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Business Administration (MBA IT Management)
Western Governors University Introduction
Social Responsibility is about the management of an Organization making sure that the community or society where they operate is taking into consideration in all management decisions especially when it comes to the environmental Management, interest and welfare of the people.
Dangote Cement is the largest cement manufacturing Company in West Africa with footprints in Nigeria, Benin Republic and Ghana. This Company will be used as a client for this submission because of the environmental risks of cement production in all the locations where the manufacturing plants are situated and the expected social responsibility on the part of Dangote Group as a Company.
The company currently has 14 million tones of both production and import into various part of West Africa. There is a plan to add 11.1 Million tonnes of cement production to reduce or eliminate completely the volume of import as part of the operations. The long term goal is to convert the present import terminal to export terminal in the nearest future. (Dangote Cement, ND)
Environmental Consideration
Dangote group currently has policy on Social Responsibility which they refer to as touching lives. The program is about awarding scholarships and donating monies to various causes through a foundation called Dangote Foundation. From all indications, this social responsibility policy is short of making the environment clean for the people by going green.
Cement manufacturing posses a lot of threat to production environment like emission of dust, gases to both human and plants in the areas of production. The case of Dangote Cement is not an exception when it comes to air pollution through dust emission to all the villages and cities where the Company plants are located. The kiln exhaust stack releases some particles that are sources of dust emissions from the cement plants. The dusts have the same contents of mineral resources with the end product cement that are hazardous to the human health. (Cement Industry Federation, 2003)
Aside from the dust emission, nitrogen oxides (NOx) are other byproducts of cement manufacturing that are considered in this submission. This gas is produced through thermal fixation of nitrogen and chemical reactions of nitrogen in the fuel. The gas is capable of causing lung irritation and reduces respiratory infection resistance. (U.S. Environmental Protection Agency, 1995). It is also responsible for acid rain and eutrophication that can destroy fish and other animal life.
Noise and vibration are also serious environmental effects that are considered in this assignment. Blasting in quarries with the use of heavy equipments is an essential part of cement production. The vibration and sound of operating machinery during this blasting could be very disturbing to villages and cities that are close to the cement plants.
The issue of environmental management is yet to be taken seriously in any part of Africa probably because social responsibility has no legal backing. This is due to the fact that most companies put their commercial interest over the welfare of the society or Community where they operate. For example, most big and medium size Company operate on massive generating plant powered by diesel, with the exhausts directed to residential places not minding the effect of the monoxide being produced by generating plants will have on the community.
Recommendations:
There is need for monitoring the range of emissions to the production environment, the use of adequate technology for emission monitoring and pollution control is highly recommended to Dangote Cement. This equipment must be installed in villages and cities where the Company is producing and re-bagging its cement products. One of the ways to control the emissions of Nitrogen is to use low nitrogen fuel in the process of cement production.
Dangote Group should also modify the condition of combustion during cement production to reduce the generation of NOx. (World Bank Group, 1998)
The effect of noise and vibration of blasting should also be considered by Dangote Cement Company in locating the future plants the will produce additional 11.1 Million tonnes of cement anticipated for import reduction.
It is hereby recommended that Dangote Group champions the cause of green power community in the countries where its operating business. This is very important because of the nature of the group business especially cement production vis-à-vis air pollution from the production processes. The owner of Dangote Group is one of the most successful business men in the world, Aliko Dangote is rated the 76th Billionaire in the world by FORBES in 2012 with net worth of $11. 2 Billion. (Forbes, 2012)
With this financial status, Dangote Group is capable of initiating green revolution in Africa as one of the Company’s commitment to Social Responsibility.
Ethical leadership considerations
Leading and acting ethically as a Company owner or Management staff is very important in the modern world of technological advances, globalization and democratization. Profit making is the primary objective of a business owner, but it is ethical for a business owner to have the interest of the society in mind in the process of conducting business.
For example the Dangote Group as a cement producing company that is planning to establish more cement plants to increase production has ethical responsibility to make sure that the plants are located in an industrial area far away from residential houses. This will reduce the worries of the vibration and blasting of quarries disturbing the peace and quiet of the people.
The issue of controlling the environmental pollution from dust and nitrogen dioxide in the production community is also a matter of social responsibility and ethical leadership. There should also be an ethical consideration for renewable energy initiatives like solar, hydro , and wind energy solutions. Management of Companies should know that the adoption of Solar Energy which is the most abundant and free energy in the world will cut down power bills and contribute to a greener world.
One of the many advantages solar Energy is the environment-friendliness and cost-effectiveness, The system gives quick Return on Investment (RoI) and it saves time and efforts because of its low maintenance, (PRLOG, 2009)
Hydro power is produced from the movement of waters like the rising and falling of tides or vast flowing of rivers and streams. One of the reasons why the hydro power is important to the clean energy environmental management is that it does not produce carbon dioxide or those harmful emissions that can contribute to global warming. It is also cost effective and can be used to handle high load of electricity requirements. (Environmental Energy Solutions, 2012) .
Recommendations
Dangote Group should develop a clear policy on ethical Leadership that will state the company’s commitment to the protection of human lives, plants of the environment where they conduct businesses. The Leadership of the Company should also learn to articulate and embody the purpose and values of the organization. (Freeman & Stewart, 2006) Ethic leaders must be credible by standing by what they say and also practice what they preach.
Dangote Group should put in place Corporate Responsibility measure for renewable energy to show the management’s ethical commitment to clean energy and green environment. This type of measure can be achieved through deployment of clean Energy Technologies in all production cities and villages of the company. These technologies include Solar, hydro and wind energy solution farms.
Provision of Hydro or wind energy will help Dangote group in realizing ethical Corporate social responsibility objective. Most community where the cement production plants are located are small villages with less than 10000 residents. Providing these communities clean energy through wind or hydro will go a long way in the social responsibility to those communities.
The most important role ethical leadership should play in the above recommendations is to influence the implementation through budgetary provision and approvals for the clean energy projects. Such leaders are also expected to lead by example through the provision of green energy in their residential home and possibly use vehicles that are powered through clean energy. Employees of their company or even residents in the local areas operation should be encouraged to go green through programs like reward or free energy for a period of time for those who care to go green.
Sustainability considerations and recommendations As the business world is becoming more competitive on daily basis, Companies should consider using Corporate Social Responsibility as a strategy for sustainability. It is important to know that natural resources in our environment may not be available for ever, and as such Company leaders must have sustainability plan for all the social responsibility strategy that have been considered so far. Dangote Group must try and foster relationship with the community and society where they are conducting business. One of the sustainability consideration for green energy is forest preservation, many green forest that should be preserved all over the world are now being consumed by wildfire, and some people are engaged in deforestation for economic reasons without consideration for other people and the environment.
Recommendation
Dangote Group must make it a priority or policy to first consider qualified indigenes of the community where the businesses are located for employment before consideration for outsiders.
As cement producing Company, should use the company product to promote projects like mass housing and infrastructures for community development. Laudable programs like award of scholarships to the children of the poor in the business community should be part of Dangote policy as a company. Sustainability can also be maintained through staff empowerment by developing their skills and abilities. Motivation through rewards like performance bonus and promotion to more responsibility will also go a long way in sustainability. Preservation of the natural environment should be encouraged by business owners in the community. For example Dangote Group should influence the curriculum of the educational institution in its business community including non formal educational sector like adult literacy or farmers’ education on the importance of preserving our environment including wildlife, timber, water and forage. This can be achieved through donation and sponsorship to those organizing bodies and formal institutions. (University of California Agriculture and Natural Resources, 2009)
Legal and regulatory recommendations
Nigeria is the largest country where Dangote cement Industry is producing, importing and re-bagging in the whole of Africa for now, there is a National Environmental Standard and Regulation Enforcement Agency (NESREA ) that is responsible for environmental laws in Nigeria. The constitution of Nigeria also has sections relating to the environmental management and how to protect the air, forest, water and wildlife in the country.
Nigeria Constitution Section 20 makes it an objective of the Nigerian State to improve and protect the air, land, water, forest and wildlife of Nigeria.
NESREA ACT 2007Section 7 provides authority to ensure compliance with environmental laws, local and international, on environmental sanitation and pollution prevention and control through monitoring and regulatory measures. (Environmental Law Research Institue Nigeria, 20122)
Dangote Group requires Legal and regulatory policy for the Company to comply with all applicable local, state, and federal and international laws relating to environment particularly in cement production and general business conduct. The firm must comply with pollution Act of the countries where the production plants are located.
Financial accounting, Taxation, and financial reporting requirements of both local and international operations must be integrated into the Company business conduct. It is also recommended that Dangote Group complies with labor laws including the Health and safety laws at work places, the minimum wage law if applicable, and workers union laws. Finally, all environments related laws must be adhere to and Company must work towards initiatives of ensuring zero pollution operations.
There are no clear cut laws or guidelines yet about Renewable and Non Renewable Energy in Nigeria apart from laws relating to oil and gas which is out of scope of this document. If Dangote Group decides to look at energy from green environmental stand point in relation to the Company’s operation, that may trigger the necessary laws and guidelines for the Country.
References
Cement Industry Federation. (2003). commitment to the environment. Retrieved July 30, 2012, from wbcsdcement: http://www.wbcsdcement.org/pdf/tf1/cement-industry-environment-report-2003.pdf
Dangote Cement. (ND). MANUFACTURING/ IMPORTATION, PACKAGING AND DISTRIBUTION . Retrieved August 30, 2012, from dangote-group: http://www.dangote-group.com/ourbrands/cement.aspx
Environmental Energy Solutions. (2012). An Alternative Energy System. Retrieved from Hydro Energy: http://environmentalenergysolutions.com/data/content/view/36/39/
Environmental Law Research Institue Nigeria. (20122). A SYNOPSIS OF LAWS AND REGULATIONS ON THE ENVIRONMENT IN NIGERIA. Retrieved July 31, 2012, from ELRI: http://www.elri-ng.org/newsandrelease2.html
Forbes. (2012, March). The World's Billionaires. Retrieved from http://www.forbes.com/profile/aliko-dangote/
Freeman, R. E., & Stewart, L. (2006). Business Roundtable institute for Corporate Ethics. Retrieved July 30, 2012, from Developing Ethical Leadership: http://www.corporate-ethics.org/pdf/ethical_leadership.pdf
Lawrence, & Anne. (2010). Business and Society: Stakeholders, Ethics, Public Policy (13th International Edition ed.). Illinois, U.S.A: Burr Ridge.
PRLOG. (2009, Jan 10). What Are The Advantages Of Renewable Energy Solutions? Retrieved July 31, 2012, from prlog.org: http://www.prlog.org/10165459-what-are-the-advantages-of-renewable-energy-solutions.html
PRLOG. (2009, January 10). What Are The Advantages Of Renewable Energy Solutions? Retrieved July 31, 2012, from prlog.org: http://www.prlog.org/10165459-what-are-the-advantages-of-renewable-energy-solutions.html
U.S. Environmental Protection Agency. (1995). Nitrogen Dioxide (NO2). Retrieved August 30, 2012, from AirTrends 1995 Summary: http://www.epa.gov/airtrends/aqtrnd95/no2.html
University of California Agriculture and Natural Resources. (2009). Sustaining the Nation’s Forest & Rangeland Resources for Future Generations. Retrieved July 31, 2012, from ucanr: http://ucanr.org/sites/rrea/files/148289.pdf
World Bank Group. (1998, July). Pollution Prevention and Abatement Handbook. Retrieved July 30, 2012, from Nitrogen Oxides: Pollution Prevention: http://www1.ifc.org/wps/wcm/connect/
