Relevance of eBusiness to Sustainable Development - Case Study Example

Table of Contents Table of contents ……………………………………………………………….. ………………1 Importance of eBusiness………………………………………………………………………... 2 a. Definition of eBusiness ……………………………………………………………… 2 b. Definition of eCommerce …………………………………………………………….2 Relevance of eBusiness to Sustainable Development ………………………………………… 2 Definition of Terms …………………………………………………………….. ………………3 a. Corporate Social Responsibility …………………………….. ………………3 b. De materialization of Products and S services ……………… ……………….3 c. Electronic administration ……………………………………………………. 3 d. Electronic Communication ………………………………………………….. 3 e. On-line Information ………………………………………… ……………….3 f. Sustainable Development…………………………………… ………………..4 Empirical Evidences……………………………………………………………………………. 4 Case 1: Greenstar Project ………………………………………………………………………. 4 Case No. 2: eBusiness on Agriculture ………………………………………… ………………...5 Case No.3: eBusiness on Environment ………………………………………… ………………..6 Case No.3: eBusiness and the Environment …………………………………………………….. 6 a. eBusiness Affecting the Economy ………………………………………..…. 6 b. Procurement ………………………………………………............................ 7 c. Transport …………………………………………………………………..… 7 d. Local Impacts ………………………………………………………………... 7 e. Product Stewardship ………………………………………………………… 8 f. Emission to Air ……………………………………………………………… 8 g. Waste ………………………………………………………………………… 8 h. Environmental Risk …………………………………………………………. 8 Case No.5: Sustainable Business Innovation …………………………………………… 8 Case No.6: Social Cognitive Theory ……………………………………………………. 9 Conclusion ……………………………………………………………………………………… 9 Strategies Leading to Sustainable Development ………………………………………….. 10 a. “Greening of ICT” ………………………………………………………..…………10 b. “E-substitution” …………………………………………………………………….. 10 c. “E-support” ………………………………………………………………………… 10 d. “E-services” ………………………………………………………………………... 10 Reference: ………………………………………………………………………………….11-13 Study Question: Upon taking into considerations some of the economic, social and environmental factor, will E- business and sustainable development revolutions complement one another? Importance of eBussiness According to iWay Software website, eBusiness is the conduct of business on the internet which is not confined only to buying and selling, but also servicing customers and collaborating with business partners. E-commerce on the other hand is part of e-business; it is any transaction that results in a financial change is e-commerce (Held, Fred). Still according to Fred Held, the advent of eBusiness allows developing and emerging nations to obtain more investments and business from the developed economies due to rapid interactive and structured communications. This increase in speed of moving up the chain from simple labor to high technology will help developing nations speed their own improvements in infrastructure, education and finance. In 2006, numerous countries across the world are still accepting e-commerce despite of spatially obstructions and in temporal sense together with other barriers in terms of culture, infrastructure, regulation, language and economic aspect hindering boundless digital access according to the “International Telecommunications Union”. Along with the advent of eBusiness, come various concerns that are needed to be aided, one of which is the issue regarding the relationship of eBusiness and sustainable development. eBusiness in Relation to Sustainable Development eBusiness and sustainable development are two of the most powerful drivers of economic change within Europe. eBusiness facilitates a better and more efficient way of communicating and transacting between businessmen coming from different nations while the concept of sustainable development becomes a public concern due to the depletion of natural as well as human resources. Both concepts are beneficial to the economy. one boosts the market efficiency while the other sustains the market momentum: however, according to digital-eu.com, there have been debates on whether these factors compliment or contradict one another. Does the implementation and success of one means success for the other as well or is it the contrary? Before we would answer the question, it is necessary for us to define the following terms and concepts: a. Corporate Social Responsibility. It refers to the responsibilities a business faces in relation to the social and environmental impact of their operations. See also: Corporate Responsibility (CEO). b. De materialization of Products and S services. The move from physical certificates to electronic book keeping. Actual stock certificates are slowly being removed and retired from circulation in exchange for electronic recording (www.investopedia.com). c. Electronic administration. It is the transferring administrative tasks which were previously done by paper and telephone into an electronic network (UK Centre for Environment and Economic Development). d. Electronic Communication. The use of e-mails and other forms of electronic messaging to transmit data, and value added telephony services such as audio conferencing and videoconferencing which require a sophisticated communications infrastructure (UK Centre for Environment and Economic Development). e. On-line Information. Placing information which was previously stored in, and disseminated through, paper documents onto the Internet or an Intranet or Extranet (UK Centre for Environment and Economic Development). f. Sustainable Development. The term pertains to maintaining a delicate balance between the human need to improve lifestyles and feeling of well-being on one hand, and preserving natural resources and ecosystems, on which we and future generations depend ( Hari Srinivas ). eBusiness have undeniably elevated the way people do business now a days but as it is a way by which nations can boost its economies, it is also seen as a social phenomena that can degrade our environment with a glimpse of an eye. To aid us in this analysis, studies and cases were cited below indicating the positive and later the negative implications of eBusiness. Empirical evidences Case No.1: Greenstar Project (This is a part of an article cited at www.greenstar.org.) The Greenstar project works with people in traditional cultures. Expression of the voice of the public in the course of art such as “artwork, music, photography, and video” and the like is the primary objective of this site. The revenue being generated is used to fund social services like educational program e.g. community-driven process of literacy, health concerns, environmental projects among others through a convenient community center in conveying these services without difficulty and fast. With the help of “photovoltaic panels” in producing solar energy, Using solar power generated by large photovoltaic panels, the center are able to function some devices such as “water purifier”, a mini clinic, a “vaccine” storage, a “classroom”, “a digital studio” and even a “satellite or wireless internet” connections. With this kind of advanced equipment, villager are able to launch “e-commerce website” in which musician in the locality together with educator and professional artists are being employed in order to capture the “voice of the community”. Their output has a wide array of markets taking into consideration their costumers as well as accreditation of the said commerce. Aside from employment being offered, culture and language empowerment and independence establishment of the villagers were also presented. The villagers are considered the owner of the center including the outputs like “music, paintings/drawings, photographs, video, poems and stories, and animated panoramas, considered a new form of art, being produced and traded in the internet, with “premium license” for the consumers’ encouragement in support of the village’s project such as unconventional energy, “textiles and clothing, and interactive entertainment”. Case No. 2 eBusiness in Agriculture (This article is by Chetan Sharma and is cited at www.datamationindia.com ) According to Chetan Sharma, farmers in India can now use the Net to leverage transmission capabilities and access market data from down south in the rich sugarcane belt of Tamil Naduand the Murugappa Group--one of the largest sugar & sugar products manufacturers of India. In order for the farmers to have appropriate price of their “sugarcane” even without the help of “middle man or distributor”, internet is being utilized broadly. In order to do this, the farmers must only go to the center and in which the group (Muragappa Group) in charge in selling sugarcane to sugar mills, thus, a reasonable is being obtained by the farmers. Moreover, having been knowledgeable on how to access the internet, the farmers now can be aware of things that may affect their livelihood, example of which are: a) weather reports to help farmers plan their sowing & cropping patterns, b) information regarding “banking” as well as “micro-credit” and “micro-finance”, and c) other farming company’s offers of farm products and equipment. Case No.3: eBusiness on Environment (This article is entitled “Recycling for Business: Environmentally Friendly e-Commerce Shantytown Style'' cited from the “International Telecommunications Union”) The Wikyo Akala Project is built with the vision of protecting the environment while creating jobs for the residents of shantytown in Korogocho , outside of Nairobi, Kenya. The project is about the usage of discarded rubber tires to make sandals. It provided jobs for more than 500,000 inhabitants of the small shantytown. Education, improvement of human resources as well as protection of the environment—essential factors of “sustainability”, are being bonded together through “non-profitable” project. Exemplifying in “Ecosandals.com”, one of the most well-known “community-based project” in Africa and even across the world, is sustainability upon having activity ad revenue for young adult of “Korogocho” at the same time contributing to the well being of the environment through “recycling environmental waste”. Through Ecosandals.com, improvement as well as modernization of “economic structures” of the deprived community is being promoted. Case No.4: eBusiness and the Environment The following are some of the findings that the UK Centre for Environment and Economic Development identified with their study entitled E-business and the environment: Better World - Our Commitment to Society. The following would include the negative as well as the positive sides of doing eBusiness. Since the research is basically based on the environment, the identified items will be much more of eBusiness affecting the environment rather that a) eBusiness affecting the economy. “Dematerialization—replacement of electronic for physical activity” together by efficiency being gained from current practices are considered as encouraging features of eBusiness. On the other hand, large amount of energy is being devoured upon application of electronic devices at the same time as that the possibility of cutback from document printing may be surmounted by local printing is very highly plausible. Some aspects of eBusiness that are taken into account in this study are the following: b) Procurement. Acquiring of latest information regarding environment concerns with great ease is plausible with EBusiness especially chains supplying glasses. E-procurement in few companies with computerized performance, environmental implications is often disregarded. But still, the presence of e-procurement, the danger of “impersonality as well as price-driven nature” of trade could be avoided. c) Transport. Discharge of gases that can harm the environment for example carbon dioxide, nitrogen, sulfur oxides, particulates among other pollutants, can be expected in the process of transportation. In exposing chances for “reverse logistics” through ebusiness, work-related journey would be minimal at the same time capacity operation would be developed. However, the trade off of this is the common use of home shopping routes as well as “airfreight” since transportation in this manner would be inexpensive, efficient and potential “long-term rebound effects from flexi-working”. d) Local Impacts. Effortless contact to information pertinent to the locality is an encouraging feature of eBusiness, thus, lessening of required space in terms of office and retail, but, warehousing would require otherwise. e) Product Stewardship. A comprehensive examination as well as effortless accessing information can be said affirmative feature of e-business while negative feature of it is that not having accountability in the context of “virtual” association. f) Emissions to Air. Although alteration of transportation as well as utilization of energy can have indirect effects, however, e-business has no focal impact in the context of air emission. g) Waste. eBusiness allows the establishment of “waste markets” in which it can be of great assistance in eliminating outdated stocks even prior to trading with ease of acquiring knowledge particularly information essentially to the environment. Exemptions to these advantages are those companies having virtual association especially outsourcing-reliant companies. h) Environmental Risk. Although attaining commitment from companies with virtual organization is quite tough, but, once allowed, it may be much easier in accessing significant information that will ultimately give way to a much comprehensive assessment upon tracking. All these are made possible through eBusiness. Case No.5: Sustainable Business Innovation (This is just a portion of the article entitled ``Sustainable Business Innovation in the Internet Economy'' by Klaus Fichter and Siegfried Behrendt) The environmental effects of eCommerce and internet use can be distinguished in three levels namely: a) direct environmental effects of the information technology infrastructure-this would include. b) caused by Internet use energy use, and c) those that are due to subsequent and rebound effects. As of the present time, the application of internet and eBusiness conveying affirmative effects to the environment is mostly inadvertent “coincidental side-effects”. In considering modernizing approach in the future, environmental concerns would be address given the importance of the four environmental strategies in the present situation brought by eBusiness and internet. Case No.6: Social Cognitive Theory (This article is cited in www.ascusc.org) Unfettered purchasing through the internet is very much apparent sometimes leading to behavioral addiction because of impulsiveness and compulsiveness of the consumers. With the aid of eCommerce acting as intervention in comprehensive trade operation, the affiliation of electronic media to its consumer is being modified. Basing the “social cognitive theory” in relation to self-control, it offered a “heuristic” view of unfettered buying as well as costumer electronic commerce. An individual is the one responsible in re-establishing “self-regulatory mechanism” in cases impulsiveness, compulsiveness and addictiveness of purchasing. Conclusion Although eBusiness can not be possible provided sustainable advances, however, the utilization of eCommerce greatly help the unprivileged people in connecting to the global market which ultimately resulted to development of human, social, specifically women empowerment, as well as economical aspect. In this respect it is quite obvious the significance of eCommerce to peripheral country and its people integrating social and economic empowerment. Having read all the cases and studies conducted regarding eBusiness and Sustainable Development, we can now see that though the two concepts are geared towards the development and growth of modern communities, discrepancies still exist. These differences in approaches can be explained by the fact that they are still two different things: eBusiness is in line with the market and the economy while sustainable development is focused on the wise use of our resources through the protection of our environment. Strategies Leading to Sustainable Development eBusiness and Sustainable Development are two different things with some irreconcilable aspects like the usage of energy. If one seeks to advance in the field of eBusiness, he or she must purchase electronic and communication devices and in the process, energy in the form of fuels and electricity is being consumed. Thus, fossil fuels in the environment are utilized at the maximum rate. Other than the fuels themselves, residues such as air pollutants are being produced in the process - all of which are harmful to the environment thus discouraging sustainable development. On the other hand, if one seeks to promote sustainable development, he or she will minimize the use of natural as well as human resources thus discouraging the use of computers and other electronic and telecommunication devices and in the process, discriminating eBusiness. It is so unfortunate that though both concepts are geared towards the growth of modern communities, they cannot exist simultaneously. However, there are attempts in reconciling the said two. An example of which is Klaus Fichter and Siegfried Behrendt's Approaches for Sustainable Business Strategies cited in Sustainable Business Innovation in the Internet Economy. In their study they have identified four strategies by which eBusiness can operate with minimal negative effects on the environment. The said are discussed in the following: a) “Greening of ICT” in which the production process would be harmless to the environment by employing recycling of information and communication devices and technologies. b) “E-substitution” in which products mail order services and uses will be replaced with physical product via electronically procedure but with great consideration with the environment. c) “E-support” in which the use of the Internet and e-business for the safeguarding and dissemination of environmentally friendly products and services. d) “E-services” in which conservation of environment at the same time having eco-“efficiency” shall be attaint through internet based services, business models as well as networks. For now, eBusiness and Sustainable development cannot complement each other directly or if, only at a minimal level but the struggle of Homo sapiens for growth and development surges. And as long as there are concerned scientist as well as citizens and concerned communities, there will always be a way that things that seems irreconcilable be reconciled. Together, the two can work for the benefit of the communities without or at least with minimal level of detrimental effects for each other. Works Cited A scusc.org. On the Negative Effects of E-Commerce: A Sociocognitive Exploration of Unregulated On-line Buying. 1 Jan 2001. 13 Oct 2007. < http://jobfunctions.bnet.com/whitepaper.aspx?docid= 51604 > Chief Executive Officer. 2007. Oct 13, 2007< http://www.the-chiefexecutive.com> G reenstar.org. A Greenstar: People, energy, ecommerce and digital culture. 13 Oct 2007. < http://www.greenstar.org/> Hari Srinivas. SD Definitions. 13 Oct, 2007. http://www.gdrc.org/sustdev/definitions.html Held, Fred. What is the difference between e-commerce and e-business? 16 Feb 2005.Expert Knowledge Base. 12 Oct 2007 http://expertanswercenter.techtarget.com Held, Fred. What is the potential role of e-business in the development of emerging economies? 16 July 2004.Expert Knowledge Base. 12 Oct 2007 http://expertanswercenter.techtarget.com International Telecommunications Union. 2006. 13 Oct, 2007. http://www.itu.int/osg/spu/wsis-themes/ict_stories/themes/e-commerce.html Investopedia Dictionary. 13 Oct 2007.http://www.investopedia.com/terms/d/dematerialization.asp iWay Software. 2007. 13 Oct, 2007.http://www.iwaysoftware.com/ebusiness-e-business.html Klaus Fichter and Siegfried Behrendt. Sustainable Business Innovation in the Internet Economy. 13 Oct 2007. < http://www.itas.fzk.de/e-society/preprints/esociety/Fichter_Behrendt.pdf > Recycling for Business: Environmentally Friendly e-Commerce Shantytown Style.28 Feb 2006. 13 Oct 2007. < http://www.itu.int/osg/spu/wsis-themes/ict_stories/themes/case_studies /eco-sandals.html > Sharma, Chetan. Transforming the agri- business the e-way in India! 13 Oct, 2007.< http://www.datamationindia.com/eway.htm > UK Centre for Environment and Economic Development. E-business and the environment: Better World - Our Commitment to Society. BT Social and Environmental Report. Lloyd's Register Quality Assurance Limited. Vidhya Alakeson. Ebusiness and Sustainable Development. Digital Europe. 13 Oct 2007. < http://www.digital-eu.org/uploadstore/DigitalEuropeProspectus.pdf> Read More