Building a sustainable future : The possible role of enterprises in economic welfare and conservation
By Stephan, founder of Heco and Himalayan Ecotourism
Having worked in the non-profit sector for about eight years in rural India, I deeply immersed myself in a world inhabited by traditional communities, guardians of the natural resources, while businesses of various sizes exploit these resources with the forced collaboration of these communities.
The hypocrisy here is staggering.
The enterprises maximize their profits by employing cheap labor from the communities to extract and transform natural resources into marketable goods. In the process, probably due to inadequate regulations, the natural environment suffers severe degradation, and the local communities, who once managed their resources sustainably for a decent quality of life, gradually get into the process of pauperization. I witnessed this firsthand among the Munda tribal community in Jharkhand, where their sustainable lifestyle was being badly depreciated, leading to a decline in wellbeing and self-esteem.
To address this, the society has devised mechanisms that attempt to mitigate these issues by redirecting some of the profits generated by the enterprises towards these local communities through CSR funds. NGOs receive these funds to implement projects intended to repair the damage caused by the economic machine. In essence, the economy inflicts significant harm on the environment and rural populations, and then allocates a small percentage of the generated profits to clean up the mess, much like sweepers cleaning the streets after they’ve been dirtied.
However, these efforts are rarely a lasting solution to the problem. Perhaps we should think according to the old saying : “prevention is better than cure”. This raises the question: Is it possible to transform the enterprises so that they not only avoid harming nature and local communities but also actively help locals pursue sustainable development and conservation?
Being somewhat disappointed by the functioning of NGOs, I decided to quit the non-profit sector and start a business called Himalayan Ecotourism, a company working with local communities in the rural sides of the Indian Himalayas. Since I wanted to continue working for conservation through social and economic empowerment, I outlined the key principles to guide our operations. First, as the company grows, so should the economic well-being of the local people involved. Second, we aim to minimize and offset our ecological impact to achieve zero net harm. Third, a portion of our profits should be dedicated to social progress and conservation projects.
We began in Tirthan Valley, Himachal Pradesh, organizing treks in the Great Himalayan National Park. Unlike other operators, we gathered locals already working as trekking staff and suggested they unite in an organization, rather than continuing as daily wage laborers. This unity would strengthen their market position, allowing them to improve their income and working conditions.
When this idea gained widespread local support, we registered a cooperative society with 65 founder members. They agreed on fair wages and rules for better working conditions. It was also decided that business profits would be split 50:50 between the cooperative and Himalayan Ecotourism. However, as a revenge, other operators stopped hiring cooperative members, presenting our first challenge: we had to provide employment for 65 persons while remaining competitive despite higher operational costs.
This challenge highlights a common problem for responsible enterprises: their operational or production costs are necessarily higher, sometimes double or triple those of competitors. This discrepancy means that most market prices do not reflect the true costs of responsible or sustainable practices.
In India, the concepts of fair trade and organic products are still gaining traction, with most consumers still opting for the cheapest option. However, a growing segment of society is becoming more sensitive to these issues, and they are our target audience. We reach and educate them through our website, social media, articles and videos, helping them understand that by choosing us, they contribute to local social welfare and ecosystem regeneration.
For about a decade, as a social enterprise, we have engaged in ecological restoration by organizing tree plantation drives and preventing forest fires in the Himalayas, which is in accordance with our initial commitment. But in 2024, we launched two projects that really exemplify how a business can create positive impacts on communities and their natural environment.
The first project focuses on women’s empowerment around the Great Himalayan National Park, where we trained ten underprivileged women as trekking guides. This initiative is significant because women are typically not allowed to engage in such economic activities. The project has had a profound impact, positively influencing how other villagers view the social status of women and inspiring other women to pursue their own emancipation.
The second project involves reintroducing sustainable tourism in remote rural areas of Ladakh. This initiative provides vital extra income and hence, reinforces the value of village life in the eyes of Ladakhi youth, helping to preserve the symbiotic Ladakhi way of life.
Both projects have positive effects on local communities and the natural environment, as they promote conservation through women’s empowerment in Himachal Pradesh and the revitalization of village life in Ladakh.
By doing business, we enhance the lives of locals and promote conservation. Could transforming enterprises into social enterprises be the solution for a sustainable economy?
