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Disaster Management and Corporate Sector in India- An Overview

Dr N N Sharma (Associate Professor) Department of Commerce & Management


Govt.P G College Dharmshala (H P) Email-nnsharma585@gmail.com, cell 09418053922 Abstract:-

In keeping with the paradigm shift in its approach to disaster management and the recurring phenomenon of natural disasters impacting all sectors of socio-economic life, including the corporate sector and inflicting heavy economic losses, focused attention has been given to risk mitigation endeavors to systematically reduce the vulnerabilities. The new approach stems from the premise that development in any sector, more so in the corporate world, cannot be sustainable and viable unless risk reduction and mitigation measures are built into the development processes and that investments in mitigation are much more cost-effective than expenditure on relief, rehabilitation and reconstruction. Recognizing the gargantuan proportions of the challenge posed by recurring incidence of natural catastrophes, association and involvement of corporate sector and their representative nodal organizations for initiating disaster risk management measures have been considered as integral to success of disaster management initiatives. Disaster means a catastrophe, mishap, calamity or grave occurrence in any area, arising from natural or manmade causes, or by accident or negligence, which results in substantial loss of life or human suffering or damage to, and destruction of property and requires immediate and effective response. The Corporate Sector plays a very crucial role in disaster risk reduction. Corporate, with activities spread across various regions are emerging as one of the key players in this aspect being a important part of CSR. The corporate sectors therefore make a huge impact on the economy and society they operate in. They in turn get affected by the events unfolding in the community they operate in. They bear the brunt of disasters in terms of assets, manpower, loss of production, etc. Very often, delayed restoration and reconstruction of vital infrastructure also results in production hurdles. Present paper is an attempt to study the disasters management and to overview the role of corporate sector in India KEY WORD: CSR - Corporate Social Responsibility

1.0 INTRODUCTION
The corporate in every country have always played a major role in post-disaster relief, rehabilitation and reconstruction efforts in the affected regions. The industrial and corporate organizations have been in the forefront of providing much-needed succor to the affected populace for ameliorating their sufferings. The corporate sector possesses huge resources-human, material, technical and financial and has significant presence in every region in the country. It also works and interacts with the community very closely and has an important stake in the wellbeing and prosperity of the community as its own progress and viability is largely dependent upon a resilient and safe community. The accountability of the corporate sector in terms of its Corporate Social Responsibility (CSR) has also increased as the value and reputation of a company is being increasingly adjusted by its social behaviour and by its contribution to the economic well-being and development of the communities in which it operates. As part of their corporate social responsibility, the companies are encouraged to conduct The corporate sector is an integral part of the society. As a member of the community, it is its responsibility to contribute to sustainable development and to integrate social and environmental concerns in its business operations as well as in its interaction with other stakeholders. It can play a leading role in supporting and building the knowledge, capacity and skills of the community in comprehensive risk-based disaster management activities ranging from prevention, mitigation and preparedness to response and recovery. It can offer human and financial resources and can also be a precious source of technical know-how, as for example in the case of identification and research on technological solutions to prepare for and respond to natural disasters. In addition, the recovery of the community cannot be complete if the business community itself is seriously affected as disasters can have serious negative fall-out on the corporate sector. For them to acquire capacity in disaster risk management would also entail protection of their employees and dependents.

Corporate sectors cooperation in reducing peoples vulnerabilities to natural disasters would also help it in protecting its market catchment areas. In the aftermath of a catastrophe, the resources of the community are more likely to be utilized in protecting and rebuilding livelihoods rather in acquiring goods and services offered by the corporate sector. Thus, their involvement in minimizing the impact of a natural event or in facilitating speedy and sustainable recovery should be viewed as a form of investment in protecting and securing its own sources of livelihood. As an inalienable part of its CSR, the corporate sector can play an essential role in leading and supporting the community in comprehensive risk management activities and in mobilizing human and financial resources as well as materials for utilization during a disaster situation. In addition to this, the corporate sector can be a precious source of technical knowledge, as foe example in the case of identification and research on technological solutions to prepare for and respond to natural disasters. On the whole, corporate sector has the potential for strengthening and promoting its own safety and protection against natural catastrophes as well as in assisting the community at large in reducing its vulnerability to disasters.

2.0 OJECTIVES
To overview the disasters in India. To study the disaster management framework in India. To analyze the role of corporate sector in disaster management in Indian perspective.

3.0 DISASTERS
Disaster means a catastrophe, mishap, calamity or grave occurrence in any area, arising from natural or manmade causes, or by accident or negligence, which result in substantial loss of life or human suffering or damage to and destruction of property, or damage to, or degradation of environment, and is of such a nature or magnitude as to be beyond the coping capacity of community of the affected area. Disasters can be natural or manmade and lead to: Loss of life Loss of property

Loss of livelihood Loss of health and quality of life Deceleration of Economy Depreciation of domestic currency Greater Indebtedness Major setback to economic development Major setback to social development Setback to community development efforts.

Types of disasters: Natural : Floods, Fires, Tornados, Hurricanes, Blizzards, Ice storms, Tidal waves, Volcanic activity, Storms, Earthquake, Typhoons. Manmade: Chemical leaks, Power outages, Gas leaks, Radiation contamination, Sabotages (Electronic/ Terrorist/Financial), Wars. 3.1 DISASTERS IN INDIA - AN OVERVIEW 1990 - 2011 Indias disasters statistics by disaster type of affected people and economic damage 1990-2011 Table 1.1 No of events No of people killed Average no. of people killed p.a No of people affected Average no. of people affected p.a Economic damage (USD*1000) Economic damage p.a.(USD*1000) Source: www.emdatbe 320 110768 5538 915310733 45765536 44295667 2214783

Figure: 1.1

DISASTERS OVERVIEW IN INDIA (1990 - 2011)


No of events No of people affected Economic damage p.a.(USD*1000) No of people killed Average no. of people affected p.a Average no. of people killed p.a Economic damage (USD*1000)

2214783 44295667 5538

320 110768 45765536

5310733

2011 the year of disaster:

Witnessed a record number of tornadoes, unprecedented flooding,

rampant earthquakes, disturbing volcanic eruptions and a tsunami in Japan that none of us will ever forget. Natural disaster damages for 2011 were estimated as five times higher than the past 10 years average, and double 2010s total of $130 billion. Overall it diminished humanity by 19,380 lives in the first six months of 2011, whereas 230,300 perish...Disasters always were part

of life, and they have naturally occurred for centuries. But the number of catastrophes what we have seen so far in 2011 is really dramatic and unforgettable. It includes earthquake of 8.9 magnitude in Japan, drought in South Africa killed thousands of people floods in Thailand, 12 million people affected, storms in US 700 people killed Typhoon in Philippines etc. 2.2 DISASTER MANAGEMENT: Disaster management includes the development of disaster recovery plans (for minimizing the risk of disasters and for handling them when they do occur) and the implementation of such plans. Disaster management usually refers to the management of natural catastrophes such as fire, flooding, or earthquakes. Related techniques include crisis management, contingency management, and risk management. Disaster/emergency management is the discipline of dealing with and avoiding risks. It involves preparing for a disaster before it happens, disaster response (e.g. emergency evacuation, quarantine, mass decontamination, etc.), as well as supporting, and rebuilding society after natural or human-made disasters have occurred. In general, any Emergency management is the continuous process by which all individuals, groups, and communities manage hazards in an effort to avoid or ameliorate the impact of disasters resulting from the hazards.

Why Disaster Management.? Minimize losses to lives and infrastructure. Reduce the risks associated with disasters through timely measures, short-term and longterm policies. Provide required assistance to communities during and after the disasters. Ensure rapid and sustained recovery and rehabilitation after the occurrence of disasters.

4.0 PARADIGM SHIFT IN DISASTER MANAGEMENT


4.1 Disaster Management Act 2005: It lays down guidelines to be followed by different ministries and departments of the Government of India for the purpose of integrating the measures for prevention of disasters or the mitigation of its effects in their development plans and projects, coordinates the enforcement

and implementation of the policies and plans for disasters management, arrange for, and oversee the provision of funds for mitigation measures, preparedness and response as well as well as such support to other countries affected by major disasters as may be determined by the central Government. It also lays down guidelines for the minimum standards of relief to be provided to persons affected by disasters and also take measures for the prevention of disasters, of the mitigation of its effects, or preparedness and capacity building for dealing with the threatening disaster situation. Salient Features of the Act: 1. Central Govt set up NDMA as Nodal Authority with Honble PM as Chairperson. 2. National Executive Committee (NEC). Comprising Secretaries of 14 Ministries and Chief of Integrated Defence Staff to Function as Executive Committee of the NDMA. 3. Disaster Management Structure. At three levels i.e. National, States and Districts (23 States have Set up State Authorities). 4. National Disaster Response Force (NDRF). 5. National Institute of Disaster Management (NIDM). 6. Creation of National Disaster Mitigation Fund and National Disaster Response Fund.

4.2 A Holistic and Comprehensive Approach Paradigm shift in thinking and focus from reactive disaster response and relief centric approach to a Holistic Approach towards preparedness, prevention, mitigation for an effective and prompt response. (i) Disaster Preparedness: It involves measures to ensure that communities and services are capable of coping with the effect of disaster like: (ii) Community awareness and education Proper warning system Mutual aid arrangement Mock drill, training practice Disaster Response:

It involves measures taken in anticipation of, during and immediately after a disaster to ensure that the effects are minimized. For example: Implementing the disaster management plan. Setting up medical camps and mobilizing resources. Providing adequate shelter and sanitary facilities. Development of search and rescue team. Disaster Recovery

(iii)

It involves measures, which support emergency affected areas in reconstruction of the physical infrastructure and restoration of economic and emotional well being. Example for disaster recovery: (iv) Counseling programme for those who lost the near ones. Restoring services like roads, communication link. Providing financial support employment. Reconstructing damaged buildings. Prevention and Mitigation

It involves measures to eliminate or reduce the incidence of severity of disasters. Examples: Preventing habitation in risk zones. Disaster resistant building.

4.3 ORGANISATIONAL FRAMEWORK AND DISASTER MANAGEMENT:


The organizational framework and disaster management includes: (i) NATIONAL DISASTER MANAGEMENT AUTHORITY (NDMA): The NDMA, as the apex body for disaster management, is headed by the Prime Minister and has the responsibility for laying down policies, plans and guidelines for DM (and coordinating their enforcement and implementation for ensuring timely and effective response to disasters). (ii) THE NATIONAL EXECUTIVE COMMITTEE: The National Executive Committee (NEC) comprises the Union Home Secretary as the Chairperson, in coordination with different ministries. (iii) STATE DISASTER MANAGEMENT AUTHORITY (SDMA): At the State level, the SDMA, headed by the Chief Minister, will lay down policies and plans for DM in the State.

(iv) DISTRICT DISASTER MANAGEMENT AUTHORITY (DDMA) : The DDMA will be headed by the District Collector, Deputy Commissioner or District Magistrate as the case may be, with the elected representative of the local authority (v) LOCAL AUTHORITIES : For the purpose of this policy, local authorities would include Panchayati Raj Institutions (PRI), Municipalities, District and Cantonment Boards and Town Planning Authorities which control and manage civic services.

5.0 THE ROLE OF CORPORATE SECTOR


In keeping with the paradigm shift in its approach to disaster management brought about by the Government of India and the recurring phenomenon of natural disasters impacting all sectors of socio-economic life, including the corporate sector, and inflicting heavy economic losses, focused attention has been given to risk mitigation endeavors to systematically reduce the vulnerabilities. The new approach stems from the premise that development in any sector, more so in the corporate world, cannot be sustainable and viable unless risk reduction and mitigation measures are built into the development processes and that investments in mitigation are much more cost-effective than expenditure on relief, rehabilitation and reconstruction. Recognizing the gargantuan proportions of the challenge posed by recurring incidence of natural catastrophes, association and involvement of corporate sector and their representative nodal organizations for initiating disaster risk management measures has been considered as integral to success of disaster management initiatives. The corporate in every country have always played a major role in post-disaster relief, rehabilitation and reconstruction efforts in the affected regions. In India, the contribution of the corporate sector has been notable especially in the aftermath of the devastating super-cyclone in Orissa in 1999 and the Bhuj earthquake (Gujarat) in 2001. The industrial and corporate organizations like the Confederation of Indian Industry (CII), the Federation of Indian Chambers of Commerce and Industry (FICCI), the PHD Chambers of Commerce and Industry and other industry and area-specific manufacturers and traders associations have been in the forefront of providing much-needed succor to the affected populace for ameliorating their sufferings. The Confederation of Indian Industry (CII), with a direct membership base of nearly five thousand industrial and corporate houses and an indirect associate membership of around fifty

thousand companies from 283 national and regional sectoral associations, was the first industry organization to constitute a Disaster Management Committee in May 2001 as part of its corporate set-up to advise and assist its member industries in initiating disaster risk reduction steps to insulate industrial establishments, infrastructure and processes from the vagaries and damaging potential of natural and man-made (industrial/technological) disasters. CII had undertaken extensive relief, rehabilitation and reconstruction work in the aftermath of Orissa super-cyclone and Bhuj Earthquake adopting villages and contributing to the reconstruction of social and community assets. Apart form addressing natural disasters, CII has established an Environment Management Division (EMD) involved in research and propagation of environmentally sound industrial systems and processes. It has been deeply involved in advising and developing systems and methodologies for safer and disaster-free handling of chemicals and other hazardous substances in production processes and procedures. The EMD has also been assisting the industries in development and implementation of on-site and off-site disaster management plans for ushering into an environment friendly industrial scenario, especially in the light of experience of the Bhopal Gas Tragedy. In addition, many area-specific industrial and commercial associations have also been contributing towards the well-being of the community around them by adopting socioeconomic practices aimed at improving the living conditions and generally benefiting the people at large. For example, the Ankleshwar Environment Preservation Society in Ankleshwar, Gujarat along with Ankleshwar Industrial Association has set up joint effluent treatment plants for medium and small-scale industries in the industrial belt with predominantly chemical industries and has also taken up disposal and treatment of solid and hazardous waste generated by industries and the cities with their own expertise and finance. Industries at Ankleshwar have shown that through a proactive and collaborative approach, environmental problems can be addressed in a constructive manner. The corporate sector possesses huge resources human, material, technical and financial and has significant presence in every region in the country. It also works and interacts with the community very closely and has an important stake in the well-being and prosperity of the community as its own progress and viability is largely dependent upon a resilient and safe community. The accountability of the corporate sector in terms of its Corporate Social

Responsibility (CSR) has also increased as the value and reputation of a company is being increasingly adjudged by its social behavior and by its contribution to the economic well-being and development of the communities in which it operates. However, in keeping with the change in focus to the pre-disaster aspects of prevention, mitigation and preparedness to mount an all round assault on vulnerabilities and building of capacities at all levels, a lot of emphasis has been laid on integrating the disaster risk reduction and risk management aspects into the functioning and processes of industries. With a view to achieve this objective, active collaboration with representative industrial organizations like the CII, FICCI etc. is being forged for assessing and meeting the needs of corporate to have their assets and infrastructure analyzed from the point of view of retrofitting of existing structures and ensuring safety of upcoming industrial assets and establishments against the vagaries of nature. The strategic framework envisages involvement of corporate bodies in entire gamut of issues connected with integrating disaster management concerns in the developmental efforts of the private sector with a specific emphasis on pre-disaster aspects. Moreover, the corporate sector organizations have linkages with other similar organizations in different countries and regularly exchange and supplement each others information and resources in times of need. It is, therefore, imperative for the success of initiatives in the area of disaster risk management that corporate sector organizations and their networks are associated with different facets of disaster management.

5.1 CORPORATE SOCIAL RESPONSIBILITY AND DISASTER MANAGEMENT As part of their corporate social responsibility, the companies are encouraged to conduct business responsibly by contributing to the economic health and development of communities in which they operate; create healthy and safe working conditions to attract and retain a quality workforce; manage risk more efficiently and minimize the negative impact of its activities on the environment and its resources; be accountable to all stakeholders through dialogue and transparency regarding economic, social and environmental impacts of business activities; operate a good governance structure and uphold the highest standards and ethics while conducting business.

The corporate sector is an integral part of the society. As a member of the community, it is its responsibility to contribute to sustainable development and to integrate social and environmental concerns in its business operations as well as in its interaction with other stakeholders. What can Corporate Sector Do? It can play a leading role in supporting and building the knowledge, capacity and skills of the community in comprehensive risk-based disaster management activities ranging from prevention, mitigation and preparedness to response and recovery. It can offer human and financial resources and can also be a precious source of technical know-how, as for example in the case of identification and research on technological solutions to prepare for and respond to natural disasters. Role in Awareness Generation: (i) To make people aware of their vulnerabilities and the need for prevention, mitigation and preparedness measures. (ii) Preparation of a booklet containing information on various hazards and the steps to be taken for mitigating the same by CEOs of industries. (iii) (iv) Co-opting CII as a member of the Steering Committee for Mass Media Campaign. Sponsoring awareness generation capsules in print and electronic media.

Role in Training: (i) Training of industrial personnel, nearby community and volunteers in disaster management. (ii) (iii) Development of training modules and identification of Master Trainers. Linking the trained personnel with the Disaster Management Teams under the District Administration.

Mock Drills: Conducting mock-drills at regular intervals to enhance preparedness levels and linkages with the District Administration and other Emergency Support Functions (ESF) departments/ agencies, especially targeted at chemical, mining and pharmaceutical sectors.

Preparation of inventory of resources: Machinery, equipments and man-power available with the private sector for mobilization in the event of an emergency for being uploaded on the India Disaster Resource Network (IDRN). Sensitization programmes: for building a mindset of safety and mitigation among industries and industrial personnel through State Chapters of Confederation of Indian Industry.

Organization of an annual event: to promote Public-Private-Partnership and to facilitate technology transfer and information exchange in the field of disaster management with other institutions, organizations and corporate sector bodies within and outside the country.

What corporate sector has done..? (1) TATA INSTITUTE OF SOCIAL SCIENCES

Tata Institute of Social Sciences (TISS) was established in 1936 with the vision of engaging in a continuous study of social issues and problems, and imparting education in social work to meet the emerging need for trained human resources. In 1964, TISS was recognized as a Deemed University by the Government of India. Since then TISS has been expanding continuously in terms of educational programmes and infrastructure and currently has five schools and four independent centres that go far beyond its initial concern of social work education. TISS has been undertaking innovative Field Action Projects (FAPs) since 1930s. These FAPs focus on the empowerment of marginalised groups, testing new approaches and strategies in response to changing social realities, facilitating development of field-based knowledge and practicetheory continuum. The institute has made significant contributions to policy, planning, action strategies and development of human service professionals in several areas ranging from sustainable rural and urban development to education, and health. Because of this kind of contribution, it has gained immense recognition from different ministries of Government of India, multilateral agencies like United Nations, national and international non-government organisations, and corporate.

TISS has had a long history of responding to various crises such as floods, riots, cyclones, industrial disasters and such, in different parts of the country. The work has been focused not just on immediate relief but also on preparedness measures, long term recovery and reconstruction activities.

(2) RELIANCE

ENERGY

AND

DISASTER

MANAGEMENT-

HANDLING

UNCERTAINTY : Monsoon Preparedness at Reliance Energy Rains in Mumbai are highly unpredictable in nature. With the experience of floods during July 2006, Reliance Energy has given the disaster management as a top consideration. A disaster management plan is prepared every year to tackle various related issues. A disaster management cell is made operational during the monsoon period with round the clock functioning. Following are the considerations taken under the plan (DMP): Raising the height of flood affected receiving stations & DT substations. Portable DG sets / dewatering pumps to be made available at flood prone receiving stations. Network preparedness by identifying temporary cable laying particularly in case of multiple cable faults in the flood prone area. Deployment of home guards, emergency lamps, life boats. Ensuring the availability of inventory of emergency restoration material at strategic stores locations. Maintaining the Hotline facility between BMC & RInfra Disaster Management Cells. Manpower Resource Sharing to DTPS /Delhi /TPC /BEST / Torrent Power. Provision of Wireless handsets at all Control Rooms. Press advertisement, with respect to electricity DOs & DONTs.

(3)

35 teams of trained personnel identified to be stationed in strategic locations during emergency. Developed an intelligence system to get information about water logging in an area through customers & Reliance employees. Monsoon preparedness plan shared with all local authorities (BMC/MBMC/ Police/ Traffic Police/ Railway authority/ Airport authority/ Tata Power/ BEST etc). Making IP Telephones operational at all Divisional Offices.

MICROSOFT CORPORATION:

2011 Japan Earthquake: A number of steps were taken, including ensuring the safety of our employees and their families and proactively offering customers, partners and local response agencies technical support to help ensure business continuity. 2010 Pakistan Flooding: A number of steps were taken, including donations of cash, technical support to lead response organizations, promoting employee giving and volunteering, and assessing where our resources could be most helpful for the impacted region and communities. Microsoft and its employees around the world contributed over $600,000 in cash toward Pakistan Flood Relief. Microsoft matches its US-based employees' charitable contributions up to $12,000 per employee per year, and in the wake of the flooding in Pakistan, Microsoft offices in the United Kingdom, Germany, Japan, and our Middle East and Africa Region matched employees' donations as we

6.0 What India Needs..?


In the view of the frequency of disaster striking India, there is a need for continued vigilance, preparedness and conscious efforts to reduce the occurrence and for mitigation of impact of natural disaster. What is requires is a planned approach to disaster management; its management is a fundamental component of sustainable development because the reduction of disaster equivalent to increased development. The following suggestions can be offered for effective disaster management system in India:

(I)

There should be a proper multi-tier organizational structure in a focused and coordinated manner responsible for the overall management at national, state, districts and village levels.

(II) The basic design of disaster management should consist of planned coordinated efforts in following important areas: Identification and prediction Early warning system Evacuation Relief Rescue Rehabilitation Compensation Reconstruction Preparedness

(III) There is a need to share the expertise and experiences so that states can learn from each other. There is also a need for training personnel likely to face natural disaster and those who deal with the relief operations.

CONCLUSION
India in the recent years has made significant development in the area of disaster management. A new culture of preparedness, quick response, strategic thinking and prevention is being ushered. The administrative framework is being streamlined to deal with the various disasters. Effort are also being made to make disaster management a community movement with greater participation of the people. Due to paradigm shift in disaster management as well as holistic and comprehensive approach and focus on prevention, mitigation and preparedness and concept of corporate social responsibility, the role of corporate sector has become more significant in relief, recovery, rehabilitation and reconstruction. NDMA also recognized the corporate sector as one of the key stakeholders and envisaged involvement of corporate sector in awareness generation, disaster preparedness and mitigation, planning through sensitization, training and co-opting of the corporate sector and their nodal bodies in planning process and response mechanism .On the other hand corporate sector due to its strong financial health can contribute significantly to

introduction of new ideas, technology with innovative approach, strong management skill, risk transfer mechanism i.e. insurance products etc. In nutshell corporate sector has the potential of assisting both the business/industrial community in protecting itself and the community at large in increasing its resilience to disasters.

REFERENCES:
Asian Development Bank and the World Bank. Gujarat Earthquake Recovery Program : Assessment Report March 2001 http://ndmindia.nic.in/Guidelines%20for%20NDRF&SDRF-100211.pdf http://ndma.gov.in/ndma/dmact.html http://pre-drp.org/wp-content/uploads/2011/04/Disaster-Management-Cycle.png http://www.rel.co.in/HTML/know_disasterManagement.html http://www.microsoft.com/about/corporatecitizenship/en-us/serving-communities/disaster-andhumanitarian-response/disaster-response/ http://www.tcs.com/industries/government/disaster-management/Pages/default.aspx http://www.ndmindia.nic.in/WCDRDOCS/DRMCorporateSector. B Narayan,Disaster Management , A.P.H. Publishing Corporation Darya Ganj Delhi (2009) CII report on Disaster Risk Management and Role of Corporate Sector in India, Ministry of Home Affairs Government of India www.ciionline.org