Case Study Tata Steel

Question: Discuss about theCase Studyfor Tata Steel. Answer: Company's Approach Towards CSR Tata Steel has a very strong CSR (Corporate Social Responsibility) policy. CSR can be defined as an approach adopted by an organization that takes into consideration the economic, social and environmental aspects of business (Gelbmann, 2010). The CSR policy adopted by Tata Steel reflects the company's commitment towards business ethics. The company believes that providing good products and services is not sufficient to survive in today's business environment. Companies are constantly being judged by the stakeholders on the basis of what is being offered, how it being offered and what is the impact on the environment. The company makes every possible effort to adopt "greener" business options (Gelbmann, 2010). The company demonstrates its CSR by advocating ethical behavior. The company values its stakeholders and fulfills its ethical obligations towards them. The company's sustainability policy tries to integrate its business activities with economic development, conservation of the e nvironment and social reforms. This approach is beneficial for the environment, local communities, employees, and customers. Tata Steel believes in regulatory compliance and ethical compliance (Gelbmann, 2010). For example, the company abides by the anti-pollution laws. The company not only strives to achieve the lower limits but also tries to make significant contributions towards environmental protection. The company takes initiatives towards cost reduction through proper utilization of energy and waste management. Sustainable Practices Adopted by the Company to Underpin its Vision Steel has innumerable applications. But at the same time, it is recyclable. When recycled, the quality of steel does not deteriorate. Production of steel leads to carbon dioxide emissions that result in climatic changes (Katewa, 2015). The company's sustainable practices included the reduction of carbon dioxide emissions. The gases produced at the manufacturing plant are re-used to produce electricity. The produced electricity is equivalent to 10% of company's electricity needs. This brings down the consumption of natural gas for the production of electricity. As a result, carbon dioxide emissions have reduced by 300,000 tons (Katewa, 2015). The company is making investments in Research and Development activities for manufacturing steel with low carbon content. The company wants to offer products that generate lesser carbon dioxide in their life cycle. Analysis of Life Cycle Assessment Life Cycle Assessment (LCA) is used to study the impact of the product on the environment throughout its life cycle. According to LCA, steel is considered as the most environmental-friendly building material (Jha and Arora, 2013). Steel used in construction can be recycled whereas; concrete and timber are dumped at the end of their life cycle. This reduces carbon footprints. Thus, builders are using steel for low carbon impact. The UK government is trying to introduce sustainability in the packaging industry by bringing down the weight of packaging material used by companies (Jha and Arora, 2013). According to the LCA done by Tata Steel, it is not a right decision. These regulations can lead to companies using lighter packaging materials that are not recyclable. According to LCA, steel is a sustainable option for packaging because it can be recycled. Steel cans are a sustainable option. Tata Steel also encourages other brands in the steel industry to follow sustainable practices. Veh icles are a major source of carbon dioxide emissions (Gjlberg, 2010). The emissions are not only generated during the usage phase of automobiles but also during their production and disposition. According to LCA, steel is the most suitable material for reducing carbon emissions from automobiles especially cars. Sustainable Approach It is important for an organization to maintain a good brand image. The sustainable decisions which are to be taken for the company project such companies are socially-responsible and environmentally-committed organization. This boosts the reputation of Tata Steel. The product offered by the company also ensures sustainability. Tata Steel makes decisions on the basis of product life cycle. Thus, sustainable decisions are made by taking into consideration the manufacturing, usage, and disposition of products (Jha and Arora, 2013). Most companies base their decisions on one phase of product life cycle- manufacturing or usage. But Tata Steel considers the environmental and social implications throughout the product life cycle. Conclusion Tata Steel ensures that its business practices do not impact the society and environment in a negative manner. Steel is a sustainable option in the several industries like automobile, construction, and packaging because it can be recycled. CSR helps to difference Tata Steel from its competitors (Gjlberg, 2010). Ethical and sustainable decisions also increase employee satisfaction. Sustainable business approaches increase business efficiency and customer loyalty. Corporate sustainability creates value for the stakeholders and improves company reputation. Thus a company enjoys higher profits. References Gelbmann, U. (2010). Establishing strategic CSR in SMEs: an Austrian CSR quality seal to substantiate the strategic CSR performance.Sustainable Development, 18(2), pp.90-98. Gjlberg, M. (2010). Varieties of corporate social responsibility (CSR): CSR meets the Nordic Model.Regulation Governance, 4(2), pp.203-229. Jha, V. and Arora, S. (2013). Strategic leadership for corporate sustainable development at Tata Steel.International Journal of Indian Culture and Business Management, 7(3), p.283. Suh, S. and Heijungs, R. (2007). Power series expansion and structural analysis for life cycle assessment.The International Journal of Life Cycle Assessment, 12(6), pp.381-390.