Preview

Creating Business Value

Powerful Essays
Open Document
Open Document
5379 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Creating Business Value
ISBN - 978-93-81583-46-3

Sustainable Banking in India: The Road Less Travelled
Dr. Prita D. Mallya Associate Professor Dept. of Economics & Banking, VVM’s Shree Damodar College of Commerce & Economics, Goa pritamallya@yahoo.com; pritamallya@gmail.com

National Conference on Emerging Challenges forSustainable Business 2012 311

Sustainable Banking in India: The Road Less Travelled

Sustainable Banking in India: The Road Less Travelled Abstract Although the concept and practice of socially responsible and sustainable investing (SRSI) or more simply, sustainable finance, is yet to catch on in India, it represents a potentially hugely rewarding business opportunity. This paper begins with the wider concept of sustainable development and business, then highlights the importance of sustainable banking – why it makes economic sense for banks to seriously venture into this area; it lists various international initiatives to promote SRSI, identifies global best practices in the area of sustainable finance and presents the Indian banking sector’s sparse efforts in this direction. It also identifies some financial products that offer opportunities for sustainable banking in India. Since sustainable banking in India is in its infancy, the scope for empirical work in this area is extremely limited. This limitation can be overcome in the future as more bankers accept and follow this essential practice. Key words: green banking, responsible banking, sustainable banking, sustainable finance, sustainable development

1. Introduction

National Conference on Emerging Challenges forSustainable Business 2012 312

Sustainable Banking in India: The Road Less Travelled

There have been several paradigm shifts in the understanding of the concept of economic development (Meier 2005, Todaro & Smith 2011). In the early days of development economics following the end of the Second World War, development was seen as being concomitant with economic growth, and Gross Domestic


References: Biswas N. (2011): Sustainable Green Banking Approach: The Need of the Hour, Business Spectrum, 1(1), 32-38 Business Standard (2007): SBI launches Carbon Credit finance, August 6, www.businessstandard.com Chakrabarty K. C. (2011): Non-Financial Reporting: What, Why and How – Indian Perspective, address at National Conference on Non-Financial Reporting and Risk Management for Financial Institutions in India, June 6, Mumbai, accessed at http://www.rbi.org.in/ Dash R. N. (2008): Sustainable “Green” Banking: The Story of Triodos Bank, CAB Calling, October-December, 26-29 International Institute for Sustainable Development (2012): Sustainable Banking, accessed at www.iisd.org/business/banking, International Institute for Sustainable Development Kalia C. (2011): Sustainability - The Way Ahead for Banking and Financial Institutions, Finesse November 2010 - February 2011, Ernst & Young accessed at www.ey.com Kapoor R. (2007): Sustainable Banking in India, Financial Express, June 6 Meier G. M. (2005): Biography of a Subject: An Evolution of Development Economics. Oxford University Press, Oxford Mor N. (2008): Sustainable Financing for Indian Banks, presentation at IFC Seminar, January, Mumbai, accessed at www.ifmr.ac.in National Conference on Emerging Challenges forSustainable Business 2012 325 Sustainable Banking in India: The Road Less Travelled Nafziger E. W. (2005): From Seers to Sen: The Meaning of Economic Development, paper presented at the UN University/World Institute for Development Economics Research (WIDER) Jubilee Conference, 17-18 June Sahoo P. & Nayak B. P. (2007): Green Banking in India, Indian Economic Journal, 55(3), 82-98 Sen A. (1999): Development as Freedom, Knopf, New York The Climate Group (2010): Climate Change and Finance in India: Banking on the Low Carbon Indian Economy, The Climate Group, www.theclimategroup.org Todaro M. & Smith S. C. (2011): Economic Development, Pearson, New York UNEP (2011): UNEP FI Guide to Banking & Sustainability, United Nations Environment Programme, Geneva, www.unepfi.org/ World Commission on Environment and Development (also known as the Brundtland Commission) (1987): Our Common Future, Oxford University Press, Oxford Websites: http://www.equator-principles.com http://www.newenergyindia.org http://www.unpri.org National Conference on Emerging Challenges forSustainable Business 2012 326
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Good Essays

    Csr David Vogel Summary
    • 299 Words
    • 2 Pages

    Csr David Vogel Summary

    David Vogel explains how stakeholders, mainly employees, customers, and investors can impact the significance of Corporate Sustainable Responsibility (CSR) in business. Even though many surveys had been conducted to assess and boost businesses to be more sustainable, there is still a lack of evidence on the actual actions and effects.The complication of measuring social as well as environmental implication through a single standard has left CSR to be neglected. GRI is an example that encourages CSR but lacks conformity for reported results. This difficulty in measuring social and environmental outcomes often lead organizations to undertake ‘greenwashing’, or act as charity donors to cover up their ‘irresponsibility.’…

    • 299 Words
    • 2 Pages
    Good Essays
    Read More
  • Powerful Essays

    Political and Economic Developments in the Catch-Up Nations
    • 1489 Words
    • 6 Pages

    Political and Economic Developments in the Catch-Up Nations

    Schumpeter, J. and Backhaus, U. (2003). The theory of economic development. [In Joseph Alois Schumpeter, pp. 61-116. Retrieved http://www.springerlink.com/…

    • 1489 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Exploring Structural Change in Uk Economy and Labour Market Inequality in London
    • 6196 Words
    • 25 Pages

    Exploring Structural Change in Uk Economy and Labour Market Inequality in London

    McKinsey (2011) In search of a sustainable model for global banking, Financial Services Practice, McKinsey…

    • 6196 Words
    • 25 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Pest and Porter's Five Forces Analysis of Barclays Bank
    • 407 Words
    • 2 Pages

    Pest and Porter's Five Forces Analysis of Barclays Bank

    The sustainability of Barclays’s agenda has expanded rapidly. It reflects the company’s increasing focus on the wider nature of business and made the stakeholders growing interests in competitive world of business. There is now a great awareness about the global challenges such as climate changes, poverty, scarcity of resources, and demographic shifting. The responses came from the government and from different businesses, as well as the non-profit organization helped the Barclays made it possible for the sustainability.…

    • 407 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Bank Of America Executive Summary
    • 130 Words
    • 1 Page

    Bank Of America Executive Summary

    We appreciate you taking the time to look over our recommendation report. We are Financial Professionals for Positive Change (FPPC). Our goal is to improve Bank of America’s public image regarding your sustainability business plan, and by doing so, gain a bigger portion of the market share for Bank of America. Costs will also be reduced through sustainability. We have enclosed a report that explains the changes, improvements, and expenses that we recommend to properly implement this plan. We included tables and figures with labels, an executive summary, a review of our sources, solutions, technical plan, and our references. We believe that if Bank of America considers our recommendations, their reputation will be restored. The key to this plan…

    • 130 Words
    • 1 Page
    Satisfactory Essays
    Read More
  • Best Essays

    The Globalization Project (1970s – 2000s), Liberalizing Trade and Investments, and Privatizing Public Goods and Services, Has Privileged Corporate Rights over Social Contracts and Redefined Development as a Private Undertaking. Discuss
    • 3567 Words
    • 15 Pages

    The Globalization Project (1970s – 2000s), Liberalizing Trade and Investments, and Privatizing Public Goods and Services, Has Privileged Corporate Rights over Social Contracts and Redefined Development as a Private Undertaking. Discuss

    Dietz, James L., and James M. Cypher. The process of economic development. 3 rd. New York: Routledge, 2009.…

    • 3567 Words
    • 15 Pages
    Best Essays
    Read More
  • Good Essays

    Csr Case Study
    • 6604 Words
    • 27 Pages

    Csr Case Study

    Abstract: Starting from the times of barter system to today’s modern era of plastic money, the mankind has trodden a remarkably long path. Undoubtedly “profitability” has always been the driving force and an undercurrent behind all this development; but as every coin has two facets; growing cut throat competition and business rivalries started taking heavy toll on the quality, transparency, environment and the society in general endangering the peaceful coexistence of business and society. The businesses houses started realizing that they would have to rise over and above the profitability and take care of all those associated with their survival in the society directly or indirectly. This realization resulted into the concept of Corporate Social Responsibility (CSR). This research paper moves around developing an understanding about the corporate social responsibility (CSR), delving into its concept and finding out its scope taking the case study of the TATA Group under Mr. Ratan Tata who has exemplified the sense of responsibility towards the upliftment of common masses and protection of the environment and development of the nation. Keywords: Corporate citizenship, Corporate social responsibility, Employee, Productivity, Profitability, Society, Stakeholders. I. Introduction…

    • 6604 Words
    • 27 Pages
    Good Essays
    Read More
  • Good Essays

    Sustainability Issues Facing Banks Case Study
    • 1575 Words
    • 7 Pages

    Sustainability Issues Facing Banks Case Study

    The most important aspect of a bank’s sustainability program is managing the impact that its products, services and customer relationships have on the financial sector. First and foremost, a bank must give customers what they want fairly, responsibly and transparently. At the same time, it must provide good working conditions for staff and deliver profitable growth for shareholders.…

    • 1575 Words
    • 7 Pages
    Good Essays
    Read More
  • Powerful Essays

    The Effect of Globalisation on the Development of Underdeveloped1 Economies
    • 7888 Words
    • 32 Pages

    The Effect of Globalisation on the Development of Underdeveloped1 Economies

    Pomfret, R. (1992) Diverse Paths of Economic Development, Harvester Wheatsheaf,Exeter, Great Britain. Olomola, A. S. (2000), “Macroeconomic Policies and Long-run Economic Growth in Nigeria (1960-1998)”, presented at the annual conference of the Nigerian Economic Society (NES), Abuja, Nigeria. Rauch, J. and Trindade, V. (2003), “Information, International Substitutability and Globalization”, American Economic Review, Vol.93, No3, June. Romer, D (1996) Advanced Macroeconomics. McGraw Hill. Rpmer, M. P. (1992) “Two Stratefies for Economic Development: Using Ideas and Producing Ideas”, proceedings of the Annual World Bank Conference on Development Economics. Sandilands, R. J. (2000), “Perspectives on Allyn Young in Theories of Endogenous Growth”, Journal of History of Economic Thought, Vol.22, No.3. Schadler, S. (1994) “Surges in Capita Inflows: Boom or Curse?”, Finance and Development, Vol.31, No 1, March Scouller, J. (1999) “Beyond Accounting for Growth” in Dahiya, S. B. (ed) The Current State of Economic Science, Vol.5, pp2569-2581. Sinha, D. (1999) “The Relevance of the New Growth Theory to Developing Countries” in Dahiya, S. B. (ed) The Current State of Economic Science, Vol.5, pp 2457-2466. Solow, R. M. (1974b) “The Economics of Resources or the Resources of Economics”. The American Economic Review, 64(2).Papers and Proceedings of the Eighty-sixth Annual Meeting of the American Economic Association, 1-14. Solow, R. M.(1956) “A Contribution to the Theory of Economic Growth”. The Quarterly Journal of Economics, 70 (1), 65-94. Solow (1994) “Perspectives on Growth Theory”. The Journal of Economic Perspectives, 8(1), 45-54. Stiglitz, J. (2002), Globalization and its Discontents, W. W Norton, USA Strachan, D. (2002) “Review Article: Economic Transition in Africa; Statist Economic Policies, Changing Roles and Reforms”, Journal of Economic Studies, Vol.28, No. 3, pp231-239.…

    • 7888 Words
    • 32 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Islamic Corporate Social Responsibility in Islamic Banking
    • 14160 Words
    • 57 Pages

    Islamic Corporate Social Responsibility in Islamic Banking

    Muhammad Yasir Yusuf 1 Zakaria bin Bahari 2 One of the goals of Islamic banking operations is to increase the economic growth towards a better and just society. This study aims to examine the criteria and Islamic instrument of corporate social responsibility towards the creation of a sustainable economic development. Specifically, the study analyses the various approaches to improve the quality of life and alleviate poverty and the methods of applying Islamic instruments to corporate social responsibility programs in Islamic banking. Based on the review of literature and findings resulted from in depth interview with the expertises of Islamic banking in Indonesia, the study reveals that there are six (6) fundamental criteria and 34 items considered as critical for corporate social responsibility to make an impact on the society. These criteria are namely; shari’ah compliance, equality, responsibility in work, the guarantee of welfare, the guarantee environmental sustainability and charity for preservation of virtue. Then application of Islamic corporate social responsibility in the society should be guided by two Islamic principles, first, the application of maslahah (the public good) which provides a better framework that managers can use when faced with potential conflicts arising from diverse expectations and interests of any corporation’s stakeholders. Secondly, corporate social responsibility program should pay more attention to the importance of social capital in the society. The corporate social responsibility practices in Islamic banking should not only be based on responsibility al kifayah (obligatory upon community) and get a positive corporate image but can also be deemed as a method to alleviate poverty and achieve the true economic goals of Islam. Keywords: Islamic Corporate Social Responsibility,…

    • 14160 Words
    • 57 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Green Banking
    • 3835 Words
    • 16 Pages

    Green Banking

    Professor Dr Bandana Saha in her speech as Chief Gust called upon the Banks to play pioneer role in planning, evaluation and implementation of sustainable development. She praised Islami Bank for taking initiatives to create awareness on Green Banking at different tyre of employees.…

    • 3835 Words
    • 16 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Case Study in Dell Computer
    • 2477 Words
    • 10 Pages

    Case Study in Dell Computer

    This case study is one of ten that were chosen as part of the ‘Enhancing Business-Community Relations’ project in India implemented in collaboration with The Energy and Resources Institute (TERI). These cases document examples of engagement between businesses and communities and can be used as learning tools for the promotion of responsible business practice and sustainable development. The Enhancing Business-Community Relations project is a joint international initiative between United Nations Volunteers (UNV) and the New Academy of Business. Implemented in seven developing countries, the purpose of the initiative was to collect and document…

    • 2477 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Best Essays

    Role and Performance of Government and NGOs in Relief Assistance
    • 4655 Words
    • 19 Pages

    Role and Performance of Government and NGOs in Relief Assistance

    Khalil Ahmad(Corresponding author) Assistant Professor of Economics University of the Punjab, Lahore Tanveer Ahmed Naveed Lecturer, Department of Economics University of Gujrat Sami Ullah Lecturer, Department of Economics University of Gujrat Tahir Rashid…

    • 4655 Words
    • 19 Pages
    Best Essays
    Read More
  • Powerful Essays

    Introduction to the Economics of Development
    • 10726 Words
    • 43 Pages

    Introduction to the Economics of Development

    As a subfield concerned with "how standards of living in the population are determined and how they change over time" (Stern), and how policy can or should be used to influence these processes, development economics cannot be considered independently of the historical, political, environmental, and sociocultural dimensions of the human experience. Hence development economics is a study of the multidimensional process involving acceleration of economic growth, the reduction of inequality, the eradication of poverty, as well as major changes in economic and social structures, popular attitudes, and national institutions. Development economics covers a variety of issues, ranging from peasant agriculture to international finance, and touches on virtually every branch in economics: micro and macro, labor, industrial organization, public finance, resource economics, money and banking, economic growth, international trade, etc., as well as branches in history, sociology, and political science. It deals with the economic, social, political, and institutional framework in which economic…

    • 10726 Words
    • 43 Pages
    Powerful Essays
    Read More
  • Good Essays

    Human Rights
    • 886 Words
    • 4 Pages

    Human Rights

    India has recently made significant progress towards sustainable development, and has placed more attention to environmental matters and the need…

    • 886 Words
    • 4 Pages
    Good Essays
    Read More

Related Topics