Business ethics & sustainability in steel industry tata steel

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Business ethics & sustainability in steel industry tata steel

  1. 1. Business Ethics and Sustainability in Steel IndustryBy .::No Sin – I Win::.Group MembersWaqas Ali TunioSaud Zafar UsmaniZulfiqar HussainLt. Cdr. Ghulam QadirLt. Cdr. Tahir Mughal Pakistan Navy Engineering College (PNEC) National University of Sciences & Technology, PNS Jauhar, Karachi - Pakistan
  2. 2. Scheme of Presentation•Introduction•Business Ethics & Sustainability•Making Ethical and Sustainable Decisions•Promoting the Sustainability of Steel•Benefits of Taking Responsibility for Sustainability•Conclusion
  3. 3. What is sustainable business?• Development that meets the needs of the present without compromising the ability of future generations to meet their own needs. (1987 Bruntland Commission UN)
  4. 4. Introduction - People Profit Planet – The Triple Bottom Line•People—Planet—andProfits — creating a betterbalance betweensocial, environmental andeconomic factors for short-and long-term performance.•Energy and resourceefficiencies are critical todecrease the environmentalimpact of organizations whileat the same time improvefinancial health.•Conserving, recovering andmanaging resources ensurethat companies have longterm access to potentiallyfinite assets
  5. 5. Introduction• The systematic consideration of design performance with respect to environmental, health, and safety objectives over the full product life cycle• The systemic integration of environmental performance throughout the product life cycle in the conceptualization and planning of a product.
  6. 6. Introduction• Tata Steel was established in 1907as a Greenfield project in easternIndia.• 2nd largest steel producer inEurope and has plants in UK andHolland.• The European operations are asubsidiary of Tata Steel Group, oneof the world’s top ten steelproducers.• The combined Group has around80,000 employees.
  7. 7. • A commitment to environmentally sound practices is part of manyIntroduction businesses’ commitment to act responsibly. • Social responsibility refers to an organisation’s obligations to maximise its long-term positive impacts and minimise its negative impacts on society. • For a Steel industry, it is a core part of its vision to be ‘the global steel industry benchmark for value creation and corporate citizenship.’
  8. 8. Tata Steel is committed to tackling the challenges of sustainability. This means that ittakes its responsibility towards both the environment and its communitiesseriously, balancing these against the need to make a profit.• It has put systems in place to meet international standards for environmentalmanagement such as ISO 14001.
  9. 9. Business Ethics & Sustainability• Business ethics means ‘taking the right course’.• Acting ethically takes into account all the factorsof doing business which includeproduction, business processes, and the company’sbehavior with its customers and the communities inwhich it operates.• It is about doing the right thing in everything thecompany does.
  10. 10. • Tata Steel has five core valueswhich define the ethics of the Business Ethics &company:1. • Integrity Sustainability2. • Understanding3. • Excellence4. • Unity5. •Responsibility• These values are evident ineverything that it does anddrive the ethical behavior of thecompany.• For Tata Steel, takingresponsibility for tackling thechallenges of sustainabilityfollows naturally from thisethical stance.
  11. 11. • The Tata Steel definition of sustainability is ‘an enduring and balanced approach to economicactivity, environmental responsibility and societal benefit’.• This naturally involves taking a long-term perspective on balancing economic, environmentaland social impacts of business. “We generate wealth for the people. What comes from the people must, to the extent possible, therefore get back to the people.” - Bharat Ratna, J R D Tata
  12. 12. Making Ethical & Sustainable Decisions• Current laws encourage ethical and sustainable practices e.g. anti-pollution lawsplace strict limits on levels of CO2 emissions.• Tata Steel not only abides by these laws, but with its high ethical standards, aimsto go beyond the minimum required by law, making a positive contributionwherever possible.• This approach to CSR ensures that Tata Steel can tackle the relevant sustainabilitychallenges. This is good for the environment, for the people that work with and forTata Steel, for the communities in which Tata Steel operates and also good forcustomers and therefore for business and profits.
  13. 13. • Tata Steel builds ethical and sustainable practices into all areas of its operations.• Steel has the benefit of being truly recyclable but is produced by a process that producesCO2 emissions.• Tata Steel is working to reduce these emissions using new technology and practicese.g. it has introduced technology to re-use gases produced to create electricity equivalent to10% of its needs. This has reduced the need for natural gas for power and helped reduce itsCO2 emissions by nearly 300,000 tonnes.• Tata Steel has set goals to reduce CO2 emissions to less than 1.7 tonnes per tonne of crudesteel by 2012.
  14. 14. Tata Steel has continued to invest effort and resources in relation to the five keypriorities that underpin its vision with regard to climate change. These prioritiesare to:1. Continue to achieve emission reductions.2. Invest in longer-term breakthrough technologies for producing low-carbon steels.3. Develop new products and services that generate lower CO2 emissions through the life cycle.4. Actively engage the entire workforce in this challenge.5. Lead by example within the global steel industry.
  15. 15. Life Cycle Assessment• Tata Steel promotes lifecycle thinking so thatdecisions are taken on the basis of manufacture, useand end-of-life phases for any material or product.• Life cycle assessments (LCA) assess the trueenvironmental impact of a product over its full life.• Tata looks at the environmental impact ofmanufacturing a material, using it and finallydisposing of the product.• Through LCA Tata Steel is able to show that, in manycases, steel provides the most environmentally-friendly material solution.
  16. 16. Promoting Sustainability of Steel• Tata Steel demonstrates ethical and sustainable practice in its own operations.• It goes further in encouraging its customers and markets to also make decisions based onsound sustainability principles.• The three examples (given on next slides) demonstrate where life cycle thinking is helpingTata Steel to promote the use of steel, while at the same time encouraging ethical behavior.
  17. 17. Automotive Industry• Most CO2 emissions come fromcars, referred to as ‘tailpipe emissions’. Thelaws targeting the reduction only look at caremissions and not those caused bymanufacturing and scrapping vehicles.• Use-phase emissions can be reduced bymaking the car lighter as it uses less fuel. Butmaterials such as aluminium, or reinforcedplastics have high environmental costs inmanufacturing and are not as easy to recycleas steel. The savings made from using themare usually outweighed by the CO2 producedin the other life-cycle phases.• Outcome: Tata Steel is now influencing thenext generation of legislation to movetowards an LCA approach rather than justlooking at ‘tailpipe’ emissions.
  18. 18. There has been a revival in theuse of timber frames for Construction Industrybuildings which is perceived asbeing a sustainable and ‘green’resource. However, when TataSteel looked at the LCA of timberin terms of where it came fromand how it was recycled, it foundthat carbon emissions weresimilar to a typical steel framedbuilding as most timber fromdemolished buildings is eitherland-filled or incinerated.Outcome: Tata found out thatusing a steel frame (wherestudies have shown that 99% isrecycled) produces less CO2 overthe entire life-cycle than using atimber frame. The results fromthe LCA study of buildingstructures are being used toprovide facts toarchitects, engineers andlegislators regarding material
  19. 19. • Many consumer brands are keento give an image of environmentalresponsibility by reducing Packing Industrypackaging or its weight. LCA studiesby Tata Steel have shown thatfocusing on weight reduction doesnot necessarily make for moresustainable packaging. Targets juston weight reduction could lead tothe wrong decision, for example, touse alternative packaging materialsthat could take more energy toproduce and are not alwayscompletely recycled when they aredisposed of.• Outcome: Tata Steel and itsindustry partners used their LCAapproach to persuade regulatorsto take a different view on steelused in packaging. This resulted innational recycling targets taking afull life-cycle approach by usingactual recycling rate as themeasure, rather than reducing thetotal weight of cans.
  20. 20. • A commitment to ethical behaviorCorporate Social Responsibility is often shown in the Corporate Social Responsibility (CSR) policy of a business. • The Tata Steel sustainability policy states that: ‘Our policy is to conduct our activities in relation to economic progress, social responsibility and environmental concerns in an integrated way in order to be more sustainable and to meet the expectations of our stakeholders.’
  21. 21. Benefits of Taking Responsibility for Sustainability• Sustainable practices are often the best business options for a company. Takingresponsibility for sustainability is increasingly important both to ensure reputation and also tosatisfy the demands of a range of stakeholders. Benefits include an enhanced reputation &greater customer loyalty, fewer raw materials, less power and more recycling.• Taking responsibility for sustainability is one way for Tata Steel to compete. It also helps thecompany to leverage its position to promote its own products. The benefits are also felt byemployees, who are better motivated to work for a company that they perceive as ‘doingthe right thing’.
  22. 22. Conclusion• Tata Steel has shown that it iscommitted to sustainable andenvironmental practices as part of itsoverall aim to act responsibly.• It shows commitment and progresstowards key targets of sustainability aswell as encouraging sustainable decisionmaking in its customers and within theirmarkets.• The key to the success of this approachis to recognize the unique properties ofsteel as a recyclable material and toensure that measurements ofsustainability are taken over the entire lifecycle of a product, not just the use-phase.
  23. 23. Business Ethics and Sustainability in Steel IndustryBy .::No Sin – I Win::.Group MembersWaqas Ali TunioSaud Zafar UsmaniZulfiqar HussainLt. Cdr. Ghulam QadirLt. Cdr. Tahir Mughal Pakistan Navy Engineering College (PNEC) National University of Sciences & Technology, PNS Jauhar, Karachi - Pakistan

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