Choose an ASX Top-100 company and report on the company’s CSR activities and Governance structure, applying analytical frameworks from the Corporate Responsibility & Ethics Course, including Carroll’s Pyramid and Wartick and Cochrane’s Typology.
In the industry of petroleum, BHP Billiton is the major growing organisation which is headquartered in Melbourne, Australia since 2001 which was formed with the merger of two companies. In the year 2015, the company was named as the biggest mining company in the world. The company started to focus and started initiating in corporate social responsibility activities to sustain its success in the industry.
Corporate Social Responsibility is a voluntary initiative taken up by the organisation for the betterment of the society in which it operates. The organisation indulges in activities which contribute the society and the environment on a macro level. The need for these responsibilities is increasing over time and has even become a legal compliance for most of the companies.
In this report, secondary sources of data have been taken into consideration. The annual report of company, website information and other documents have been used to prepare this report. After evaluating the annual report of BHP Billiton Company, it is observed that the major sectors in which the organisation emphases in its Corporate Social Responsibilities activities are education, health, economic growth and several charities to accomplish its objectives. A corporate social responsibility policy is formed for its proper implementation and is communicated on its website.
BHP Billiton business has made contribution towards the improvement of the society by undertaking following initiatives in different fields. The vision and mission statement of BHP Billiton business is to manufactures and sells superior quality goods and services. The business policy focuses on providing 1% investment of the profit for the betterment of the community. In addition to this, the investment of BHP Billiton business was US$80.1 million in the latest 2017. The economic growth of company has made positive impact on the economic growth domestic product rate and increased national income. The initiatives taken up by the company can be measured in relation to sales and revenue generations. In rural areas, company has focused on to civilize and enhance the skills of people living in rural areas by imparting training in educational institutions. The company has tied up partnership with many Chinese universities for providing educational opportunities (Bekaert and Hodrick, 2017). For providing scholarships, 10$ in the Australian Indigenous Education Foundation (AIEF) in the year 2014 is contributed by the company. Company has also undertaken a plan named as ‘Swim and Survive’ is introduced for the wellbeing of the children in the society. BHP Billiton Company also contributes towards providing a comfort and safety environment. It has reduced the emission of greenhouse gases for the betterment of the society and reduction of hazardous gas emission went down to 6% from 2014. Another undertaken activity by the BHP Billiton Company is related to usage of energy efficient products are increased therefore polluting the environment less and reducing global warming (Devinney, 2009).
The main initiative of company is related to developing watershed in its all the operations and working places with a view to control the water wastage. However, the waster sheds of company should be increased by 22% per annum in numbers if it is intended to maintain sustainable future it is analysed that BHP Billiton plc has focused on providing best quality of good and services through its established mines chains to increase the sustainability of its brand image on domestic and international level. Now in the end, it could be inferred that company should focus on reducing the employee’s turnover and increase the quality of products and services for the better satisfaction of clients. Nonetheless, corporate social responsibilities program of company is strong as compared to its other rival in market. Therefore, it is easy to say that company has effective sustainability reporting and increased its overall efficiency in determined approach (Tai and Chuang, 2014).
It is analysed that BHP Billiton Company has focused on providing best quality of good and services through its established mines selling departments. BHP Billiton Company has environmental challenges which include energy supply sustainability in its business, increased associated cost, renewable energy opportunities and water scarcity program. This all the factors are considered by BHP Billiton Company in its reporting frameworks to strengthen its sustainability program in determined approach. BHP Billiton Company has also included Environmental challenges in its sustainability reporting include energy supply stability and costs, as well as the need to grow renewable energy opportunities, water scarcity for the effective business functioning. The main initiative of BHP Billiton Company is related to undertake the social economic welfare with the strategic alliance of The National development plan to make effective use of resources in society and environment at large. The BHP Billiton Company has focused to develop eco-friendly business program which increases the overall efficiency of its business and strengthen the economic and social factors. It has also planted several strategic programs to make effective use of resources (Garriga and Melé, 2014).
The managerial team of the organisation is carrying out the corporate social responsibility policies and plans efficiently and effectively. But for more enhancement the following recommendations can be made-
CSR activities of BHP Billiton Company also focus on the sustainability. This sustainability reporting of company is focused on strengthen the company working to respond more effective and efficiently. Ideally, sustainability reporting of BHP Billiton Company is integrated into a single integrated report that communicates all the factors of business performance. This sustainability reporting of BHP Billiton Company focuses on communicating all the impacts and issues to society, environment and people which arise due to the business functioning of organization (Present description of company (Brigham and Ehrhardt, 2013).
The value chain of BHP Billiton Company focused on selling mining and other substance from its established mines in market. Nonetheless, in order to save the tree and other wastages, company has given options to its clients to take paper less bill and opt for the E-bill. This will make the company more technologies oriented and resulted to advanced working in this ramified economy. It has increased the overall efficiency of working and increased the overall outcome of the business.
The main focus of company is to understand the needs and view of range of stakeholders such as employees, clients, government and suppliers. Nonetheless, in order to increase the effectiveness of communication program of company, it installed cyber computing enterprises resources planning in its business. It is further observed that from the sustainable point of view, the matters that were identified as most prominent matter by the stakeholders were identified as ethical sourcing, animal welfare water packaging and local sourcing. Company has also identified other issues in its corporate social reporting frameworks such as constructive and co-operative transparency, mutual respect for all the stakeholders, working towards regular and structured engagements. The management of BHP Billiton Company believed that strong stakeholder’s partnership is the key to building a more sustainable business and future (Kundakchyan and Zulfakarova, 2014).
The supply chain activities of company also consider pollution impact on the society and environment. Company has planned to use Eco-friendly cars in its transportation activities. This will help in reducing the carbon emission and will increase the environmental effectiveness and its corporate social reporting frameworks (Salib, et al. 2015).
In addition to this, BHP Billiton plc has committed to respecting the human rights which includes ensuring that all the employees are motivated and respected for their integrity and dignity (Jenkins, 2014). The transformation journey of BHP Billiton plc focuses on developing sustainable corporate governance program and aligning the interest of the stakeholders with the company’s development. All the mining chains established by BHP Billiton plc around the globe are more technologies oriented and promote handling clients in best efficient manner. This program has implemented following programs such employment equity, managing diversity, implementing safety program in organization. In addition to this, in order to increase the effectiveness of employees working, BHP Billiton plc has arranged skill development and talent management program which could make existing employees more employable (Kapelus, 012).
It will also align all of its outcomes with the organization future and stakeholders development in determined approach. BHP Billiton Company has issued employees stock options scheme to align the interest of the employees with the organization It will help in attracting more clients in market. The main advantage of company is related to installing advanced cyber computing system and restructured business for the better satisfaction of clients. The social development strategy of BHP Billiton Company is not only aligned to the core business but also focus on development priorities of clients for which company offers its products development. This will help in motivating employees and suppliers to deliver best result for the betterment of organization on sustainable basis (Cheng, Ioannou and Serafeim, G., 2014).
The BHP Billiton Company aimed to reduce all potential impacts as a business and improve positive outcomes for the environment. However, there are several social, environmental and economic issues have been faced by management of company while implementing its global supply chain. The main aim of corporate social activities is to reduce the usage of scarcity of resources and increase the overall efficiency of the business (Garrett, Hoitash and Prawitt, 2014).
There should be proper equilibrium between amounts of investment by the company and benefit to the society and environment at large (Lins, Servaes and Tamayo, 2017).
This ethical sourcing is the main phase for strengthen corporate social responsibilities activities of the business. It is observed that company needs to also arrange proper training and development program for its employees.
BHP Billiton Company witnessed record breaking investment in its energy and climate changes which support less fossil fuel intensive sources of energy. Management of company in its sustainable business program planned to reduce the energy consumption, carbon emission and waste to landfill with a view to mitigate the negative impacts of climate change across the supply chain management of company. The main aim of all of these supply chains of company is related to increasing the business efficiency and reducing the negative impact of business at large (BHP Billiton Company 2017).
Conclusion
The management of BHP Billiton plc has invested more than $ 25 million in its research and development department which focus on changing the business structure and arranging proper skill development program for its employees (BHP Billiton Company, 2017). Nonetheless, sustainable program of BHP Billiton plc has also focused on delivering customize services for its clients. Now in the end, it could be inferred that the effective CSR activities of BHP Billiton business is strong and provide several benefits for the betterment of the society and economic at large
References
Bekaert, G. and Hodrick, R., 2017. International financial management. Cambridge University Press.
BHP Billiton Company, 2017, annual report, Retrieved on 29th November, 2017 from https://www.bhp.com/-/media/documents/investors/annual-reports/2017/bhpannualreport2017.pdf
Brigham, E.F. and Ehrhardt, M.C., 2013. Financial management: Theory & practice. Cengage Learning.
Cheng, B., Ioannou, I. and Serafeim, G., 2014. Corporate social responsibility and access to finance. Strategic Management Journal, 35(1), pp.1-23.
Devinney, T.M., 2009. Is the socially responsible corporation a myth? The good, the bad, and the ugly of corporate social responsibility. The Academy of Management Perspectives, 23(2), pp.44-56.
Garrett, J., Hoitash, R. and Prawitt, D.F., 2014. Trust and financial reporting quality. Journal of Accounting Research, 52(5), pp.1087-1125.
Garriga, E. and Melé, D., 2014. Corporate social responsibility theories: Mapping the territory. Journal of business ethics, 53(1-2), pp.51-71.
Hilson, G., 2012. Corporate Social Responsibility in the extractive industries: Experiences from developing countries. Resources Policy, 37(2), pp.131-137.
Jenkins, H., 2014. Corporate social responsibility and the mining industry: conflicts and constructs. Corporate Social Responsibility and Environmental Management, 11(1), pp.23-34.
Kapelus, P., 2012. Mining, corporate social responsibility and the” community”: The case of Rio Tinto, Richards Bay Minerals and the Mbonambi. Journal of Business Ethics, 39(3), pp.275-296.
Lins, K.V., Servaes, H. and Tamayo, A., 2017. Social capital, trust, and firm performance: The value of corporate social responsibility during the financial crisis. The Journal of Finance, 72(4), pp.1785-1824.
Salib, J., Sun, D., Wu, J., Wen, X. and Huang, C.C., 2015. Corporate Social Responsibility.
Tai, F.M. and Chuang, S.H., 2014. Corporate social responsibility. Ibusiness, 6(03), p.117.
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