Background Of Yeo Hiap Seng Management Essay

Background Of Yeo Hiap Seng Management try onMr. Yeo Keng Lian is the founder of YEO HIAP SENG. In the twelvemonth 1990, Yeos history has started in Amoy, China with a small soya sauce ingredienty was set up in that ploughshargonicular year. In the year 1957, the first YEO HIAP SENG office in Malaysia was established. Now, YEO HIAP SENG (MALAYSIA) BERHAD has fashion a public listed troupe on Bursa Malaysia. It operates in the consumer products sector which engages in the production, marketing and sale of fodder and beverage products. (BURSA MALAYSIA, 2011).Mr. Tjong Yik Min, who is a Singaporean and was nominate as the Chief executive director Officer on 1 June 2010. (YEO HIAP SENG (MALAYSIA) BERHAD, 2011) The confederacy offers its forage and beverage products included the Yeos, Cintan, Justea, SoyRich, Isotonic H-Two-O, and Yogurt brand names. They drop the freshest ingredients for their products to master(prenominal)tain the fictitious char recreateer of their products in order to achieve their vision which is to be the No.1 Asian food and beverage actroupe in Malaysia. YEOs has achieved their vision in soya milk, tea drink and batch meat category and in a flash they ar trying to achieve their vision in lowlife food and instant noodles category as well. (YEO HIAP SENG (MALAYSIA) BERHAD, 2011).There argon several important competitors of this smart set such as Nestl S.A., Coca-Cola Co., Fraser Neave Holdings Bhd (FN) and some opposites. The around important factor that collars to succeed of this company is their 5Cs guiding principles that argon non applied by other companies. These 5Cs ar consumer focus, category leaders, channel precaution, cost cover and confidence. (YEO HIAP SENG (MALAYSIA) BHD, 2004) merged SOCIAL RESPONSIBILITY ACTIVITYMarketplace corporal governance rumor on Corporate regimeThe scorecard of Directors has fully committed to the principles of corporeal governance and best practices as embodied in the Mala ysian mark on Corporate Governance (the Code). The batting order has taken every spirit to contain the highest standards of corporate governance are secure finished and through let on the separate in order to protect and kindle shareholders value and the monetary effect of the Group.Composition of Board BalanceThe posting of the company consists of nine members, including cardinal Executive Directors and seven Non- Executive Directors. There is one- ternary of the Independent Non Executive officer in the display climb on membership. Further more, the chairman is separate a plowshare from the antique executive director. The chairman is responsible for leadership of the board and monitoring the effectualness of the company. However, the chief executive director is control over the groups phone line such as implementation of major strategies where adopted by the member of the board. elderly Management RemunerationThe de edgeination of the wage of the Non-Executive D irectors is a matter for the Board as a whole. However, Directors are non allowed to participate in decisiveness making where regarding to their own remuneration. Shareholders engender approved the remuneration of the directors on the AGM. to a fault, the digestvas Committee and Independent Non-Executive Directors are paid attendances allowances to be as a board committee.Internal controlThe Board has recognized the importance of a sound system of intrinsic control and ac associationd its ultimate responsibilities in maintaining the same, which includes the establishment of an appropriate control surround and risk management manakin, as well as freshening, monitoring and ensuring its adequacy and integrity.CSR Management/ wrap upingCorporate righteousness statementYeos has integrated its corporate state into a sustainable transaction model that goes beyond shareholders affairs, for the givement of society, as a socially responsible company. It has reflected their com mitments to customers, employees, investors, suppliers and the community.Third Party Report Audit and ReviewThe board of Yeo Hiap Seng (Malaysia) Berhad is included inspect committee as their member. Audit committee is to come off the issues of bank noneing policies and presentation for inter issue monetary reporting. Mean plot of land, size up committee has monitors the counterfeitings of the versed examine act upon and guarantees an objective lens and maintained the relationship with external attendees.Reporting guidelineThe Directors of Yeo Hiap Seng (Malaysia) Berhad are responsible to hold in the integrity of the financial statement and the effectiveness of the financial controls, risk management systems and internal control. different than that, the directors are too responsible to ensure that all financial statements are accordance with Companies Act, 1965 and Malaysian Accounting Standards (MASB).Stakeholder EngagementYeo Hiap Seng (Malaysia) Berhad engage in perpetual dialogue with their stakeholders through Annual General Meeting (AGM) and other meetings. Their AGM are in the primary platform for two direct way interactions with stakeholders and board of the company. They are constantly updating the companys accomplishance to the stakeholders such as every quarter financial announcement. procurement policiesMaintain the Highest Halal Standard ComplianceDuring the year 2011, Yeo Hiap Seng (Malaysia) Berhad has commitment with the highest Halal Standard Compliance. This honor had proven that the company had contributed a lot of works on their ingredients, employees and systems in order to maintain the most rigorous of halal standards in Malaysia. Moreover, the company adheres to strict hygiene standards and pie-eyed quality control in order to ensure the high quality of all its products to their consumers.ENVIRONMENTEnvironmental constitutionReusable Resources.Yeos has committed and hot ab knocked stunned(p) purlieual conservat ion. Yeos has become the first food and beverage to go in their Asian Drinks products in Tetra Pak packaging which is environmental friendly and recyclable.Set tar ticktocks for improvements and portentous initiatives to abridgeMoving Toward Paper-lessYeos has introduced several programmes to upgrade IT infrastructure which aim to back up paperless environment through electronic communications and e-filing system. Beside, Distributor Management form (DMS) has been introduced and implemented by Yeos to enhance the drive of paperless environment.WORKPLACE health base hit (HS) issuesCommitted to Hazard Free ZoneYeos has dedicated to afford a safe, healthy secure and contributive workplace for all the visitors, employees and business stakeholders. The auspicate to the effective implementation of Occupational Safety and Health indemnity has achieved a hazard-free work zone. Yeos has organized different communications activities and die hards to confirm the employees ken of s afeguard precautions. gentlemans gentleman capital ontogenyContinue to Build Human gravidYeos has leave to provide a supportive working culture for the companys employees through bringing up and development programmes. During the year 2011, the employees arouse participated in external chase aftering programmes and various in-house from technical-related skill to soft management skills. Yeos expected to bring up the future work force of their industry hence, Yeos continues to welcome the interns of short-term attachment to fat their degree requirements.Employee public helpEmployee benefitYeos aim to enrich the actualizeance of staff throughout staff recognition schemes, offering equal opportunities, training and development and creating sound employees relations. Every year, in ac hit the hayledgment of the loyal, devoted and committed employees, Yeos has blithe and rewarded the long service employees at its Annual Dinner and leaping.COMMUNITY expound on the companys com munity investment initiativesYeos Program Susu Soya Sekolah 2Yeos initiated a corporate responsibility campaign, Yeos Program Susu Soya Sekolah in year 2010 and accredited positive feedbacks from public. Thus, Yeos continued this initiative with Yeos Program Susu Soya Sekolah 2. This campaign cover a nonher 100 indoctrinates and r distributivelyed out to another 50,000 students with an aim to instill the importance of a balanced diet and in educating the students on preserving the environment through recycling.Yeos Scholarship ProgrammeStudents from 51 primary develops in the Klang Valley and Putrajaya took part in the Yeos Program Tajaan Biasiswa Sekolah backed by the spirit of enthusiasm and perseverance.Yeos logo from empty beverage packs was collected by students to struggle for the knowledge. Yeos achieved their primary objective in setting a platform for students to exercise creativity and caper solving skills through this programme. It also promotes the spirit of esprit de corps amongst students and teachers to work towards achieving the school category scholarship for school development descent.1Malaysia Creative Sculpture recycle CompetitionYeos support the 1Malaysia philosophy by embarked on its green and unique 1Malaysia recycled sculpture competition among all participating schools of Yeos Program Susu Soya Sekolah victimization Yeos recyclable materials. It is to advertise the youngs creativity and nurture recycling mindset. Yeos awarded the winning schools each with school development fund to support the development and extra-educational activities at school level in order to recognize their effort in this competition.My naked Village pleasure groundYeos joined Nanyang Siang Pau in My New Village circus for three consecutive years to reach out to smaller communities and villages. Yeos contributed part of its sales generated from the carnival to the schools in those villages to support their infrastructural and facilities construction fund. Besides that, Yeos also embarked on Embellish Your Village with Yeos in which the participating villages has collected, cleaned, and recycled Yeos recyclable materials to hit the roof a selected spot in the participating villages. Furthermore, Yeos has also shared knowledge of seminal recycling through fun and interactive games.Dynamic Dance CompetitionYeos in collaboration with China Press, organized a subject dynamic dance competition in line with Lead a Joyful Life campaign. The main objective is to encourage the communities to live and lead a healthier and joyful lifestyle.Support of arena Vision Malaysia causal agencyIn order to raise fund for World Vision Malaysias movement, Yeos has back up 30-Hour Famine program through the sponsorship of soy milk to individual camps. It is to cooperate those who are suffering from poverty and hunger, giving them the opportunity for improved health, better quality life, and hope.Factory Educational VisitsYeos continues its initi ative to welcome the local and foreign colleges and universities to enhance students knowledge nigh the food and beverage manufacturing exploites.AUDIT operationMARKETPLACECorporate GovernanceStatement on Corporate GovernanceThe visit operation that forgeting be adopted is observation. For corporate governance, the variety has fully committed to the principles of corporate governance and best practices. We should observe what tonus has been through with(p) by Yeo Hiap Seng ( Malaysia ) Berhad to ensure the highest standards of corporate governance are practiced to protect and enhance the shareholders value and the financial performance of the group.Composition of Board Balance survey article of records and documents is required in the composition of board balance. The documents or records that we needs to observe including the legal form given by the company and annual general meetings and circular resolution. Those legal form or meetings are highly reliable since they a re collected from government.Furthermore, halt letter commove to one-third party from auditor to go for reliable severalize to ensure the existence of the board that are independent. However, receive positive response from third party represents it is reliable curtilage.Senior Management RemunerationThe reappraisal of records or documents is choose in audit offices. Before control the transactions, we need to dig into the dependability of the documentary evidence through vouching and tracing. Vouching is selecting an item from ledger or journal and then examines the underlying document, to ensure the occurrence of the transaction while tracing is another way round, for checking the completeness of the whole transaction. After confirmed the dependableness of documentary evidence, just we leave able to verify the transactions.Furthermore, calculation of remuneration is needed in this circumstance. Computation consists of checking the mathematical accuracy of documents or records. notwithstanding of checking any errors exist, it is normally considered as a highly reliable evidence when auditor creates this type of evidence, it include checking the posting from journals to ledgers, basic computation, recalculation of the transactions, reconciling ledgers to account balances.Internal controlControl environment and risk management framework were established to maintain the internal control. Inquiry realize to carry out with the board to gain an understanding of the importance of a sound internal control system and its techniques.Besides that, stop from the internal auditor of the company should be obtain to verify whether the company internal control function accordingly.CSR Management/ ReportingCorporate responsibility statementThe audit process that pass on be used is confirmation of the arrangement to obtain corporate responsibility in marketplace stadium. Yeos has integrated into a sustainable business model. Thus, we should confirm if it e xceeds the shareholders interests and reflects their commitments to customers, employees, investors, suppliers and community.Third Party Report Audit and ReviewInspection of records and documentation is required for the audit committee. Therefore, we should retrospect the evidence whether the audit committee is existed.While at the same time, we should inspect the relationship between the company and the board. Inspection is necessary in order to judge the independence of the board of audit committee. We need to check whether audit committee is having financial interest with the company.Moreover, inspect the relevance internal document is required in the audit social functions such as annual return, circular resolution and other form. In this circumstance, inquiries are needed in order to observe the employees are awareness towards the policy and regulation.Reporting GuidelineWe should review the policy and observes the evidence that the policy has been really followed such as Com pany Act, 1965, Malaysian Accounting Standards (MASB) and financial reporting standard.Moreover, inspect the relevance internal document is required in the audit procedures such as annual return, circular resolution and other form. In this circumstance, inquiries are needed in order to observe the employees are awareness towards the policy and regulation.Stakeholder EngagementObservation needed to perform on this circumstance. It consists of looking at a fulfill or procedure beingness performed by others, for an shell, the auditor might need to attend the organizing committee meeting, review the minutes of meeting or even attend the activity to perform the observation. However, it might face difficulty that flock might act other than once the auditor is not around and the evidence is very limited.Procurement PoliciesFirst of all, Inspection of relevance records and documents about Yeo Hiap Seng (Malaysia) Berhad is needed. The main reason of direction is to ensure the company i s provided a safety and halal food as they apply in the field operation. some other than that, confirmation letter merchant ship be send to third party, the distributor of the honor to obtained evidence and ensure the reliability and credibility of this honor received by Yeo Hiap Seng (Malaysia) Berhad.Besides that, auditor on-site visit is needed in this commitment. The main purpose is to have more understanding the workplace environment to ensure that the food provided in clean, halal and safety, although it allowed auditor to obtained evidence but relatively low reliability and it do not leave an audit trail because they might act differently when they were being observed.ENVIRONMENTEnvironmental policyReusable ResourcesThe audit procedure that testament be taken was call for the management to get more understanding on the concept of Tetra Pak packaging uses in food and beverages products and the detail information of processing and packaging.Beside, physical observation on the process of packaging should be carry out to ensure quality control on the packaging done time to time and entire process was follow the company policies and procedure.Moreover, As an auditor, we should obtain Quality Control Report from the management and review report from independent consultant as an evidence whether the Tetra Pak packaging implement by Yeos is environmental friendly and recyclable.Lastly, any attestation from relevant authority should be obtain from management.Set targets for improvements and signifi posteriort initiatives to narrowMoving Toward Paper-lessYeos has introduced several programmes to upgrade IT infrastructure which aimed to encourage paperless environment. Auditors should inquire the management on whether the Distributor Management System (DMS) is implemented and function efficaciously by Yeos.Observation carry out to determine whether the system helps to enhance the effort and work effectively such as improving the reliability and quality of service in terms of reducing outages, minimizing outage time and lessen the uses of paper.Besides, confirmation from independent IT consultant on the effectiveness of system should be obtain as an evidence.Services Report of DMS should require from the management to verify whether update and improvement on system have been carry out timely to ensure the system function effectively and efficiently.WORKPLACEHealth Safety (HS) issuesCommitted to Hazard Free ZoneThe audit procedure taken is review the term of policy. The Occupational Safety and Health Policy were implemented to accomplish a hazard-free work zone. In consequence, we should review the term of Occupational Safety and Health Policy to sacrifice sure the visitors, employees and business stakeholders be familiar with the policy clearly and cover attention to safety and health.Besides, report for the activities and campaign that held by Yeos and the feedback of the employees should be obtain to perform checking whether the activities and campaign have enhance employees, customers, and other stakeholders awareness of safety n health.Moreover, confirmation should be obtain from related authority if there is any corroboration that awarded by the society.Human capital developmentContinue to Build Human CapitalThe audit procedure that will be carried out is inquiry. Yeos has entrust to provide a caring working culture for the companys employees over and done with training and development programmes. We have a duty to inquire the employees on whether there is any programme or activities being performed by Yeos.Other than that, we have to inquire and confirm that what skills will be used, learned and will boot the future workforce through the programmes.Moreover, confirmation should be obtain from external specialize or processor who in-charge for the programmes to ensure the reliability of the information.Lastly, we should review the programs report of each function to ensure that every employee have invo lved.Employee welfareEmployee benefitThe audit procedure that we applied is review of the record of employees. We should review every employees detail and observe whether period of service have been put down clearly.Inspection and scanning on the employee welfare policies should be carry out to examine whether management have perform accordingly.COMMUNITYDetails on the companys community investment initiativesYeos Program Susu Soya Sekolah 2The audit procedure need to be done is obtaining confirmation from third parties. We have obtained a confirmation from Yeos Program Susu Soya Sekolah which received positive feedbacks from the public.We also inquire the management and students of some of the schools that involves about their involvement in this campaign. We can make sure that the existence of Yeos Program Susu Soya Sekolah 2.Yeos Scholarship ProgrammeThe audit procedure that we carried out is inspection on the documents that related to Yeos Program Tajaan Biasiswa Sekolah and s tudy the activities that have been done by Yeos to achieve their objective.We also performing the computation on the amounts that being given as scholarships to ensure that the amounts are not used for other purpose.1Malaysia Creative Sculpture Recycling CompetitionThe audit procedure to be done is obtaining confirmation from the winning schools whether they receive the fund from Yeos.Next, analyzing property flow and profit of Yeos. We checked whether the fund is a cash outflow for Yeos and being minus out from its profit.My New Village pleasure groundThe audit procedure carried out is inquiry Yeos whether has participated in My New Carnival with Nanyang Siang Pau.Besides that, we need to get confirmation from Nanyang Siang Pau about the existence of the carnival and involvement of Yeos.We should confirm the sales generated from the carnival have been contributed to support the schools infrastructural and facilities building fund.Dynamic Dance CompetitionThe audit procedure done is inspection on the documents which related to the campaign and checked the activities done by Yeos to encourage communities to live and lead a healthier and joyful lifestyle.Support of World Vision Malaysia MovementThe audit procedure carried out is obtaining confirmation from third parties about sponsorship of soy milk in 30-Hour Famine Programme. We have obtained the confirmation letter from the individual camps about the sponsorship to them.Factory Educational VisitsThe audit procedure need to be done is obtaining confirmation from colleges or universities about their visiting.Besides that, we should observe the method done by Yeos to enhance students knowledge about the manufacturing process of food and beverage.WEAKNESS AND RECOMMENDATIONMARKETPLACEAs we know that, Yeo Hiap Seng (Malaysia) Berhad is focus more on the details of the Companys internal control and they did not much detail on the CSR event of the market place. Yeo Hiap Seng (Malaysia) Berhad have to pay more atte ntion on the CSR event of market place. The company is have a vertical internal control, yet does not focus more on the event of CSR such as empowerment of women and blood bounty campaign.Moreover, product responsibility should disclose in the annual report. Product responsibility is needed for this company since Yeo Hiap Seng (Malaysia) Berhad is a food and beverage industry. Product responsibility is a status for the company that it has provided a safety product and services. passProduct responsibility is required in the Yeo Hiap Seng (Malaysia) Berhad. Product responsibility can addresses the effect of product and services management on the customers such as health and safety, information and labeling, marketing and privacy. The company should exercise due trade in the design of their products and services in order to ensure they are fit for the intended use.Some other specific policies and regulations are needed in order for Yeo Hiap Seng (Malaysia) Berhad to function efficie ntly. However, the policies and regulations are to be set in place to govern the process of acquiring and keeping goods. As their main products are food and beverage, it is of the importance that the quality is maintained. Yeo Hiap Seng (Malaysia) Berhad should set their reorder levels as such their inventories level is low and adequate without jeopardizing their daily operation.ENVIRONMENTYeos does not have barroomment systemsThe company does not implement the measurement systems in place to measure emissions of carbon dioxide and other greenhouse gases, energy consumption, water supply consumption and waste production and management which will harm the environment. The example for the measurement systems is Continuous Emissions supervise Systems.RecommendationYeos should implement Continuous Emissions Monitoring System, a tools to monitor and calculate the carbon footprint of stores and improve performances. Besides, internal control policies should be set up for the environmen tal concern to measure and reduce the direct and indirect emissions deriving from their operations in stores. Yeos can enhance the effort by implement the environmental and energy management systems, creating knowledge- found schemes within the company.Yeos does not conduct environmental impact assessmentIn Section 34A, Environmental Quality Act, 1974, it requires the projects that have significant impact to the environment have to carry out the Environmental impact assessment and remit the report to the Director of Environmental Quality for examination.RecommendationEIA is an assessment of the realistic positive and negative impact that a proposed project may have on the environment, social and economic. Therefore, the environmental impact assessment should be conducted by Yeos for preventing environmental businesss due to their business operation. Projects which bring the detrimental effects to environment will be discarded. The elements that will be assessed by EIA project are water quality, noise, air quality, wealth and other social impacts. Lastly, when EIA integrated with the live planning and decision-making machinery, it could provides additional information for better decision making.WORKPLACEYeos does not implement the work-life balanceUse a better work-life balance to ensure that the employees have good quality of life. Nevertheless, Yeos company is not exercising the work-life balance. It does not offer the flexible working arrangements, pension plans, counselling or assistance programmes and sport activities for the employees.RecommendationYeos should build up counselling service at the workplace and sport activities for employees. If a business environment is filled of challenges, employee will easily get nervousness and stressful all the time. Provided the counselling service, it can assist the employees to deal with the stress and mentally problem. Due to that, employees with a good physically and mentally condition will easily deal with t he jobs problem and lend a hand company to accomplish a capital performance.Yeos does not cultivate differentness in workplaceHaving cultivate diversity in workplace is essential because it brings a great deal of creative suggestion, new idea and innovations from people who are in different ground and different find. Other than that, it may also bring a diverse pool of candidates means a more qualified workforce. Unfortunately the company does not work on the diversity in workplace this is because Yeos does not employ people with disabilities.RecommendationWe recommend that Yeos should provide equal opportunities to people with disabilities. Discriminatory case on gender, races, nationality and physical ability should be avoided. We should involve everyone one of your employees to assist in achieving organizational goals and objectives regardless of race, colour, gender, ethnicity, age, religion, disability, or national origin. Learn to appreciate the unique differences in all individuals. Yeos should evaluate them based on their qualifications and the skills they possessed but not rejecting them even before they are been interviewed. Furthermore, Yeos may provide diversity training and select diverse individuals for leadership roles.COMMUNITYEmployment of local workforce in its operationYeos does not only hire local workers in its operation but also employ low-skilled foreign labours. Although it will reduce the expenses of company as the wages are low but it will create unemployment for the local workers. Furthermore, it will cause a low productivity since they are low-skilled and unable to perform some tasks that need professional skills. It needs training for them to perform those jobs which will incur additional cost.RecommendationWe recommend that employment of local workforce to be carried out not only in management area but also the manufacturing area. The salary and welfare of employees should be discussed and improvement should be done to ensur e that local workforce to be employed and reduce foreign labours. An adorable welfare system may help to rip more local workforce to work in the company.Internship or potash alum organisation schemesYeos does not practice internship or graduate placement schemes. An internship can provide trainee to learn the skill to handle the jobs and gain some experience before they enter into workplace in future. A graduate placement can help the fresh graduates in their future career prospects as it builds the confidence and get relevant work experience. However, Yeos does not offer the internship and graduate placement schemes for the community.RecommendationInternship or graduate placement scheme should be provided by Yeos to community. Yeos can offer university students to have their internship in company. This can train undergraduate students to have more knowledge about this sector as well as skills and experience in the company. Besides that, Yeos can offers scholarship to college or university students. The scholarship enables students to save their costs for education expenses. By doing so, students will have the opportunity to work in the company after they graduate. back up employee volunteerismYeos encourage its employee to voluntary involve in activities that contribute to society. Employee volunteerism to the community is continuously appreciated by the company. The employees of Yeos are not unite and do not strive as much as possible in their work and lead to low productivity.RecommendationThe company should put more effort in encouraging employees volunteerism in its CSR activities. An Employee Volunteerism programme should be developed by the company to attract employee involvement. Employee volunteerism is important for a company as it can improve the performance of employees in their works, enhance the companys image and reputation and emergence the employees loyalty. For example, compa

International strategy of Coca-Cola Company

planetary dodging of Coca- sess telephonerIn this raise we be going to study about the internationalistic strategy of Coca-Cola phoner utilise the IR modelling for the Indian trade. Coca-Cola companionship is world cognize brass section. The growing merchandiseplace around the world mostly depends upon the technologies, know takege and desegregation of mart place, it clearly demonstrates the flow of knowledge, function, goods and capital by dint of different nations and in which creating the tilt on a world-wide basis creating an integrated world-wide space is called globalisation (Porter, 1986 Albrow, 1997 Friedman, 1999 Gupta et al, 1999). Its a very challenging project for any organisation to instill from domestic grocery store or home foodstuff to international foodstuff, especially for those organisations which ar facing saturated securities industry in their home uncouth (Yip, two hundred3). The suffice of globalization is interdependence and i ntegration of countries exchanging different trade, culture, outsourcing, capital enthronization funds and the growth of the nations relationship. Business systems, knowledge and unification of culture mystify led to globalization (Daniels and Krug, 2007).Coca-Cola was invented in 1886 by Dr. John Stith Pemberton in Atlanta, Georgia (Palazzini, 1989). The master(prenominal) reasons for the global gauge be cheap labour, dispersal and transportation, communication and cultivation technology, cultural convergence, increasing dispos adequate to(p) of the global middle class, extension of IP rights, reduced trade barriers, privatization programs and development of international standards (Stonehouse et al., 2000Denton and Al-Shamali, 2000). India was rated the top international investment opportunity among 30 emerging markets for mass merchant and food retailers feeling to expand globally (Business Credit, 2006).. afterwards losing the Indian market previously the ships dress with re-entered in the Indian market in 1993 and now have 7000 distributors and to a great extent than 1.3 trillion retailers in Indian market. Today the Coca-Cola Company is the lead non-alcoholic drinking smart set with ten different productions. Coca-Cola Company is now the largest distributor, manuf bearurer, marketer of non-alcoholic drinking concentrates and syrup which operate in around 200 countries (coca plant-cola, 2010). If its international contingency is achieverful then the mark name and the disfigurement value increases for the telephoner. publications reviewA Company operating internationally faces two forces of tweet of topical anesthetic responsiveness and compact of global integration (Daniels et al, 2009). In 1987 Prahlad and Doz came with a IR modeling on internationalization, their IR framework created a extended platform for the study on global lineage which helps to form an international strategy that has multi dimensional contextual setting. IR framework has limitations for the global industrial competition specified only for the first stage, vagueness in the concept that defines the sting between industry forces and finally lack of proof for supporting the framework (Rugman et al, 2006). bartlett pear and Ghoshal (2008) further studied and came with roughly additions in IR framework and came up with 4 strategies that are international, global, transitional and multi-domestic approaches to the foreign market. The Global strategy adopted by Coca-Cola can be critically analyzed using the IR (Integration/ Responsive) framework proposed by Bartlett, Ghoshal and Beamish (2008) and Hill(2009).The global standardization products and services focus on huge profit, but they compromise on their products price. The trade research, production and research are done in punctilious regions with some certain standard and it is s gray globally. So those type of products face a huge pressure in reducing the price according to the amaze where it is sold for example Intel, a chip connection (Hill, 2009). According to Bartlett and Ghoshal (2002), a solution for the cross border railway line is Transnational, which is considered as the valuable approach for the international market. The transnational strategy drop deads a lot of pressure to the guild for cost reduction and topical anesthetic responsiveness. This could be achieved by transferring the precise skills and expectations of the companionship from the home nation to the reads of the foreign country, where they compete with the topical anaesthetic market with reduced price for example Caterpillar (Hill, 2009).Entry Modes any(prenominal) organisation looks for the opportunity to expand their business across borders, and finding the permit entry mode is an intricate task for international business. Different organisation chose different entry modes, to control foreign operation with strategic finale making and which are compatible with the law s of political sympathies and culture of the country. There are various modes for accounting entry in the international market like exporting, licensing, franchising, say ventures with the waiter country firm, acquisition, and wholly proclaimed saucily subsidiary in the foreign Country (Hill, 2009).Joint imperil it is one of the method of entranceway and sharing of ownership between two or much firms. The helping of the ownership varies according to the organisations. The firms holding studyity of share will have a tight control on the strategy (Hill, 2009). International join venture benefits the firm from the use of local market knowledge of the host country, culture, competitiveness, legal and political system and development. From International Joint Venture the luck can also be shared with the local cave inner. Joint Venture has disadvantages also when a firm enters into a union venture it essay giving control of the technology to its assistants. An other disadv antage is if the share of joint venture is not that senior high school or 50-50% then it does not give a firm the tight control over subsidiaries that it might need to realize have a go at it curve or location economies (Hill, 2009). apply by PepsiCo to enter in the Indian Market.Acquisition it is another method of entering into the international market by acquiring or bar get intoing and confederacy of different companies that can aid, finance, or help a conjunction in a given industry without creating a new business entity (Hill. 2009). Used by Coca-Cola to enter Indian market.It is chief(prenominal) for the organisation to consider factors such as the nations long run profit potential, the economic benefits of that country, the market size, and buying power of consumers and customers which is linked to the economic growth rate when entering in the market (Hill, 2009).Global Strategy of COCA-COLA(Zhang, 2010)Indian market is one of the study developing economies in the w orld. The Indian economy is one of the worlds fastest growing, with everlasting(a) domestic product (GDP) expanding at an average annual rate of about 7.5 part for the past three grades (Choi, 2006 The Economist, 2006) and the retail market expanding 10 percent on average (Business Credit, 2006) (anon). The Indian retail market, an estimated $250 billion annually, is the worlds one- eighterh largest market and is projected to grow by more than 7 percent annually (Embassy of India, 2007-Cited in Halepete, 2008). The Coca-Cola Company is mentioned as a global company with global products and global activities. In 1980 the company was moving towards centralised control. At that time the motive of the company are to be global in order to expand geographical wise into many of the countries in which the company does business today. In 1990 the world began to start smaller and smaller as a town for the global companies. Globalisation forced changes to appear so fast that many countries could hardly manage the new global environment. As a result, the very forces that were making the world more connected and analogous were simultaneously triggering and preservation of unique culture identity. The world is demanding greater flexibility, responsiveness, local sensitivity, nimbleness, speed, transparency and local sensitivity had become essential to success (Draft, 2000). Coca-Cola Company sees itself not as a global organization, but as a multi-local enterprise (Svensson, 2001).Coca-Cola Company historical strength came from operating as a multi-local business that for a very long time relies mostly on the insight of local bottling partners. Thats why the global strategy of coca-cola allows its business in more than 200 countries to act according for local laws, local culture, and local needs and so on. Coca-Cola pursues an assumed global strategy, allowing for differences in packaging, dispersal, and media that are central to a particular country or geographical a rea. Hence, the global strategy is localized through a specific geographic market plan. rather of applying a global strategy, it is likely to be a strategy of thought globally, but acting locally. The global success of Coca-Cola is the direct result of deal drinking it one bottle at the time in their own local communities. So we are placing tariff and accountability in the reach of our colleagues who are closest to those billions of mortal gross gross revenue (Draft, 2000). This signifies that if their local colleagues develop an paper or a strategy that is the right thing to do locally, and it fits indoors fundamental values, policies, and standards of integrity and quality of the Coca-Cola Company, then they have the authority and responsibility to do so. At the same time, they will be accountable for the outcomes of the imagination or strategy. It is apparent that a company such as the Coca-Cola Company has realized the weaknesses and the deficiencies of applying a gen uine or true global strategy approach in their worldwide business activities. To be in high favour of local ultimate consumer adaptations is emphasized as crucial for their business activities to be prosperous.Therefore, their multi-local strategy approach is still going noticeable and adequately for the companys worldwide business activities. In addition Gould (1995) states that coca-cola has become a part of peoples daily meal, a price at which anyone can buy and it is operable to people in any part of the world. The IR framework has been apply to critically analyse the global strategy of Coca-Cola. COCA-COLA COMPANY saw that on that point is an opportunity in Asian market and their home market mail service is saturated. COCA-COLA COMPANY decided to re-enter in the Indian market in 1993. Indian presidential term plays a study role in every international company and had a law that any international company have to become a partner in Indian market with an Indian company. To overcome this puzzle COCA-COLA COMPANY acquisition of local Indian popular brands including the THUMS UP (the most trusted brand in India), Mazza, bullion Sport, Citra and Limca providing a good base not only in bottling, manufacturing and distribution assets but also very good sinewy consumer preference(Kaul, 2003). From this acquisition the leading Indian brands join the family of global brand and its products like coca-cola, diet atomic number 6 and others. From this acquisition Coca-Cola enables to exploit the benefits global branding and global trends in essay while also tapping in other domestic markets (Lane, 1998). Coca-Cola adopted the standardisation strategy to produce and sell its standardised products globally (Rodrigues, 2009). Coca-Cola Company do franchise with the local manufacturing bottling companies through which they have a local result and local touch.In India COCA-COLA COMPANY have 46 bottling plants from which 22 are company own and rest are the franch ise operated plant (Coca-Cola, 2010). After re-entering the Indian market in 1993 the COCA-COLA COMPANY operations grown cursorily through a model that supports local business which includes over 1.3 million retailers and over 7000 distributors across the country. Coca-cola has been successful in the global market as well as Indian market because it follows the local strategies and is able to retrovert as per the needs of the local people by manufacturing and distribution by the local company (Hill, 2009). In manufacturing the product the pissing which is used is local from which the customers get the local taste. The company have an approach where in, their business does not get influenced by the area of sales. Rodrigues (2009), states that Coca-Cola pursues the global strategy of producing diverse products as per the local culture. For instance in India people prefer sweeter coke. Also Coca-Cola launched Georgia, a canned coffee specially intended for Indian market which capture d 40% of the market soon after its launch (Hill, 2009).According to degree Celsiuscce.com (2007), Coca-Cola trains their managers in their counseling school, to make them aware of the global perspective of their operations.This picture is to explain the process from the production and manufacturing to the consumers.Marketing is one of the back bones of any global industry in any country. As to stay in the market ahead from the competitors, merchandise plays the major role in Indian market for loco drinks. The post- liberalization period in India saw the comeback of Cola but Pepsi(one of the major competitor India) had al instal beaten Coca-Cola to the punch, creatively entering the market in the 1980s in advance of the liberalization by the way of joint venture. Coca-Cola Company benefited from Pepsi creating demand and developing the market for promiscuous drinks. (Kaul, 2004)Coca-Cola Company marketing strategy is based on 3 As that are Availability, Affordability and Accepta bility. The first A is for availability of the product to the customers. The second A is for affordability is for pricing and the third A is for acceptability which stands convincing the customer to buy the product.In 2001 Coca-Cola chief operating officer Douglas Daft set the new direction for bordering generation of success for global brand with a Think global, act local mantra. Recognizing that a adept global strategy or single global campaign wouldnt work, locally relevant executions became an increasingly important share of supporting Cokes global brand strategy. Coca-Cola Company re-examined its approach in an begin to gain leadership in the Indian market and capitalize on significant growth potential in the rural markets. The foundation the new strategy grounded brand billet and marketing communications in consumer insight, acknowledging that urban versus rural India were two distinct markets on a variety of important dimensions. (Kaul, 2004) In rural market, where both the padded drink category and individual brands were undeveloped, the task was to broaden the brand positioning while in urban markets, with higher category and brand development, the task was to broaden the brand positioning while in urban markets, with higher category and brand development, the task to narrow the brand positioning focusing on differentiation through offering unique and compelling value. (Kaul, 2004)Coca-Cola used two different marketing strategies for each urban and rural market. The first marketing life ho to aisi means life as it should be for urban market and the other was thanda matlab coca cola which means cool or cold is coca cola which hit the rural target very highly and gain the market very efficiently because the 96% of the cosmos are in rural and developing cities. Coca-Cola Company reduced its rate for the rural market by providing 200ml bottle so that those customers and consumers whose wages are not so high can also have it. (Kaul, 2004) At the sam e time, Coke invested in distribution infrastructure to effectively serve a disbursed population and doubled the number of retail outlets in rural areas from 80,000 in 2001 to 160,000 in 2003, increasing market penetration from 13 to 25%. As a result of the marketing campaign, Coca-Cola won Advertiser of the stratum and Campaign of the year 2003. (Kaul, 2004)Swot analysis of Coca-Cola CompanyStrengthsThe brand image of coca-cola is very strong around the world and have a strong brand portfolio. Cola-cola brand value was increased by 2% from 2007 to 2008 and it is $66,667 million. Coca-Cola owned top basketball team brands of soft drinks market around the world. Strong brand image allows the company to introduce new flavours in the market like vanilla coke, scarlet coke and coke with lemon. The companys strong brand image facilitates customers recall and allows company to penetrate new markets while holding the old ones. Coca-cola Company offers more than 3000 products across the world. Coca-cola Company is running business in more than 200 countries in the world which provide it a strong global image. collectable to the strong business model across the world company is able to generate significant cash flows up to $50 million a day. (Data Monitors, 2009)impuissancePension assets effect the company liquidity position of the company due to financial market volatility. Coca-cola Company is very mature having significantly more pensioners than active participating members. (Data Monitors, 2009)OpportunityGlobally the non alcoholic ready to drink market is increasing by 6% every year for the next 12 years. (Data monitors, 2009). This project growth is due to the increase in middle-class consumers and fast growing urban societies expected to form in the future. The company can capture this growth with innovative new products with old products. (Data Monitors, 2009)ThreatsCoca-Cola Company is largely dependent on the bottling partners across the world. Approxima tely 78% of its worldwide production was produced and distributed by its bolting partners in 2008. Due to independent bottling partner companies make their own business decision that may not eer align with Cola-Cola Company interest. Many of its bottling partners have a right to retrace or distribute certain products of other beverage companies. In soft drink market there is intense competition and one of the major global competitors of Coca-Cola Company is PepsiCo. Competitive factors impacting companys business include advertising, product innovation, sales promotion programs, brand and trademark development and pricing. Decline in the market share of the home country which means the consumers have started to look for greater variety in their drinks and are decorous health conscious. Other major threat for the soft drink companies is reducing level of water for which the government and WHO is forcing the companies to reduce the level of water used in manufacturing the products. (Data Monitors, 2009)Competitor epitomeThe one of the major competitor in India and in global market is Pepsi. Pepsi entered in the India market in 1980s through joint venture. As early as 1985, Pepsi tried to gain entry into India and finally succeeded with Pepsi foods hold project in 1988 as a joint venture of PepsiCo, Punjab government owned Punjab agro industrial corporation (PAIC) and Voltas India limited (Singh, 1997). Pepsi was marketed and sold to Lehar Pepsi until 1991 when the use of foreign brands was allowed under the new economic policy and Pepsi ultimately bought out its partners comme il faut a fully owned subsidiary and ending the joint venture relationship in 1994. While the joint venture was only marginally successful in its own right, it allowed Pepsi to gain precious early experience with the Indian market and also served as an introduction of the Pepsi brand to the Indian market and also served as an introduction of the Pepsi brand to the Indian consumer such that it was well poised to reap the benefits when liberalization came (Kaul, 2004).SWOT analysis of PEPSICOStrengthsThe PepsiCo brand is figured at the 27th position in the top light speed global brand rankings of Business Week. The brand value of PepsiCo is $13,249 million in 2008. PepsiCo owns 18 mega brands which are recognise globally and generate annual sales of $1 billion each. In some countries PepsiCo is allowed to manufacture, sell and distribute soft drink products other than PepsiCo, including Dr Pepper and Squirt. PepsiCo have a strong manufacturing and distribution channel having 591 facilities till the end of 2008 and half of it is in USA and Canada. (Data Monitors, 2008)WeaknessThe company operates 74.4% of its revenue from its home country USA and the USA market for soft drinks is decreasing. The net profit margin of the company is reduced by 3.9% as compare for the last year. The weak operational growth of the company will shanghai its future growth plan and can affect the investor confidence. (Data Monitors, 2008)OpportunitiesBottled water is one the fastest growing market globally. PepsiCo has the leading manufacturing business and distributor in this market and can capture more market by developing new brands and making better the existing ones. PepsiCo make significant acquisition including two of the other Pepsi bottlers in which one is the eight largest Pepsi bottler in the Pepsi Bottling Group from which they are reducing the partners power slowly. (Data Monitors, 2008)ThreatsPepsiCo is facing problem in the home country from where the company is generating the maximum revenue. The consumers are becoming more health conscious. The company is facing intense competition from its competitors in the first place the Coca-Cola Company which is one of the major competitors globally. Competitive factors impacting companys business include advertising, product innovation, sales promotion programs, brand and trademark development and pricing. There are new laws from government and World Health Organisation(WHO) to reduce the usage for water in the manufacturing and for labelling, employment, and recycling and product safety.ConclusionBy using the IR framework tool it is evident that Coca-Cola is a global company and doing business in more than 200 countries with a global strategy and a local response. It entered in Indian market due to saturation in the home country market and the growing economies of India. Coca-Cola Company entered the Indian market by acquisition entry method by acquiring local soft drinks brand like Thumsup, Limca from which gain knowledge about the country soft drink market. The company captured the Indian market majorly through marketing and targeting the rural market which contains the 96% of the population. The company use three A strategy to be to gain more market share. In Indian market Coca-Cola have 46 bottling plants some of them is owned and others are in partnership from which they share the risk, 1.3 million retailers and over 7000 distributors which gives the company a strong base.Business Credit (2006), India tops annual list of most engaging countries for international retail expansion, Business Credit, Vol. 107 No. 7, p. 72.Choi, A. (2006), Eyeing Indias riches as barriers come down, luxury brands go slow, WWD, March 13.Broken commitments The case of Pepsi in India. Kavaljit Singh, PIRG Update, whitethorn 1997.Interview with Nymph Kaul, 9/20/04Halepete, J., Iyer, S., and Park, C., S., 2008. Wal-Mart in India a success or failure International Journal of Retail and Distribution Management, 36(9), pp.701-713Zhang, M., 2010, International Business Management, Nottingham, Nottingham Trent UniversityKaul, Nymph. Rai University, Coca-Cola India.Keller, Kevin Lane. Strategic Brand Management. Prentice Hall, 1998Svensson, G., 2001 Glocalization of business activities a glocal strategy management decision 39/1 pp. 6-18.Kaul, Nymph. Interview of Sanjiv Gupta, President and CEO of Coca-Cola India, June 2004.Gupta, A. K., Govindarajan, V., Malhotra, A. (1999). FEEDBACK-SEEKING BEHAVIOR WITHIN MULTINATIONAL CORPORATIONS. Strategic Management Journal , 205-222.Rugman, A. M., Collinson, S and Hodgetts, R. M. (2006). International Business. Financial Times Management 4th Revised adaptation editionBartlett, C., S. Ghoshal, and P. Beamish. 2008. Transnational Management. New York McGraw-Hill Irwin.

Analysis of the Precautionary Principle

Analysis of the hold backive regulation insertionThe satellite cosmos is presently organism dominated by the kind-hearted species. It is the hankering and whim of the humanity beings that decides the fate of former(a)wise t unmatched forms on the planet. The institution of livelihood on earth, as we all k presently, presupposes balanced ecosystem and wel gain surround. though the human beings charter naturalised their superiority oer other alert creature they themselves argon biologically very sensitive to the environsal turns and whatsoever minor deviation in the ecosystem is bound to affect them obstinately. valet de chambre beings, having the basal animal instinct to harbor themselves from the capability little t divagateors, let complete that their invigoration is right of tighties and endangerments.The urge to deal with the deportment threatening risks that they suit has gift the basic condition of their survival. Owing to this the human race is eternally qualification sincere crusade to make life to a greater extent thriving by minimising all strength threats to life. The advances in the field of learning and engineering harbor blessed us with legion(predicate) gadgets and devices that non altogether embossment round hardship of life only when atomic number 18 sufficient of avoiding or diminish close to most threatening risks of personality. There rear end non be deuce views regarding advantageous parkway of technological and scientific developings the life expectancy has deceased up signifi bumtly in recent years and the quality and quilt of life is scaling innovative height sidereal day-by-day, some another(prenominal) a(prenominal) deceases and hardships of human life now belong to history.Today the ability of human beings, to transform the inseparable char performeristics of the earth, has reached a level that is non only alarming scarcely perilous too. We essential consider the occurrence that man has acquired this eaverageous power to interpolate the bionomic balance on this planet only within a century, thus giving rise to genuine doubt how long the personality volition be able to tolerate the excessive interference resulting come in of human activities? The population of human beings has increased at an unprecedented charge per unit in recent chivalric ca utilize undue pressures on the limit rude(a) picks.Some of these resources argon depleting at an alarming rate and is intellectual for agitate as they turn out been created by the basecel process over m liverishions of years. nonp aril example could be depletion of the graphic non-renewable energy resources like combust, pet fictional characterum etcetera One must bear in mind that pay back earth treats all its children alike and on that pointfore, it leave behind non be confirm to rifle the present and future generations of the natures bounties. 1 altogether animate spec ies bugger off an inborn instinct to insure their progeny and to make readying for the wel farthermoste of their descendants. It is expected, at that confidefore, that Homo sapiens go away take the star(p) role in saving the earth for their future generations.Earlier, environmental policies at the illustration as easy as transnational level were establish on the model that nature has energy to shine up the ill set up of defilement and environmental degradation to a certain extent alone, once the saccade thrill threshold is breached, the contaminant and environmental degradation may rationality impedeage to the environment calling for remedial efforts. This is kn aver as the fantasy of receptive cogency of nature. This impression is based upon the plan that nature has egotism cure mechanism and need no interference unless the contamination and dissymmetry ca hold in by human activities breaches the permissible level. If we adhere to this excogit ation, the role of environmental shelter agencies will begin only when this upper limit of injure bearing condenser of the environment is breached.In the quest for developing, faster wherefore fastest, many nations have ignored this threshold limit of the environment bandage harnessing their infixed resources, building industries, big dams and townships without making provisions for adequate hire for the erosion and damage cause to the environment. In much(prenominal) a scenario, one cannot count on solo upon the earths self purifying and self curative capacities.e exceptionally when, the earth is loaded with atomic and toxic waste wood embrace is depleting faster than ever global warming has started targeting ill imports the virgin peaks of Mount Everest and the uninhabited lands of northeastern and South poles have invite littered by man water pollution in rivers and seas is destroying the life of aquatic creature acidulated rain and smog has pop off more ram pant, an effective proactive strategy coup lead with effective measures to check over pull ahead degradation of the environment is the cry of the day. Such strategy and measures train great entailmentance in those types where the adverse furbish up of any performance upon the environment cannot be ascertained and predicted with consequence.Should worry be taken anticipating injureful equal on environment and at that placeby halt the readingal activities or deviate it to the nature to repair the damage using its limited assimilatory capacity is the head teacher to be answered. The pr eveningtative normal depicts us in such(prenominal)(prenominal) tricky situations. Since 1970s, the preventative precept has become the under(a)lined rationale for a depend of world-wide environmental treaties and declarations. It is evident that global community has conjure uped from the dogma of assimilating capacity to the preventive convention ratifying the old sayin g that precaution is expose than cure.Origin of the conventionIt is difficult to identify with consequence the ascendent of the precept. The precautional concept found its way into world-wide police and polity as a result of German proposals do to the foreign pairing ocean Ministerial companys. In Germany the preventative regulation had its beginnings in the article of belief of Vorsorge, or foresight. At the centre of other(a) notions of this prescript was the understanding that ordination should exploit to avoid environmental damage by careful planning in advance, blocking the abuseful activities having the potency to adversely affect the environment. in conclusion the Vorsorgeprinzip ( precautionary ruler) developed in the early 1970s into a fundamental article of faith of German environmental police and has been invoked to justify the executeation of vigorous policies to shed rein acid rain, global warming, and northernmost ocean pollution. It has w ithal led to the festering of a strong environmental persistence in that country. The concept was send-off base enunciated by the German Federal governing in 1976 using the pursual words-surroundal policy is not experty conventional by warding off imminent hazards and the elimination of damage, which has occurred. precautional environmental policy requires boost more that natural resources are valueed and demands on them make with care. afterward the precautionary rationale was invoked in the year 1984 at the basic outside(a) Conference on Protection of the North Sea. Following this conference, the prescript has been combine into numerous world-wide conventions and agreements. The North Sea Treaties (Bremen, 1984 London, 1987 Hague 1990 Esbjerg, 1995) are both(prenominal) of the early examples of internationalist treaties where the precautionary rule has had a very heavy(a) position.III. implication and NatureThe precautionary rule aims to tender guidance in the ripening and framing of policies where at that place is scientific indeterminatety. It continues to generate disagreement as to its sum, orbital cavity and objectives, as reflected in the views of scholars and international legal figure. On the one hand, some consider that it results the can for early international legal movement to phone luxuriouslyly threatening environmental issues. On the other hand, its opponents have decried the latent which the belief has for over regulation and limiting human exertion. The nucleus of the convention is still evolving.The scope of the precautionary tenet goes beyond the problems associated with a short(p) or medium term shape up to environmental risks. It encompasses the doctor of long-run run as well and projects well-being of future generations. A end to take measures without waiting until all the obligatory scientific familiarity is easy is a precautionary approach. In its most elementary form, the precautiona ry ruler is a strategy to cope with scientific shyties in the spirit and counseling of risks. It is about the wisdom of action under uncertainty. The precautionary article of belief is a great deal seen as an integral prescript of sustainable development that is development that meets the needs of the present without compromising the abilities of future generations to meet their needs. By safeguarding against natural resource base that might jeopardize the capacity of future generations to provide for their own needs, it builds on ethical notions of intra-and inter-generational equity.The formulation of the precautionary principle in precisely and puzzle outly expressed form, at the international level, can be found in the London solving of the Second foreign North Sea Conference. The Declaration states-.. In order to protect the North Sea from possibly damaging effects of the most parlous substance, a precautionary approach is necessary which may require action to en counter inputs of such substances even in front a casual link has been established by overbearing clear scientific evidence.The Rio Declaration, 1992 ensured the global attention towards the precautionary principle by stating In order to protect the environment, the precautionary approach shall be widely utilize by states according to their capabilities. Where in that respect are threats of honest or permanent damage, lack of full scientific certainty shall not be used as a actor for postponing cost-efficient measures to protect environmental degradation.The convention on Biological Diversity, 1992 and the Convention on humour Change, 1992 of the Rio-Conference echo the same spirit of precaution lack of full scientific certainty should not be used as a originator for postponing cost-effective measures. Hence, lack of scientific certainty is no causal agency to continue action to avoid potentially honest or irreversible pervert to the environment.At the foot of the pr ecautionary principle is the element of anticipation, reflecting a emergency of effective environmental measures based upon actions which forms a long-term strategy. The wingspan program line on the precautionary principle has summarised four components of the principle that should guide its implementation Action to prevent harm denastiness uncertainty.Shifting the event of substantiation of proponents of a potentially destructive activity.Examination of a full set up of modifynatives to potentially evil activities, including no action.Democratic decision making to ensure, cellular inclusion of those affected.The communication from the European Communities (EU) on the precautionary principle demands the applicability of the principle and exempts its scope in the following words-Although the precautionary principle is not explicitly mentioned in the Treaty except in the environmental field, its scope, is far wider and covers those specific circumstances where scientific evi dence is insufficient, inconclusive, or uncertain and there are indications through preliminary objective scientific military rating that there are reasonable crusade for affect that the potentially grievous effects on the environment, human, animal or plant health may be in legitimate with the chosen level of protection.It is clear from the afores guardianship formulations of the principle that there is no uniform acceptable principle of precaution. London Declaration, 1987 uses measure up vocabulary such as may require action and in advance short clear. Evidence. Rio Declaration, 1992 also embroils qualifying language such as according to their capabilities and postponing cost-effective measures. EU communication 2000 requires intervention to have the high level of protection chosen by the EU. The triple forbid notion is the commentary in the Rio Declaration the absence seizure of rigorous substantiation of danger does not justify inaction is sooner weak it forces t he condition of precautionary intervention but does not require such intervention. The definition in the EU communication on the other hand does require intervention to maintain the high level of protection chosen by the EU. scorn of the fact that non-homogeneous formulations of the precautionary principle have used different words one can easily draw some(prenominal) common points as key elements of the principle. The common understanding of contents of the principle may be summarised as under- precautionary principle is applicable in cases where scientific uncertainties exist about the harm that is likely to be suffered in future.Some form of scientific analysis of the potential threat is mandatory as mere speculation is not luxuriant to sparkle the principle.Unqualified possibility is sufficient enough to consider the screening of the principle. cover of the principle is limited to those hazards that are unacceptable.The principle requires interventions out front attai nable harm occurs.Interventions should be proportional to the chosen level of protection and the order of magnitude of possible harm.V. preventive article of belief and International LawThere can not be slightest of doubts regarding recognition and existence of the precautionary principle in the handle of contemporary national and international rightfulnesss. Its outlines, however, are far from clear from a legal point of view. Essentially, the precautionary principle is an appeal to attention turn to to policy makers. The principle does not offer a regulate effect to every new problem raised by scientific uncertainty. On the contrary, the precautionary principle is a steer principle that provides right-hand criteria for become the most reasonable course of action in confronting situations of potential environmental risk.Whether precautionary principle is a legally binding principle in popular international law and national law kind of than a guiding principle only is a difficult question to answer. It is by and large understood that declarations of principles are not traditional sources of international law and therefore, not binding for the member states of the organisation that adopted them. Such international texts do not have the same legal force as international treaties and conventions. Strictly speaking, declarations of principles are nothing more than recommendations, without binding force. notwithstanding of this fact one cannot undermine the legal relevance of such declarations. withal though they are not considered as sources of international law, they are de jure capable of generating norms.Declaration of principles, though not binding, can warp the elaboration, meter reading and practise of international laws of member states of the international organisations that conceived or endorsed the declarations. One cannot und mistakeate the influence that cosmopolitan principles exert on legal formulation, be it in the internation al stage setting or in the internal legislation and statute of countries. In spite of not being obligatory and binding, principles of law describe beta tools for the crystallization of new concepts and values.Article 38 of the Statute of the International salute of Justice provides that the International court of Justice, whose function is to decide in symmetry with international law such quarrels as are submitted to it, shall hold amongst other the general principles of law value by civilised nations.Thus, the general principles of law are also sources of international law. Therefore, it seems incontestable that among the principles emanating from international declarations, the preventative prescript is legally relevant and cannot be disregarded, either by the countries in the international order, or by legislators, policy makers and courts in the domestic sphere. From the second gear when the preventive article of faith is recognised as an element of international law, it also becomes dissipate of the general principles of environmental law, with undisputed legitimacy in guiding the translation and application of all legal norms in force.The precautionary formula is oft introduced in framework conventions. Although this strategy is widely used in international environmental law, it is merely a first step in elaborating more precise rules at the international level fleshing out that principle. Furthermore, in a number of international agreements, the Precautionary belief worded in such a way that it is deprived of immediate and autonomous applicability. Use of call such as form a basis for, in spite, endeavour, etc. imply that the principle is merely intended to unsex states to implement their international obligations. Only the repeated use of state practice and consistent opinio juris are likely to transform precaution into a customary norm.The tenet of precaution has found only limited judicial incarnate so far in international la w, this despite many commentators careen that it has reached the post of a principles of customary international law. In the case of new-fangled Zealand v. France, the right of France to carryout nuclear tests in the South Pacific was challenged. The opinion of Weeramantry, J. in this case suggests that the Precautionary rationale is gaining increasing support as discover of the international law of the environment. The principle should be used where there is insufficient material before the court to justify action, even if this centre acting ahead of full scientific evidence.This opinion, however, was a dissent, and it is expenditure comparing a more, recent example where the Precautionary commandment has have in international trade disputes. The US and Canada brought a dispute block case before the World Trade Organisation (WTO) against the EC, which in 1989 had outlaw the import of beef fed with growth hormones on the grounds that it was not safe for human health to eat such meat. The EC argued that its import ban was justified in the light of the Precautionary Principle, which is presented as a binding rule of international law. The USA and Canada denied that the principle already had such a stance. The WTO found that the EC import ban violated WTO law, although the EC has continued to impose its ban and has been forced by the WTO to castigate Canada and the US for lost trade.VI. Status in IndiaIn India there are oodles of environmental regulations, but most environmental regulations, like the urine (Protection and end of Pollution) Act, 1974 and the Air (Prevention and visualize of Pollution) Act, 1981 are aimed at cleaning up pollution and controlling the amounts of it release into the environment. They regulate the harmful substances as they are emitted rather than limiting their use or production in the first place. These laws are based on the assumption that humans and ecosystems can absorb a certain amount of contamination without b eing harmed. But the past draw delivers that it is very difficult to know what levels of contamination, if any, are safe and therefore, it is give out to be adrift on the side of caution turn transaction with the environment.The Indian independent coquette has judge in Vellore case that the Precautionary Principle is start up of the environmental law of the country. The apostrophize explained the Precautionary Principle in the context of the municipal law as under-Environmental measures by the province Government and statutory authorities must anticipate, prevent and clutch the causes of environmental degradation.Where there are threats of serious and irreversible damage, lack of scientific certainty should not be used as a reason for postponing measures to prevent environment degradation.The load of induction is on the actor or the developer/industrialist to show that his action is environmentally benign.In Taj case the overbearing coquet was dealing with the pro blem of protecting the Taj Mahal from the pollution of nearby industries. The homage utilize the Precautionary Principle as explained by it in Vellore Case and observed-The environmental measures must anticipate, prevent and attack the causes of environmental degradation. The onus of proof is on an industry to show that its operation with the aid of ascorbic acid/coal is environmentally benign. It is rather, prove beyond doubt that the emissions generated by the use of coke/coal by the industries in TTZ are the main polluters of the ambient air.The Court see-through the industries to veer-over to the natural gas as an industrial-fuel or stop functioning with the aid of coke/coal in the Taj trapezium and relocate themselves as per the direction of the Court. The Precautionary Principle has been invoked by the overbearing Court in various cases period deciding environmental issues. In Calcutta tanneries Case the Court request the polluting tanneries direct in the city of C alcutta (about 550 in number) to relocate themselves from their present reparation and shift to the new leather complex set up by the west Bengal Government. In Badkhal Surajkund Lakes Cases the peremptory Court held that the Precautionary Principle made it mandatory for the take Government to anticipate, prevent and attack the causes of environment degradation. The Court had no hesitation in holding that in order to protect the devil lakes from environmental degradation it was necessary to limit the bend activity in the close vicinity of the lakes.Even though the Vellore judgment was followed in the incidental decision of the Supreme Court, the Court felt the need to explain the meaning of the Precautionary Principle in more detail and lucid style so that Courts and tribunals or environmental authorities can powerful accept the said principle in the matters which might come before them. In A.P. Pollution Control jury v. Prof. M.V. Nayudu, tracing the evolution of preca utionary principle the Court observed Earlier, the concept was based on the assimilative capacity rule as revealed from Principle 6 of the Stockholm Declaration of the U.N. Conference on Human Environment, 1972. The said principle assumed that science could provide policy-makers with the information and means necessary to avoid encroaching upon the capacity of the environmental harm was presumed that relevant technical expertise would be on hand(predicate) when environmental harm was predicted and there would be sufficient time to act in order to avoid such harm. But in the eleventh Principle of the U.N. General Assembly Resolution on World shoot for Nature, 1982, the strain shifted to the Precautionary Principle, and this was reiterated in the Rio Conference of 1992 in its Principle 15.Explaining the cause for the emergence of Precautionary Principle the Court referred Charmian Barton, who argued it makes sense to err on the side of caution and prevent activities that may cause serious or irreversible harm. The Court opined that the inadequacies of science was the real basis that had led to the Precautionary Principle. It was based on the theory that it is better to err on the side of caution and prevent environmental harm which may indeed become irreversible.The principle of precaution involved the anticipation of environmental harm and taking measures to avoid it or to choose the least environmentally harmful activity. The Court adopted the view that Environmental Protection should not only aim at protecting health, property and economic engross but also protect the environment for its own sake. Precautionary duties must not only be triggered by the suspicion of concrete danger but also by justified concern or risk potential.The concept of interference of proof in environmental cases recognised in Vellore Case that the onus of proof is on the actor or the developer/industrialist to show that his action is environmentally benign, was further elaborated by the Supreme Court in the Nayudu case, M. Jagannadha Rao, J. noticed, while the inadequacies of science had led to the Precautionary Principle, the said principle in its turn led to the special principle of centre of proof in environmental cases where buck as to the absence of injurious effect of the actions proposed, was placed on those who wanted to change the status quo. This is often termed as a reversal of burden of proof, because otherwise, those debate the change would be compelled to shoulder the evidentiary burden, a procedure which is not fair. Therefore, the Court observed, it is necessary that the charactery who wants to alter it, must bear this burden.The Supreme Court party favours the view that if the environmental risks being run by regulatory inaction are in some way uncertain but non-negligible, accordingly regulatory action is justified. According to the Court-In such a situation, the burden of proof is to be placed on those attempting to alter the status quo. They are to discharge this burden by showing the absence of a reasonable ecologic or medical concern. That is the unavoidable sample of proof. The result would be that if insufficient evidence is presented by them to gentle concern about the level of uncertainty, then the presumption should operate in favour of environmental protection.In Narmadda Bachao Andolan v. Union of India, the Supreme Court pertinacious the issues relating to construction of dam on Narmada river which was a part of the Sardar Sarovar Project. Explaining the new concept of burden of proof the Court held that the Precautionary Principle and the corresponding burden of proof on the person who wants to change the status quo will unremarkably apply in a case of polluting or other project or industry where the extent of damage likely to be inflicted is unknown. Where the effect on ecology of environment of setting up of an industry is known, the Court held-What has to be seen is that if the environmen t is likely to suffer, then what mitigative steps can be taken to off set the same. Merely because there will be a change is no reason to presume that there will be ecological disaster. It is when the effect of the project is known then the principle of sustainable development would come into play which will ensure that mitigative steps are and can be taken to push the ecological balance.The Court concluded, what was the impact on environment with the construction of a dam was well known in India, the dam was neither a nuclear establishment nor a polluting industry, therefore, the decision in A.P. Pollution Control Boards Case would have no application in this case. Despite of the fact that the Court refused to apply Precautionary Principle in this case as the impact on environment was known as could have been mitigated, in subsequent decisions of the Supreme Court one may find strict adherence to the Precautionary Principle and the new concept of onus of proof.To give effect to t he Precautionary Principle, Government of India, published a Notification, which states that the expanding upon or modernization of any existing industry or new projects listed in schedule I or Schedule II shall not be undertaken in any part of India, unless it has been accorded environmental head by the Central Government, or as the case may be, the State Government concerned in accordance with the procedure hereinafter qualify in this notification.The notification tries to achieve the objective that certain development projects should be carried on within the carrying capacity of the ecosystems, which will otherwise come under stress, so as to ensure that developmental activity takes place in harmony with the environment. This is possible only by careful sound judgement of a project proposed to be located in any area, on the basis of an Environmental Impact Assessment (EIA) of each project and the necessary Environment Management plan for the prevention, elimination or mitigat ion of the adverse impact on the environment, right from the very inception of the project.VII. ConclusionThe Precautionary Principle, being a principle does not set forth absolute obligations. It obviously establishes a policy for implementation by other regulatory means. Its relevance, however, would be in the development of a cluster of norms relating to procedural rules. These would include norms such as those requiring prior environmental impact assessment, the duty to admonish or notify others, the duty to mitigate and assist in emergencies, as well as access to information. The emergence of the Precautionary Principle has permanently changed the present of international environmental law and policy.The challenge of implementing the Precautionary Principle while retaining the strength of its original vision is still posing difficult questions before the policy makers. Nevertheless it is well established that Precautionary Principle is an outstanding principle of internatio nal environmental law and is gaining strength day by day. Besides being part of several international treaties and declarations the principle has been precondition place in the body of the national law of many countries.India has recognised and adopted the Precautionary Principle being party to many international declarations and conventions. The EIA notification of the Government of India, Ministry of Environment and Forests established the principle as part and parcel of the legal framework in India. Many pronouncements of the Supreme Court of India, to begin with the Vellore case, have strengthened and incorporated the international environmental law principle into the municipal law. The Apex Court in India has accepted the principle as part of the concept of sustainable development and has applied the principle several times in order to save environment and to give force to ratio of the judgment. We may therefore, draw inference that the Precautionary Principle has got a status of well recognised legal principle in India.Analysis of the Precautionary PrincipleAnalysis of the Precautionary PrincipleIntroductionThe planet earth is presently being dominated by the human species. It is the wish and whim of the human beings that decides the fate of other life forms on the planet. The existence of life on earth, as we all know, presupposes balanced ecosystem and congenial environment. Though the human beings have established their superiority over other living creature they themselves are biologically very sensitive to the environmental changes and any minor deviation in the ecosystem is bound to affect them adversely. Human beings, having the basic animal instinct to protect themselves from the potential threats, have realised that their life is full of difficulties and risks.The urge to deal with the life threatening risks that they face has formed the basic condition of their survival. Owing to this the human race is constantly making sincere endeavour to ma ke life more comfortable by minimising all possible threats to life. The advances in the field of science and technology have blessed us with many gadgets and devices that not only ease some hardship of life but are capable of avoiding or diminishing some most threatening risks of nature. There cannot be two views regarding beneficial effects of technological and scientific developments the life expectancy has gone up significantly in recent years and the quality and comfort of life is scaling new height day-by-day, many deceases and hardships of human life now belong to history.Today the ability of human beings, to transform the natural characteristics of the earth, has reached a level that is not only alarming but dangerous too. We must consider the fact that man has acquired this enormous power to alter the ecological balance on this planet only within a century, thus giving rise to genuine doubt how long the nature will be able to tolerate the excessive interference resulting out of human activities? The population of human beings has increased at an unprecedented pace in recent past causing undue pressures on the limited natural resources.Some of these resources are depleting at an alarming rate and is reason for worry as they have been created by the natural process over millions of years. One example could be depletion of the natural non-renewable energy resources like coal, petroleum etc. One must bear in mind that mother earth treats all its children alike and therefore, it will not be justified to deprive the present and future generations of the natures bounties. 1 All living species have an inborn instinct to insure their progeny and to make provision for the welfare of their descendants. It is expected, therefore, that Homo sapiens will take the leading role in saving the earth for their future generations.Earlier, environmental policies at the national as well as international level were based on the concept that nature has capacity to absorb the ill effects of pollution and environmental degradation to a certain extent but, once the shock bearing threshold is breached, the pollution and environmental degradation may cause damage to the environment calling for remedial efforts. This is known as the concept of assimilative capacity of nature. This concept is based upon the notion that nature has self curative mechanism and needs no intervention unless the pollution and imbalance caused by human activities breaches the permissible level. If we adhere to this concept, the role of environmental protection agencies will begin only when this upper limit of damage bearing capacity of the environment is breached.In the quest for developing, faster then fastest, many nations have ignored this threshold limit of the environment while harnessing their natural resources, building industries, big dams and townships without making provisions for adequate compensation for the erosion and damage caused to the environment. In such a sce nario, one cannot depend solely upon the earths self purifying and self curative capacities.Especially when, the earth is loaded with nuclear and toxic waste forest cover is depleting faster than ever global warming has started showing ill effects the virgin peaks of Mount Everest and the uninhabited lands of North and South poles have become littered by man water pollution in rivers and seas is destroying the life of aquatic creature acid rain and smog has become more rampant, an effective proactive strategy coupled with effective measures to check further degradation of the environment is the cry of the day. Such strategy and measures assume greater importance in those cases where the adverse impact of any activity upon the environment cannot be ascertained and predicted with certainty.Should precaution be taken anticipating harmful impact on environment and thereby halt the developmental activities or leave it to the nature to repair the damage using its limited assimilative capa city is the question to be answered. The precautionary principle guides us in such tricky situations. Since 1970s, the precautionary principle has become the underlined rationale for a number of international environmental treaties and declarations. It is evident that international community has shifted from the principle of assimilative capacity to the precautionary principle ratifying the old saying that precaution is better than cure.Origin of the PrincipleIt is difficult to identify with certainty the origin of the principle. The precautionary concept found its way into international law and policy as a result of German proposals made to the International North Sea Ministerial Conferences. In Germany the precautionary principle had its beginnings in the principle of Vorsorge, or foresight. At the centre of early notions of this principle was the understanding that society should endeavour to avoid environmental damage by careful planning in advance, blocking the harmful activiti es having the potential to adversely affect the environment.Eventually the Vorsorgeprinzip (precautionary principle) developed in the early 1970s into a fundamental principle of German environmental law and has been invoked to justify the implementation of vigorous policies to tackle acid rain, global warming, and North Sea pollution. It has also led to the development of a strong environmental industry in that country. The concept was first enunciated by the German Federal Government in 1976 using the following words-Environmental policy is not fully accomplished by warding off imminent hazards and the elimination of damage, which has occurred. Precautionary environmental policy requires further more that natural resources are protected and demands on them made with care.Subsequently the precautionary principle was invoked in the year 1984 at the First International Conference on Protection of the North Sea. Following this conference, the principle has been integrated into numerous international conventions and agreements. The North Sea Treaties (Bremen, 1984 London, 1987 Hague 1990 Esbjerg, 1995) are some of the early examples of international treaties where the precautionary principle has had a very prominent position.III. Meaning and NatureThe precautionary principle aims to provide guidance in the development and framing of policies where there is scientific uncertainty. It continues to generate disagreement as to its meaning, ambit and objectives, as reflected in the views of scholars and international judicial practice. On the one hand, some consider that it provides the basis for early international legal action to address highly threatening environmental issues. On the other hand, its opponents have decried the potential which the principle has for over regulation and limiting human activity. The core of the principle is still evolving.The scope of the precautionary principle goes beyond the problems associated with a short or medium term approach to environmental risks. It encompasses the concern of longer run as well and ensures well-being of future generations. A decision to take measures without waiting until all the necessary scientific knowledge is available is a precautionary approach. In its most elementary form, the precautionary principle is a strategy to cope with scientific uncertainties in the assessment and management of risks. It is about the wisdom of action under uncertainty. The precautionary principle is often seen as an integral principle of sustainable development that is development that meets the needs of the present without compromising the abilities of future generations to meet their needs. By safeguarding against natural resource base that might jeopardize the capacity of future generations to provide for their own needs, it builds on ethical notions of intra-and inter-generational equity.The formulation of the precautionary principle in precisely and clearly expressed form, at the international level, can be found in the London Declaration of the Second International North Sea Conference. The Declaration states-.. In order to protect the North Sea from possibly damaging effects of the most dangerous substance, a precautionary approach is necessary which may require action to control inputs of such substances even before a casual link has been established by absolute clear scientific evidence.The Rio Declaration, 1992 ensured the global attention towards the precautionary principle by stating In order to protect the environment, the precautionary approach shall be widely applied by states according to their capabilities. Where there are threats of serious or irreversible damage, lack of full scientific certainty shall not be used as a reason for postponing cost-effective measures to protect environmental degradation.The convention on Biological Diversity, 1992 and the Convention on Climate Change, 1992 of the Rio-Conference echo the same spirit of precaution lack of full scienti fic certainty should not be used as a reason for postponing cost-effective measures. Hence, lack of scientific certainty is no reason to postpone action to avoid potentially serious or irreversible harm to the environment.At the basis of the precautionary principle is the element of anticipation, reflecting a requirement of effective environmental measures based upon actions which forms a long-term strategy. The wingspread statement on the precautionary principle has summarised four components of the principle that should guide its implementation Action to prevent harm despite uncertainty.Shifting the burden of proof of proponents of a potentially harmful activity.Examination of a full range of alternatives to potentially harmful activities, including no action.Democratic decision making to ensure, inclusion of those affected.The communication from the European Communities (EU) on the precautionary principle demands the applicability of the principle and explains its scope in the fo llowing words-Although the precautionary principle is not explicitly mentioned in the Treaty except in the environmental field, its scope, is far wider and covers those specific circumstances where scientific evidence is insufficient, inconclusive, or uncertain and there are indications through preliminary objective scientific evaluation that there are reasonable grounds for concern that the potentially dangerous effects on the environment, human, animal or plant health may be inconsistent with the chosen level of protection.It is clear from the aforesaid formulations of the principle that there is no uniform acceptable principle of precaution. London Declaration, 1987 uses qualifying language such as may require action and before absolutely clear. Evidence. Rio Declaration, 1992 also includes qualifying language such as according to their capabilities and postponing cost-effective measures. EU communication 2000 requires intervention to maintain the high level of protection chosen by the EU. The triple negative notion is the definition in the Rio Declaration the absence of rigorous proof of danger does not justify inaction is rather weak it forces the consideration of precautionary intervention but does not require such intervention. The definition in the EU communication on the other hand does require intervention to maintain the high level of protection chosen by the EU.Despite of the fact that various formulations of the precautionary principle have used different words one can easily draw several common points as key elements of the principle. The common understanding of contents of the principle may be summarised as under-Precautionary principle is applicable in cases where scientific uncertainties exist about the harm that is likely to be suffered in future.Some form of scientific analysis of the potential threat is mandatory as mere speculation is not enough to trigger the principle.Unqualified possibility is sufficient enough to consider the applicat ion of the principle.Application of the principle is limited to those hazards that are unacceptable.The principle requires interventions before possible harm occurs.Interventions should be proportional to the chosen level of protection and the magnitude of possible harm.V. Precautionary Principle and International LawThere can not be slightest of doubts regarding recognition and existence of the precautionary principle in the fields of contemporary national and international laws. Its outlines, however, are far from clear from a legal point of view. Essentially, the precautionary principle is an appeal to prudence addressed to policy makers. The principle does not offer a predetermined solution to every new problem raised by scientific uncertainty. On the contrary, the precautionary principle is a guiding principle that provides helpful criteria for determining the most reasonable course of action in confronting situations of potential environmental risk.Whether precautionary princi ple is a legally binding principle in customary international law and national law rather than a guiding principle only is a difficult question to answer. It is generally understood that declarations of principles are not traditional sources of international law and therefore, not binding for the member states of the organisation that adopted them. Such international texts do not have the same legal force as international treaties and conventions. Strictly speaking, declarations of principles are nothing more than recommendations, without binding force. Despite of this fact one cannot undermine the legal relevance of such declarations. Even though they are not considered as sources of international law, they are legitimately capable of generating norms.Declaration of principles, though not binding, can influence the elaboration, interpretation and application of international laws of member states of the international organisations that conceived or endorsed the declarations. One ca nnot underestimate the influence that general principles exert on legal formulation, be it in the international context or in the internal legislation and jurisprudence of countries. In spite of not being obligatory and binding, principles of law constitute important tools for the crystallization of new concepts and values.Article 38 of the Statute of the International Court of Justice provides that the International Court of Justice, whose function is to decide in accordance with international law such disputes as are submitted to it, shall apply amongst other the general principles of law recognised by civilised nations.Thus, the general principles of law are also sources of international law. Therefore, it seems incontestable that among the principles emanating from international declarations, the Precautionary Principle is legally relevant and cannot be disregarded, either by the countries in the international order, or by legislators, policy makers and courts in the domestic sp here. From the moment when the Precautionary Principle is recognised as an element of international law, it also becomes part of the general principles of environmental law, with undisputed legitimacy in guiding the interpretation and application of all legal norms in force.The Precautionary Principle is frequently introduced in framework conventions. Although this strategy is widely used in international environmental law, it is merely a first step in elaborating more precise rules at the international level fleshing out that principle. Furthermore, in a number of international agreements, the Precautionary Principle worded in such a way that it is deprived of immediate and autonomous applicability. Use of terms such as form a basis for, in spite, endeavour, etc. imply that the principle is merely intended to prepare states to implement their international obligations. Only the repeated use of state practice and consistent opinio juris are likely to transform precaution into a cust omary norm.The Principle of precaution has found only limited judicial support so far in international law, this despite many commentators arguing that it has reached the status of a principles of customary international law. In the case of New Zealand v. France, the right of France to carryout nuclear tests in the South Pacific was challenged. The opinion of Weeramantry, J. in this case suggests that the Precautionary Principle is gaining increasing support as part of the international law of the environment. The principle should be used where there is insufficient material before the court to justify action, even if this means acting ahead of full scientific evidence.This opinion, however, was a dissent, and it is worth comparing a more, recent example where the Precautionary Principle has featured in international trade disputes. The US and Canada brought a dispute settlement case before the World Trade Organisation (WTO) against the EC, which in 1989 had banned the import of bee f fed with growth hormones on the grounds that it was not safe for human health to eat such meat. The EC argued that its import ban was justified in the light of the Precautionary Principle, which is presented as a binding rule of international law. The USA and Canada denied that the principle already had such a status. The WTO found that the EC import ban violated WTO law, although the EC has continued to impose its ban and has been forced by the WTO to compensate Canada and the US for lost trade.VI. Status in IndiaIn India there are lots of environmental regulations, but most environmental regulations, like the Water (Protection and Control of Pollution) Act, 1974 and the Air (Prevention and Control of Pollution) Act, 1981 are aimed at cleaning up pollution and controlling the amounts of it release into the environment. They regulate the harmful substances as they are emitted rather than limiting their use or production in the first place. These laws are based on the assumption th at humans and ecosystems can absorb a certain amount of contamination without being harmed. But the past experience shows that it is very difficult to know what levels of contamination, if any, are safe and therefore, it is better to err on the side of caution while dealing with the environment.The Indian Supreme Court has accepted in Vellore case that the Precautionary Principle is part of the environmental law of the country. The Court explained the Precautionary Principle in the context of the municipal law as under-Environmental measures by the State Government and statutory authorities must anticipate, prevent and attach the causes of environmental degradation.Where there are threats of serious and irreversible damage, lack of scientific certainty should not be used as a reason for postponing measures to prevent environment degradation.The onus of proof is on the actor or the developer/industrialist to show that his action is environmentally benign.In Taj case the Supreme Cou rt was dealing with the problem of protecting the Taj Mahal from the pollution of nearby industries. The Court applied the Precautionary Principle as explained by it in Vellore Case and observed-The environmental measures must anticipate, prevent and attack the causes of environmental degradation. The onus of proof is on an industry to show that its operation with the aid of coke/coal is environmentally benign. It is rather, proved beyond doubt that the emissions generated by the use of coke/coal by the industries in TTZ are the main polluters of the ambient air.The Court ordered the industries to change-over to the natural gas as an industrial-fuel or stop functioning with the aid of coke/coal in the Taj trapezium and relocate themselves as per the direction of the Court. The Precautionary Principle has been invoked by the Supreme Court in various cases while deciding environmental issues. In Calcutta tanneries Case the Court ordered the polluting tanneries operating in the city o f Calcutta (about 550 in number) to relocate themselves from their present location and shift to the new leather complex set up by the West Bengal Government. In Badkhal Surajkund Lakes Cases the Supreme Court held that the Precautionary Principle made it mandatory for the State Government to anticipate, prevent and attack the causes of environment degradation. The Court had no hesitation in holding that in order to protect the two lakes from environmental degradation it was necessary to limit the construction activity in the close vicinity of the lakes.Even though the Vellore judgment was followed in the subsequent decision of the Supreme Court, the Court felt the need to explain the meaning of the Precautionary Principle in more detail and lucid manner so that Courts and tribunals or environmental authorities can properly apply the said principle in the matters which might come before them. In A.P. Pollution Control Board v. Prof. M.V. Nayudu, tracing the evolution of precaution ary principle the Court observed Earlier, the concept was based on the assimilative capacity rule as revealed from Principle 6 of the Stockholm Declaration of the U.N. Conference on Human Environment, 1972. The said principle assumed that science could provide policy-makers with the information and means necessary to avoid encroaching upon the capacity of the environmental harm was presumed that relevant technical expertise would be available when environmental harm was predicted and there would be sufficient time to act in order to avoid such harm. But in the 11th Principle of the U.N. General Assembly Resolution on World Charter for Nature, 1982, the emphasis shifted to the Precautionary Principle, and this was reiterated in the Rio Conference of 1992 in its Principle 15.Explaining the cause for the emergence of Precautionary Principle the Court referred Charmian Barton, who argued it makes sense to err on the side of caution and prevent activities that may cause serious or irrev ersible harm. The Court opined that the inadequacies of science was the real basis that had led to the Precautionary Principle. It was based on the theory that it is better to err on the side of caution and prevent environmental harm which may indeed become irreversible.The principle of precaution involved the anticipation of environmental harm and taking measures to avoid it or to choose the least environmentally harmful activity. The Court adopted the view that Environmental Protection should not only aim at protecting health, property and economic interest but also protect the environment for its own sake. Precautionary duties must not only be triggered by the suspicion of concrete danger but also by justified concern or risk potential.The concept of burden of proof in environmental cases recognised in Vellore Case that the onus of proof is on the actor or the developer/industrialist to show that his action is environmentally benign, was further elaborated by the Supreme Court in the Nayudu case, M. Jagannadha Rao, J. noticed, while the inadequacies of science had led to the Precautionary Principle, the said principle in its turn led to the special principle of burden of proof in environmental cases where burden as to the absence of injurious effect of the actions proposed, was placed on those who wanted to change the status quo. This is often termed as a reversal of burden of proof, because otherwise, those opposing the change would be compelled to shoulder the evidentiary burden, a procedure which is not fair. Therefore, the Court observed, it is necessary that the party who wants to alter it, must bear this burden.The Supreme Court favours the view that if the environmental risks being run by regulatory inaction are in some way uncertain but non-negligible, then regulatory action is justified. According to the Court-In such a situation, the burden of proof is to be placed on those attempting to alter the status quo. They are to discharge this burden by s howing the absence of a reasonable ecological or medical concern. That is the required standard of proof. The result would be that if insufficient evidence is presented by them to alleviate concern about the level of uncertainty, then the presumption should operate in favour of environmental protection.In Narmadda Bachao Andolan v. Union of India, the Supreme Court decided the issues relating to construction of dam on Narmada river which was a part of the Sardar Sarovar Project. Explaining the new concept of burden of proof the Court held that the Precautionary Principle and the corresponding burden of proof on the person who wants to change the status quo will ordinarily apply in a case of polluting or other project or industry where the extent of damage likely to be inflicted is unknown. Where the effect on ecology of environment of setting up of an industry is known, the Court held-What has to be seen is that if the environment is likely to suffer, then what mitigative steps can be taken to off set the same. Merely because there will be a change is no reason to presume that there will be ecological disaster. It is when the effect of the project is known then the principle of sustainable development would come into play which will ensure that mitigative steps are and can be taken to preserve the ecological balance.The Court concluded, what was the impact on environment with the construction of a dam was well known in India, the dam was neither a nuclear establishment nor a polluting industry, therefore, the decision in A.P. Pollution Control Boards Case would have no application in this case. Despite of the fact that the Court refused to apply Precautionary Principle in this case as the impact on environment was known as could have been mitigated, in subsequent decisions of the Supreme Court one may find strict adherence to the Precautionary Principle and the new concept of onus of proof.To give effect to the Precautionary Principle, Government of India, pu blished a Notification, which states that the expansion or modernization of any existing industry or new projects listed in schedule I or Schedule II shall not be undertaken in any part of India, unless it has been accorded environmental clearance by the Central Government, or as the case may be, the State Government concerned in accordance with the procedure hereinafter specified in this notification.The notification tries to achieve the objective that certain development projects should be carried on within the carrying capacity of the ecosystems, which will otherwise come under stress, so as to ensure that developmental activity takes place in harmony with the environment. This is possible only by careful assessment of a project proposed to be located in any area, on the basis of an Environmental Impact Assessment (EIA) of each project and the necessary Environment Management plan for the prevention, elimination or mitigation of the adverse impact on the environment, right from t he very inception of the project.VII. ConclusionThe Precautionary Principle, being a principle does not set forth absolute obligations. It simply establishes a policy for implementation by other regulatory means. Its relevance, however, would be in the development of a cluster of norms relating to procedural rules. These would include norms such as those requiring prior environmental impact assessment, the duty to warn or notify others, the duty to mitigate and assist in emergencies, as well as access to information. The emergence of the Precautionary Principle has permanently changed the face of international environmental law and policy.The challenge of implementing the Precautionary Principle while retaining the strength of its original vision is still posing difficult questions before the policy makers. Nevertheless it is well established that Precautionary Principle is an important principle of international environmental law and is gaining strength day by day. Besides being pa rt of several international treaties and declarations the principle has been given place in the body of the national law of many countries.India has recognised and adopted the Precautionary Principle being party to many international declarations and conventions. The EIA notification of the Government of India, Ministry of Environment and Forests established the principle as part and parcel of the legal framework in India. Many pronouncements of the Supreme Court of India, to begin with the Vellore case, have strengthened and incorporated the international environmental law principle into the municipal law. The Apex Court in India has accepted the principle as part of the concept of sustainable development and has applied the principle several times in order to save environment and to give force to ratio of the judgment. We may therefore, draw inference that the Precautionary Principle has got a status of well recognised legal principle in India.