International Journal of Advanced Research in
Management and Social Sciences
ISSN: 2278-6236
EVOLVING CORPORATE SUSTAINABLE DEVELOPMENT – ANDHRA PRADESH
PAPER MILLS LIMITED
Dr Alice Mani*
Abstract: In 1987, the World Commission on Economic Development (WCED) popularized the
term “Sustainable development in its well cited report, Our Common Future .According to
this report sustainable development is defined as “the development that meets the needs of
the present without compromising the ability of future generations to meet their own
needs”. The WCED asserted that sustainable development required simultaneous adoption
of environmental, economic and equity principles. Bansal (2005) has conducted a study of
Canadian firms in the oil and gas, mining and forestry industries from 1986 to 1995. The
study found that both resources based and institutional factors influence corporate
sustainable development. This paper is an attempt to study the corporate sustainable
development of Andhra Pradesh Paper Mills Limited from 1995 to 2011 using the same
model. The study found that independent variable with significant impact on environmental
integrity and economic prosperity was number of countries/states operating in. The
independent variables with significant impact on social equity and overall sustainability were
number of countries/states operating in and number of fines/penalties/court cases.
*Professor, Department of Commerce, Christ University, Hosur Road, Bangalore, Karnataka
India
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1.1 INTRODUCTION
Success is measured not simply by the profit generated, but by the triple bottom line of
economic prosperity, environmental stewardship and corporate social responsibility.
Besides simply making good common sense, adhering to the principles of sustainable
development fulfills compelling business needs as well, including reducing costs and
liabilities, enhancing brand image and reputation, increasing customer loyalty, encouraging
innovation and stimulating growth and strengthening with our communities .The principles
of sustainable development include fulfillment of human needs for peace, clean air , water,
food, shelter, education and useful and satisfying employment. Environmental issues are
important, such as ecological integrity through careful stewardship, reduction of wastes,
and protection of diverse species and ecological systems. Sustainable development focuses
on local people through public involvement in the definition and development of local
solutions to environmental and development problems. Achievement of equity is attained
through the fairest possible sharing of limited resources among contemporaries and
between our generation and that of our descendents.
1.2 ANDHRA PRADESH PAPER MILLS LIMITED
Established as Carnatic Paper Mills Ltd in 1921 the Company was incorporated on 29th June
1964 as "The Andhra Pradesh Paper Mills Ltd." at Rajahmundry. Andhra Pradesh Paper Mills,
which is now an International Paper company, is one of the biggest integrated paper and
pulp manufacturing centers in India. The company produces indispensible writing, printing
and copier papers for foreign and domestic markets. It employs around 2,500 employees
and is headquartered in Hyderabad.
Andhra Pradesh Paper Mills Limited’s production facilities are comprised of two mills in
Rajahmundry and Kadiam with a total production capacity of 240,000 TPA. The company is
becoming a driving force in sustainability in the paper manufacturing arena through focused
social and community programs, including pioneering work in raw material generation
through social farm forestry. International Paper owns a majority interest in Andhra Pradesh
Paper Mills Limited, and the remaining shares are publicly traded on the Bombay and
National Stock Exchanges in India (APPAPER).
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Management and Social Sciences
ISSN: 2278-6236
1.3 SUSTAINABILITY REPORTING
1.3.1 Environmental Integrity
Towards environmental integrity, Andhra Pradesh Paper Mills Limited undertook energy
conservation measures, which included installation of electrostatic precipitators with high
efficiency which had reduced pollution of air and improved generation of specific steam.
There was proper management of co-generation power and efficient usage of steam.
Effluent discharge of the company was also lowered substantially. Thermal energy was
reduced, power consumption was brought down and steam losses were reduced in 1996
through energy conservation measures taken by the company.
Company during the year 1997 took number of pollution abatement measures as a
commitment towards environment protection. Energy conservation measures of 1997
brought in savings in consumption of power.
Internal generation of power through
generator sets was also increased over the years. Rotary kiln with electrostatic precipitator
was commissioned as pollution control equipment in 1997. This helped in controlling air
pollution, disposing of solid waste and resources were conserved over the years. Company
was awarded recognizing its achievement in conservation of energy.
In order to recover heat from waste vapours, company during 2000 installed waste heat
recovery system and resulted in reduction of steam consumption. Waste papers was
procured by the company during the year 2002 for using its pulp in the manufacture of news
print and writing and printing papers. In 2003, four million seedlings were given for
plantation in rural areas towards company’s commitment to environmental plantations.
Odorous gases were collected, transported and incinerated through non-condensable gases
handling system installed by the company in 2003. This was done to maintain clean
environment and this is first of its kind in the paper industry to manage the odor problem.
During 2004, rice husk was used as a substitute to the use of coal. Enzymes used at the
bleaching stage have reduced absorbable organic halogen content in effluents. Company
through number of initiatives has consistently made efforts to ensure a cleaner
environment.
In 2005,company, installed controllers to minimize air emission. Water consumption was
reduced from 10.5 million gallons to 9.5 million gallons during 2005. As part of its
conservation measures, back-water was re-used, treated effluent water was used for
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International Journal of Advanced Research in
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ISSN: 2278-6236
miscellaneous purposes and recycling of water through the cooling tower was done. Waste
heat was recycled thereby reducing the use of coal. Waste sludge from the effluent
treatment plant was recycled and used as auxiliary fuel in the boilers. Lime sludge was
recycled to recover lime for re-use. Fly ash recovered from the power boilers were supplied
to brick manufacturers and for filling quarry pits.
In order to control pollution, CREP (Corporate Responsibility for Environment Protection)
norms were established in 2006. Solid waste like wood dust was used as auxiliary fuel in its
coal fired boilers. Burnt lime was regenerated for re-use in the cooking liquor preparation.
Effluents from company after treatments passed through land treatment system with soil
water air matrix and sent to sand shoals of Godavari. Company installed chemical recovery
plant in 2007 to recover chemicals from the wastes generated. During 2009, mills emission
of sulphur dioxide had reduced and its dependence on bio-mass fuel has increased. In 2010,
waste water treatment and sludge treatment plants were enhanced. Company in 2011,
made efforts to reduce its carbon footprint.
1.3.2 Economic Prosperity
Towards economic integrity, company was thankful to the Central and the State
governments for their support towards the running of business. During 1995, water
consumption of the company was reduced from 11.0 million gallons per day to 11.5 million
gallons per day. This also resulted in reduction of power, cess charges for water, etc.
Company’s Black Water Reclamation Plant helped in reutilisation of 2.5 to 3.0 million gallons
of water per day. Company had in 1997 installed lime reburning system with electrostatic
precipitator which reduced solid waste disposal of lime sludge and also conserved mineral
resources of lime stone. It continued over the years in controlling air pollution and solid
waste disposal, etc. Energy savers were installed resulting in power consumption savings.
During 1998 old and less efficient coal fired boilers were converted to reduce power and
fuel cost by using low grade coal efficiently. Electrostatic precipitators continued in 1999 to
control air pollution. Energy saving equipments and high efficiency pumps in effluent
treatment plant was installed. Company’s own generation of power through diesel
generators and steam turbine sets has been increasing every year. In order to increase the
generation of steam, black liquor heater was installed as part of its energy conservation
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ISSN: 2278-6236
measures and the steam generation continued to increase every year. Company acquired
Coastal Papers Limited in the year 2001 and the proceedings for amalgamation continued.
During the year 2002, 455 kilowatt of power was reduced through the company’s energy
conservation measures. In 2003, pumps with energy efficiency, flash heat recovery system,
etc were installed as part of energy conservation measures. In 2004, company invested in
Andhra Pradesh Gas Power Corporation Limited and company was entitled to source 5
megawatt of power at a reasonable price. 20 megawatt of power is generated by the
company captively. Company during 2005 consumed 23.5 megawatt power of which 17.7
megawatt power was obtained from captive generation.
Installation of modern energy efficient and environment friendly plants during 2007 have
improved the pulp production and fuel consumption and thereby reduced the cost of
production. During 2008, 34 megawatt turbine power plant was installed to supplement
captive power availability. Company involved the farmers in planting more trees and water
consumption was reduced year after year. Company’s generation of power increased and
exported surplus power of five megawatt to Transmission Corporation of Andhra Pradesh
Limited resulting in additional revenue of Rs.15 crore. Sludge de-watering press of 35 BD
MTPD sludge handling capacity was commissioned for disposal of sludge.
During 2010, efficiency of the effluent treatment plant was improved with diffused aeration
system and cooling tower was installed. Company’s efforts on corporate responsibility have
helped in protecting and regenerating the natural resources. Energy and water conservation
measures were undertaken. Company improved its productivity and set environment track
record at its mills.
1.3.3 Social Equity
Company had distributed saplings of plants like casuarina and subabul and also 11 million
seedlings to farmers as part of their farm forestry scheme with 25000 acres under
plantation. Farmers raised plantations on their waste land. This not only brought prosperity
to them but also brought in ecological balance. Towards its social commitment, company
donated to charitable and other community developments purposes. Company’s ecofriendly approach with farm forestry continued over the years.
Company’s planting techniques with less cost was accepted by farmers. The socio economic
commitments of the company towards environmental and upliftment of status of the
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International Journal of Advanced Research in
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ISSN: 2278-6236
farmers continued. Company provided drinking water, organized medical camps, irrigation
projects for farmers, caring for children through various initiatives in the education sector,
sewing machines for under privileged women, etc were done towards commitment to
society. Company helped 856 tribal families to bring about 1000 acres of wasteland in East
Godavari District and 1400 acres of coastal wastelands of Krishna district was developed and
brought under plantations.
1.4 METHODOLOGY
This is a case study of Andhra Pradesh Paper Mills Limited from 1995-2011. Dependent
variable used is corporate sustainable development. The model used the following codes to
describe the principles of sustainable development.
To calculate the score of sustainable development the following calculation was used. Since
all the principles represented necessary conditions for sustainable development, for a firm
to have corporate sustainable development score of greater than zero at least one item in
each of the three principles had to be identified in the company’s annual report. The
following table gives the tabulated data for Andhra Pradesh Paper Mills Limited.
I
Environmental Integrity
1
9
9
5
1.
Mined/manufactured
products that have a less
environmentally harmful
impact than in previous years
or than its competitors
Mined/manufactured
products with less
environmentally damaging
inputs than in previous years
or than its competitors
Chose inputs from sources
that are remediated or
replenished
Reduced environmental
impacts of production
processes or eliminated
environmentally damaging
processes
Eliminated or reduced
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
2.
3.
4.
5.
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1
9
9
6
1
9
9
7
1
9
9
8
1
9
9
9
2
0
0
0
2
0
0
1
2
0
0
2
2
0
0
3
2
0
0
4
2
0
0
5
2
0
0
6
2
0
0
7
2
0
0
8
2
0
0
9
2
0
1
0
2
0
1
1
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
0 0 1 0 0 0 1 1 0 0 0 0 0 1 0 1 0
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operations in environmentally
sensitive locations
6. Attempted to reduce
likelihood of environmental
accidents through process
improvements
7. Reduced waste by
streamlining processes
8. Used waste as inputs for own
processes
9. Disposed waste responsibly
Handled or stored toxic waste
10 responsibly
Total
II
Economic prosperity
1.
Worked with government
officials to protect the
company's interests
Reduced costs of inputs for
same level of outputs
Reduced costs for waste
management for same level
of outputs
Differentiated the process or
product based on the
marketing efforts of the
process/product's
environmental performance
Sold waste product for
revenue
Created spin-off technologies
that could be profitably
applied to other areas of the
business
Total
2.
3.
4.
5.
6.
III
Social equity
1.
Considered interests of
stakeholders in investment
decisions by creating a formal
dialogue
Communicated the firm's
environmental impacts and
risks to the general public
2.
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0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
8 8 9 8 8 8 9 9 8 8 8 8 8 9 8 9 8
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
0 1 1 1 1 1 0 1 1 1 1 0 1 1 1 1 1
1 1 1 1 1 1 1 1 1 1 1 0 1 1 1 1 1
0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
4 6 6 6 6 6 5 6 6 6 6 4 6 6 6 6 6
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
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3.
4.
5.
6.
Improved employee or
community health and safety
Protected claims and rights of
aboriginal peoples or local
community
Showed concern for the visual
aspects of the firm's facilities
and operations
Recognized and acted on the
need to fund local community
initiatives.
Total
ISSN: 2278-6236
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
1 1 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1
0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
4 5 5 5 5 5 5 4 5 5 5 5 5 5 5 5 5
Tabulated data of Andhra Pradesh Paper Mills Limited
Number of countries
in
which
1 the firm operates
Number of States in
which the firm
2 operates
1995
1996
1997
1998
1999
0
0
0
0
0
2000
0
2001
0
2002
0
2003
0
2004
0
2005
2006
2007
2008
2009
0
0
0
0
0
2010
0
2011
0
1995
1996
1997
1998
1999
1
A.Pradesh
2000
1
A.Pradesh
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1
A.Pradesh
1
A.Pradesh
2001
1
A.Pradesh
2002
1
A.Pradesh
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1
A.Pradesh
2003
1
A.Pradesh
1
A.Pradesh
2004
1
A.Pradesh
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2005
1
A.Pradesh
2010
1
A.Pradesh
The percentage of
3 foreign
sales to total sales
Foreign Sales
Total Sales
Percentage
4 Capital Intensity
Value of Plant &
Equipment
Depreciation
Plant & EquipmentDepreciation
2006
1
A.Pradesh
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2007
1
A.Pradesh
2008
1
A.Pradesh
2009
1
A.Pradesh
2011
1
A.Pradesh
1995
1996
1997
91,541.92
2,48,044.11
3.6905
50,356.20
2,32,119.01
2.1694
1,06,360.50
2,40,075.47
4.4302
97,840.59
1,327.01
2,01,406.22 25,770.29
4.8578
5.1493
2000
1,735.61
27,078.20
6.4096
2001
1,792.66
28,555.07
6.2779
2002
1,710.40
42,375.50
4.0362
2003
2004
2,516.08
2,185.77
40,860.40 44,943.88
6.1577
4.8633
2005
4,295.22
49,487.92
8.6793
2006
3,203.03
49,756.16
6.4374
2007
2,951.95
53,303.00
5.538
2008
2009
4,074.15
5,405.08
62,824.41 65,733.39
6.4849
8.2227
2010
4,417.98
66,934.10
6.6004
2011
4,474.79
79,593.83
5.622
1995
1996
1997
1998
1998
1999
1999
13,99,163.71 15,28,028.34 15,57,011.46 9,97,757.40 17,110.87
53,37,001.29 58,86,449.85 65,30,956.70 49,47,858.68 7,117.13
86,54,635.83 93,93,833.64 90,39,157.76 50,29,715.38
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9,993.74
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Sales
Percentage
2,48,044.11
34.8915
2,32,119.01
40.4699
2,40,075.47
37.6513
2000
2001
2002
2003
2004
18,327.64
7,831.85
10,495.79
27,020.73
42.623
22,433.71
8,637.07
13,796.64
28,555.07
55.07
33,545.67
12,386.65
21,159.02
42,375.50
59.463
35,318.07
13,969.89
21,348.18
40,860.40
57.793
36,837.57
15,209.88
21,627.69
44,943.88
52.697
2005
2006
2007
2008
2009
36,513.64
53,765.90
86,873.77
93,238.41 99,561.56
15,942.77
20,570.87
49,487.92
39.948
17,605.43
36,160.47
49,756.16
25.649
20,852.42
66,021.35
53,303.00
39.527
24,693.31 29,289.32
68,545.10 70,272.24
62,824.41 65,733.39
49.228
106.90
2010
2011
97,179.50
33,611.40
63,568.10
66,934.10
94.97
1,16,667.53
39,111.67
77,555.86
79,593.83
97.44
1995
1996
1999
1,17,00,693.87 1,00,15,882.25 1,05,00,356.24 81,55,836.89
63,14,60,183 65,26,98,543 63,02,80,069 55,96,961.29
1.8529
1.5345
1.6659
1.4572
9,681.84
6,360.38
1.5222
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1997
2,01,406.22 25,770.29
24.9729
42.623
1998
5 Current Ratio
Current Assets
Current Liabilities
Current Ratio
ISSN: 2278-6236
2000
2001
2002
9,960.50
7,020.55
1.4187
11,103.21
6,802.64
1.6321
14,086.91
8,843.27
1.5929
2005
2006
2007
15,300.09
8,771.21
15,602.95
14,487.13
18,165.08
12,562.96
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2003
2004
13,865.78 15,233.97
7,983.24
8,111.85
1.7368
1.8779
2008
2009
22,010.34 23,901.35
13,344.57 15,975.02
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Number of times
6 fines/penalities/
court cases charged
Total
Environmental
1.7443
1.077
2010
2011
24,835.41
12,840.53
1.9341
28,986.28
14,455.60
2.0052
1995
1996
1
0
1
0
2000
1
0
1
0
0
1995
1
0
2003
1
0
2007
2004
1
0
2008
1
0
1997
0
2001
0
2005
2009
1
0
0
0
0
1998
2002
2006
2010
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0
0
2002
1996
2000
8 Media Attention
1999
1
0
0
0
1998
2011
1
0
1997
2006
2010
0
1.4961
1
0
1
0
0
1.6494
2001
2005
Mimicry (whether
7 environmental
audit is
done/introduced)
1.4459
1
0
1
0
1
0
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0
2003
0
2007
0
1999
2004
0
2008
0
2009
0
2011
0
1995
1996
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1997
1998
1999
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Total
Environmental
0
0
0
0
2000
0
0
2001
2005
0
0
0
0
1
0
0
0
2002
2006
2010
Size of the firm-Log
9 value
of total assets
Value of Total Assets
Log Value
0
0
0
0
0
0
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0
0
2003
0
0
2007
1
0
2004
0
0
2008
1
0
2009
1
0
2011
1
0
1995
1996
1997
1998
1999
71,00,354.01 1,02,33,633.81 1,11,92,18,010 1,11,12,904.42 11,553.84
Financial
10 performance
ROI= Net profit ÷
Total equity
Net Profit
Total Equity
ROI
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2000
2001
2002
12,355.65
15,814.79
26,356.35
2005
2006
2007
31,040.76
68,368.33
83,922.27
2010
2011
90,395.01
89,505.68
1995
1996
1997
31,979.63
86,020.25
0.3717
10,936.50
93,442.35
0.117
8,398.44
99,413.93
0.0844
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2003
2004
25,955.45 26,203.42
2008
2009
86,390.19 90,333.10
1998
1999
1,819.34
1,231.69
67,909.52 10,887.65
0.2679
0.1131
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A)
ISSN: 2278-6236
2000
2001
2002
1,745.36
12,722.56
0.1371
3043.51
15,154.18
0.02008
1,658.46
16,333.63
0.1015
2005
2006
2007
3,391.96
20,837.20
0.1627
4,220.14
34,013.52
0.1241
2,290.30
36,125.63
0.0633
2010
2011
6,505.53
47,019.35
0.1383
5,708.60
53,855.73
0.1059
2003
2004
2,235.55
2,662.76
17,585.39 19,107.09
0.1271
0.1393
2008
2009
1,966.37
2,188.73
39,069.58 39,224.40
0.0503
0.0558
The use of annual report data to assess the presence of an issue has been criticized
on two grounds: annual reports reflect impression management rather than accurate
disclosure( Mc Guire,Sundgren and Scheneeweis, 1998, Salancik and Meindl 1984, Wiseman
1982) and there may be inconsistencies in the disclosure ( Ingram and Frazier 1980)
B)
In spite of these two weaknesses annual reports provided the most reliable data
source for this study for several reasons. First assessments of social responsibility from
annual reports have been shown to be consistent with the evaluations by third party
agencies (Guthrie and Parker 1989, Meek, Roberts and Gray 1995, Niskala and Pretes 1995).
Secondly annual reports are unobtrusive, so that firms cannot engage in research specific
posturing as they can be with interviews or surveys. Finally annual reports provide an
opportunity to collect historical, time sensitive data that are only otherwise available
through employee recall, which is considered unreliable when evaluating the timing of an
adoption decision ( dobbin et al,1988, Van de Ven and Huber 1990)
C)
Independent Variables

International experience- Two measures were used for international experience for
each panel, the number of countries in which the firm operates and percentage of
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ISSN: 2278-6236
foreign sales to relative total sales. As per the central government guidelines all
firms need to report foreign sales in their annual reports

Capital management capabilities—capital intensity was used to proxy capital
measurement capabilities. Capital intensity was measured by the value of property,
plant and equipment after depreciation divided by sales

Organizational slack--- the measure of organizational slack is used to recognize extra
liquidity that could be invested in sustainable development activities. Current assets
over current liabilities was used in the analysis for each panel which has also been
used by Schuler (1996)

Fines and Penalties--- this variable included the number of times the firm incurred a
fine or penalty for violation under any of the foreign or India government
regulations violation

Mimicry--- the score one was given if the firm conducted environmental auditing.

Media attention--- Media attention included the number of articles appeared in the
media about the company with a negative aspect of their environmental practices
which was labeled as negative media.
D)
Control Variables

Firm Size -- Larger firms tend to be more visible and attract more media and stake
holder scrutiny which influences both their legitimacy and their reputation
(Fombrun 1996, Such man 1995). Given that both resources based and institutional
processes work through firm size, it was treated as a control variable. The natural log
of total assets was used for company size. Transforming total assets to the log of
total assets was used to achieve a simple linear structure, constant variance and
normal distribution.

Financial Performance--- Prior researchers have argued that environmental
management and corporate social responsibility are related to financial
performance. (Klassen and Mc Laughlin 1996, Mc Guire et al, 1988). As a result
return on equity was used as a proxy of financial performance.
1.5
ANALYSIS RESULTS OF ANDHRA PRADESH PAPER MILLS LIMITED
Linear Regression through the Origin:
Dependent variable: Environmental Integrity
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Independent variables: number of countries/states operating in, foreign sales as
percentage of total sales, capital intensity, current ratio, more than one fine/penalty/court
case, environmental audit, and media attention- environmental.
Model Summary
R
0.999
R Square
0.998
Adjusted R Square
0.996
Std. Error of the
Estimate
0.531
Anova
Regression
Residual
Total
Sum of
Squares
1170.460
2.540
1173.000
df
8
9
17
Mean
Square
146.307
0.282
F-stat
518.386
Sig.
0.000
Coefficients
Unstandardized
Std.
B
Error
number of countries/states in which the
firm operates
The percentage of foreign sales to total
sales
Capital Intensity
Current Ratio
Number of times fines/penalties/court
cases
Media Attention (environmental)
log(total assets)
ROI
Standardized
Beta
t-stat
Sig.
9.461
2.422
1.139
3.906
0.004
-0.123
0.117
-0.086
-1.049
0.321
-0.007
0.156
0.019
0.896
-0.058
0.031
-0.358
0.174
0.729
0.866
0.025
0.771
0.003
0.033
0.975
0.522
-0.011
-2.605
1.278
0.049
2.212
0.034
-0.018
-0.048
0.409
-0.222
-1.178
0.692
0.830
0.269
Interpretation: The model was significant, explaining 99.9% of the variation in
environmental integrity. The only independent variable with significant impact on
environmental integrity was number of countries/states operating in. Other independent
variables did not have a significant impact on environmental integrity.
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Linear Regression through the Origin:
Dependent variable: Economic Prosperity
Independent variables: number of countries/states operating in, foreign sales as
percentage of total sales, capital intensity, current ratio, more than one fine/penalty/court
case, environmental audit, and media attention- environmental.
Model Summary
R
R Square
0.998
0.996
Adjusted R
Square
0.993
Std. Error of the Estimate
0.474
Anova
Regression
Residual
Total
Sum of Squares
558.982
2.018
561.000
df
8
9
17
Mean Square
F-stat
69.873 311.547
0.224
Sig.
0.000
Coefficients
Unstandardized
Std.
B
Error
number of countries/states in which the
firm operates
The percentage of foreign sales to total
sales
Capital Intensity
Current Ratio
Number of times fines/penalties/court
cases
Media Attention (environmental)
log(total assets)
ROI
Standardize
d
Beta
t-stat
4.957
2.159
0.863
2.296
0.047
-0.080
0.105
-0.081
-0.767
0.463
-0.029
0.402
0.017
0.799
-0.352
0.115
-1.689
0.503
0.125
0.627
2.151
0.687
0.363
3.129
0.012
2.058
-0.020
-0.099
1.139
0.043
1.972
0.194
-0.047
-0.003
1.807
-0.451
-0.050
0.104
0.663
0.961
Interpretation: The model was significant, explaining 99.6% of the variation in economic
prosperity. The only independent variables with significant impact on economic prosperity
were number of countries/states operating in and number of fines/penalties/court cases.
Other independent variables did not have a significant impact on economic prosperity.
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ISSN: 2278-6236
Linear Regression through the Origin:
Dependent variable: Social Equity
Independent variables: number of countries/states operating in, foreign sales as
percentage of total sales, capital intensity, current ratio, more than one fine/penalty/court
case, environmental audit, and media attention- environmental.
Model Summary
Std. Error of the
Estimate
0.280
R
R Square Adjusted R Square
0.999
0.998
0.997
Anova
Sum of Squares
Regression
Residual
Total
Mean
Square
df
406.293
8
0.707
407.000
9
17
F-stat
646.80
50.787
8
0.079
Sig.
0.000
Coefficients
Unstandardized
Std.
B
Error
number of countries/states in which the
firm operates
The percentage of foreign sales to total
sales
Capital Intensity
Current Ratio
Number of times fines/penalties/court
cases
Media Attention (environmental)
log(total assets)
ROI
Standardize
d
Beta
t-stat
2.931
1.278
0.599
2.294
0.047
0.089
0.062
0.106
1.433
0.186
0.000
0.004
0.010
0.473
-0.006
0.001
-0.044
0.009
0.966
0.993
1.114
0.407
0.221
2.739
0.023
0.065
0.031
0.058
0.674
0.026
1.167
0.007
0.086
0.002
0.096
1.198
0.050
0.926
0.262
0.961
Interpretation: The model was significant, explaining 99.8% of the variation in social equity.
The only independent variables with significant impact on social equity were number of
countries/states operating in and number of fines/penalties/court cases. Other independent
variables did not have a significant impact on social equity.
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Linear Regression through the Origin:
Dependent variable: (overall) sustainable development
Independent variables: number of countries/states operating in, foreign sales as
percentage of total sales, capital intensity, current ratio, more than one fine/penalty/court
case, environmental audit, and media attention- environmental.
Model Summary
R
1.000
R Square Adjusted R Square
1.000
0.999
Std. Error of the Estimate
0.521
Anova
Sum of
Squares
Regression
Residual
Total
df
6074.559
2.441
6077.000
Mean Square
8
759.320
F-stat
2799.68
7
Sig.
0.000
9
0.271
17
Coefficients
Unstandardized
Std.
B
Error
number of countries/states in which the
firm operates
The percentage of foreign sales to total
sales
Capital Intensity
Current Ratio
Number of times fines/penalties/court
cases
Media Attention (environmental)
log(total assets)
ROI
Standardize
d
Beta
t-stat
17.350
2.374
0.918
7.307
0.000
-0.115
0.115
-0.035
-0.997
0.345
-0.036
0.562
0.019
0.878
-0.134
0.049
-1.925
0.640
0.086
0.538
3.290
0.756
0.169
4.352
0.002
2.645
0.000
-2.646
1.253
0.048
2.169
0.076
0.000
-0.021
2.111
0.008
-1.220
0.064
0.994
0.253
Interpretation: The model was significant, explaining 100% of the variation in overall
sustainable development. The only independent variables with significant impact on overall
sustainable development were number of countries/states operating in and number of
fines/penalties/court cases. Other independent variables did not have a significant impact
on overall sustainable development.
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1.6 CONCLUSION
Andhra Pradesh Paper Mills Limited had taken measures to reduce the use of natural
resources. Waste papers was procured by the company for using its pulp in the manufacture
of news print and writing and printing papers. Solid waste like wood dust was used as
auxiliary fuel in its coal fired boilers. Burnt lime was regenerated for re-use in the cooking
liquor preparation. Effluents from company after treatments passed through land treatment
system with soil water air matrix and sent to sand shoals of Godavari.
Company installed chemical recovery plant to recover chemicals from the wastes generated.
Emission of sulphur dioxide had reduced and its dependence on bio-mass fuel had
increased. Waste water treatment and sludge treatment plants were enhanced. Company
made efforts to reduce its carbon footprint.
Flash heat recovery system was installed as part of its energy conservation measures.
Installation of modern energy efficient and environment friendly plants had improved the
pulp production and fuel consumption and thereby reduced the cost of production.
Company installed turbine power plant to supplement captive power availability. Company
involved the farmers in planting more trees and water consumption was reduced year after
year.
Company’s efforts on corporate responsibility helped in protecting and regenerating the
natural resources. Towards its social commitment, company donated to charitable and
other community developments purposes. Company’s eco-friendly approach with farm
forestry continued over the years.
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