A STUDY ON ENVIRONMENTAL CONCERNS AND CORPORATE SOCIAL RESPONSIBILITES IN INDIAN TYRE INDUSTRY
Vignana Jyothi Institute of Management Page 1
Contents INTRODUCTION ............................................................................................................................................. 2
OBJECTIVES OF STUDY .................................................................................................................................. 4
SCOPE OF THE STUDY .................................................................................................................................... 4
LIMITATIONS OF THE STUDY ......................................................................................................................... 4
RESEARCH METHODOLOGIES ....................................................................................................................... 5
CORPORATE SOCIAL RESPONSIBILITY ....................................................................................................... 5
INDIAN RUBBER INDUSTRY ....................................................................................................................... 6
TYRE INDUSTRY-PROFILE........................................................................................................................... 7
INDIAN STANDARDS .................................................................................................................................. 9
ENVIRONMENTAL CONCERN .................................................................................................................. 10
CLEANER PRODUCTION ........................................................................................................................... 11
RECYCLING OF TYRES .............................................................................................................................. 16
CSR ACTIVITIES IN DIFFERENT TYRE COMPANIES OF THE INDUSTRY ..................................................... 18
JK TYRES .............................................................................................................................................. 18
APOLLO TYRES ..................................................................................................................................... 23
BRIDGE STONE TYRES .......................................................................................................................... 25
MRF TYRES LTD ................................................................................................................................... 26
FINDINGS ..................................................................................................................................................... 27
ENVIRONMENTAL MANAGEMENT SYSTEMS (EMS)............................................................................ 28
RECOMMENDATIONS ................................................................................................................................. 33
CONCLUSION ............................................................................................................................................... 33
REFERENCES ................................................................................................................................................ 35
QUESTIONNAIRE USED FOR INTERVIEW (APPENDIX-I) ............................................................................... 36
A STUDY ON ENVIRONMENTAL CONCERNS AND CORPORATE SOCIAL RESPONSIBILITES IN INDIAN TYRE INDUSTRY
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INTRODUCTION
Industry is the world‘s foremost creator of wealth, employment, trade and technology,
controlling and deploying tremendous amount of human and financial resources for economic
value addition. It is industrial and business processes that add value to natural resources as these
transform them from raw gifts of nature into useful products. The Environmental Protection Act
has acknowledged the potential gains from pollution preservation.
Corporations have a stake in preserving the environment and ecology for posterity. There is a
clear appreciation today than ever before that environmental quality is an important desideratum
in the social and economic development of nations. The need to have clean air and water, fertile
soil, biodiversity and the overall cleaner world for the people to live in, are all stressed to ensure
the health of global environment.
Increasing awareness and consequent concern on these issues were fuelled by informed public
segment, media coverage, corporate attitudes and government policy. Environmental advocacy
groups have evolved considerably from the liberal, anti-business, anti-government periphery of
past decades. While some radical groups do remain, many moderate or conservative groups are
cooperating with business and government. A very significant concept underlying international
and domestic environmental policy is sustainable development. Its goal is to ensure that the
natural resource needs of the present are met without compromising the ability of future
generations to meet their own assets.
The Government of India has acknowledged the automotive zone as a key area for civilizing
India's inclusive competitiveness and achieving elevated monetary expansion. The Auto Policy
for India was formulated amid apparition to establish internationally viable industry in India,
moreover to dual its involvement to the economy by 2010. It intends to advance R&D in
automotive industry by intensifying the labours of industry towards course if apposite fiscal and
pecuniary incentives and establishing world class estimate and testing potential for automotive
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industry by investing more than Rs.2000 crore in National Automotive Testing and R&D
Infrastructure project (NATRIP).
Currently issues in automotive developments are alert to minimize the unconstructive aspects for
instance environmental troubles, traffic accidents and maximizing the benefit such as customer
delightedness with admirable ease. The automotive industry is subjected to the regulation of
exhaust gas, evaporation, noise, waste disposal, and environmental hazards. It should moreover
acclimatize diverse fresh challenges such as fuel economy, expansion of maintenance-free
automobiles, durability, and high performance engines for oxidized fuels. The rubber apparatus
uncovered to corrode fuel lead to lots of rigidity.
With the phenomenal increase in number of automobiles in India during recent years the demand
of tyres as original equipment and as replacement has also increased from 22,846 thousand tyres
in the year 1990-91 to 31,213 thousand tyres in the year 1994-95. As every tyre is destined to go
to waste stream for disposal/recycling/reclamation, despite its passage through retreading
process, the number of used tyres being discarded is going to increase significantly. Timely
action regarding recycling of used tyres is necessary in view to solve the problem of disposal of
used tyres keeping in view the increasing cost of raw material, resource constraints and
environmental problems including fire and health hazards associated with the stockpiles of the
used tyres. The problem has drawn attention of planners, environmentalists, consumers and
industry in the developed countries in Western Europe, USA, Japan, Australia etc. where billions
of used tyres are stock piled. These stockpiles are also direct loss of energy and resources in
addition to fire & health hazard and other environmental issues.
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OBJECTIVES OF STUDY
1. To understand the general corporate social responsibility practices followed by tyre
companies in India.
2. To understand how the tyre companies control the pollution.
3. To understand what are the environmental policies undertaken by India for the
existence of tyre companies.
4. The evaluation of any potential health and/or environmental impacts of chemicals
commonly used in tyre making.
5. The fate and impacts of tyre wear particles (TWP) generated during normal tyre use
and wear.
6. To suggest strategies to be followed by the tyre companies to go eco- friendly.
SCOPE OF THE STUDY
The study covers the environmental concerns and CSR activities followed by the tyre
manufacturing companies in India. It covers the environmental protection measures that need to
be adapted by the companies to protect the planet. It also explains about how companies can
follow a cleaner production process and also how environment can be managed.
LIMITATIONS OF THE STUDY
The interviews were taken during the office hours and so the employees were in a hurry to
respond, which may have affected the quality of data. The inference has taken from a small
sample. The generalization is not free from sampling errors. Some of the respondents were not
cooperative enough in furnishing data, as it requires both time and patience. The study covers
only some parts of environmental concerns. Interview is takenfrom branches of companies
located only in Hyderabad.
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RESEARCH METHODOLOGIES
Exploratory research design is used for the study. The study is qualitative in nature. The data is
collected from primary and secondary sources. The primary data is collected through interview
method. The sample was selected using snowball sampling. The leading tyre companies like
MRF Ltd, Apollo tyres, Bridge stone tyres and JK tyres were included for the study. A
questionnaire (Appendix 1) was used to conduct the interview. Secondary data is collected from
journals/magazines, company profiles and websites.
CORPORATE SOCIAL RESPONSIBILITY
Corporate social responsibility is about capacity building for sustainable livelihoods. It
represents cultural differences and funds the business opportunities in building the skills of
employees, the community and the government. It is all about business giving back to society.
CSR is essentially a concept where by companies integrate social and environmental concerns in
their interaction with their stake holders in a voluntary basis.
Corporate responsibility is among corporates‘ top priority today. A large number of Indian
companies discharge their social responsibilities quite satisfactorily. There are many companies
which have excelled in such activities but when seen in the light of the country‘s vast needs, the
achievements fall short of requirements. The money spent for social causes by companies is
generally an insignificant proportion of their turn over.
In the 21st century, no business can successfully operate in an economic and social vacuum, but
rather enterprises can achieve the enduring success only by meeting the needs and the
expectations of all their key constituents: customers, investors, employees and the greater
society. Sustainable Development (SD) demands attaining the three-dimensional balance
between economic growth and social and environmental responsibility; therefore, sustainability
entails the continuous fulfilment of the varying needs and sometimes-conflicting objectives of
the multiple stakeholders.
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In terms of industry‘s responsibilities to the environment, environmental regulation has
developed over time, setting limits and standards for discharges and emissions. Historically,
command and control techniques were developed, often resulting in a reactive approach to
environmental management. Over the past decades, industrial leaders have recognised the
importance of the environment in which they operate, and many have pursued a path of
implementing voluntary initiatives to reduce the burden on the environment, taking a more
proactive approach, addressing pollution prevention to stay ahead of legislation. This represented
not just good environmental sense, but also good business strategy, preparing industry to respond
to changes in terms of regulation and scientific breakthrough, while satisfying the needs of the
various stakeholders.
INDIAN RUBBER INDUSTRY
The rubber industry in the world made its beginning in 1887. It was because of the invention of
the processing of rubber, vulcanization by Charles Goodyear. The growth of the industry
however received a good boost by century end when John Boyd Dunlop succeeded in making of
vulcanized rubber tyres into inflatable pneumatic tyres. Since then the tyre industry has
continued to be a major segment of rubber industry all over the world.
Rubber Industry is encouragingly rising globally beside the augmentation of automobile
Industry. Subsequent to China the Indian rubber industry is budding at a faster pace. India is the
4th largest Natural Rubber manufacturer and 5th major consumer of Natural Rubber& Synthetic
Rubber collectively moreover the good being exported to more than 85 countries in the world.
The tyre industry consumes nearly 2/3rd of rubber production and due to this lot of ravage is
generated annually because of the scrape tyre.
Indian Rubber industries have to employ stacks of severe norms to face future prospects. To
maintain its position and nurture in the export market, Indian Rubber Industry has to apply good
manufacturing practices at every phase of practice to guarantee class rubber product. A number
of ingredients are included to advance dispensation through manufacturing machineries existing
in the industry and the stages of rubber processing are usually considered to contain raw
materials handling, mixing, performing and vulcanization / moulding.
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The purpose of the processing additives is to reduce every dilemma allied amid product
fabrication whilst maintaining, or civilizing the product routine.
TYRE INDUSTRY-PROFILE
Tyres are essential to mobility, providing the moving surface of our many transport vehicles and
the only contact point with the ground. Simple in appearance, tyres are sophisticated products.
Tyre manufacture involves a complex blend of materials and assembly processes to produce the
thousands of different products used on equipment ranging from bicycles to huge earthmovers. A
typical tyre includes dozens of different components, using more than one hundred primary raw
materials that must be precisely assembled and processed to achieve the right balance between
many competing factors: grip, energy efficiency, handling, comfort, noise and cost, to name a
few.
Even in India, automobile tyre and tubes account for a major part of Indian rubber product
industry. Indian Tyre industry Past and present: The Indian tyre industry is about 55 years old. It
is to be noticed that the tyre industry was covered under essential commodities Act. The pre-
dominance of foreign multinationals prevailing in our country till 1960‘s has been considerably
reducing now due to development of technology.
The Indian tyre industry‘s past can be studied under the periods 1920to 1935, 1960 (MNC
manufacturing in India selling domestically and exporting), 1961-74(the entry of Indian
companies into this sector) and 1975 onwards the broadening of the base production as well as
sales by Indian industries.
Firestone was the company that started the selling of tyres first in our country. They were then,
followed by good year in 12022 and later by Dunlop 1926. The first MNC tyre industry was set
up at Saharjung-West-Bengal, in the year 1939 by Dunlop. In 1936, Firestone setup its factory in
Bombay At present there are more than 20 licensed companies and 25 factories, which include
11 large-scale sectors manufacturing the full range of tyres and tubes. The Indian tyre companies
are having collaboration with giant tyre companies of U.S.A. U.K, West Germany, France and
Japan, etc., significant changes have occurred in the tyre industry‘s manufacturing processes
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change from Rayon to Nylon and the introduction of Radial Tyres of both steel belt and fiber
glass.
The tyre industry in India has a range of tyres for trucks, busses, light trucks and busses, cars,
jeeps, trailers, short and long, tillers, off road vehicles heavy and light, earth moving equipments,
dampers, defense vehicles aircrafts and specially designed vehicles and two wheelers.The large
tyre unit in India Apollo, Bombay Tyre international, Ceat, Madras RubberFactory (MRF),
Dunlop, Good Year, JK Tyre, Birla Tyre and Vikrant Tyre etc.,
The company that manufactures tyres primarily for the two wheeler segments are TVS Srichakra,
Falcon, Metro Tyres, Ceat, MRF, Stallion and S. Kumar‘s. The production of tubes by the large
and the medium sector of is 80% of the tyre production tubes manufactures from natural rubber
as well as imported Butyl rubber. The inner rubber is covered under packaged commodities act.
The Indian Government, way back in 1955, setup various commodities for the tyre industry that
tariff commission is the best example. The major thrust of this commission was the
decentralization of the tyre industry.
In May 1974, the governments setup the committee on tyre industries with Mr. M. Satyapal as
chairman. This committee submitted its report to the government in 1985.
Present Status of Industry:
Automotive tyre Manufacturer‘s Association (ATMA) was setup in 1975 as representative body
of automotive tyre industry in India. The association constitutes of companies manufacturing
tyres ranging from animal driven vehicles to aero tyres and tyres of defense applications. The
association‘s represents approximately 90% of the tyre production in the country the association
interest with the government on a continuous basis and function as a link between government
and the tyre industry. According to ATMA demand for the tyre was estimated at 242 lakhs tyres
in 1991 and 1992 against the installed capacity of 296 lakhs tyres. The demand estimate for
1994-95 was 287.16 lakhs tyres against the production of 308 lakhs and still growing at the very
steady pace.
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MRF, CEAT, DUNLOP, APOLO AND MODI Rubber dominate the industry together
accounting for a major share of the total output.
Among the individual companies MRF is moving into aircraft tyres and formula racing tyres,
manufacturing in collaboration with Uniroyal Goodrich. The total capacity of Ceat Tyres has
gone up to 45 lakhs with commencement of nylon cord tyres. Modi rubber tyre industry has
modernized the Modipuram plant and Modinagar plant is under implementation. Vikrant tyres
with a new plant for all steel radial tyres for trucks and busses fare the first company in India
with such a state of art technology. Vikrant tyres after taken over by JK Tyres are having a major
supper of tyres to various countries and are no way short of foreign companies in terms of
quality and quantity.
INDIAN STANDARDS
Development of Minimal National Standards (MINAS) for Rubber products
Manufacturing Industries
The Central Pollution Control Board (CPCB) intends to develop Minimum National Standards
(MINAS) for all types of industries with regards to their effluent discharge (water pollutants),
emissions (air pollutants), noise levels and solid waste. The proposed model for evolving
industry specific standards envisages specifying limits of pollutants to protect the environment.
The standards thus developed will be applicable to the concerned industries throughout the
country. The present study, in this series is on rubber products industries. Consulting
Engineering Services (India) Limited, New Delhi has been engaged to assist co-ordinating
agency Central Pollution Control Board (CPCB) for carrying out this study.
The rubber product manufacturing industry in India is basically divided into two major sectors:
tyre and non-tyre. The tyre sector produces all types of automotive and non-automotive tyres
whereas the non-tyre sector produces high technology and sophisticated products and comprises
the medium scale,small scale and tiny units. Barring industries engaged in raw rubber
production, there are approx. 4800 rubber based product manufacturing units comprising 30
large scale, 300 medium scale and around 4470 small scale and tiny sector units, employing four
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lakh people, including around 22000 technically qualified support personnel, with a turnover of
200 billion rupees and contributing 40 billion rupees to the National Exchequer through taxes,
duties and other levies. Northern India (Delhi, Haryana & Punjab) accounts for major rubber
consumption and has maximum number of rubber products manufacturing units, primarily in
small & medium scale. Other major states are Kerala, Tamilnadu, Andhra Pradesh, Gujarat &
Karnataka. Rubber products industry thus plays a core sector role in the Indian National
economy.
ENVIRONMENTAL CONCERN The basic goal of environmental conservation is management of the human use of natural
resources so that the yield high sustainable benefits to the present generation, while maintaining
their potential to meet the needs of future generations. Environmentalism advocates various
actions and policies in the interest of protecting what nature remains in the natural environment.
Some immediate concerns are:
1. Reducing pollution
2. Reducing consumption of non-renewable sources of energy like petroleum
3. Development of alternative, green, low- carbon and renewable energy resources.
4. Preservation and judicious use of forests and plantations.
In view of the rising environmental concerns several firms are now resorting to Corporate
Environmentalism, which is the recognition of the importance of environmental issues faced by a
firm and the integration of those issues into the firm‘s strategic plans.
Firms may need to design environmental products to perform as well as (or better) than
alternatives. They may add consumer desired values into environmental products. Firms across
several industries have now started producing eco friendly products.
Disposal of wastes - The disposal of garbage in the world is a problem that continues to grow
with the development of industrialized nations and the growth of population. In India the
government has been intervening in the process of waste management. Various laws like the
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New Municipal Solid Waste Management Rules 2000, w.e.f January 2004 has made certain
impacts in the environmental issues in the tyre industry.
CLEANER PRODUCTION
Cleaner Production (CP) is a proactive environmental strategy, a step beyond waste handling or
management (based on ―cradle-to-cradle‖ approach). It deals with the source of the problem (i.e.,
pollution prevention, P2), rather than the effects and consequences (i.e., end-of-pipe treatment
and/or corrective remediation). CP is also a practical approach which allows industries and
service providers to produce more with less: fewer raw materials, less energy, less waste and
emissions, and normally, less environmental impact and greater sustainability. CP, by definition,
promises greater profits to industries by reducing costs (i.e., reduced material requirements,
reduced disposal fees, and reduced environmental liabilities and cleanup costs), and by raising
revenues through perhaps greater sales, exports and better Public Relations (PR).
Cleaner Production has been applied to develop more environmentally benign (or even friendly)
processes, products, services and impacts. The implementation of CP involves specific
methodologies for integrating environmental issues and sustainable development in a particular
industry, employs applications of relevant analyses and syntheses, and above all challenges the
traditional procedures for design, manufacturing applications and services.
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In the past, environmental considerations were often ignored in the industrial design,
manufacturing use and disposal of new products and processes. Hazardous and toxic wastes used
to be handled in the most convenient means possible, overlooking immediate and/or future health
and environmental implications. Inefficient energy consumption resulted in high operating costs
and ever-increasing emissions. Adverse environmental impacts were integral parts of the life
cycle, including material production, manufacturing, distribution, usage and disposal.
Unfortunately, due to different and pressing priorities, these legacies are still the environmental
reality in few developing countries around the world. This dilemma has become intransigent by
the myth that responsible environmental practices impede development and economic prosperity
and put countries at disadvantage to solve their social problems and to compete globally.
Risk Analysis (RA) - is a probabilistic assessment of dose-response relationship, taking into
consideration the fate and transport of constituents, routes of transfer, pathways of exposure, as
well as the potential recipient population (s). The assessment of risk can be outlined in five major
steps: hazard identification, dose response assessment, exposure assessment, risk
characterisation, and risk management (i.e., what level of risk is acceptable?).Risk analysis is a
useful vehicle for integrating effects over several media (air, water and soil). However,
uncertainties always exist in measuring or estimating risks, especially for relatively lower
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dosages but higher exposure frequencies. Also, extrapolation from animal studies and epidemic
investigations is at best debatable. Distinction should be drawn between acute and chronic risks.
Life Cycle Assessment (LCA) - is a technique for tracking all the environmental effects and
resource needs of a new product or process through the material supply, manufacturing,
transport, storage, use and disposal (and even beyond). It is intended to provide a comprehensive
assessment of environmental effects to ensure that potential risks to health and environment at
the various stages of life cycle are taken into account, and that appropriate measures are put in
place to manage or reduce those risks. LCA assesses the overall environmental compatibility and
synergy of an industrial product/process with the environment.
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Engineering Design (ED) - is often a complex process due to numerous competing requirements
and constraints. For example, a personal computer must be fast and powerful and cheap,
however to be environmentally ―green‖ it should be energy efficient, and easily recyclable.
Designing CP processes and manufacturing environmentally friendly products require
appropriate knowledge, tools, production methods, incentives (e.g., public recognition, tax
incentives, loan guarantees/facilitation, market accessibility) and commitments (namely from
senior managements towards CP). Designers and engineers should be trained (retrained) to
integrate the environmental perspective into their tasks. This sometimes is referred to as Design
for the Environment.
Full Cost Accounting Methodologies (FCAM) –It is a Simple process, by incorporating
environmental considerations into the process of determining actual costs. Many industries,
governments and consumers want to support cleaner production and green products, but are
afraid of the potential high costs incurred. The FCAM efforts are introduced to account for
―hidden‖ costs related to social and environmental implications (e.g., resource depletion,
damages, liability, injuries, cleanups…etc.).For example, when an engineer/designer is
developing a machinery lubrication system, oil based or glycol-based lubricants can be selected.
Choosing the oil-based may increase the risk of water pollution and treatment difficulties, while
choosing the glycol based may increase the risk of human exposure to synthetic chemicals. The
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FCAM would incorporate into the analysis the cost of water pollution versus the cost of dealing
with health exposure. This information can be communicated by having a ―social‖ cost of
lubricants listed with the price tag. Another way would be by anticipating the costs of
environmental management, damages, containments, and remediation due to treatment and
disposal of the lubricants (within the LCA concept), and incorporating them into the FCAM
system.
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Material Selection (MS) – several materials or components may produce a particular quality
constituent, product or process. Selection guidelines can be established to direct the CP
designer/developer towards the environmentally preferred material. In general, some common
sense prerequisites are to be satisfied, such as:
Choose abundant, non-toxic materials wherever possible.
Select natural materials (e.g. cellulose), rather than man-made materials (e.g. chlorinated
aromatics).
Pick materials with decomposing characteristics and avoid those with persistent and
recalcitrant tendency.
Minimise the number of materials/elements used in a product or process.
Use materials with an existing reuse/recycling infrastructure and market.
Employ recycled materials as often as possible.
It is important to point out that collective considerations of the above concepts should also be
incorporated and integrated into the materials selection processes, such as basing the decision of
choosing natural versus synthetic materials upon their technological merits (ED) as well as LCA
and FCAM.
RECYCLING OF TYRES
Recycling of waste has drawn attention of society based on the slogan ―There is gold in our
garbage‖ on hand and growing concern about the environmental protection on the other hand.
The main constituent of a tyre is rubber and the largest single application of rubber is vehicle
tyres. Also the requirement of tyre is directly related to growth of automobile. The production of
automobiles is forecast to continue to rise and is indicative of buoyant economic conditions for
tyre industry, but at the same time guarantee and annual discarded scrap tyre volume growing at
the same rate as new tyre manufacture. This discarded volume of scrap tyres would around was
more than 75 million cubic meter in 1993.
Every new tyre produced is destined to the scrap yard (with or without passing through
retreading cycle). The problem of scrap auto tyres had assumed serious proportions in developed
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countries where hundreds of millions of auto tyres are added to waste stream every year. The
rain-water collected in improperly stored tyres become breeding habitat for disease carrying
mosquitoes, pose a health hazard. Tyres are not easily degradable and occupy large space. If
disposed in open field, create spongy ground and represent loss of material and energy rubber,
steel, nylon cord, carbon black etc. can be recovered by recycling the used tyres.
Retreading of tyre is being practiced to extend the life of a tyre by replacing worn tread of the
used tyre. The tyre is to be scraped only if it is not suitable for retreading. Retreading saves
material energy and reduces tyres to be disposed-off in waste stream. Hot cap process
(conventional method) and cold method (procured process) are the two methods being practiced
for retreading of tyres. As name implies, in the ‗hot‘ method un-vulcanized rubber strip also
known as Camel-Back is applied on the buffed surface using natural rubber gum film and
vulcanized in an autoclave.
Bureau of Indian Standard is preparing standards for retreaded tyres. European Standards issued
by BIPAVER & extracts of America code if regulations for retreaded tyres are given as annexure
to this report. The carcass of tyre, if damaged and is not suitable for retreading, forms part of
waste stream for recycling/recovery of values. By application of heat and chemical agents to the
crumb rubber a substantial regeneration of rubber compound to its original plastic state is
effected, yielding a product known as reclaim. The reclaim can be processed, compounded, and
re-vulcanized. The ‗reclaim‘ is a de-vulcanized rubber available in sheet form and is suitable for
blending with new rubber upto 40%. Addition of reclaim in rubber compound offer economic as
well as processing advantages. However a balance between cost and quality should be
maintained by optimizing the level of reclaimed rubber in rubber compound. The reclaim process
is not environmentally friendly unless expensive scrubbers and effluent treatment plants are
installed.
The used tyres are also pyrolysed for recovery of chemicals fuel oil, fuel gases and carbon black)
in addition to steel. Pyrolysis is also known as destructive distillation. The products of Pyrolysis
are influenced by process temperature, residence time, particle size of the feed and atmosphere.
Pyrolysis is an endothermic process. The Pyrolysis reactors of various types are used e.g. vertical
shaft reactor, rotary kiln reactor, fluidized bed reactor etc. In Japan, a simple economical method
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of thermal decomposition of used tyres for their ultimate disposal has been developed recently.
In the process supersonic jet flame is used and the tyres are crushed by huge kinetic and thermal
energy of jet flame into fine carbon powder and oil and both of the products having good
calorific value, are good fuel for cement kiln and boilers. No pollution control equipment is
required in this plant if cement kiln are located at same place for direct use of products from jet
flame plant for the cement kiln.
CSR ACTIVITIES IN DIFFERENT TYRE COMPANIES OF THE INDUSTRY
JK TYRES
JK Industries is successfully operating because of its plans which are implemented in each
individual activities, it may be short term or long term. All activities of the JK Industries run by
major goals and objectives.
JK has pioneered radial tyre technology in India has also been at the forefront of environment
friendly initiatives. It has underlined its commitment to the environment and conservation by
launching India‘s first eco-friendly ‗green‘ tyre in 2005. This tyre is the outcome of path-
breaking technology whereby the traditional carbon black is replaced by environment friendly
silica, which besides being less hazardous for the environment. It also ensures better fuel
efficiency due to its lower rolling resistance. The green tyre was developed indigenously at JK
Tyre's state-of-the-art R&D facilities at Hari Shankar Singhania Elastomer and Tyre Research
Institute (HASETRI). JK Tyre was the first tyre manufacturer to receive ISO 140001
certification for environment management JK Tyre was the key sponsor of the maiden rally of
eco-friendly vehicles staged on the eve of 4th EFV Conference 2009, initiated by the ministry of
heavy industries.
Quality Policy:
The people of JK tyre have an organization committed to quality in everything they do. They
continuously anticipate & understand customer‘s requirement convert these into performance
standards for their products & services & meet the standards every time.
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Environmental policy:
JK tyre is committed to protect, consume and restore natural habitat and conduct all their
activities in an environmental friendly manner. They continually improve environment.
Complying with all legal environmental requirements.
Taking measures to protect the environment by being proactive & innovative way.
Conserving natural resources and energy by optimizing efficiency minimizing waste &
supporting environmental friendly programs.
Enhancing effectiveness of the environmental management through reviewing its
objectives and targets.
Increasing environmental awareness amongst their employees and subcontractors.
Commit to communicate this policy to all employees & to make it available to the public
on request.
Safety Policy:
The employees of JK industries, VT unit assure that the rules and regulations framed by the
company and instructions framed by the company & instructions issued by the management in
pursuance of achieving higher safety standards will be followed without jeopardizing the safety
& health of one self or the other person.
Working without accidents is the principal goal of every employee and this shall be achieved by
practicing safe operating procedure by adhering to safety rules of regulations using personal
protective equipment and proper training on safety & health at all levels.
They shall also ensure protection of environment by taking all reasonablemeasures in our
manufacturing operations.
JK Tyre –Eco-Friendly initiatives
The Company has been conscious and committed towards the cause of environment and
conservation. JK Tyre launched India‘s first eco-friendly Green Tyre in 2005. Developed
indigenously at JK Tyre's State-of-the-Art R&D facilities HASETRI (Hari Shankar Singhania
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Elastomer and Tyre Research Institute), Green tyres employ path-breaking technology which
replaces the traditionally used carbon black with environment friendly material Silica. Besides
being environmentally less hazardous, Silica also promises higher fuel efficiency as a result of its
lower rolling resistance.
In line with its pioneering spirit, Company‘s Banmore plant has been awarded with ‗Golden
Peacock Environment Management Award‘ by World Environment Foundation - United
Kingdom. The award has been given in the manufacturing category for excellence in
environment protection.
With a common objective to promote a platform for bringing resources and attention to this
pressing issue, JK Tyre is the main sponsor for the First Ever Rally of Eco-Friendly Vehicles
held on the eve of 4th EFV Conference 2009 - an initiative of Ministry of Heavy Industries. This
rally marks the inaugural preview to the conference.
SOCIAL RESPONSIBILITY AND COMMUNITY SERVICE
As a responsible corporate organization, JK Tyre is committed to social and community service.
Giving back to society and the environment is one of our core principles. They have
implemented many programs in order to enrich people in and around our workplaces. In order to
provide an all-round development and growth, our social programs are diversified to include:
HEALTH CARE
They have been running and supporting a number of health programs not only for their
employees, but also for people living in and around the areas they operate from. Some of their
efforts in this area are:
Free Medical Camps were organized at their Tyre Plants in collaboration with various
reputed hospitals in rural areas where no medical facilities are available.
Around 1000 people availed the benefit of general medical treatment.
Eye Camps were organized at Banmore. Almost 2500 people for tested and 500 eye
operations were conducted.
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Program on Development of Mentally Retarded Children was supported by donations and
contributions made by employees of Vikrant Plant at Mysore. This was organized in
collaboration with the District Hospital.
In collaboration with Population Foundation of India, they adopted 60 villages in the
Rajsamand District of Rajasthan for running a Population Control Program titled
"Parivartan". Services such as Ante-Natal and post - natal Check-ups, Immunization,
Growth Monitoring of Children up to 5 years, identification and treatment of various
diseases and other common ailments are provided free of cost. This has significantly
reduced Maternal and Child Mortality rates. The program also regularly counsels the
community members on issues of Family Welfare and Population Control, including free
distribution of contraceptives.
"Pushpawati Singhania Research Institute" (PSRI) which is a Super Speciality Hospital
for Digestive, Liver and Renal Diseases, Delhi is an initiative by JK Tyre. The Institute
organizes a number of health care programs like, Free Medical-check-ups, Blood
Donation Camps etc.
They provide all support to TCI and the Bill & Melinda Gates Foundation in their
endeavor to spread awareness for HIV /AIDS. Centers have been set up on the National
Highway / Transport Nagar to help and counsel truck drivers who are considered to be
highly vulnerable to the diseases. So far, more than 12,000 people have attended the
clinics, of which 25% were treated for sexually transmitted infections. They also support
"Infotainment Melas" which are held near these clinics, where education is combined
with entertainment for spreading the message for HIV/AIDS awareness.
EDUCATION
They recognize the great importance of education for building the future of our country, and are
committed to its contribution. With this belief, Lakshmipat Singhania School at Jaykaygram was
established. It gives them great pride to note that their students have excelled and are recognized
for their efforts in Rajasthan. They also help and support various educational institutions who are
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involved in providing quality education for the children in villages. This includes free
distribution of books, computers etc.
They are also helping raise the level of education amongst the elders by initiating Adult Literacy
Program in remote and backward villages. Example: small villages adjoining Mysore
(Karnataka), Kankroli (Rajasthan) Banmore (Madhya Pradesh) etc.
Children Career Counseling is provided for almost 500 children in Mysore. 10 Ekal Vidyalayas
are active in remote villages of Rajasthan. Mid-Day Meal program was given to a number of
schools.
They have so far spread their programs across 33 locations benefiting more than 3,500 people.
ENVIRONMENT
Environment Management is taken up as a critical function at all their locations. Massive
plantation program have been organized at all the manufacturing locations to improve ecology.
Some of these initiatives are:
In the last five years, 1, 00,000 Trees have been planted.
In an effort to increase greenery in the surrounding villages, public parks have been
adopted.
Assistance is provided to Government authorities for maintenance of civic amenities
like parks, bus shelters, etc.
Public conveniences have been constructed by our Company at village schools in
Mysore.
Neighboring villages have been adopted and temporary water huts are provided during
summer months.
They arrange the spraying of special chemicals on large water bodies so that water
evaporation can be reduced and it can be conserved during the long summer months.
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SPORTS
The various sporting activities not only encourage a team spirit amongst their employees, but are
also extended to sports enthusiasts of the neighboring areas. Apart from conducting different
innovative sports events, they also promoting indoor and outdoor sports facilities for their
employees.
The Company also sponsored Indian Jaycee's Gwalior Alankaran Samaroh 2007 wherein
eminent personalities of different fields were honored.
JK Tyre is also known for its efforts in the field of Motor Sports, having started the annual
events for "JK Tyre National Racing Championship" in 1997 and "JK Tyre National
Karting Championship" in 2000. They are extremely proud of this initiative as it has nurturing
talent such as, Narain Karthikeyan, Karun Chandhok, and Aarman Ebrahim, and many others.
APOLLO TYRES
Apollo Tyres Ltd‘s definition of Corporate Social Responsibility or CSR, stems from its vision
statement of ―continuously enhancing stakeholder value‖. The key aim is to add value to the
lives of stakeholders, through not-for-profit initiatives. To ensure that all program and initiatives
remain sustainable and relevant, they are linked to the company‘s business goals and CSR is
treated as a business process. The company believes that if undertaken in the right spirit and
process, social initiatives can be a long term risk mitigator and help manage key business and
operational challenges.
The bulk of Apollo‘s community initiatives revolve around the awareness and prevention of
HIV-AIDS. Three key stakeholder groups – commercial vehicle customers or the trucking
community, employees and business partners – are addressed directly through Apollo‘s HIV-
AIDS program.
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OTHER INITIATIVES
Like with employees, the idea is to facilitate independence and sustainability. Various small and
large programs, primarily with a local focus concentrate on community infrastructure
development, healthcare, education for children and road safety. These include support to enable
soldiers wounded in the line of service to establish businesses, creating financial independence.
They are provided with guidance and training in setting up Apollo Tyres dealerships in their area
of residence.
In the communities close to its manufacturing locations, the organization engages in village
development programs, revolving around literacy, education, healthcare and infrastructure
development. Emergency Medical Service (or EMS) facility on national highways, implemented
by the Lifeline Foundation, is supported by Apollo Tyres. For customers, road safety programs
related to tyre care and maintenance are undertaken on National Highways and large
metropolitan parking lots.
On the environment front the movement is towards use of less polluting and non-fossil fuel
sources of energy like gas, steam and wind power. Water recycling is a key area at the
manufacturing locations to ensure replenishment of the local ground water table.
At Apollo they not only value our customers but truly strive to understand their world. Their
most important customers, the truckers, have a nomadic lifestyle which makes them increasingly
vulnerable to HIV-AIDS and Sexually Transmitted Infections (STIs). The targeted intervention
program has thus been set up to divide their pain and make them feel cared for through extending
a human touch. Targeted interventions operate in the form of Health Care Centres in large trans-
shipment hubs in 15 different locations across the country. These Health Care Centres are staffed
with well qualified doctors, paramedics, counselors and outreach workers. The current cities
hosting these Health Care Centres are: Delhi, Udaipur, Kanpur, Vashi, Jaipur, Nagpur, Kolkata,
Ahmedabad, Madhavaram and Poonamallee in Chennai, Namakkal, Krishnagiri, Tuticorin, Surat
and Nalagarh.
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BEHAVIOR CHANGE COMMUNICATION
BCC aims to increase awareness and knowledge about the spread and prevention aspect of HIV/
AIDS among truckers and allied population in the transport hubs. The prime objective is to
change attitude and Behavior Change Communication behavior through effective
communication on the modes of transmission, prevention methods, myths and misconceptions
pertaining to HIV-AIDS. BCC activities are carried out by the outreach workers and a network
of peer educators through one-to-one and group sessions along with various infotainment
activities. These session are supported by visual aids like flip books; information, education and
communication material; condom demonstration; magic and puppet shows; street plays and
cultural programs.
BRIDGE STONE TYRES
Bridgestone, in a short stint of 10 years in India has grown to tremendous heights. It has become
one of the major suppliers to almost all the reputed car-manufacturing companies in India.
Quality has always been a premium at Bridgestone and the strict standards followed, are certified
by the world's leading authority in quality certification.
The objective of enhancing CSR (corporate social responsibility) within the Bridgestone Group
is to realize its corporate philosophy through activities that benefit society as a whole. The Group
is committed to practicing CSR through its actions, not just through its statements. I believe that
the effective management of corporations must include a strong focus on CSR, and it is only
through CSR that a corporation can appropriately respond to the requirements and expectations
of society while improving its businesses.
The ―22 CSR Focus Points‖ have been identified as issues that are important to society and to
which the Bridgestone Group can make a positive contribution based on three perspectives— the
degree of importance to the Group, the degree of importance to Group stakeholders, and the level
to which the Group has implemented the steps or measures as part of its plan to realize the ideal
state mentioned above. The focus points comprise fundamental social responsibilities—such as
economic contribution, compliance, risk management, and communication with stakeholders—
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as well as targets set independently by the Group as autonomous social responsibilities. The ―22
CSR Focus Points,‖ which serve as a ―common language‖ to ensure the consistency of the
Group‘s CSR activities on a global scale, are redefined through rolling updates based on the
three perspectives described above and serve as a compass to guide us toward the realization of
―The Bridgestone Way.‖
MRF TYRES LTD
The MRF Pace Foundation came into existence in August 1987, with legendary Australian fast
bowler Dennis Lillee at the helm of its affairs. The Foundation is dedicated to bringing forth
genuine fast bowlers for India. It selects nurtures and scientifically develops the cricketing skills
of the talented youngsters, by providing good training. The training extends over a period of a
few years, during which the trainees receive inputs on correct diet, exercise routines and net
practices. Some of the fast bowlers, who trained with the MRF Pace Foundation, went on to
represent the national Indian cricket team.
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Famous Trainees of MRF Pace Foundation
The trainees of MRF Pace Foundation, who made it to the national Indian cricket team, include
Javagal Srinath, Irfan Pathan, Munaf Patel, Venkatesh Prasad, Rudra Pratap Singh, Zaheer Khan
and S. Sreesanth. Some time back, Sachin Tendulkar was also sent to the Foundation to acquire
training in fast bowling. However, Lillee suggested him to focus on batting instead, which
worked! Apart from Indian players, the Foundation has attracted international players too -
Chaminda Vaas, Heath Streak and Bret Lee have also sharpened their fast bowling skills at MRF
Pace Foundation.
Facilities
MRF Pace Foundation offers world-class training to its trainees. The training facilities of the
Foundation include an Olympic-sized swimming pool, used by the trainees for strengthening and
recovery exercise. It also has a gym, which consists of extensive and sophisticated equipments
tailor-made for the specific workouts for the pace bowlers. The grounds offer four turf pitches
with varying speeds - slow, moderate, quick and artificial - to simulate actual match situations.
This helps the trainees to play at different surfaces and conditions, which is prerequisite when
one competes at the international level.
FINDINGS
Of the replies received, all companies (MRF Ltd, Apollo tyres, JK tyres and Bridgestone tyres)
indicated that they are already certified to ISO14001. These companies are in the process of
implementing Environmental Management System, which is described below and are intending
to seek external certification of the system in the next 12-18 months.
MRF tyres did not implement Environmental Management System till now. But they are in the
initial stages of applying it. Apollo tyres is currently implementing an EMS, a variety of stages
had been reached, with the majority having implemented the initial planning phases of an
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Environmental Management System, while development of procedures, training and emergency
response plans are still to be developed. Bridge Stone tyres have already implemented an
Environmental Management System were requested to outline any improvements that they might
have made to their system as a result of attending the Training Workshop. All companies
indicated that taking part in such activities is always valuable, allowing them to share
experiences with others and continually improve their own systems.
All companies are concerned about the health and safety of the employees and the people. They
are also responsible towards their duty to the environment and society.
ENVIRONMENTAL MANAGEMENT SYSTEMS (EMS)
This system can be adapted by all tyre manufacturing companies to increase the efficiency in
industrial process which addresses all aspects of organizations‘ activities, including raw
materials consumption, energy, process control, waste and emissions.
An EMS is a comprehensive approach to the environment that encourages and sustains an
organizational structure and procedure for developing, implementing, achieving, reviewing and
maintaining an effective environmental policy. An EMS operates in a similar manner to other
management systems implemented by an organization (financial, health and safety, quality),
following the Deeming Cycle of Plan-Do-Check-Act for continuous improvement. It
systematically addresses the immediate and long-term impacts that an organization‘s processes,
products, services and operations can have on the environment.
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MANAGEMENT COMMITMENT AND THE ENVIRONMENT TEAM
Without the commitment of the top management of an organization to the implementation of an
EMS, it is unlikely to succeed. Their commitment is necessary in securing resources (human,
financial and technical) and in promoting the process – if an employee sees that the management
of their organization is not committed/interested in the success of the system, there is no reason
for them to extend any effort themselves.
Another key aspect in terms of management/organizational support to the EMS is the formation
of an Environment Team, the members of which are provided with the time and the resources to
oversee the implementation of the EMS. This team should comprise an Environmental
Coordinator/Manager, who has access to the decision-makers of the organization in order to
present and promote solutions identified though the development and implementation of the
EMS, supported by staff members from the key activities within the organization, including
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administration functions (accounting or purchasing), facilities and maintenance, and each major
department. Within the Environment Team there may be sub-teams with particular areas of
expertise, such as energy or waste, to deal with specific parts of the EMS as it develops.
The key stages of an Environmental Management System (EMS)
THE ENVIRONMENTAL REVIEW
Before an organization can plan and implement its environmental policy, an initial
environmental review needs to be made. This review will provide an overview of the
environmental issues a company is facing. The organization then knows the strengths and
weaknesses of its present operations and its management systems.
The information collected will include:
Current environmental management activities
Environmental aspects of each part of the operation
Inputs, throughputs and discharges
Monitoring.
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THE REGISTERS OF ENVIRONMENTAL ASPECTS AND REGULATION
In the planning stage, all of an organization‘s interactions with the environment are identified
through the environmental review. The Register of Environmental Aspects is a formal listing of
the operations activities carried out by the organization that have an impact on the environment
(the ―aspects). Environmental impacts are defined as ―any change to the environment, whether
adverse or beneficial, wholly or partially resulting from an organization‘s activities, products or
services‖ Environmental aspects are defined as ―elements of an organization‘s activities,
products or services that can interact with the environment‖.
DEVELOPMENT OF AN ENVIRONMENTAL POLICY
The environmental policy of an organization should contain a commitment to comply with all
environmental regulations, to prevent pollution and to initiate a process of continuous
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improvement. Each environmental policy is unique to the organization to which it belongs. It
must be communicated to all members of the organization and made available to the public.
The environmental policy is the basis for developing a consistent structure of environmental
objectives and targets for an organization. The policy is designed to correct any adverse
environmental impact and to encourage all practices that are beneficial to the environment.
Strategic and competitive considerations are taken into account, so that companies can
implement the best technology, within certain economic considerations, in order to reach their
environmental objectives. Processes, practices, materials, or products that avoid, reduce or
control pollution, which may include recycling, treatment, process changes, control mechanisms,
efficient use of resources and material substitution, form key components of environmental
policies. The policy must be approved by, and signed by, top management in the organization,
demonstrating their commitment to the policy and the EMS as a whole.
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RECOMMENDATIONS
1. If all companies in the tyre industry will start adapting cleaner production strategy, the
environment will not be much affected by the pollution.
2. All companies should implement environment management system to protect the
environment where the company is operating.
3. It is the responsibility of the tyre producing companies to follow the environmental
protection measures.
4. There should be proper waste handling procedures to prevent those materials from
contaminating water, air and land.
5. The Government should take the responsibility to do regular inspection in these
companies to make sure that all the protection measures are followed.
CONCLUSION
Corporations have a stake in preserving the environment and ecology for posterity. The tyre
industry plays an important role in alleviating the pollution in the environment. The corporate
social responsibilities of different tyre companies have been explained and understood different
environmental standards and awards won by those companies. Cleaner Production techniques
offer an efficient way to operate processes, produce products and to provide services, through the
conservation of raw materials and energy, elimination of toxic raw materials, and reduction in
quantity and toxicity of all emissions and wastes.
In terms of products, it reduces negative impacts along the life cycle of a product; from raw
materials extraction to its ultimate disposal and in services incorporates environmental concerns
into design and delivery. Through Cleaner Production techniques, the costs of wastes, emissions
and environmental and health impacts can be reduced, realizing economic, environmental and
social benefits, the three pillars of sustainable development.
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Environmental Management Systems, as a tool can be used to address the procedures used
within an organization to minimize impacts on the environment requires across the board
commitment, but can bring about improvements in process performance and significantly
improve a facility's bottom line through process optimization, offering a wide range of potential
benefits of implementation, including:
identification of environmental priorities and compliance issues;
Structured approach to management of environmental issues and impacts;
The strategic management of environmental impacts; and
Demonstration of responsible environmental management.
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REFERENCES 1. Sheldon, C. & Yoxon, M. (2002) Installing Environmental Management Systems, A
Step-by-Step Guide
2. United Nations Environment Program (UNEP), ―Financing Cleaner Production: Study on
Past Investment Practices‖, 2000.
3. V.Balachandran, V.Chandrasekaran (2009), ―Corporate Governance and Social
Responsibility‖, PHI learning private limited.
4. Citigate, Dewe Rogerson (2005), ―Investing in Corporate Social Responsibility‖, FTSE
The independent global index company.
5. Websites
a. www.jktyre.com
b. www.mrftyres.com
c. www.apollotyres.com
d. www.bridgestone.co.in
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QUESTIONNAIRE USED FOR INTERVIEW (APPENDIX-I)
1. Are any management procedures/systems in place with respect to environmental
management?
2. Does the business have an environmental policy or are there any environmental
components in other policies such as Health and Safety or Quality?
3. What is the senior management commitment to environmental management?
4. What is the culture of present management and how would environmental management
fit with this culture?
5. Where and what are the wastes / discharges for each business activity? (a) To air (b) To
water (c) To land
6. Who is responsible for them?
7. How could wastes / discharges be reduced?
8. Where are the main environmental impacts?
9. Are products designed to minimize environmental impacts and reduce energy and waste?
10. Is environment considered in product design and development?
11. What management procedures are in place to identify improvements in this area?
12. Where is the main environmental impact(s) – actual or potential (Past, present and
future)?
13. Are production processes operated to minimize environmental impacts and reduce energy
and waste?
14. Is environment considered in process design and development?
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