Discuss about the Corporate Social Responsibility of Caltex Australia.
Corporate Social Responsibility (CSR) is indicative of corporate self-regulation that is integrated in the business model of a company. The policy pertaining to CSR acts like a self-regulatory mechanism with the help of which a business can monitor and ensure compliance with that of law. CSR is suggestive of the ethical standards along with international norms that can help in the functioning of a company. The roots of Caltex Australia goes back to that of 1900 and it is an Australian fuel along with convenience brand that is listed on that of Australian Securities Exchange. Caltex is responsible for the operation of the biggest oil company retail network within that of Australia. It is a petroleum brand name pertaining to Chevron Corporation that is used in more than that of 60 countries (Caltex.com.au 2018). The report talks about the key stakeholders and the environmental policies that they have undertaken in order to protect the environment. It discusses whether the company has taken any voluntary initiatives and the governance structure of Caltex Australia. It also elucidates on the aspect of philanthropy of the company.
Carroll’s model makes use of a number of theories that can be summarized under different social obligations like that of economic responsibilities, legal responsibility, moral responsibility and that of philanthropic obligation. On the basis of the 2017 full year result, it was seen that the replacement cost operating profit was around $621 million that is 18 % above that of the previous corresponding period. Improved result was on account of strong operating performance from that of Lytton Refinery (Utama 2017). The legal responsibility of Caltex Australia revolves around the fact that operational excellence is adhered to and the policies are on the basis of environmental policies. It is their legal responsibility to ensure that the tenet principles in relation to Caltex Australia are abided by. Any kind of breach in relation to health and safety is communicated to that of the manager. Culture pertaining to operational excellence places high priority on that of safety of the workforce that is a moral obligation on the part of Caltex Australia. The way the products of Caltex are produced makes sure that they are environmentally accountable. Vehicles prove to be a major source in relation to emission and the use of cleaner fuels can help in reduction of Australian greenhouse emission. Caltex Australia has got philanthropic obligation and hey have invested $500 million for the upgradation of the refineries (Dobele et al. 2014).
According to Wartick and Cochrane Typology, four part framework in relation to corporate social responsibility should be able to address the four obligations to that of the society. Each of the responsibility is a part of that of total social responsibility and it helps in reflecting the societal expectation in relation to the business. Caltex Australia pursues the economic responsibilities and at the same time it fulfils the legal responsibilities towards that of the community. Caltex Australia is addressing the issues related to that of climate change and they are working with governments so that they can develop policies that are effective. Under that of Reverse Auction Process, project suitability was carried out in the year 2015 (Bruns and Skretowska 2016). Caltex Australia has also participated in that of technical workshops with the help of Australian Industry Greenhouse Network. These shows that Caltex Australia occupies a high position in terms of Wartick and Cochrane Typology.
The primary stakeholders in relation to Caltex Australia are the consumers along with that of the people involved in the business. The Telematics Technology in relation to Caltex is integrated with that of the engine management of the vehicle that helps in providing insights in relation to the performance of the drivers. The superior technology pertaining to Caltex Australia can help in the identification of the potential problems that can lower the amount that is spent on maintenance. It thus helps in keeping the fleet safe and run in an efficient manner on that of the road. The Caltex Marine Group can help in providing information about the best ports that can bunker fuel within that of Australia. The technical group of Caltex Australia can provide the customers with information regarding oil analysis along with that of lubricant surveys. Caltex Australia also helps in providing recommendations that can maximise the productivity in relation to the consumers. The primary stakeholders in relation to Caltex Australia are the customers and the employees. The Carroll’s pyramid of social responsibility focuses on why the organisations should meet that of the social responsibilities. This pyramid can help in ensuring that the business complies with the laws along with the regulations. The employees of Caltex Australia gets the right kind of working environment. The benefits that the employee gets from Caltex Australia is that of flexible work arrangements and different kinds of incentives (Stephens 2017). They also get to prosper from being associated with such a brand that creates products that do not harm the environment. The distributors of Caltex Australia come from that of local network that includes that of depots and that of diesel stops spread throughout Australia. They are found to be present in all the territories of Australia that is inclusive of the remote locations.
Caltex aims in order to ensure that quality products are supplied to that of the customer. The Quality Policy in relation to Caltex Australia will focus on respecting and complying with that of product quality commitments. It can achieve this by supplying the products that conforms to that of relevant specifications. It makes sure that the regulatory requirements are abided by the organisation. The management systems are continuously improved and they are integrated with that of health along with safety activities. The Quality Policy seeks relevant certification in relation to the management system and they should be appropriate to that of International Quality Standard (Chandler 2017). They continuously audit and review the management systems that can contribute to that of reliable operation in relation to the business. The quality objectives should be integrated into that of the business plan and it should ensure that the business units should include that of the quality objectives. Caltex Australia carried out project suitability assessments in the year 2015. The Safeguarding mechanism started on 1st July 2016 and they have participated in different kinds of technical workshops by taking recourse to Australian Industry Greenhouse Network. The ethical responsibility pertaining to Caltex Australia focuses on acting in a moral manner and benefitting society in the long term. Caltex Australia is continuing to participate in different greenhouse gas reduction policy that can help in maintenance of international competitiveness in relation to the Australian industries. National Greenhouse and Energy Reporting is a national framework that is abided by that of Caltex Australia and it helps in informing that of the Australian public (Shelton 2015). It sees to it that Caltex Australia meets that of international reporting obligation in relation to Australia. Clean Energy Regulator helps in administering that of the NGER Act and the legislative instruments. The Wartick and Cochran Typology believes in the fact that organisations exist on account of pleasure pertaining to society and the business has a social contract that includes rights and regulations. Caltex believes that biofuels can help in reduction of greenhouse gas emission and thus provide long term solution to that of climate change. Caltex Bio E10 Unleaded is a blend of that of unleaded petrol that contains 10 5 of ethanol. Bio E-Flex has been specially designed for that of flex-fuel vehicles (Rowell 2017). The different bio-diesel blends are made by the using of cooking oil along with that of tallow.
Caltex Australia takes into cognizance the human rights and provides a healthy workplace to the employees along with that of the contractors. They act in a manner that will not adversely harm the safety of the public. The Wartick and Cochran Typology believes in the fact that business should act as a moral agent within that of the society. On the basis of this, the human rights audit systems has been implemented within the organization that can help in monitoring the improvement. Their primary goal is to ensure that there are zero injuries and while working the employees of Caltex Australia has to take responsibility of the individual fitness in relation to work. Caltex Australia believes in the advantages of that of a diverse workforce and the individuals coming from different backgrounds are respected in the organization. It is the right of the employees to be well-cared for in the organization and creation of an environment in which the employees can exhibit their full potential is important for an organization. Caltex Australia is currently working with the government in the arena of policies that can help in curbing emission (Warner and Sullivan 2017). The Wartick and Cochran Typology believes in the fact that business should be able to meet the conditions pertaining to moral agency and act in a responsible manner. Caltex Australia abides by this model and it has continued to support that of reduction policies in relation to greenhouse gas that can help in maintaining the international competitiveness in relation to the Australian industries. Caltex supports the Australian farmers and it favours biofuels that are produced from that of local feedstock. Caltex sources the ethanol from that of the producers in NSW along with that of Queensland (Sovacool and Dworkin 2015). The ethanol is made from that of renewable sources like that of waste starch. Caltex Australia does not make use of bio-fuel that is produced from that of palm oil feedstock.
Corporate governance arrangement in relation to Caltex Australia and the other group companies are set with the help of the Caltex Board that has great regard in relation to the interests of the shareholders. Caltex maintains the best practice in relation to corporate governance and these practices help in adding value to that of Caltex Australia. The management in relation to Caltex is taken care of by the Managing Director along with that of CEO (Mol 2017). The operations are subject to that of specific delegations that is approved by that of the authority. Transaction that is outside that of the delegation in relation to authority should be referred to Caltex Australia company for facilitating the process of approval. Performance pertaining to Managing Director along with CEO is assessed against that of performance benchmark that has been written down in the performance agreement. Executive leadership team in relation to Caltex reports directly to that of Managing Director. The Board assesses the independence in relation to each director during the time of appointment. The directors have to disclose that of relevant personal interests along with that of conflict of interest.
Systematic management in relation to safety and health can help Caltex Australia in achieving benchmark performance. Culture pertaining to operational excellence is embedded in the culture of Caltex Australia which lays high priority on the aspect of health within the workforce. Caltex has got environmental accountabilities and vehicles can prove to be a major source in relation to emission. The usage of that of cleaner fuels can help in the reduction of the Australian greenhouse emission (Galaskiewicz 2016). Caltex Australia has invested a sum of $ 500 million for the upgradation of the refineries so that it can produce fuels that is lower in terms of sulphur. Product stewardship is an integral part in relation to the licence of operation. Caltex Australia takes immense care to manage the products through the entire lifecycle and meets the legal along with that of the regulatory requirements. It effectively communicates the necessary information to that of the customers.
The Carroll’s pyramid focuses on the arena of philanthropic responsibility which highlights that the resources of the organization should be able to solve a cultural purpose. For fulfilling this responsibility, Caltex Australia is currently working with the governments so that they can develop policies that can help in the reduction of the emissions. Caltex understands the fact that climate change poses a threat to that of economies along with that of the environment (Ke, Qiu and Jiang 2015). They have to incur costs for reducing the emissions but they fell responsible to that of the community so they act along that direction. They set a national goal for the reduction of that of greenhouse gas emission that can be adjusted based on available science. It has been stated that the safeguarding mechanism will help them in the process of participation in that of technical workshops with the help of the Australian Industry Greenhouse Network (Romero-Merino and García-Rodriguez 2016). Caltex Australia supports the greenhouse gas reduction policy that can help in maintaining the competitiveness in relation to the Australian industries. Caltex believes in the fact that biofuels can play an important role for the reduction of that of greenhouse gas emission. It can thus help in providing solutions to that of climate change. Caltex sources the biofuels that have been sustainably produced. The current method of production of bio-fuels within that of Australia does not give rise to any kind of conflict between that of food and that of fuel uses of the crops. Caltex also supports the Australian farmers along with that of the industry. They favour the bio-fuel that is produced from that of local grown feedstock.
References:
Bruns, P.A. and Skretowska, D., 2016. Assessing Quality not Quantity: A Unique Cross-Country Comparision of CSR Reporting Quality.
Caltex.com.au (2018). Caltex Australia | Fuels, Convenience Retail & Lubricants. [online] Available at: https://www.caltex.com.au/ [Accessed 24 Apr. 2018].
Chandler, G., 2017. The evolution of the business and human rights debate. In Business and Human Rights (pp. 22-32). Routledge.
Dobele, A.R., Westberg, K., Steel, M. and Flowers, K., 2014. An examination of corporate social responsibility implementation and stakeholder engagement: A case study in the Australian mining industry. Business Strategy and the Environment, 23(3), pp.145-159.
Galaskiewicz, J., 2016. Social organization of an urban grants economy: A study of business philanthropy and nonprofit organizations. Elsevier.
Ke, J.L., Qiu, X.W. and Jiang, Y.F., 2015. The effect of corporate philanthropy on organization commitment and job performance of employees: Workplace spirituality as mediating variable. American Journal of Industrial and Business Management, 5(06), p.466.
Mol, H., 2017. Introduction. In The Politics of Palm Oil Harm(pp. 1-32). Palgrave Macmillan, Cham.
Romero-Merino, M.E. and García-Rodriguez, Í., 2016. Good governance in philanthropy and nonprofits. The Routledge Companion to Philanthropy, p.395.
Rowell, A., 2017. Green backlash: Global subversion of the environment movement. Routledge.
Shelton, D., 2015. Remedies in international human rights law. Oxford University Press, USA.
Sovacool, B.K. and Dworkin, M.H., 2015. Energy justice: Conceptual insights and practical applications. Applied Energy, 142, pp.435-444.
Stephens, B., 2017. The amorality of profit: transnational corporations and human rights. In Human rights and corporations (pp. 21-66). Routledge.
Utama, A.G.S., 2017. Framing Corporate Social Responsibility On the Websites Of Company (Mudflow Incident). Archives of Business Research, 5(12).
Warner, M. and Sullivan, R. eds., 2017. Putting partnerships to work: Strategic alliances for development between government, the private sector and civil society. Routledge.
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