Business Ethics and Sustainability in Steel Industry - Tata Steel by Waqas Ali Tunio

8/3/2019 Business Ethics and Sustainability in Steel Industry - Tata Steel by Waqas Ali Tunio

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Business Ethics and Sustainability in Steel Industry

Pakistan Navy Engineering College (PNEC)National University of Sciences & Technology, PNS Jauhar, Karachi - Pakistan

By .::No Sin I Win::.

Group Members

Waqas Ali Tunio

Saud Zafar Usmani

Zulfiqar Hussain

Lt. Cdr. Ghulam Qadir

Lt. Cdr. Tahir Mughal


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Scheme of Presentation

Introduction

Business Ethics & Sustainability

Making Ethical and Sustainable DecisionsPromoting the Sustainability of Steel

Benefits of Taking Responsibility for Sustainability

Conclusion


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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)


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Introduction - People Profit Planet The Triple Bottom Line

PeoplePlanetand

Profits creating a better

balance between social,environmental and economic

factors for short- and long-

term performance.

Energy and resource

efficiencies are critical to

decrease the environmental

impact of organizations while

at the same time improve

financial health.Conserving, recovering and

managing resources ensure

that companies have long

term access to potentially

finite assets


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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.


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Tata Steel was established in 1907

as a Greenfield project in eastern

India.2nd largest steel producer in

Europe and has plants in UK and

Holland.

The European operations are a

subsidiary of Tata Steel Group, one

of the worlds top ten steelproducers.

The combined Group has around

80,000 employees.

Introduction


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A commitment to environmentally sound practices is part of many

businesses commitment to act responsibly.

Social responsibility refers to an organisations 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.

Introduction


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Tata Steel is committed to tackling the challenges of sustainability. This means that it

takes its responsibility towards both the environment and its communities seriously,

balancing these against the need to make a profit.

It has put systems in place to meet international standards for environmental

management such as ISO 14001.


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Business Ethics & Sustainability

Business ethics means taking the right course.

Acting ethically takes into account all the factors

of doing business which include production,

business processes, and the companys behaviorwith its customers and the communities in which it

operates.

It is about doing the right thing in everything the

company does.


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Tata Steel has five core values

which define the ethics of the

company:

1. Integrity

2. Understanding

3. Excellence

4. Unity

5. Responsibility

These values are evident in

everything that it does and

drive the ethical behavior of the

company.

For Tata Steel, taking

responsibility for tackling the

challenges of sustainability

follows naturally from this

ethical stance.

Business Ethics &

Sustainability


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The Tata Steel definition of sustainability is an enduring and balanced approach to economic

activity, environmental responsibility and societal benefit.

This naturally involves taking a long-term perspective on balancing economic, environmental

and 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


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Making Ethical & Sustainable DecisionsCurrent laws encourage ethical and sustainable practices e.g. anti-pollution laws

place strict limits on levels of CO2 emissions.

Tata Steel not only abides by these laws, but with its high ethical standards, aims

to go beyond the minimum required by law, making a positive contributionwherever possible.

This approach to CSR ensures that Tata Steel can tackle the relevant sustainability

challenges. This is good for the environment, for the people that work with and for

Tata Steel, for the communities in which Tata Steel operates and also good for

customers and therefore for business and profits.


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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 produces

CO2 emissions.

Tata Steel is working to reduce these emissions using new technology and practices

e.g. it has introduced technology to re-use gases produced to create electricity equivalent to

10% of its needs. This has reduced the need for natural gas for power and helped reduce its

CO2 emissions by nearly 300,000 tonnes.

Tata Steel has set goals to reduce CO2 emissions to less than 1.7 tonnes per tonne of crude

steel by 2012.


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Tata Steel has continued to invest effort and resources in relation to the five key

priorities that underpin its vision with regard to climate change. These priorities

are 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.


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Tata Steel promotes lifecycle thinking so that

decisions are taken on the basis of manufacture, use

and 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 of

manufacturing a material, using it and finally

disposing of the product.

Through LCA Tata Steel is able to show that, in many

cases, steel provides the most environmentally-

friendly material solution.

Life Cycle Assessment


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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 on

sound sustainability principles. The three examples (given on next slides) demonstrate where life cycle thinking is helping

Tata Steel to promote the use of steel, while at the same time encouraging ethical behavior.


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Most CO2 emissions come from cars,

referred to as tailpipe emissions. The laws

targeting the reduction only look at car

emissions and not those caused bymanufacturing and scrapping vehicles.

Use-phase emissions can be reduced by

making the car lighter as it uses less fuel. But

materials such as aluminium, or reinforced

plastics have high environmental costs in

manufacturing and are not as easy to recycleas steel. The savings made from using them

are usually outweighed by the CO2 produced

in the other life-cycle phases.

Outcome: Tata Steel is now influencing the

next generation of legislation to move

towards an LCA approach rather than just

looking at tailpipe emissions.

Automotive Industry


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Many consumer brands are keen

to give an image of environmental

responsibility by reducing

packaging or its weight. LCA studies

by Tata Steel have shown that

focusing on weight reduction does

not necessarily make for more

sustainable packaging. Targets just

on weight reduction could lead to

the wrong decision, for example, to

use alternative packaging materials

that could take more energy to

produce and are not always

completely recycled when they are

disposed of.

Outcome: Tata Steel and its

industry partners used their LCA

approach to persuade regulatorsto take a different view on steel

used in packaging. This resulted in

national recycling targets taking a

full life-cycle approach by using

actual recycling rate as the

measure, rather than reducing thetotal wei ht of cans.

Packaging Industry


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There has been a revival in the

use of timber frames for

buildings which is perceived as

being a sustainable and green

resource. However, when Tata

Steel looked at the LCA of timber

in terms of where it came from

and how it was recycled, it found

that carbon emissions were

similar to a typical steel framed

building as most timber from

demolished buildings is either

land-filled or incinerated.

Outcome: Tata found out that

using a steel frame (where

studies have shown that 99% is

recycled) produces less CO2 overthe entire life-cycle than using a

timber frame. The results from

the LCA study of building

structures are being used to

provide facts to architects,

engineers and legislatorsre ardin material choice.

Construction Industry


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A commitment to ethical behavior

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.

Corporate Social Responsibility


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Sustainable practices are often the best business options for a company. Taking

responsibility for sustainability is increasingly important both to ensure reputation and also to

satisfy 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 the

company to leverage its position to promote its own products. The benefits are also felt by

employees, who are better motivated to work for a company that they perceive as doing

the right thing.

Benefits of Taking Responsibility for Sustainability


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Conclusion

Tata Steel has shown that it is

committed to sustainable andenvironmental practices as part of its

overall aim to act responsibly.

It shows commitment and progress

towards key targets of sustainability as

well as encouraging sustainable decision

making in its customers and within theirmarkets.

The key to the success of this approach

is to recognize the unique properties of

steel as a recyclable material and to

ensure that measurements of

sustainability are taken over the entire life

cycle of a product, not just the use-phase.


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Business Ethics and Sustainability in Steel Industry

Pakistan Navy Engineering College (PNEC)

National University of Sciences & Technology, PNS Jauhar, Karachi - Pakistan

By .::No Sin I Win::.

Group Members

Waqas Ali Tunio

Saud Zafar Usmani

Zulfiqar Hussain

Lt. Cdr. Ghulam Qadir

Lt. Cdr. Tahir Mughal

Business Ethics and Sustainability in Steel Industry - Tata Steel by Waqas Ali Tunio

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