECONOMIC DEVELOPMENT STRATEGIES

In this era of global competition and local fiscal constraint, cities increasingly seek to develop and maintain a vibrant economy. Yet, few cities have adopted comprehensive economic development strategies, and even if they have articulated explicit economic development goals, they rarely adopt the right types of policies to support them. In the push to stimulate the green economy, cities are often confused about whether to pursue economic growth or development, as well as whether to seek high-quality jobs or simply job creation of any kind. Despite the rallying cry for green jobs as pathways out of poverty, a green economy does not necessary mean well-paying, green-collar jobs unless local job standards and training programs are in place. And though we might expect a net gain in jobs, many studies have underestimated the potential for job loss, since some businesses will shed jobs in the process of producing green products or becoming greener. Another overlooked role for the green economy in a time of recession is job retention, since efficiency measures and demand for new products can help keep factories open and workers (e.g., in construction) employed.

CORPORATE SOCIAL RESPONSIBILITY

Corporate social responsibility(CSR, also calledcorporate conscience,corporate citizenship,social performance, orsustainable responsible business/ Responsible Business)is a form ofcorporateself-regulationintegrated into abusiness model. CSR policy functions as a built-in, self-regulating mechanism whereby a business monitors and ensures its active compliance with the spirit of the law, ethical standards, and internationalnorms. In some models, a firm's implementation of CSR goes beyond compliance and engages in "actions that appear to further some social good, beyond the interests of the firm and that which is required by law."CSR is a process with the aim to embrace responsibility for the company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities,stakeholdersand all other members of thepublic spherewho may also be considered stakeholders.

The term "corporate social responsibility" became popular in the 1960s and has remained a term used indiscriminately by many to cover legal and moral responsibility more narrowly construed.

Proponents argue that corporations make more long term profits by operating with a perspective, while critics argue that CSR distracts from the economic role of businesses. McWilliams and Siegel's article (2000) published inStrategic Management Journal, cited by over 1000 academics, compared existingeconometricstudies of the relationship between social and financial performance. They concluded that the contradictory results of previous studies reporting positive, negative, and neutral financial impact were due to flawedempirical analysis. McWilliams and Siegel demonstrated that when the model is properly specified; that is, when you control for investment inResearch and Development, an important determinant of financial performance, CSR has a neutral impact on financial outcomes.

In his widely cited bookentitledMisguided Virtue: False Notions of Corporate Social Responsibility(2001) David Henderson argued forcefully against the way in which CSR broke from traditional corporate value-setting. He questioned the "lofty" and sometimes "unrealistic expectations" in CSR.

Some argue that CSR is merelywindow-dressing, or an attempt to pre-empt the role of governments as a watchdog over powerfulmultinational corporations. Political sociologists became interested in CSR in the context of theories of globalization, neo-liberalism, and late capitalism. Adopting a critical approach, sociologists emphasize CSR as a form of capitalist legitimacy and in particular point out that what has begun as a social movement against uninhibited corporate power has been co-opted by and transformed by corporations into a 'business model' and a 'risk management' device, often with questionable results

CSR is titled to aid an organization's mission as well as a guide to what the company stands for and will uphold to its consumers. Developmentbusiness ethicsis one of the forms ofapplied ethicsthat examines ethical principles and moral or ethical problems that can arise in a business environment.ISO 26000is the recognized international standard for CSR. Public sector organizations (the United Nations for example) adhere to thetriple bottom line(TBL). It is widely accepted that CSR adheres to similar principles but with no formal act of legislation.

The notion is now extended beyond purely commercial corporations, e.g. to universities.

BENEFITS OF CSR

Corporate Social Responsibilityhas many benefits that can be applied to any business, in any region, and at a minimal cost.

Improved financial performance:A recent longitudinal Harvard University study has found that stakeholder balanced companies showed four times the growth rate and eight times employment growth when compared to companies that focused only on shareholders and profit maximization.

Enhanced brand image & reputation:A company considered socially responsible can benefit -both by its enhanced reputation with the public, as well as its reputation within the business community, increasing a companys ability to attract capital and trading partners. For example, a 1997 study by two Boston College management professors found that excellent employee, customer and community relations are more important than strong shareholder returns in earning corporations a place an Fortune magazines annual Most Admired Companies list.

Increased sales and customer loyalty: A number of studies have suggested a large and growing market for the products and services of companies perceived to be socially responsible. While businesses must first satisfy customers key buying criteria such as price, quality, appearance, taste, availability, safety and convenience. Studies also show a growing desire to buy based on other value-based criteria, such as sweatshop-free and child labor-free clothing, products with smaller environmental impact, and absence of genetically modified materials or ingredients.

Increased ability to attract and retain employees:Companies perceived to have strong CSR commitments often find it easier to recruit employees, particularly in tight labor markets. Retention levels may be higher too, resulting in a reduction in turnover and associated recruitment and training costs. Tight labor markets as well the trend toward multiple jobs for shorter periods of time are challenging companies to develop ways to generate a return on the consideration resources invested in recruiting, hiring, and training.

Reduced regulatory oversight:Companies that demonstrate that they are engaging in practices that satisfy and go beyond regulatory compliance requirements are being given less scrutiny and freer reign by both national and local government entities. In many cases, such companies are subject to fewer inspections and paperwork, and may be given preference or fast-track treatment when applying for operating permits, zoning variances or other forms of governmental permission.

Easier access to capital:The Social Investment Forum reports that, in the U.S. in 1999, there is more than $2 trillion in assets under management in portfolios that use screens linked to ethics, the environment, and corporate social responsibility. It is clear that companies addressing ethical, social, and environmental responsibilities have rapidly growing access to capital that might not otherwise have been available.

ENVIRONMENTAL ACCOUNTING

Environmental accountingis a subset ofaccountingproper, its target being to incorporate both economic and environmental information. It can be conducted at the corporate level or at the level of a national economy through the National Accounts of Countries (among other things, the National Accounts produce the estimates of Gross Domestic Product otherwise known as GDP).

Environmental accounting is a field that identifies resource use, measures and communicates costs of a companys or national economic impact on the environment. Costs include costs to clean up orremediatecontaminated sites, environmental fines, penalties and taxes, purchase of pollution prevention technologies and waste management costs.

An environmental accounting system consists of environmentally differentiated conventional accounting and ecological accounting. Environmentally differentiated accounting measures effects of thenatural environmenton acompanyinmonetaryterms. Ecological accounting measures the influence a company has on the environment, but in physical measurements.

Why environmental accounting?

There are several advantages environmental accounting brings to business; notably, the complete costs, including environmental remediation and long term environmental consequences and externalities can be quantified and addressed.

Subfields

Environmental accounting is organized in three sub-disciplines: global, national, and corporate environmental accounting, respectively. Corporate environmental accounting can be further sub-divided into environmental management accounting and environmental financial accounting.

Global environmental accountingis an accounting methodology that deals areas includes energetics, ecology and economics at a worldwide level.

National environmental accountingis an accounting approach that deals with economics on a country's level. Internationally, environmental accounting has been formalised into the System of Integrated Environmental and Economic Accounting, known as SEEA.SEEA grows out of the System of National Accounts. The SEEA records the flows of raw materials (water, energy, minerals, wood, etc.) from the environment

to the economy, the exchanges of these materials within the economy and the returns of wastes and pollutants to the environment. Also recorded are the prices or shadow prices for these materials as are environment protection expenditures. SEEA is used by 49 countries around the world.

Corporate environmental accountingfocuses on the cost structure and environmental performance of a company.

Environmental management accountingfocuses on making internal business strategy decisions. It can be defined as:

the identification, collection, analysis, and use of two types of information for internal decision making:

1) Physical information on the use, flows and fates of energy, water and materials (including wastes) and

2) Monetary information on environmentally related costs, earnings and savings.

Environmental financial accountingis used to provide information needed by externalstakeholderson a companys financial performance. This type of accounting allows companies to prepare financial reports for investors, lenders and other interested parties.

ENVIRONMENTAL AUDITING

Environmental auditis a general term that can reflect various types or evaluations intended to identify environmental compliance and management system implementation gaps, along with related corrective actions. In this way they perform an analogous (similar) function tofinancial audits. There are generally two different types of environmental audits: compliance audits and management systems audits. Compliance audits tend to be the primary type in the US or within US-based multinationals.

Environmental compliance audits

As the name implies, these audits are intended to review the site's/company's legal compliance status in an operational context. Compliance audits generally begin with determining the applicable compliance requirements against which the operations will be assessed. This tends to include federal regulations, state regulations, permits and local ordinances/codes. In some cases, it may also include requirements within legal settlements.

Compliance audits may bemultimediaorprogrammatic. Multimedia audits involve identifying and auditing all environmental media (air, water, waste, etc.) that apply to the operation/company. Programmatic audits (which may also be calledthematicormedia-specific) are limited in scope to pre-identified regulatory areas, such as air.

Audits are also focused on operational aspects of a company/site, rather than the contamination status of the real property. Assessments, studies, etc. that involve property contamination/remediation are typically not considered an environmental audit.

Audit Tools and technology

The term "protocol" means the checklist used by environmental auditors as the guide for conducting the audit activities. There is no standard protocol, either in form or content. Typically, companies develop their own protocols to meet their specific compliance requirements and management systems. Audit firms frequently develop general protocols that can be applied to a broad range of companies/operations.

Current technology supports many versions of computer-based protocols that attempt to simplify the audit process by converting regulatory requirements into questions with "yes", "no" and "not applicable" check boxes. Many companies and auditors find these useful and there are several such protocol systems commercially available. Other auditors (typically those with many years of environmental auditing experience) use the regulations/permits directly as protocols. There is a long standing debate among environmental audit professionals on the value of large, highly detailed and prescriptive protocols (i.e., that can, in theory, be completed by an auditor with little or no technical experience) versus more flexible protocols that rely on the expertise and knowledge of experienced auditors and source documents (regulations, permits, etc.) directly. However usage of structured and prescriptive protocols in ISO 14001 audits allows easier review by other parties, either internal to the Certification Body (e.g. technical reviewers and certification managers) or external (accreditation bodies).

In the US, permits for air emissions, wastewater discharges and other operational aspects, many times establish the primary legal compliance standards for companies. In these cases, auditing only to the regulations is inadequate. However, as these permits are site specific, standard protocols are not commercially available that reflect every permit condition for every company/site. Therefore, permit holders and the auditors they hire must identify the permit requirements and determine the most effective way to audit against those requirements.

During the past 20 years, advances in technology have had major impacts on auditing. Laptop computers, portable printers, CD/DVDs, the internet, email and wireless internet access have all been used to improve audits, increase/improve auditor access to regulatory information and create audit reports on-site. At one point in the 1990s, one major company invested significant resources in testing "video audits" where the auditor (located at the corporate headquarters) used real-time video conferencing technology to direct staff at a site to carry live video cameras to specific areas of the plant. While initially promising, this technology/concept did not prove acceptable.

The current "disruptive technology" in environmental auditing is Apple Computer's iPad. At this time, one audit consulting firm is using the iPad extensively for environmental audits,which includes specific protocols for the new technology.

ENVIRONMENTAL AUDITING IN INDIA

1. Auditing in India

The Supreme Audit Institution (SAI) in India is headed by the Comptroller and Auditor General (CAG) of India who is a constitutional authority. The CAG of India derives his mandate from Articles 148 to 151 of the Indian Constitution. The CAGs (Duties, Powers and Conditions of Service) Act, 1971 prescribes functions, duties and powers of the CAG. While fulfilling his constitutional obligations, the CAG examines various aspects of government expenditure and revenues. The audit conducted by CAG is broadly classified into Financial, Compliance and Performance Audit. Environmental audit by SAI India is conducted within the broad framework of Compliance and Performance Audit.

2. Environment protection in India

The Ministry of Environment & Forests is the nodal agency in the administrative structure of the Central Government of India, for the planning, promotion, coordination and overseeing the implementation of environmental and forestry programmes. The Ministry is also the Nodal agency in the country for the United Nations Environment Programme (UNEP). In the states, the Department of Environment and Forest is the main agency for implementation of environment programmes.

The principal activities undertaken by Ministry of Environment & Forests consist of

Conservation & survey of flora, fauna, forests and wildlife;

Prevention & control of pollution; afforestation and regeneration of degraded areas; and

Protection of environment, in the frame work of legislation.

Major policy initiatives by Ministry of Environment and Forests include:

National Environment Policy, 2006;

Conservation Strategy and Policy Statement on Environment and Development,1992;

Policy Statement for Abatement of Pollution;

National Forest Policy

MEANING OF CORPORATE GOVERNANCE

Corporate governancerefers to the system by which corporations are directed and controlled. The governance structure specifies the distribution of rights and responsibilities among different participants in the corporation (such as the board of directors, managers, shareholders, creditors, auditors, regulators, and other stakeholders) and specifies the rules and procedures for making decisions in corporate affairs. Governance provides the structure through which corporations set and pursue their objectives, while reflecting the context of the social, regulatory and market environment. Governance is a mechanism for monitoring the actions, policies and decisions of corporations. Governance involves the alignment of interests among the stakeholders.

There has been renewed interest in the corporate governance practices of modern corporations, particularly in relation to accountability, since the high-profile collapses of a number of large corporations during 20012002, most of which involved accounting fraud.Corporate scandalsof various forms have maintained public and political interest in the regulation of corporate governance. In the U.S., these includeEnron Corporation andMCI Inc.(formerly WorldCom). Their demise is associated with theU.S. federal governmentpassing theSarbanes-Oxley Actin 2002, intending to restore public confidence in corporate governance. Comparable failures in Australia (HIH,One.Tel) are associated with the eventual passage of theCLERP 9reforms. Similar corporate failures in other countries stimulated increased regulatory interest (e.g.,Parmalatin Italy).

PRINCIPLES OF CORPORATE GOVERNANCE

Contemporary discussions of corporate governance tend to refer to principles raised in three documents released since 1990: TheCadbury Report(UK, 1992), the Principles of Corporate Governance (OECD, 1998 and 2004), theSarbanes-Oxley Actof 2002 (US, 2002). The Cadbury and OECD reports present general principles around which businesses are expected to operate to assure proper governance. The Sarbanes-Oxley Act, informally referred to as Sarbox or Sox, is an attempt by the federal government in the United States to legislate several of the principles recommended in the Cadbury and OECD reports.

Rights and equitable treatment of shareholders:Organizations should respect the rights of shareholders and help shareholders to exercise those rights. They can help shareholders exercise their rights by openly and effectively communicating information and by encouraging shareholders to participate in general meetings.

Interests of other stakeholders:Organizations should recognize that they have legal, contractual, social, and market driven obligations to non-shareholder stakeholders, including employees, investors, creditors, suppliers, local communities, customers, and policy makers.

Role and responsibilities of the board: The board needs sufficient relevant skills and understanding to review and challenge management performance. It also needs adequate size and appropriate levels of independence and commitment.

Integrity and ethical behavior: Integrity should be a fundamental requirement in choosing corporate officers and board members. Organizations should develop a code of conduct for their directors and executives that promotes ethical and responsible decision making.

Disclosure and transparency:Organizations should clarify and make publicly known the roles and responsibilities of board and management to provide stakeholders with a level of accountability. They should also implement procedures to independently verify and safeguard the integrity of the company's financial reporting. Disclosure of material matters concerning the organization should be timely and balanced to ensure that all investors have access to clear, factual information.

CORPORATE GOVERNANCE OF INDIAN OIL CORPORATION LIMITED

Indian Oil remains true to the belief that good Corporate Governance practices lead to efficient running of the Company and help in optimising value for all its stakeholders. The Company has been making an effort to uphold the principles of Corporate Governance to ensure transparency, integrity and accountability in its functioning - elements that are vital to achieve its vision of becoming a major diversified, transnational, integrated energy company.With the adoption of (a) Code of conduct for Directors and senior management personnel, (b) Code of conduct for prevention of insider trading and (c) Policy on risk assessment and minimising procedures, the Company has further enhanced its commitment towards Corporate Governance.Access the Right to Information Act manual that addresses the constitutional right to know and access information relating to any private body. In other words, you can access records, documents, memos, e-mails, opinions, advice, press releases, circulars, orders, logbooks, contracts, reports, papers, samples, models, data material held in any electronic form and information relating to any private body.

QUARTERLY COMPLIANCE REPORT ON CORPORATE GOVERNANCE

Name of the Company

: INDIAN OIL CORPORATION LIMITED

Quarter ending on

: 31st March, 2014

Sr.No

Particulars

Clause of

Compliance

Remarks

Listing

Status

Agreement

Yes / No

I.

BOARD OF DIRECTORS

49

I

(A)

Composition of Board

49

(IA)

No.

* Please see

remarks separately

given below

(B)

Non-executive

Directors

49

(IB)

Yes

-

compensation & disclosures

(C)

Other provisions as to Board

49

(IC)

Yes

-

and Committees

(D)

Code of Conduct

49

(ID)

Yes

-

II

AUDIT COMMITTEE

49

(II)

(A)

Qualified

& Independent

49

(IIA)

Yes

-

Audit Committee

(B)

Meeting of Audit Committee

49

(IIB)

Yes

-

(C)

Powers of Audit Committee

49

(IIC)

Yes

-

(D)

Role of Audit Committee

49

(IID)

Yes

-

(E)

Review

of

Information by

49

(IIE)

Yes

-

Audit Committee

III.

SUBSIDIARY COMPANIES

49

(III)

N.A.

There is no material

un-listed Indian

subsidiary company.

IV.

DISCLOSURES

49

(IV)

(A)

Basis

of

related

party

49

(IV A)

Yes

-

transactions

(B)

Disclosure

of

Accounting

49

(IV B)

Yes

-

Treatment

(C)

Board

Disclosures

Risk

49

(IV C)

Yes

-

Management

(D)

Proceeds from public issues,

49

(IV D)

N.A

-

right

issues,

preferential

issues etc.

(E)

Remuneration of Directors

49

(IV E)

Yes

-

(F)

Management

49

(IV F)

Yes

-

(G)

Shareholders

49

(IV G)

Yes

-

V.

CEO / CFO Certification

49

(V)

Yes

VI.

Report

on

Corporate

49

(VI)

Yes

Governance

VII.

Compliance

49

(VII)

Yes

38

The strength of the Board of Indian Oil was 18 Directors as on 31st March, 2014, comprising of 8 Executive Directors (including Chairman) and 10 Non-Executive Directors, out of which 8 are Independent Directors and 2 Government Nominee Directors.

Indian Oil being a Government Company under the administrative control of the Ministry of Petroleum & Natural Gas, the Directors are nominated by the Government. The Government of India is in the process of selecting Independent Directors through a process of Search Committee and will take some time before the Government nominates requisite number of Independent Directors on the Board of Indian Oil. The matter is being pursued by Indian Oil.

INDIAN OIL PHILOSOPHY ON CORPORATE GOVERNANCE

Indian Oil believes that good Corporate Governance practices ensure ethical and efficient conduct of the affairs of the Company and also help in maximizing value for all its stakeholders like customers, employees and society at large in order to build an environment of trust and confidence among all the constituents.

The Company endeavours to uphold the principles and practices of Corporate Governance to ensure transparency, integrity and accountability in its functioning which are vital to achieve its Vision of being the Energy of India and a Globally Admired Company.

Indian Oil recognises that good Corporate Governance is a continuous exercise and reiterates its commitment to pursue highest standards of Corporate

Governance in the overall interest of all its stakeholders. For effective implementation of the Corporate Governance practices, IndianOil has a well-defined policy framework inter alia consisting of the following:-

Code of Conduct for Directors and Senior Management Personnel

Code of Conduct for prevention of Insider Trading

Enterprise Risk Management Policy

Integrity Pact to enhance transparency in business

Whistle Blower Policy

Conduct, Discipline and Appeal Rules for employees

Corporate Social Responsibility / Sustainable development

Human Resources initiatives

In recognition of good governance practices, IndianOil has been awarded the prestigious ICSI National Award 2012 for Excellence in Corporate Governance as well as the Gold Trophy of SCOPE Meritorious Award for Corporate Governance for the year 2011-12.

BIBLIOGRAPHY

Newspapers

Hindustan Times

Economic Times

Magazines

Business India

Business World

Websites

www.google.com

www.yahoo.com

www.scribd.com

www.iocl.com

Textbook

Strategic Management Michael Vaz