Description
This project report presents sustainability of GE Energy and its CSR activities.
GE ENERGY
Presented by: Nikhil Abbi Sridhar E. Piyush Gupta Sagar Gupta Rahul Sangani Rohit Solanki (B-002) (B-021) (B-025) (B-027) (B-050) (B-057)
FTMBA-CORE SBM, NMIMS
1
CONTENTS
1. Introduction………………………………………………………………………………3 1.1 Global Energy consumption for the year 2011………………………………………3 1.2 National Energy consumption for the year 2011…………………………………….3 2. GE Energy………………………………………………………………………………...4 3. GE’s approach towards CSR……………………………………………………………..4 3.1 Workplace CSR……………………………………………………………………...5 3.1.1 3.1.2 3.1.3 3.1.4 Health and Safety …………………………………………………………...5 Learning & Development…………………………………………………....5 Diversity……………………………………………………………………..5 Maintaining Work-Life Balance………………………………………...…...5
3.2 Market Place CSR……………………………………………………………….…..6 3.2.1 3.2.2 3.2.3 3.2.4 Customers…………………………………………………………….……...6 Suppliers………………………………………………………......................6 Shareholders…………………………………………………………………6 Governance and Compliance………………………………………….……..6
3.3 Community CSR……………………………………………………………….…….7 3.4 Environment CSR………………………………………………………….………...8 3.4.1 3.4.2 Ecomagination……………………………………………………….……….8 Sustainable practices across different segments…………………….……….8
3.4.2.1 Solar Energy…………………………………………………………….8 3.4.2.2 Wind Energy……………………………………………………………9 3.4.2.3 Water……………………………………………………………………9 3.4.2.4 Electricity………………….……………………………………………9 3.4.2.5 Nuclear Energy……...…….……………………………………………9 4. Critical Analysis………………………………………………………………….……….9 5. References………………………………………………………………………….…….10
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1. INTRODUCTION: In the industrially advanced world of today, the demand for energy is increasing day by day. The main sources of energy are coal, natural gas, mineral oil and hydro-electric. But today the problem is that world energy sources are fast depleting and it will put the world in a grip of energy crisis. It would not take mankind more than a hundred years to use up all the known resources on earth. Hence the need to conserve the resources and use of available domestic resources is gaining momentum. 1.1 Global Energy consumption for the year 2011 Over the years the global energy consumption is continuously increasing. China and USA were the largest consumers of energy followed leaving a huge gap between them and the 3rd largest consumer, India. Country Value China 2 648 United States 2 225 India 759 Russia 725 Japan 469 Germany 317 Brazil 268 Canada 266 South Korea 257
Fig. 1: Global Energy Consumption
1.2 National Energy consumption for the year 2011
Fig.2: Distribution of Energy Production
Fig. 3: India’s Oil Production and Consumption
According to the International Energy Agency (IEA), coal and oil together represent about than two-thirds of total energy sources. Other renewables such as wind, geothermal, solar, and hydroelectricity contribute to 2% of energy production. During the second half of the last decade, India’s oil consumption has gone up from 2400 to 3200 thousand barrels/day. India’s energy demand is growing by about 7% annually and based on the growth rate, as per IEA estimates, India may need to invest $800 billion by 2030 to meet its demand. Energy companies all over the world are trying to meet the challenge. One such company which is leading these efforts is GE Energy.
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2. GE ENERGY: GE Energy is a division of General Electric and is headquartered in Atlanta, Georgia, United States. It offers real and sustainable solutions to the world’s energy operations.GE is ranked 6th largest firm amongst Fortune 500 companies. It has presence in over 100 countries. Its 2011 revenues are estimated at US$ 45 billion and employs around 100,000 people around the world. GE Energy has the following divisions: ? ? ? GE Oil & Gas Energy Management o Digital Energy, Industrial Solutions, Environmental Services GE Power & Water o GE Hitachi Nuclear Energy (Joint venture with Hitachi, 60% ownership) o Power Generation Services, Water, Renewables (Wind Energy) o Granite Services International (Wholly Owned Affiliate)
The aim of GE Energy is “To help meet the energy needs of society in ways that are economically, environmentally and socially responsible.” 3. GE’S APPROACH TOWARDS CSR: GE focuses on areas where it can make a difference, either through the way it operate within the business, the marketplace, or through the broader influence in society. Eight years ago it started the ‘GE Citizenship’ program. It is a full-time commitment program to improving social, governance, environmental and economic sustainability efforts around the world. It revolves around a Triple Bottom Line framework geared to benefit: People, Planet, and Economy.
Fig. 4: Triple Bottom Line As a part of sustainable development, GE focuses on: People: It involves customers, employees, communities and shareholders as they provide significant value to the company. Planet: It reviews the scope and management of GE’s environmental footprint, with a particular focus on the critical environmental issues of water, energy and climate. Economy: To support a growing, increasingly urban world, in which effective corporate governance, proactive public policy and thoughtful corporate action are needed to help meet global challenges and to support continued development and prosperity.
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3.1 WORKPLACE CSR: 3.1.1 Health and Safety
GE considers employee’s safety as its highest priority during operating activities and minimizes the use of hazardous materials. It also assesses all new activities and products for environmental, health and safety impacts. Some of the noted steps taken by GE in 2011 are as follows: ? GE has certified 354 of its 480 sites in the HealthAhead program, which supports subsidized healthy food in cafeterias and low-cost fitness options ? All GE campuses became tobacco-free as of November 1, 2011 ? Reduced GE’s injury and illness rate by 26% and lost-time cases by 19% As a result, The U.S. Department of Labor's Occupational Safety and Health Administration (OSHA) has certified GE Oil and Gas facility in Pennsylvania as a Star site, the highest level in its Voluntary Protection Programs (VPP). 3.1.2 Learning & Development:
GE believes that when one person grows and improves, all grow and improve—and that together, all rise. As a result of this commitment, GE invests significantly in its employees, spending more than $1 billion on learning and development each year to help employees at every level and career stage. It offer a range of learning platforms—from leadership development to functional skills, technology- and business-specific curricula, and robust ondemand learning program, which features thousands of courses, reference tools, abstracts, podcasts and videos, in more than a dozen languages. 3.1.3 Diversity
At GE, diversity is about the power of the mix—combining different ideas and experiences to deliver the best results. The culture fosters teamwork and innovation to help people and business grow. Employee Groups help create communities that enable GE employees to grow both professionally and personally. These networks include: ? The African American Forum (AAF) - Founded in 1991, the AAF is GE’s first homegrown community of employees dedicated to improve health conditions in Africa. ? The Women’s Network - The rapidly growing Women’s Network supports the professional development of GE women around the world by sharing the wisdom of successful role models. 3.1.4 Maintaining Work-Life Balance GE has integrated HealthAhead programs designed to educate employees on how to find balance between home and work priorities and manage stress. These programs range from inperson sessions to online resources. Wherever possible, GE facilitates flexible work hours, part-time work and job-share opportunities.
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3.2. MARKET PLACE CSR: 3.2.1 Customers GE has built a reputation as a progressive independent organisation, dedicated to honest and fair dealings with suppliers, clients and customers. It has developed the Gold Standard Marketing (GSM) Framework, to engage customers in the process of developing products. Examples of GSM best practices are as follows:
?
Differential Value Proposition: Its main objective is align all GE functions with customers by delivering timely plans and accountability to direct investments and growth Access GE: It allows customers to tap into GE’s unique insights, tools and operational best practices to address their business challenges. In 2011, GE created dozens of partnerships to meet customers’ needs for strategic support including a 2.5-day executive education program for senior leaders of GE clients.
?
3.2.2 Suppliers
?
GE has worked through Supplier Relationship Guidelines program to help ensure that suppliers, especially those in developing countries, respect their employees’ safety, labor and human rights, as well as security and the local environment. It implemented the Resource Efficiency approach in purchasing contracts.
?
Resource Efficiency: This assessment tool includes a tiered scoring system for evaluating a supplier’s management system and includes energy efficiency, greenhouse gas emissions and water usage. It encourages suppliers to achieve measurable improvements in resource efficiency, in a way that adds business value for both GE and its suppliers, avoids additional cost. 3.2.3. Shareholders GE works to deliver shareholder value by offering real and sustainable solutions to the world’s toughest problems. ? In 2011, GE’s stock price outperformed the S&P Financial and Industrial sectors, finishing almost unchanged, in line with the broader S&P 500 index ? GE had two dividend increases in 2011 following two increases in 2010, a total 70% increase over two years 3.2.4. Governance and Compliance GE completely complies with the rules and regulations that the government imposes. • In June 2011, a new Manager Open Reporting Tool was created, through which any manager, HR, Compliance, Legal, or Corporate Audit staff professional can submit a compliance concern directly • GE has been highlighted in the World’s Most Ethical Companies list since the list’s inception • Conducted numerous training sessions in 2011, including regular monthly Webinars, training more than 1,300 employees on key government business topics
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3.3. COMMUNITY CSR: The GE volunteers in India aim to improve the life of the communities in which they live and work. The Strategic Volunteer Partners of GE in India include: 1. Rotary Foundation 2. AMCHAM 3. United Way 4. National Association for Blind 5. Manipal Health Foundation 6. VIDYA Foundation 7. NASSCOM Foundation 8. LEAD India 2020 9. Junglescapes 10. LV Prasad Eye Institute In India, there are around 1000+ GE volunteers who contribute around 20,000+ hours each year towards voluntary service across different sectors: Education: ? The volunteers work at local schools, which are economically disadvantaged to improve the academic standards and help the students to secure jobs in the government and the industry. ? They work at physically challenged schools, old age homes and orphanages and empower them to assimilate into the mainstream community. ? GE Volunteers mentored and supported education of over 4000 students in 32 Indian schools in 2010. Health and Medical: ? Blood donation camps are organized every year where in 1500 donate blood. ? Quarterly/Annual Medical Health Camps are organized for Preventive healthcare for around 4000 school children including surgeries at no cost for critical children Environment: ? In 2010, volunteers completed planting of over 8000 saplings over a 50 acre area, to restore degraded forests adjacent to Bandipur Tiger Reserve, Karnataka. ? In 2010, GE Volunteers spent over 23,000 volunteer-hours, partnering with 35 not-forprofit organizations to support environment projects across 12 Indian cities. Disaster Relief: ? Initiated Disaster recovery operations for Tsunami, floods. They provided immediate assistance through food, shelter, clothing followed by rehabilitation projects for housing and work Food: ? Volunteers have been supporting daily mid-day meals for 300 students since 2008.
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3.4.
ENVIRONMENT CSR:
GE is focussed on finding sustainable solutions for natural resources to reduce company’s impact on the environment. It defines environmental responsibility as involving a comprehensive approach to a company's operations, products and facilities that includes assessing business products, processes and services; eliminating waste and emissions; maximizing the efficiency and productivity of all assets and resources; and minimizing practices that might adversely affect the enjoyment of the planet's resources by future generations. In 2005 GE launched its "Ecomagination" initiative in an attempt to position itself as a “green" company. 3.4.1 Ecomagination: Ecomagination is GE’s strategy to help tackle the world’s biggest energy, environmental and economic challenges. It addresses critical challenges, including the need for cleaner and more-efficient sources of energy, reduced emissions and abundant sources of clean water. GE introduced 22 new Ecomagination products in 2010 and 34 products in 2011. Since its launch, ecomagination has met or exceeded every goal the company had set: ? $5 billion of clean-tech invested in research and development ? $85 billion in revenue from ecomagination products and solutions ? 22% reduction in greenhouse gas emissions ? 30% reduction in water use ? $130 million in energy efficiency savings Based on huge success of Ecomagination, GE accelerated their ambitions for the next five years to: ? ? ? ? Double clean-tech research and development to $10 billion Grow ecomagination revenue at twice the rate of overall GE revenues Reduce energy intensity by 50% and greenhouse gas (GHG) emissions by 25% Reduce water use by 25% for flights, and Nucleus, a smart meter technology that helps homeowners manage energy use.
3.4.2 Sustainable practices across different segments GE works to minimise the environmental impact of operations by promoting sustainable practices across different segments as follows: 3.4.2.1 Solar Energy ? Thin Film Solar Panel (78 W, 80 W, 83 W) – It is a cost-competitive solar solution that requires less material than alternative technologies to achieve high levels of performance. ? GE Energy latest investment is in LS Power’s $550 million - Arlington Valley Solar Energy II project, a photovoltaic solar farm near Arlington, Arizona, 40 miles west of Phoenix in Maricopa County. The solar farm - located on approximately 1,160 acres - will provide enough clean, affordable energy to power approximately 53,000 California homes and avoid 215,000 tons of greenhouse gas emissions per year; equivalent to taking 38,000 cars off the road.
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3.4.2.2 Wind Energy ? Wind Turbines (1.5MW and 2.5 MW series) –GE produces the next generation wind turbine. 16,500+ turbines have been installed globally (1.5 MW) providing clean energy. ? GE has also invested in large wind power projects, such as a 150-MW Kenyan wind power project, Mongolia’s first wind farm, and a whopping 662.5-MW wind farm in West Texas. Wind power is now an important segment of GE’s businesses, as we can see above. 3.4.2.3 Water ? Waste to Value – GE’s Waste to Value solution helps in reducing wastewater discharge/disposal, energy use, and fresh water consumption. This process converts wastewater treatment from an expense to an operating profit by creating reusable and/or saleale energy and clean water. This process is ecomagination certified and helps reducing the amount of fresh water intake and CO2 emitted in the environment thus helping to achieve water and energy independence. ? Advanced Water Recycling - GE uses proven, reliable technologies to the reuse of treated wastewater for beneficial purposes such as agricultural and landscape irrigation, industrial processes, toilet flushing, or replenishing a groundwater basin. It meets the regulatory requirements and protects the environment while turning waste water into resource. 3.4.2.4 Electricity ? Smart Grid – GE is designing smart grid which is an electrical grid that uses computers and other technology to gather and act on information, such as information about the behaviours of suppliers and consumers, in an automated fashion to improve the efficiency, reliability, economics, and sustainability of the production and distribution of electricity 3.4.2.5 Nuclear Energy ? Today, nuclear energy supplies 16% of the world's electricity, avoiding the emission of about 2.5 billion tons of carbon dioxide every year that would otherwise be generated by fossil fuel solutions, such as supercritical pulverized coal. ? GE has provided advanced and sophisticated technology for nuclear energy for over five decades. Three main product lines support this capability: advanced reactor technologies, nuclear services, and nuclear fuel cycle.
4. CRITICAL ANALYSIS Like any other company, it also faces several challenges and issues. So far, it has been successful in addressing them effectively. The sound management policies and processes of the company and its constant endeavour to serve its customers as best as it can, have helped it in this regard. GE was awarded the “World’s Most Admired Companies” in 2006 and 2007 by Fortune. It also has many others awards and accreditations to its credit for its ethical and socially responsible conduct. It has been known for its best business practices. And hence it has won
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the award of “Most Ethical Companies” from 2007 to 2012 and was awarded “#1 Company for Leaders” by Fortune in 2007 and 2009. After doing a proper analysis of the company through its sustainability report and other sources, we have arrived at the conclusion that the ethical and socially responsible conduct of the company and its sustainability practices are best in class. GE continually strives to connect with external parties, such as policy leaders and NGOs, in order to gain insight and perspective on corporate citizenship. It has created several external advisory panels whose participants—academics, industry leaders and technical experts—possess a wide variety of expertise. The advisory panels for Ecomagination challenge and sharpen the focus on innovation, driving the performance improvements of these programs. In addition, the Citizenship Advisory Panel plays a key role in providing external advice and work through particular areas of concern. GE has successfully created and implemented a business model where it can earn profits while working for the environment and the community. It has been highly effective in mobilizing money towards the betterment of the society and sustainability of natural resources. Also it has been successful in touching lives all sections of the society through their varied products, services and technology. 5. REFERENCES 1. Books ? Francesco A.M., Gold,B.A. (1998). International Organizational Behavior. Upper Saddle River: Prentice Hall. 2. Publications ? Elkington (2001). The Triple Bottom Line for 21st Century Business in Starkey,R., Welford, R.Business & Sustainable Development.London:Earthscan Publications.
3. Government Documents
? Sachdev R.K., Ghosh Ranjan & Others (2012). India energy book 2012. World Energy Council. ? Central Statistics Office. (2012). Energy Statistics 2012. Delhi: Ministry of Statistics & Programme Implementation. ? International Energy Agency (IEA).2011. Key World energy statistics.France:Soregraph ? ? ? ?
4. Report from a Private Organization
General Electric Company. 2011. GE Annual Report 2011. Michigan, Detroit. General Electric Company. 2011. GE Citizenship Report 2011.Fairfield. General Electric Company. 2011.GE Ecomagination Annual Report 2011.Fairfield. General Electric Company. 2011.GE Sustainable Growth Report 2011.Fairfield.
5.
? The GE Family of sites. The General Electric company. Web. 4 Aug 2012.
Nonperiodical Web Document, Web Page, or Report
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doc_572025120.pdf
This project report presents sustainability of GE Energy and its CSR activities.
GE ENERGY
Presented by: Nikhil Abbi Sridhar E. Piyush Gupta Sagar Gupta Rahul Sangani Rohit Solanki (B-002) (B-021) (B-025) (B-027) (B-050) (B-057)
FTMBA-CORE SBM, NMIMS
1
CONTENTS
1. Introduction………………………………………………………………………………3 1.1 Global Energy consumption for the year 2011………………………………………3 1.2 National Energy consumption for the year 2011…………………………………….3 2. GE Energy………………………………………………………………………………...4 3. GE’s approach towards CSR……………………………………………………………..4 3.1 Workplace CSR……………………………………………………………………...5 3.1.1 3.1.2 3.1.3 3.1.4 Health and Safety …………………………………………………………...5 Learning & Development…………………………………………………....5 Diversity……………………………………………………………………..5 Maintaining Work-Life Balance………………………………………...…...5
3.2 Market Place CSR……………………………………………………………….…..6 3.2.1 3.2.2 3.2.3 3.2.4 Customers…………………………………………………………….……...6 Suppliers………………………………………………………......................6 Shareholders…………………………………………………………………6 Governance and Compliance………………………………………….……..6
3.3 Community CSR……………………………………………………………….…….7 3.4 Environment CSR………………………………………………………….………...8 3.4.1 3.4.2 Ecomagination……………………………………………………….……….8 Sustainable practices across different segments…………………….……….8
3.4.2.1 Solar Energy…………………………………………………………….8 3.4.2.2 Wind Energy……………………………………………………………9 3.4.2.3 Water……………………………………………………………………9 3.4.2.4 Electricity………………….……………………………………………9 3.4.2.5 Nuclear Energy……...…….……………………………………………9 4. Critical Analysis………………………………………………………………….……….9 5. References………………………………………………………………………….…….10
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1. INTRODUCTION: In the industrially advanced world of today, the demand for energy is increasing day by day. The main sources of energy are coal, natural gas, mineral oil and hydro-electric. But today the problem is that world energy sources are fast depleting and it will put the world in a grip of energy crisis. It would not take mankind more than a hundred years to use up all the known resources on earth. Hence the need to conserve the resources and use of available domestic resources is gaining momentum. 1.1 Global Energy consumption for the year 2011 Over the years the global energy consumption is continuously increasing. China and USA were the largest consumers of energy followed leaving a huge gap between them and the 3rd largest consumer, India. Country Value China 2 648 United States 2 225 India 759 Russia 725 Japan 469 Germany 317 Brazil 268 Canada 266 South Korea 257
Fig. 1: Global Energy Consumption
1.2 National Energy consumption for the year 2011
Fig.2: Distribution of Energy Production
Fig. 3: India’s Oil Production and Consumption
According to the International Energy Agency (IEA), coal and oil together represent about than two-thirds of total energy sources. Other renewables such as wind, geothermal, solar, and hydroelectricity contribute to 2% of energy production. During the second half of the last decade, India’s oil consumption has gone up from 2400 to 3200 thousand barrels/day. India’s energy demand is growing by about 7% annually and based on the growth rate, as per IEA estimates, India may need to invest $800 billion by 2030 to meet its demand. Energy companies all over the world are trying to meet the challenge. One such company which is leading these efforts is GE Energy.
3
2. GE ENERGY: GE Energy is a division of General Electric and is headquartered in Atlanta, Georgia, United States. It offers real and sustainable solutions to the world’s energy operations.GE is ranked 6th largest firm amongst Fortune 500 companies. It has presence in over 100 countries. Its 2011 revenues are estimated at US$ 45 billion and employs around 100,000 people around the world. GE Energy has the following divisions: ? ? ? GE Oil & Gas Energy Management o Digital Energy, Industrial Solutions, Environmental Services GE Power & Water o GE Hitachi Nuclear Energy (Joint venture with Hitachi, 60% ownership) o Power Generation Services, Water, Renewables (Wind Energy) o Granite Services International (Wholly Owned Affiliate)
The aim of GE Energy is “To help meet the energy needs of society in ways that are economically, environmentally and socially responsible.” 3. GE’S APPROACH TOWARDS CSR: GE focuses on areas where it can make a difference, either through the way it operate within the business, the marketplace, or through the broader influence in society. Eight years ago it started the ‘GE Citizenship’ program. It is a full-time commitment program to improving social, governance, environmental and economic sustainability efforts around the world. It revolves around a Triple Bottom Line framework geared to benefit: People, Planet, and Economy.
Fig. 4: Triple Bottom Line As a part of sustainable development, GE focuses on: People: It involves customers, employees, communities and shareholders as they provide significant value to the company. Planet: It reviews the scope and management of GE’s environmental footprint, with a particular focus on the critical environmental issues of water, energy and climate. Economy: To support a growing, increasingly urban world, in which effective corporate governance, proactive public policy and thoughtful corporate action are needed to help meet global challenges and to support continued development and prosperity.
4
3.1 WORKPLACE CSR: 3.1.1 Health and Safety
GE considers employee’s safety as its highest priority during operating activities and minimizes the use of hazardous materials. It also assesses all new activities and products for environmental, health and safety impacts. Some of the noted steps taken by GE in 2011 are as follows: ? GE has certified 354 of its 480 sites in the HealthAhead program, which supports subsidized healthy food in cafeterias and low-cost fitness options ? All GE campuses became tobacco-free as of November 1, 2011 ? Reduced GE’s injury and illness rate by 26% and lost-time cases by 19% As a result, The U.S. Department of Labor's Occupational Safety and Health Administration (OSHA) has certified GE Oil and Gas facility in Pennsylvania as a Star site, the highest level in its Voluntary Protection Programs (VPP). 3.1.2 Learning & Development:
GE believes that when one person grows and improves, all grow and improve—and that together, all rise. As a result of this commitment, GE invests significantly in its employees, spending more than $1 billion on learning and development each year to help employees at every level and career stage. It offer a range of learning platforms—from leadership development to functional skills, technology- and business-specific curricula, and robust ondemand learning program, which features thousands of courses, reference tools, abstracts, podcasts and videos, in more than a dozen languages. 3.1.3 Diversity
At GE, diversity is about the power of the mix—combining different ideas and experiences to deliver the best results. The culture fosters teamwork and innovation to help people and business grow. Employee Groups help create communities that enable GE employees to grow both professionally and personally. These networks include: ? The African American Forum (AAF) - Founded in 1991, the AAF is GE’s first homegrown community of employees dedicated to improve health conditions in Africa. ? The Women’s Network - The rapidly growing Women’s Network supports the professional development of GE women around the world by sharing the wisdom of successful role models. 3.1.4 Maintaining Work-Life Balance GE has integrated HealthAhead programs designed to educate employees on how to find balance between home and work priorities and manage stress. These programs range from inperson sessions to online resources. Wherever possible, GE facilitates flexible work hours, part-time work and job-share opportunities.
5
3.2. MARKET PLACE CSR: 3.2.1 Customers GE has built a reputation as a progressive independent organisation, dedicated to honest and fair dealings with suppliers, clients and customers. It has developed the Gold Standard Marketing (GSM) Framework, to engage customers in the process of developing products. Examples of GSM best practices are as follows:
?
Differential Value Proposition: Its main objective is align all GE functions with customers by delivering timely plans and accountability to direct investments and growth Access GE: It allows customers to tap into GE’s unique insights, tools and operational best practices to address their business challenges. In 2011, GE created dozens of partnerships to meet customers’ needs for strategic support including a 2.5-day executive education program for senior leaders of GE clients.
?
3.2.2 Suppliers
?
GE has worked through Supplier Relationship Guidelines program to help ensure that suppliers, especially those in developing countries, respect their employees’ safety, labor and human rights, as well as security and the local environment. It implemented the Resource Efficiency approach in purchasing contracts.
?
Resource Efficiency: This assessment tool includes a tiered scoring system for evaluating a supplier’s management system and includes energy efficiency, greenhouse gas emissions and water usage. It encourages suppliers to achieve measurable improvements in resource efficiency, in a way that adds business value for both GE and its suppliers, avoids additional cost. 3.2.3. Shareholders GE works to deliver shareholder value by offering real and sustainable solutions to the world’s toughest problems. ? In 2011, GE’s stock price outperformed the S&P Financial and Industrial sectors, finishing almost unchanged, in line with the broader S&P 500 index ? GE had two dividend increases in 2011 following two increases in 2010, a total 70% increase over two years 3.2.4. Governance and Compliance GE completely complies with the rules and regulations that the government imposes. • In June 2011, a new Manager Open Reporting Tool was created, through which any manager, HR, Compliance, Legal, or Corporate Audit staff professional can submit a compliance concern directly • GE has been highlighted in the World’s Most Ethical Companies list since the list’s inception • Conducted numerous training sessions in 2011, including regular monthly Webinars, training more than 1,300 employees on key government business topics
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3.3. COMMUNITY CSR: The GE volunteers in India aim to improve the life of the communities in which they live and work. The Strategic Volunteer Partners of GE in India include: 1. Rotary Foundation 2. AMCHAM 3. United Way 4. National Association for Blind 5. Manipal Health Foundation 6. VIDYA Foundation 7. NASSCOM Foundation 8. LEAD India 2020 9. Junglescapes 10. LV Prasad Eye Institute In India, there are around 1000+ GE volunteers who contribute around 20,000+ hours each year towards voluntary service across different sectors: Education: ? The volunteers work at local schools, which are economically disadvantaged to improve the academic standards and help the students to secure jobs in the government and the industry. ? They work at physically challenged schools, old age homes and orphanages and empower them to assimilate into the mainstream community. ? GE Volunteers mentored and supported education of over 4000 students in 32 Indian schools in 2010. Health and Medical: ? Blood donation camps are organized every year where in 1500 donate blood. ? Quarterly/Annual Medical Health Camps are organized for Preventive healthcare for around 4000 school children including surgeries at no cost for critical children Environment: ? In 2010, volunteers completed planting of over 8000 saplings over a 50 acre area, to restore degraded forests adjacent to Bandipur Tiger Reserve, Karnataka. ? In 2010, GE Volunteers spent over 23,000 volunteer-hours, partnering with 35 not-forprofit organizations to support environment projects across 12 Indian cities. Disaster Relief: ? Initiated Disaster recovery operations for Tsunami, floods. They provided immediate assistance through food, shelter, clothing followed by rehabilitation projects for housing and work Food: ? Volunteers have been supporting daily mid-day meals for 300 students since 2008.
7
3.4.
ENVIRONMENT CSR:
GE is focussed on finding sustainable solutions for natural resources to reduce company’s impact on the environment. It defines environmental responsibility as involving a comprehensive approach to a company's operations, products and facilities that includes assessing business products, processes and services; eliminating waste and emissions; maximizing the efficiency and productivity of all assets and resources; and minimizing practices that might adversely affect the enjoyment of the planet's resources by future generations. In 2005 GE launched its "Ecomagination" initiative in an attempt to position itself as a “green" company. 3.4.1 Ecomagination: Ecomagination is GE’s strategy to help tackle the world’s biggest energy, environmental and economic challenges. It addresses critical challenges, including the need for cleaner and more-efficient sources of energy, reduced emissions and abundant sources of clean water. GE introduced 22 new Ecomagination products in 2010 and 34 products in 2011. Since its launch, ecomagination has met or exceeded every goal the company had set: ? $5 billion of clean-tech invested in research and development ? $85 billion in revenue from ecomagination products and solutions ? 22% reduction in greenhouse gas emissions ? 30% reduction in water use ? $130 million in energy efficiency savings Based on huge success of Ecomagination, GE accelerated their ambitions for the next five years to: ? ? ? ? Double clean-tech research and development to $10 billion Grow ecomagination revenue at twice the rate of overall GE revenues Reduce energy intensity by 50% and greenhouse gas (GHG) emissions by 25% Reduce water use by 25% for flights, and Nucleus, a smart meter technology that helps homeowners manage energy use.
3.4.2 Sustainable practices across different segments GE works to minimise the environmental impact of operations by promoting sustainable practices across different segments as follows: 3.4.2.1 Solar Energy ? Thin Film Solar Panel (78 W, 80 W, 83 W) – It is a cost-competitive solar solution that requires less material than alternative technologies to achieve high levels of performance. ? GE Energy latest investment is in LS Power’s $550 million - Arlington Valley Solar Energy II project, a photovoltaic solar farm near Arlington, Arizona, 40 miles west of Phoenix in Maricopa County. The solar farm - located on approximately 1,160 acres - will provide enough clean, affordable energy to power approximately 53,000 California homes and avoid 215,000 tons of greenhouse gas emissions per year; equivalent to taking 38,000 cars off the road.
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3.4.2.2 Wind Energy ? Wind Turbines (1.5MW and 2.5 MW series) –GE produces the next generation wind turbine. 16,500+ turbines have been installed globally (1.5 MW) providing clean energy. ? GE has also invested in large wind power projects, such as a 150-MW Kenyan wind power project, Mongolia’s first wind farm, and a whopping 662.5-MW wind farm in West Texas. Wind power is now an important segment of GE’s businesses, as we can see above. 3.4.2.3 Water ? Waste to Value – GE’s Waste to Value solution helps in reducing wastewater discharge/disposal, energy use, and fresh water consumption. This process converts wastewater treatment from an expense to an operating profit by creating reusable and/or saleale energy and clean water. This process is ecomagination certified and helps reducing the amount of fresh water intake and CO2 emitted in the environment thus helping to achieve water and energy independence. ? Advanced Water Recycling - GE uses proven, reliable technologies to the reuse of treated wastewater for beneficial purposes such as agricultural and landscape irrigation, industrial processes, toilet flushing, or replenishing a groundwater basin. It meets the regulatory requirements and protects the environment while turning waste water into resource. 3.4.2.4 Electricity ? Smart Grid – GE is designing smart grid which is an electrical grid that uses computers and other technology to gather and act on information, such as information about the behaviours of suppliers and consumers, in an automated fashion to improve the efficiency, reliability, economics, and sustainability of the production and distribution of electricity 3.4.2.5 Nuclear Energy ? Today, nuclear energy supplies 16% of the world's electricity, avoiding the emission of about 2.5 billion tons of carbon dioxide every year that would otherwise be generated by fossil fuel solutions, such as supercritical pulverized coal. ? GE has provided advanced and sophisticated technology for nuclear energy for over five decades. Three main product lines support this capability: advanced reactor technologies, nuclear services, and nuclear fuel cycle.
4. CRITICAL ANALYSIS Like any other company, it also faces several challenges and issues. So far, it has been successful in addressing them effectively. The sound management policies and processes of the company and its constant endeavour to serve its customers as best as it can, have helped it in this regard. GE was awarded the “World’s Most Admired Companies” in 2006 and 2007 by Fortune. It also has many others awards and accreditations to its credit for its ethical and socially responsible conduct. It has been known for its best business practices. And hence it has won
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the award of “Most Ethical Companies” from 2007 to 2012 and was awarded “#1 Company for Leaders” by Fortune in 2007 and 2009. After doing a proper analysis of the company through its sustainability report and other sources, we have arrived at the conclusion that the ethical and socially responsible conduct of the company and its sustainability practices are best in class. GE continually strives to connect with external parties, such as policy leaders and NGOs, in order to gain insight and perspective on corporate citizenship. It has created several external advisory panels whose participants—academics, industry leaders and technical experts—possess a wide variety of expertise. The advisory panels for Ecomagination challenge and sharpen the focus on innovation, driving the performance improvements of these programs. In addition, the Citizenship Advisory Panel plays a key role in providing external advice and work through particular areas of concern. GE has successfully created and implemented a business model where it can earn profits while working for the environment and the community. It has been highly effective in mobilizing money towards the betterment of the society and sustainability of natural resources. Also it has been successful in touching lives all sections of the society through their varied products, services and technology. 5. REFERENCES 1. Books ? Francesco A.M., Gold,B.A. (1998). International Organizational Behavior. Upper Saddle River: Prentice Hall. 2. Publications ? Elkington (2001). The Triple Bottom Line for 21st Century Business in Starkey,R., Welford, R.Business & Sustainable Development.London:Earthscan Publications.
3. Government Documents
? Sachdev R.K., Ghosh Ranjan & Others (2012). India energy book 2012. World Energy Council. ? Central Statistics Office. (2012). Energy Statistics 2012. Delhi: Ministry of Statistics & Programme Implementation. ? International Energy Agency (IEA).2011. Key World energy statistics.France:Soregraph ? ? ? ?
4. Report from a Private Organization
General Electric Company. 2011. GE Annual Report 2011. Michigan, Detroit. General Electric Company. 2011. GE Citizenship Report 2011.Fairfield. General Electric Company. 2011.GE Ecomagination Annual Report 2011.Fairfield. General Electric Company. 2011.GE Sustainable Growth Report 2011.Fairfield.
5.
? The GE Family of sites. The General Electric company. Web. 4 Aug 2012.
Nonperiodical Web Document, Web Page, or Report
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