Category: University of Mumbai BMS Notes

Green Management refers to the incorporation of environmentally sustainable practices into business operations. It aims to minimize environmental impact while promoting ecological conservation. Organizations adopting green management contribute to sustainable development, ensuring resource availability for future generations.

Evolution:

• Green Movement and Green Policies began in the late 1970’s when the first Green party was formed in Germany. The Term ‘Green’ is the English translation of the German word ‘Grun‘. Green politics advocated issues pertaining to Ecology, Environment, Feminism, Conservation and Peace.
• It is believed that Green politics draws its inspirations from Mahatma Gandhi, Spinoza and Uexkull who advocated and urged personal responsibility to make the right moral choices is the pillar of the green politics ideology.

Importance of Green Business Management:

• Cost Saving

Companies that focus on reducing energy consumption not only help the environment but also reduce their costs in the form of lower energy bills. Smaller businesses can also benefit from reduced energy costs by taking simple steps like switching off lights and fans when they are not required for usage.

• Reduced Energy Use

Green Management often include measures to reduce energy use. To increase the efficiency of the building envelope it may use high efficiency windows and insulation in walls, ceilings and floors.

• Healthier Workplace

Companies that promote a healthier workplace have a decrease in the number of sick days used by employees. This benefits the companies through increased productivity and less money paid out through medical benefits.

• Reduced Waste

Green Management also seeks to reduce waste of energy, water and materials. During the construction phase, one goal should be to reduce the number of materials going to landfills. By collecting human waste at the source and running it to a semi-centralized bio-gas with other biological waste, liquid fertilizer can be produced.

• Tax Credits

Tax Credits are available to companies that utilize environmentally friendly business practices such as switching to renewable energy source like solar power and using electric or hybrid automobiles and trucks as fleet vehicles.

• Decreased Productivity

It is easier for the staff to toss paper plastic and other items into one trash can, then it is to sort the trash. If a company adds recycling to the office, company can see a slight decrease in worker productivity

• Improved Public Image

Anytime companies can add a green initiative to the workplace. Companies can use the event to generate positive public relations. They can also include green initiatives on product packaging, advertisements and marketing materials to appeal to consumers who prefer green products.

• Increased Capital Outflows

Some green conversions require an initial cash outflow that decreases the bottom-line performance while the investment is paying for itself. This can increase the company’s quarterly earnings on annual profits.

• Increased Business Opportunities

Some Government agencies, Commercial businesses and non-profit institutions mandate that only businesses that meet specific green standards can bid on their contracts. Not all standards are government mandated with the office of the management and budget directing federal agencies to look for companies that meet voluntarily rather than Government standards when possible.

Nature of Green Management:

• Nature-Based Knowledge and Technology

It involves emulating one’s own self in terms of growing their own food, harnessing their energy, constructing things, conducting business, healing themselves, processing information and designing their communities.

• Products of Service to Products of Consumption

Products of Service are durable goods unlike products of consumption which have shorter life span. Products of Service are made of technical materials unlike products of Consumption which are made only of biodegradable materials.

• Solar, Wind, Geothermal and Ocean Energy

These are used extensively without any negative effect on the earth.

• Local-Based Organizations and Economies

This characteristic includes durable, beautify and health communities with locally owned and operated business and locally managed non-profit organizations, along with regional corporations and shareholders working together in partnerships and other collaborations.

• Value Production

The triple value production establishes three simultaneous requirements of sustainable business activities as financial benefits for the company, natural world betterment, social advantages for the employees and members of the local community.

• Continuous Improvement Process

The continuous process of monitoring, analysing, redesigning and implementing is used to intensify value production as conditions change and new opportunities emerge.

Types of Green Management:

1. Green Supply Chain Management (GSCM)

It includes repurchasing, recycling, reuse and substitute of material. This concept gains popularity because the customers are concerned with environment improvement which encourages the supplier to make environment friendly product.

Companies which adopted Green Supply Chain Management are British Telecom, Nike, Toyota and so on.

2. Green Marketing

It is the marketing of products that are presumed to be environmentally safe. Green Marketing incorporates a broad range of activities including product modification, changes to the production process, packaging changes.

Eg., Bank of America reduced Paper usage by 32%

3. Green Production

With this type of production, we could reduce all the harmful pollution to the environment and also reduce the cost from their starting step to finished product. Companies that follow Green Production are: Ikea – Using Solar & Wind Energy,

Nike Using recycled aluminum frames and underground energy storage

4. Green Research and Development

With only proper Research and Development the customer can provide a suitable product. Eg., Volkswagen Creating cars which are following environmental and safety standards to reduce carbon emissions.

5. Green Criminology

Criminology is referred to the study of Crime and Criminals whereas Green is related to environment issues. Some of the Green Crimes are Deforestation, Animal Trafficking, Cutting of Shark fins for trading.

6. Green Human Resource Management

It is based on Green Environment related to protection of environment. The term Human Resource refers to the contribution of Human resource policies and practices towards the broader corporate environmental agendas of protection, prevention and conservation of natural resources.

Green Management actions:

• Sustainable Resource Use

Organizations should adopt strategies to reduce the consumption of natural resources such as water, energy, and raw materials. Implementing energy-efficient technologies, using renewable energy sources, and optimizing resource usage are critical to reducing the ecological footprint.

• Waste Management

Proper waste management is a cornerstone of green management. Companies should emphasize the 3Rs: Reduce, Reuse, and Recycle. Efficient waste segregation, recycling materials, and minimizing production waste help lower landfill contributions and environmental harm.

• Eco-Friendly Product Design

Green management encourages the design of eco-friendly products that use sustainable materials, require less energy during production, and generate minimal waste. Adopting green packaging solutions, such as biodegradable or recyclable materials, further reduces environmental impact.

• Pollution Reduction

Organizations should implement measures to minimize air, water, and soil pollution. This includes treating industrial effluents, reducing greenhouse gas emissions, and adopting cleaner production technologies. Pollution reduction contributes to healthier ecosystems and communities.

• Green Supply Chain Management

Businesses should encourage their supply chains to adopt sustainable practices. This includes sourcing materials ethically, working with environmentally conscious suppliers, and ensuring that transportation and logistics minimize emissions.

• Employee Training and Engagement

Training employees in eco-friendly practices fosters a green culture within the organization. Encouraging employees to conserve energy, reduce paper use, and participate in sustainability programs creates a shared responsibility toward environmental conservation.

• Corporate Social Responsibility (CSR) Initiatives

Green management actions often align with CSR programs focused on environmental protection. Activities such as tree plantation drives, biodiversity conservation projects, and community awareness campaigns demonstrate a company’s commitment to sustainability.

• Compliance with Environmental Regulations

Adhering to environmental laws and standards is essential for green management. Organizations should ensure compliance with local and international environmental regulations, avoiding penalties and enhancing their reputation as responsible entities.

The Employee Provident Funds, 1952 is a beneficial legislation enacted for the betterment of the future of industrial worker:

1. On his retirement.
2. For his dependents in case of death of employment.

This Act is enacted as a social security measure which falls under the ground of “retirement benefit”, the object of this Act is to inculcate, non-withdrawable financial benefit, the sum is payable normally on retirement or on the death of the employee. Administration of the scheme given under this act is done by the central board, state board, and regional committee, a chief executive committee appointed and constituted by the central government.

• Central board -Section 5A
• Executive committee – Section 5AA
• State board – Section 5B
• Regional committee

Boards under the Act

Constitution and position

Central board: Section 5

Central board: Central board is created by official gazette notification given by the Central government.

Functions

1. Section 6 and Section 6C discussions how the central board should use their fund vested on them.
2. Duty of the central board is to send an annual report to the Central government, of its work and activities.
3. The central government will submit a report to the comptroller and Auditor General of India. Comments of Central board is laid down before parliament.

Constitution of the following a person as a member:

• Chairman and a vice-chairman appointed by the central government
• The central Provident fund commissioner, ex-official
• Among Central government officials (not more than five-person)
• A representative of states (not more than 50)
• Representing the employer of the establishment (10 people)
• Representing the employee of the establishment (10 people)

Executive committee: Section 5AA

State Board: section 5 B 

The central government, after consulting with any of the states constitute the state board in the following state, as provided for in the scheme. Constitution of the state board is done by the notification in the official gazette. Central government from time to time prescribes the duties to be performed by the state board and the powers exercised by the state government. The following scheme will provide the terms condition subject to which a member of state board is appointed, time place and procedure for conducting meetings etc. Every board of trustee constituted under this section is a Body Corporate, being a body corporate, it has perpetual succession, a common seal and right to sue or get sued in its name.

Regional committee 

Until state board is constituted, the Central Government may set up Regional Committee, which is under the control of Central Government, it works under the advice of the following person:

1. Central board, when matters referred to it from time to time.
2. All the matter regarding “administration of the Scheme”, such as the progress of recovery of PF, contribution and other charges, speedy disposal of prosecution, settlement of claims and sanctions of advances.

Appointment of central fund commissioner

• The central government shall appoint Central provident fund commissioner, deputy provident commissioner and regional provident fund commissioner by discharging his duty they will assist central provident fund commissioner. 
• Chief executive officer is appointed by the central provident fund commissioner. 
• Central Board will appoint other officers, employees for the efficient administration of various schemes.

EPF Features

The employer is under a statutory obligation to deduct a specified percentage of the contribution from the employee’s salary for provident fund. The employer should also contribute such percentage for provident fund. An employee who gets more than 15,000 is eligible for getting the provident fund.

This Act contains nearly 20 sections and four schedules. Section 7E, F, G, H, M, N is omitted, section 20 is repealed.

Applicability of the Act – section 1 of this Act deals with the application of the Act. This is applicable to “every factory engaged in any industry specified in schedule I”. 

1. Every establishment in which 20 or more are employed. 
2. Any establishment notified by the central government. 
3. Any class of such establishment employing 20 or more. This Act is applicable to home workers held in the case Mangalore Gandhi Beedi workers V. U.O.I and P.M.Patel V. U.O.I. 
4. This Act is applied when the establishment satisfies the two tests, namely:

• Whether there is an establishment is a ‘factory’?
• Whether 20 or more person is employed which is held in the case Andhra University V. Regional Provident Fund Commissioner.

Some workers will not come under this Act. They are Casual, or temporary workers can’t be considered as employee held in the case Bikar cold storage co. Ltd. V. Regional PF Commissioner.

Non-applicability of the Act

The Act does not apply to the following things. Any establishment registered under the co-operative society Act, 1912. Any state-related co-operative society employed less than 50 people and working without the aid of power. From the date on which the establishment is set up, where the establishment as:

• Only 50 or more persons, after the expiry of 3 years.
• Only 20 or more, but less than 50 people before the expiry of 5 years, which is held in the case V.K. Bhatt V. A.C.B & T. Mfg. Co.

Central Government also has the power to exempt any class of establishment, on such condition mentioned in the notification:

• On the ground of financial position.
• Other circumstances of the case which is held in the case Mohammed Ali V. U.O.I.

Eligibility For getting EPF- Any person is eligible, who is employed:

• For work of the establishment.
• Through contractor.
• Connection with work of establishment is eligible for the benefit of the Act.

This Act was constitutionally challenged on the ground that it is:

• Discriminative in nature.
• Article 14 is violated because it is applied only to a particular class of industry, but the Supreme Court said that it doesn’t violate article 14, it is certain, classification of a certain class of industry falls in reasonable classification which is valid.

Schemes under EPF

Employees provident fund scheme 1952

Section 5 gives wholly unrestricted unguided direction to the central government to frame a scheme, and it appears on the other hand that the Act is full of carefully laid down principles to guide the central government which is held in the case R.P.F. Commr. V. L.R.F Works, A.I.R 1962 Punj. 507

When they say that this scheme has retrospective effect, the employer cannot be asked to pay the employees contribution for the period antecedent to the notification applying the scheme because he has no right to deduct the same for the future wages payable to the employee. The payment of employee contribution by the employer with the corresponding right to deduct the same from the wages of the employees could be only for the current period during which the employer also has to pay his contribution, which is held in the case District exhibitors Assn.,Muzaffarnagar & others V. Union of India (1991) II LLJ 115 (SC).

They were re-employment by the petitioner on a temporary basis. It was held that the employer cannot be asked to pay a contribution in respect of re-employed employees on a temporary basis which is held in the case Bombay printers LTD. & Others V. Union of India and others (1992)I LLJ 816 (BOM).

The fund shall be administered by the central board constituted under section 5A of the Act. The scheme shall take effect either prospectively or retrospectively.

Employees deposit linked insurance scheme, 1976

The scheme Established the purpose of providing life insurance benefits to the employees. The benefit under the scheme is to provide the incentive to the members to save more in the Provident fund account. The benefit under this scheme is linked to the amount of accumulation in the Provident fund account of the member. All the members of the employee’s Provident Fund Scheme are covered as members of the employee’s deposit linked insurance scheme also.

Employee’s family pension scheme, 1995

For the benefit of providing family pension and life insurance benefit. Following benefit package is:

• Pension for life to the member, on retirement and invalidation
• To the member of the family upon the death of the members.
• Facility for capital return ( corpus accretion) on an option formula basis
• Commutation if pension up to 1/3 Rd of pension amount.
• Retention of membership of the scheme till attaining the age of 68 

Retirement pension under the new scheme will be payable on fulfilling minimum 10 years eligible service and on attaining the age of 58 years.

UAN- Universal Account Number

Universal account number (UAN) is number given to an employee by the Ministry of Employment and Labour under the government of India, who is maintaining PF account. It used to know information or track information done by his employer regarding his provided fund (PF). When an employee joined in the new organisation, he was assigned with new PF account, after UAN came into existence, the member of the assemble (employee) all his PF account associated with multiple Ids of difference organization at one place. So through UAN, difficulties faced by the employee when he/she joins the new organization is overcome, with UAN they can track the activities if there are any payment issues.

Uses of UAN 

• It is a unique number given to an employee, which is independent of employers.
• UAN is used to link all the PF account when the employee is switching his company.
• An employer can authenticate his employee by verifying this number and KYC documents.
• EPF passbook can be verified by sending SMS EPFOHO UAN ENG TO 7738299899 from the mobile number which is registered under employee provident fund organization.
• An employee can check his deposit done by his employer through online using UAN number, and you can also get a monthly update regarding your deposit done by the employer.

Transparency Through UAN

• Through UAN employee can check the employer is depositing his PF amount periodically, by registering on EPF member Portal using his UAN.
• The employee would be able to find out whether his employer is deducted or hold back his PF.

EPF Calculation and Example

Contribution for EPF is two parts, one is by the employee, and the other is by the employer.

Contribution by the employee is, including basic wage and dearness allowance is -12%.

Contribution on the part of the employer is-

• 8.33% (for Employees Pension Scheme Account of Employee)
• 3.67 % (for Employee Provident Fund Account of Employee)
• 0.50% ( for Employees Deposit Linked Insurance Account of Employee) 
• 0.50% ( is Employer has to pay an additional charge for an administrative account- minimum 500 rupees and if there is no contribution by the employer that month, an employer must pay rupees 75)

14A. Compensation to be first charge on assets transferred by employer: Where an employer transfers his assets before any amount due in respect of any compensation, the liability where for accrued before the date of the transfer, has been paid, such amount shall, notwithstanding anything contained in any other law for the time being in force, be a first charge on that part of the assets so transferred as consists of immovable property.

Special provisions relating to masters and seamen. This Act shall apply in the case of workmen who are masters of ships or seamen subject to the following modifications, namely:

(1) The notice of the accident and the claim for compensation may, except where the person injured is the master of the ship, be served on the master of the ship as if he were the employer, but where the accident happened and the disablement commenced on board the ship it shall not be necessary for any seaman to give any notice of the accident.

(2) In the case of the death of a master or seaman, the claim for compensation shall be made within [one year] after the news of the death has been received by the claimant or, where the ship has been or is deemed to have been lost with all hands, within eighteen months of the date on which the ship was, or is deemed to have been, so lost:

Provided that the Commissioner may entertain any claim to compensation in any case notwithstanding that the claim has not been preferred in due time as provided in this sub-section, if he is satisfied that the failure so to prefer the claim was due to sufficient cause.

(3) Where an injured master or seaman is discharged or left behind in any part of [India or] [in any foreign country], any depositions taken by any Judge or Magistrate in that part or by any Consular Officer in the foreign country and transmitted by the person by whom they are taken to the Central Government or any State Government shall, in any proceedings for enforcing the claim, be admissible in evidence:

(a) if the deposition is authenticated by the signature of the Judge, Magistrate or Consular Officer before whom it is made;

(b) if the defendant or the person accused, as the case may be, had an opportunity by himself or his agent to cross-examine the witness; and

(c) if the deposition was made in the course of a criminal proceeding, on proof that the deposition was made in the presence of the person accused, and it shall not be necessary in any case to prove the signature or official character of the person appearing to have signed any such deposition and a certificate by such person that the defendant or the person accused had an opportunity of cross-examining the witness and that the deposition if made in a criminal proceeding was made in the presence of the person accused shall, unless the contrary is proved, be sufficient evidence that he had that opportunity and that it was so made.

15A. Special provisions relating to captains and other members of crew of aircrafts. This Act shall apply in the case of:

Workmen who are captains or other members of the crew of aircrafts subject to the following modifications, namely:

(1) The notice of the accident and the claim for compensation may, except where the person injured is the captain of the aircraft, be served on the captain of the aircraft as if he were the employer, but where the accident happened and the disablement commenced on board the aircraft, it shall not be necessary for any member of the crew to give notice of the accident.

(2) In the case of the death of the captain or other member of the crew, the claim for compensation shall be made within one year after the news of the death has been received by the claimant or, where the aircraft has been or is deemed to have been lost with all hands, within eighteen months of the date on which the aircraft was, or is deemed to have been, so lost:

Provided that the Commissioner may entertain any claim for compensation in any case notwithstanding that the claim has not been preferred in due time as provided in this sub-section, if he is satisfied that the failure so to prefer the claim was due to sufficient cause.

(3) Where an injured captain or other member of the crew of the aircraft is discharged or left behind in any part of India or in any other country, any depositions taken by any Judge or Magistrate in that part or by any Consular Officer in the foreign country and transmitted by the person by whom they are taken to the Central Government or any State Government shall, in any proceedings for enforcing the claims, be admissible in evidence:

(a) if the deposition is authenticated by the signature of the Judge, Magistrate or Consular Officer before whom it is made;

(b) if the defendant or the person accused, as the case may be, had an opportunity by himself or his agent to cross-examine the witness;

(c) if the deposition was made in the course of a criminal proceeding, on proof that the deposition was made in the presence of the person accused, and it shall not be necessary in any case to prove the signature or official character of the person appearing to have signed any such deposition and a certificate by such person that the defendant or the person accused had an opportunity of cross-examining the witness and that the deposition if made in a criminal proceeding was made in the presence of the person accused shall, unless the contrary is proved, be sufficient evidence that he had that opportunity and that it was so made.

16. Returns as to compensation: The [State Government] may, by notification in the Official Gazette, direct that every person employing workmen, or that any specified class of such persons, shall send at such time and in such form and to such authority, as may be specified in the notification, a correct return specifying the number of injuries in respect of which compensation has been paid by the employer during the previous year and the amount of such compensation together with such other particulars as to the compensation as the [State Government] may direct.

Contracting out: Any contract or agreement whether made before or after the commencement of this Act, whereby a workman relinquishes any right of compensation from the employer for personal injury arising out of or in the course of the employment, shall be null and void insofar as it purports to remove or reduce the liability of any person to pay compensation under this Act.

17A. Duty of employer to inform employee of his rights: Every employer shall immediately at the time of employment of an employee, inform the employee of his rights to compensation under this Act, in writing as well as through electronic means, in English or Hindi or in the official language of the area of employment, as may be understood by the employee.

The Doctrine of Assumed Risks: If the employee knew the nature of the risks he was undertaking when working in a factory, the employer had no liability for injuries. The court assumed in such case that the workman had voluntarily accepted the risks inci­dental to his work. The doctrine followed from the rule Volenti Non-Fit Injuria, which means that one, who has volunteered to take a risk of injury, is not entitled to damages if injury actually occurs.

The Doctrine of Common Employment: Under this rule, if a number of persons work together for a common purpose and one of them is injured by some act or omission of another, the employer is not liable to pay compensation for the injury.

The Doctrine of Contributory Negligence: Under this rule, a person is not entitled to damages for injury if he was himself guilty of negligence and such negligence resulted to the injury.

The three aforesaid defences and the rule of no negligence no liability made it almost impossible for an employee to obtain relief in cases of accident. The Workmen’s Compensation Act of 1923 completely changed the law. According to the Workmen Compensation Act, 1923 the employer is liable to pay compensation irrespective of negligence. The Act considers compensation as relief to the workman and not as damages payable by the employer for a wrongful act or tort. Hence contributory negligence by the employee does not debar him from relief. For the same reason, it is not possible for the employer to plead to the defence of common employment or assumed risks for avoiding liability. Thus, the Act makes it possible for the workman to get compensation for injuries, unhindered by the legal obstacles set up by the law of Torts.