Case study on Environment Law non-compliance by Sterlite Corporation
Environment Law non-compliance
Sterlite Corporation
By Akash NV, Sai Apurupa Kasibhatta, Kriti Sharma, Simran Mahajan (PGDRM July’19-20 and Jan’20-21)
Introduction
The environment refers to our immediate surroundings in which all living and non-living components co-exist. It can be used to refer to the social, natural or built environment. The environment has a huge impact on an individual’s behavior and intellect. Any change that occurs in a living entity either directly or indirectly is related to a change in his immediate surrounding.
Environment Regulations
ENVIRONMENTAL (PROTECTION) ACT, 1986:​
The Environment (Protection) Act, 1986 was introduced as an umbrella legislation that provides a holistic framework for the protection and improvement to the environment. ​
WATER (PREVENTION & CONTROL ) ACT 1974:​
The objectives of the Water (Prevention and Control of Pollution) Act are to provide for the Prevention and Control of Water Pollution and the maintenance or restoration of the wholesomeness of water for the establishment, with a view to carrying out the purposes.​
AIR (PREVENTION AND CONTROL OF POLLUTION) ACT 1981:​
The objective of this Act is to provide for the prevention, control and abatement of air pollution, for the establishment, with a view to carrying out the aforesaid purposes.​
​The Factories Act, 1948:​
Factories Act, 1948 is a social welfare legislation intend to secure health, safety and welfare of the workers employed in factories. However, some of the provisions of this Act are concerned with prevention of water pollution.​
Environmental Impact Assessment (EIA):​
It is an important management tool for ensuring optimal use of natural resources for sustainable development. The scope of the EIA has been enhanced to cover other developmental sectors such as industries, mining schemes, energy, etc.​
Control Pollution Control Board:​
The Central Pollution Control Board (CPCB) is a statutory organization, whose function is to promote cleanliness of streams and wells in different areas of the States as well as Advise the Central Government on any matter concerning the prevention and control of water pollution. They Advise the Central Government on any matter concerning the prevention and control of water pollution.​
Ministry of Environment and Forest:​
The ministry is responsible for planning, promoting, coordinating, and overseeing the implementation of environmental and forestry programmes in the country. It also ensures the conservation of flora and fauna of the Indian forests.​
Ministry Of Water Resources:​
It is the apex body for the formulation of rules and regulations for the development of water resources in India.​
Tamil Nadu Pollution Control Board:​
It is the governing body to monitor and control air, noise, and water pollution in the state of Tamil Nadu.​
About the company
Environmental Impact
Aftermath Impact on Environment
TNPCB reports ​
Decrease in level of sulphur di oxide & air quality index improved significantly.​
Impact on Financials of company
Impact on economy​
The closure of company has led to​
Rise in import of copper worth USD 2 billion
Export loss of over USD 1.5 billion, resulting in an overall loss of Rs 20,000 crores to the economy.​
Compliance Issues
Root Causes
Strategies
What the company could’ve done:​
What the company can do now:​
Stakeholder Mapping
ENVIRONMENTALLY ETHICAL COMPANY
HINDALCO INDUSTRIES LTD., an Indian Aluminium and copper manufacturing company, is a subsidiary of the Aditya Birla Group.​
About Hindalco:
Why aluminum and Copper?​
Read the full case study here: ​Case Study on Sterlite Corporation
Disclaimer
This report has been produced by students of Global Risk Management Institute for their own research, classroom discussions and general information purposes only. While care has been taken in gathering the data and preparing the report, the student’s or GRMI does not make any representations or warranties as to its accuracy or completeness and expressly excludes to the maximum extent permitted by law all those that might otherwise be implied. References to the information collected have been given where necessary.
GRMI or it’s students accepts no responsibility or liability for any loss or damage of any nature occasioned to any person as a result of acting or refraining from acting as a result of, or in reliance on, any statement, fact, figure or expression of opinion or belief contained in this report. This report does not constitute advice of any kind.
