XIBMS – Sustainable business at Corus

XIBMS – Sustainable business at Corus

Introduction

Corus is the UK\’s biggest steel manufacturer. Even so, it still has to compete. In 2004 it launched a programme to make itself more efficient. Part of the program, called \’Restoring Success\’, focuses on recycling steel. The world economy is growing. The demand for steel has increased as more nations such as India and China have grown. Recycling as part of sustainable development has thus become vital. It has become a main concern for Corus.

What is sustainable?

Sustainable development is linked to resources. It means leaving at least as much for the future as we had to start with. This shows respect for the environment. It also shows thought the future. Everyone should try to aim for sustainability. This includes governments, businesses and people.

Recycling

Steel can be recycled over and over again with no loss of quality. This makes it stand out in terms of sustainability.  It is easy to extract steel from waste because of its unique magnetic properties and recycle it from scrap. By recycling steel Corus helps to:

* preserve natural resources

* protect the environment

* meet targets for reducing waste.

Corus is working hard to make the public aware of what can and should be recycled. Steel can be recycled from drink and food cans, lids, paint cans and aerosols. Not everyone knows what can be recycled. For instance, 57% of consumers recycle drinks cans but only 7% recycle aerosols. Corus is working to develop a \’closed loop\’ for steel.

The steel would go from consumers to recycling plants, then into production and back to consumers.

Stakeholders

Corus sees that there are two sides to recycling.  There are gains, but there can also be extra costs.  To keep all of its stakeholders happy, it must balance these.  There are effects on :

the planet. Fewer resources are used but energy is needed to recycle

* consumers. They have a smaller carbon footprint but more time is needed to recycle

* employees. More are involved in recycling

*communities. Less waste is stored in landfill but there may be noise from recycling plants.

Gains include lower production costs, governments hitting recycling targets and all of us having a better planet to live on.

Costs and benefits

It is possible to weigh up costs and benefits. A monetary value can be put on them. Businesses want gains to outweigh costs. Corus gains from recycling. Socially. Corus gains a good reputation. There is reduced impact on the environment, lower energy use and less waste. There are also costs. These include the cost of recycling and of collecting and sorting waste steel. Corus has created a number of targets to help measure its success. These are called Key Performance Indicators. They include

• Corus’  UK energy use being reduced to less than 1997 levels
• an increase in the steel recycling rate to 55%.

Conclusion

Corus works to recycle as much as it can. This helps towards greater sustainability. It shows concern for all its stakeholders. Consumers can also help by recycling as much as they can.

Issues for Discussion

1. What is sustainability and whose responsibility is it?
2. Describe three actions that an individual can take to support sustainability and two actions that a business can take?
3. Steel lends itself to recycling. What actions could be taken to increase public awareness of steel recycling?
4. Recommend actions that individuals and businesses can take to enhance the closed loop \’steel to steel\’ recycling process.
5. Recommend ways in which the benefits of steel recycling can be increased compared to the costs of recycling steel. 

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