Discuss about the Communication in Business.
It is has been observed that the field of responsible practice is one of the most significant as well as the challenging subjects that marketers in the corporate field face today. Furthermore, it has been identified that corporate social responsibility refers to the addressing in a balanced way the economic, environmental and the social influence of business operation, whereas forming the shareholder value. The current assignment prepares the corporate social responsibility audit of the organization BHP Hilton. The business organization are established to gain profit by selling the products that help to identify the market demand in the corporate areas.
The approach of BHP Billiton to engage the external auditor for the performance of audit as well as the other services assure that BHP’s financial audit is approved by the specific level of BHP Billiton management (BHP Billiton 2016). The operational approach of the organization are reported by to BHP Billiton Risk and Audit committee. It is necessary for the organization to carry out the financial audit as it helps to identify the current financial stability of the organization, financial performance and the risky areas.
The major purpose of the organization is to create long-term shareholder value through the process of acquisition, development as well as the marketing of natural resources. The part of corporate government to high standard governance is usually expressed through the approach adopted by the organization to engage the shareholders as well as make communication with them. The CSR of the organization include the shareholder engagement, extended responsibility of the organization. The organization BHP Billiton is known as the leading global resources organization with the purpose of forming long-term shareholders value through the enhancement and marketing of natural resources. The major aim of this report is to conduct a corporate social responsibility for the organization BHP Billiton.
It is evident that the organization BHP Billiton is one of the leading global organization. Currently, the organization holds the top position of producing the commodities. The commodities generally include iron ore, metallurgical coal, copper and uranium. Hence, four different segments of BHP’s operation have been discussed in the following.
Success factors: The organization gains the success when the people in BHP start the operation in daily basis with a particular sense of purpose and complete the operation with the sense of accomplishment. In addition, the communities involved with the operation of the organization, clients as well as the suppliers tend to value their relationship with the company. The operational disciplines as well as the financial strength enables its future growth. Further, the due to the large amount of profit, the shareholders of the organization receive an excellent return on the investment they make while holding the share of the organization.
External factors including the dynamic trends: It has been identified that economic outlook of the company is in the dynamic state. In this context, Gilman et al. (2013) added that the economy in the global environment increases at a moderate rate with a mild progress especially in the economically developed countries balancing a moderation in emerging market. It has been investigated that in developing counties like China, decrease in the property sector as well as the fixed asset spending leads to poor economic growth. However, in 2014, the scenario was little profitable than the current year (Hickenbottom et al.,2013).
Climate change: It is identified that the physical influence of the climate change as well as multiple regulations that tend to address climate change could affect the operation of the organization. In addition, it could also influence the productivity as well the market in which the organization sells its products and services. In this context, Yusuf et al. (2013) added that physical effects could include the changes in the rainfall patterns, scarcity in the water and rise in the levels of the sea.
Corporate planning: The organization BHP has long standing as well as the corporate planning process that helps to underpin the enhancement as well as the delivery of company’s strategy. The corporate planning process of BHP include involve review of the strategy against the dynamic external environment, the threats and opportunities of the current operation.
Core principles: The corporate cycle planning of the company, includes certain corporate principles such as board and GMC ownership as well as the regular view of the strategies and strategic priorities (Lin-Hi & Müller (2013). The corporate principles may also include the regular engagement between the GMC, business, marketing and group functions.
Strategic priorities: BHP Billiton focuses on running the operation effectively emphasizing on the areas such as protecting its people and develop the health and safety of the operation. As mentioned by Raufflet, Cruz and Bres (2014), the health and safety of the individuals who are involved in the operation of the organization is central to the success of the organization. The developed organizational culture of BHP contributes to create a safety and healthy work environment where its people could work with no hazards.
Contributing to the sustainable development of its host communities: The organization puts an enormous effort to be a significant partner in the communities in which it runs the operation. Through its vast interactions, the company tends to foster significant long-term relationship that include the local culture and generate lasting profits. BHP Billiton gains the popularity due to its wider contribution to the society.
As opined by Geibler (2013), certain programs involved the corporate social responsibility that could largely reflect on the business. The organization could contribute to the social development if the purpose of the organization is aligned with the social purpose. Each organization needs to keep a close view on the corporate social responsibility. As mentioned by Maconachie and Hilson (2013), by performing the CSR responsibility effectively, the organizations could increase the business value. Leather, Bahadori., Nwaoha and Wood (2013) opined that it is becoming difficult to differentiate the efforts of one organization from others. On the contrary, added Noronha, Tou, Cynthia & Guan (2013) the corporate leaders tend to develop the propriety approaches to implement the changes that can be effectively measured. As put forward by Morali & Searcy (2013), 3M Canada’s Healthy Communities program was developed to spark a systematic change in the correlated areas of health and environment and education with the contribution of effective government as well as academic leaders.
While analysing the CSR o BHP Billiton, it is found that the organization is vastly committed to make positive contribution to the environment. In addition to form a responsible as well as ethical business, the company contributes widely to the communities, regions as well as the countries in which, the organization performs its operation. In this context, Seuring and Gold (2013) opined that as the mining industry develops gradually and more discoveries are made, the organizations in the current era are determined to form corporate social responsibility in the communities where they perform the operation. Most of the large organizations in oil and gas industry tend to focus on the influence of external environment along with the high quality of management within the organization. These organizations involve both processes as well as the people. As the CSR standards in oil and gas industry have been increased in Australia, the organizations in this industry pay attention not only to build an effective relationship locally, they are determined to strengthen the relationship in the global environment as well.
The Australian government expects that organizations in the mining industry must comply with the mandatory laws as well as the obligations while operating the business in the global environment. Some of the large organizations in this industry have started running the supportive programs. On the contrary, the overseas government are brought to Australia to perform in the short courses to develop their capacity to deal with the resources sustainability as well as the equitability. In such context, the organization BHP Billiton is seen to be running varieties of mining as well as the processing operations in more than 25 countries with the employees around 41000 (BHP Billiton, 2016).
There have been certain issues or the challenges that organization BHP Billiton may have to deal with while performing the CSR responsibilities. For example, CSR performance of the supplier could significantly influence the operational as well as the financial success of its clients. The company has to deal with the pressure in implementing the practices that help to maintain transparency, avoid corruption, protect human rights and enhance the environmental sustainability. In such context, the organization BHP Billiton needs to set clear expectation, build assure mechanism and calculate the cost implications of dealing with its supply chain.
Maintaining the balance of competition for water resources: As mentioned by Darkwah (2013), the changes in the climate and the increasing growth in the population have created pressure on global supply chain especially in some developing countries. On the contrary, it has also been investigated that the limited supply and increased demand by water-intensive industries such as gas and oil industry, increase the concern of the competition for water resources. In addition, it is assumed that the competition may rise in the upcoming years. Thus, to deal with the competition, BHP Billiton may have to invest in innovative solution for sustainable water management.
The challenge of labour relations and regaining worker trust: It has been identified that a series of violent confrontation in Australia and some other developing countries have brought the workers issues to the forefront of the large organizations in oil and gas industry. The organizations are facing the issues with the labour unions as well as the local partners. In this context, Ite, Ibok, Ite, and Petters (2013) commented that the organizations in oil and gas industry have raised the issues of better pay and effective work conditions. In Australia, the organizations are in the rush of developing as well as reviewing their labour management practice.
According to the current annual report, the organization BHP Billiton has wide contribution to the communities, regions and the countries in which the organization has been operating. Therefore, it is determined to strengthen the society. The organization is committed to achieve this by engaging itself in significant issues and supporting the target developed areas to provide benefits to the society. With the increased contribution to the society, the organization is striving to create sustainable future.
Company’s approach to community investment: The organization is expecting its community investments to be effective and they try to deliver the best possible outcome for the communities. The organizations supports the projects that are driven by the requirements as well as resources of its communities. The investments made by the organizations are made locally and globally.
Economic development: The organization aims to create economic as well as the social benefits for the communities in which it runs the operation. In addition, a local organization provides people the ability to take part in social development and benefit from the opportunities in the areas.
Education in training: There is a firm belief that education is one of the most effective ways of empowering society and the organization BHP Billiton promotes the life-long learning. The organization tends to support early childhood education as well as the parenting program. In order to boost the business, the organization BHP Mitsubishi Alliance focuses on extending the economic opportunities from its operation to provide effective business opportunities to the local firms (Harms, Hansen and Schaltegger (2013). In addition, with this help of this initiative, the local organizations could earn profits from the investment made in developing the business. Moreover, this further helps the organizations to become more competitive in the market. It also helps to build a strengthened regional economy.
The above-mentioned CSR activities performed by BHP helps to identify that the organization could achieve the economic growth through the contribution to the society and the communities in which the organization run the operations. The organization makes large investments in developing the culture, education and health of the community. In addition, the organization plays the crucial role in providing the human assistance at the time of crisis or deficiency. BHP initiative takes the initiative of offering the emergency relief efforts to meeting the basic requirements of people in the community. By implementing the initiatives, the organization could achieve its target of strengthening the social relationship along with CSR performance (Strand 2013). However, the organization makes a huge investment in performing the corporate social responsibility. Thus, it may affect the wide the operations of the organizations.
It is observed that the approach followed by the organization BHP Billiton environmental management is based on the robust identification as well as the control of material risks phases of its business. In addition, the company focuses on decreasing the rate of greenhouse gas emission as well as the consumption of rate energy consumption. The company aims to provide the lasting benefit to the environment as well as the communities by developing the natural resource management and developing the biodiversity. Therefore, it can be added that initiatives taken by the corporate social responsibility have positive impact on their CSR policy.
While performing the CR following the standards set by the oil and gas industry, BHP Billiton focuses on the approaches to community investment, economic development and education and training and disaster relief. As mentioned by Murray (2013), the sustainability of its operations rely on its ability to gain specific quality and quantity of water and to consume responsibly. On the contrary, it has also been identified that the social, cultural, environmental, economic values of water could lead to the greater examination of responsible water consumption as well as the expectation from the stakeholder of the organizations.
As the organization, BHP Billiton has the wide contribution in society or community development and environmental safety. Therefore, the organization needs to pay attention to environmental policies. It is evident that due to the persistent oil and gas operation, environmental resources are lacking, which could negative influence the natural balance. Thus, it is necessary for the organization to adopt new technology in the operation. It may help to reduce environmental pollution. In addition, developed technology could help to reduce waste of resources. Furthermore, BHP Billiton could focus on implementing environmental policies and promote awareness of protecting natural resources.
Conclusion
On the completion of the report, it can be mentioned that BHP Billiton have effectively performed corporate responsibility to increase organizational value. On the contrary, BHB Billiton’s responses to many environmental concerns raised in its alternative annual report. In addition, the organization and its partners made the commitment of ensuring a better deal for the communities that face the relocation since the mine expanded. In addition to all these, the organization states that they are concerned regarding the climate change and believe that it could negatively affect their operations as well as the markets. However, the organization continues to expand both their oil operation as well as oil mining. It is assumed that organization’s planned open cast coal mining projects of Bornco conversation area may cause huge destruction to dynamic natural system.
References:
BHP Billiton | A leading global resources company. (2016). Bhpbilliton.com. Retrieved 13 August 2016, from https://www.bhpbilliton.com/
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