Sub-question (a), How can socially driven businesses be sustainable and contribute to social sustainability? is answered in Sub-studies II, III and IV. The summarised results of these sub-studies are presented below.
Sub-study II: ‘Towards realising social sustainability in the small hydropower sector in India: opportunities for social innovations’
Background and objectives
The goal of sustainable development is to create a system that provides for quality of life by integrating social, economic and environmental sustainability (Kleef and Roome, 2007). Social sustainability is, thus, a fundamental element of sustainable development that cannot be ignored (Magis and Shin, 2009). In a similar vein, the social innovations that prioritise human welfare are inherently linked to sustainable development, as changes in the behaviour of individuals and institutions are considered critical to sustainable development (Dobson, 2007) and these changes are key concerns in generating social innovations. This study investigates a green-energy business in India: small hydropower, or SHP. SHP is promoted as one of the most cost-effective energy technologies for generating power in the rural areas of developing countries (Paish, 2002). Green-energy technologies have been a topic of research interest for years, yet the social sustainability and social innovations realised due to green-energy businesses have not been subjected to empirical analysis. This study focuses on the SHP industry to understand its role in and any contributions to realising social sustainability in surrounding communities. The sub-study includes a description of India’s SHP industry, with a special focus on challenges faced by the industry. These barriers are then studied as opportunities for social innovations. Furthermore, this study also suggests steps for making SHP more socially sustainable.
This study answers the following research questions: How is social sustainability achieved through the development of the SHP sector in India? Are there any possibilities for the generation of social innovations?
Findings
The results of this study indicate that the development of SHP units has contributed to the larger goal of social sustainability in the surrounding communities. Generally speaking, the remote areas where the SHP plants are established become more socially sustainable.
The villages not only get electrified, but the SHP units also generate employment, support small-scale industry and improve infrastructure. Other benefits include reduced migration of local people from the area and the establishment of local schools, parks, hospitals, temples, and so on. On the other hand, the SHP industry also faces challenges, such as
getting statutory clearances, resistance from local communities, construction difficulties, unskilled labour, ambiguous government policies, high interest rates and management problems. Efforts have to be made to characterize SHP as ‘socially sustainable’. In order to be fully socially sustainable, the SHP sector needs to continue to promote human well-being, improve working conditions for workers, encourage equal participation in local communities and governments, and strengthen stakeholder relationships. This study explores these challenges as opportunities for social innovation and proposes some suggestions for the successful implementation of SHP projects. First of all, the government should assign these projects to independent power producers only after getting all the clearances from different departments. Second, training should be provided to those who create SHP policies at the national level as well as to the local employees who operate and manage these SHP plants. Third, infrastructure problems need to be addressed by building roads, bridges and transmission lines. Lastly, the independent power producers should search for foreign funding in order to lower their interest rates and get better returns on their investments.
Sub-study III: ‘How the Social Enterprises Support Social Sustainability’
Background and objectives
In order to tackle the concept of sustainable development and achieve ambitious sustainability goals for current and future generations, much interdisciplinary work needs to be dedicated to dealing with pressing societal problems (Turvey, 2015). In the past, ecological concerns have taken precedence over societal concerns in the sustainability debate (Ratamäki, 2013). However, it is clear that new mechanisms need to be developed, ones that would also address social sustainability. Social enterprises, organisations focused on addressing social issues (Borzaga and Defourny, 2001) could be viewed as a small step towards realising social sustainability. The link between social enterprises and social sustainability has not been much discussed in the literature. This study investigates whether social enterprises in Finland are socially sustainable and support social sustainability. It sheds light on the link between the concepts of social sustainability and social enterprises and recognizes the possibility of realising social sustainability through the development of social enterprises.
Findings
Social sustainability indicators were developed to assess the social dimensions of sustainability in the social enterprises being studied. These indicators were classified into three main categories: employee relations, community relations and customer relations.
The analysis showed that, among the social enterprises, employee participation was highly valued and employees were given equal opportunities. However, the social enterprises needed improvement in terms of workplace practices. Most lacked systematic approaches to evaluating employee performance. They collaborated with businesses,
NGOs and public sector organisations but exhibited little collaboration with universities or research organisations. They engaged customers, but lacked a systematic approach to gathering development ideas from them. The role of social enterprises is still unstable and developing. Their most important role is employment generation, which has had a positive social impact. Social enterprises empower the long-term unemployed and those on the margins of society by providing them with a stepping-stone to working life.The biggest challenges faced by these social enterprises are lack of resources and inadequate funding. In short, social enterprises fulfil basic social sustainability criteria; however, improvements are needed in certain areas as measured by the indicators.
Sub-study IV: ‘Small hydropower in India: Is it a sustainable business?’
Background and objectives
Business plays a critical role in sustainable development (Porritt, 2005), and the development of green businesses is critical to achieving long-term sustainability, as it encompasses economic and social concerns alongside environmental ones (Tueth, 2010).
In this context, green-energy businesses have garnered a lot of attention in that, unlike the non-renewable energy sources, they generate clean energy and minimise the release of greenhouse gases. This study investigates one source of green energy: small hydropower, or SHP. SHP plants are green-energy generation sources that are economically viable and require little time to implement (Ghosh, 2012). In India, SHP refers to hydropower units that possess a generation capacity of less than 25MW. This study investigates the sustainable nature of SHP in India. This objective was realised by taking into account the complex network of SHP stakeholders, each of whom has a variety of interests. The study increases understanding of the three interconnected dimensions of sustainability – social, economic and environmental – in relation to India’s SHP industry.
This study answers the following questions: Is the SHP business in India a sustainable business? Does it realise all three dimensions of sustainability?
Findings
Sustainable development concerns three interconnected dimensions: economic, environmental and social sustainability. A business that attempts to strike a balance between these dimensions in business decision making is a sustainable business. India’s SHP industry was studied with this definition in mind, and the results indicate that the SHP industry has both strengths and weaknesses. With regard to economic sustainability, it was noted that most SHP projects are economically viable, yet viability depends on many factors, including site, conditions and size of SHP project. Long gestation periods and high interest rates prolong the payback period. Delays in acquiring government clearances, inadequate evacuation and transmission facilities, high upfront costs, and poor grid connectivity are some of the obstacles that can impact project profitability. Changes like alternate funding options and a formalized clearance procedure could make SHP
more economically viable. Secondly, environmental sustainability has not been yet fully achieved, and significant continuing efforts need to be expended to make SHP plants truly environmentally friendly. All SHP plants impact the environment to a certain extent, by altering river ecosystems. However, this impact is minimal as compared to other energy-generation sources. On a positive note, SHP is a renewable, clean and non-polluting energy source that generates no waste and offers significant carbon emission reduction.
Nevertheless, it is possible to build environmentally friendly SHP plants sustainably or less sustainably. In India, environmental awareness has to be improved, and investments in technological research should be made to make this sector more sustainable. Lastly, with regard to social sustainability, numerous benefits, like village electrification, employment generation and promotion of small-scale industry have resulted from SHP development. Nevertheless, many social challenges continue to exist. In short, all three pillars of sustainability are being realised to a certain extent. However, to be considered a truly sustainable industry, a considerable amount of hard work needs to be dedicated to addressing the factors mentioned above.