In: Economics
Ethics and Sustainability: Tata Steel
Tata Steel is the second largest steel producer in Europe and has its main steelmaking plants in the UK and Holland. It supplies steel and related services to major industries such as construction, vehicle production and packaging. Business ethics means ‘taking the right course’. Acting ethically takes into account all the factors of doing business. These include production, business processes and the company’s behavior with its customers and the communities in which it operates. It is about doing the right thing in everything the company does. Tata Steel has five core values which define the ethics of the company: integrity, understanding, excellence, unity and 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. The Tata Steel definition of sustainability is ‘an enduring and balanced approach to economic activity, environmental responsibility and societal benefit’. Sustainability is about meeting the challenges of ensuring that future generations can enjoy the same kind of lifestyle people enjoy today.
A commitment to ethical behavior is often shown in the corporate social responsibility (CSR) policy of a business. Businesses are no longer judged solely on their ability to deliver goods and services but also on the manner of delivery and how they impact on society and the environment. Its approach to CSR ensures that Tata Steel can tackle the relevant sustainability challenges and in particular satisfy all its relevant stakeholders. Through saving energy and waste, Tata Steel can work more efficiently and reduce costs. Acting responsibly also benefits its reputation. This enhances the image of Tata Steel as an environmentally-committed and responsible business, giving good PR in a competitive world market.
Steel is one of the best materials to use to ensure sustainability. Steel is a unique material because it is truly recyclable – when steel is recycled it becomes new steel and not an erior product. It can be re-used over and over again. Steel is the most recycled material on Earth. The impact of making steel can be viewed as an investment in a material which will be used again and again, rather than a one-off, making steel a very ‘green’ material. Sustainability is about much more than CO2, but one of the major challenges of sustainability is to reduce CO2 emissions which may contribute to climate change. Tata Steel is working to reduce these emissions using new technology and practices.
Tata Steel demonstrates ethical and sustainable practice in its own operations. However, it goes further in encouraging its customers and markets to also make decisions based on sound sustainability principles. For example, although tail pipe emissions can be reduced by making cars lighter, materials such as aluminum, magnesium and carbon-fibre reinforced plastics have high environmental costs in manufacturing and they are not as recyclable as steel. The savings made from using them are usually outweighed by the CO2 used in production. Tata Steel has joined forces with other steel-makers to produce the ‘Future Steel Vehicle’ which showcases the latest advancements in steel technology.
Read the text and answer all the questions
Questions |
Notes |
Marks |
|
Q.1 |
Write ONE paragraph |
25 |
|
1.1. Define sustainability. Give an example. 1.2. Explain why steel is sustainable. |
3+2=5 5x2=10 |
||
Q2 |
Write ONE paragraph |
||
2. Describe 2 benefits that Tata Steel gains from acting responsibly. |
2x5=10 |
ANSWERS
1.1 Sustainability generally means ensuring the resources that are utilized today be reserved for a tomorrow, such that the future generations can enjoy yhe same kind of liestyle that we are enjoying today. It aims at limiting the wastage of resources to the bare minimum. Sustainability works based on the policy of efficient working by reducing costs. One of the very prominent examples can be that of TATA Steel. It has a very effective plan that focusses on ensuring sustainability. It has an enduring and a balanced approach to economic activity, environmental responsibility and societal benefit.
1.2 Steel is one of the most promising material to ensure sustainability. It is one of the few materials that can be recycled not once but multiple times, making it quite efficient and effective for industrial use. Due to its constant recyclable nature, it is generally termed as a green material.
2. The two benefits that TATA Steel gets from acticng responsibly are-