Examples of the enterprises you might consider include, a day care centre, a carpet manufacturing business, a small zoo, an insurance office, a bank, an auto repair shop, a veterinary surgery, and many other possibilities including a global corporation like BHP Billiton.
Monitoring system is effective for an organization to understand whether they are following the proper method or taking the right steps to achieve the goal that have been set by the organization (Werbach, 2013). The indicators in the monitoring system can be compared to the factors that will help in understanding whether the motoring system is helping the organization to understand whether they are fooling the right path.
The monitoring system should be able to measure the output that will reflect the strategies that have been set by the organization (Ferguson & Souza, 2016). The monitoring system will be able to identify the main problem that will be faced by an organization while they are operating in the market. The monitoring system needs to be iodated regularly so that the employers can keep a track of the changes that are taking place in the organization. The monitoring system should be user-friendly so that the management can easily use it. The employees should not need any extra training to operate it. The company should not have to bear any cost to run the monitoring system. Even if they have to bear any cost, then the system should be cost-effective enough so that they do not have to plan any extra expenditure to implement the monitoring system.
Not only the monitoring system but also the indicators should be effective so that the monitoring system will be helpful to identify the strength and weakness of the organization (Sloan, Klingenberg & Rider, 2013). The indicators should be relevant. The indicators should be able to show the things that the organization need to know. The indicators should be easy to understand. The employees should be needing any extra training to understand the meaning of the indicators. The organization should not have to hire any expert to understand the indicators. The employees of the organization as well as the employer should be able to trust the indicators. The indicators should be reliable and highlight the correct data needed by the organization. Any wrong information given by the indicators will take the organization in some other direction. The indicators should not be consisting of those data that cannot be accessed by the people of the organization. The data should be accessible that will make up the indicators. The organization should have the time to act if the indicators show something is wrong. Indicators cannot be called effective if that does not give time for the employees and the employer to make things right after they have noticed something wrong.
Rio Tinto needs a proper management system mainly because of two reasons. They have to go up the dunphy scale. Secondly, to go up the dunphy scale, they have need funds that could help them to implement more sustainable measures. The indicators of the monitoring system that will measure the actions of Rio Tinto should keep in mind the profit as well as sustainability to help them go up the Dunphy’s scale. They need to keep a check on the profit to see that whether their steps are enhancing the business. They need to keep a check on the employee engagement and so that there is balance between the urban employees and the aboriginal employees. The certifications by the external organization are necessary as they will help them to spread their goodwill gestures and help them acquire more clients and finances for their business.
The Dunphy’s scale is the best way to measure whether the business of an organization is sustainable enough. Rio Tinto has taken many measure towards sustainable development if the business. Some are directed towards the environment while some are socio-cultural in nature (Beckmann, Hielscher & Pies, 2014). They have taken steps to make help the aboriginal as a many parts of the land that are possessed by the aboriginals are being used by the organization for mining purpose (Riotinto.com, 2017). Following is the Dunphy’s scale:
The sustainable development of Rio Tinto is worth mentioning and they aim at developing a socio-cultural development of the society. They help in development of the aboriginals who are living in the area and working with the organization (Sidiropoulos, 2014).
The aboriginal were ill-treated when in the year, 1963 when the Mapoon mission was closed even after the discovery of bauxite reserve in the year, 1955. The contribution of the indigenous people like Old Matthew (Wakmatha) and George Wilson (Piiramu) was not overlooked after the mission was halted. Six years down the lane after the incident took palce, tio tinto is workimnh in close contact with the aboriginals. Some of the agreements that have helped in the partnership of Rio Tinto and the aboriginals are:
Status of Rio Tinto is at the ‘efficiency’ stage of the Dunphy’s scale.
The human sustainability is stresses upon in the efficiency stage of the Dunphy’s scale. Rio Tinto aims at development with the help of the aboriginals (Riotinto.com, 2017). The ratio of the aboriginals who are working for the organization is not in balance with the area that is being used for the operations of the company. 60 percent of the land that are under the aboriginals are used to get the minerals but only 6 percent of the population are involved in the workforce. The place is hugely exploited by Rio Tinto to mine the metals and hence, it is necessary that the workforce should have more aboriginals. Even though Rio Tinto is planning to incorporate for aboriginals in their business, yet they are unable to find a way that will help in reducing the exploitation of the environment. The main aim of involving the aboriginals in their program is to take their help to get an idea for land rehabilitation program. The idea of land rehabilitation is in the pipeline and the involvement of the aboriginals will be helpful as they could tell the ways to restore nature even after mining the land to extract the metals and the minerals. Rio Tinto can be said to be in the efficiency phase as they are not able to implement any such idea to restore the land but the discussions are still on to get such an idea. They are employing the aboriginal, which is a good step but they are not able to employ a huge number of people. The aboriginals should be employed in huge numbers as they are exploiting their land and they have the best idea about the land (Buxel, Esenduran & Griffin, 2015).
The main aim of every organization should be to reach phase six of the scale but the phase six, which is the sustaining corporation phase. However, the phase has been considered to be too abstract and is not possible in reality (Kiron et al., 2013). The employer would then be left with minimum profit to support the employees who are working in the organization (Sharma & Hart, 2014). Hence, Rio Tinto should aim at reaching phase 5, which is the strategic sustainability phase.
The organization should have diversity at workplace by balancing the workforce (Wagner & Svensson, 2014). There should be equal number of aboriginals and urban employees. The aboriginals do not receive proper training and specific skills to get employment. Hence, it will be the duty of Rio Tinto to educate the people and help them get a job in the organization. They do receive preliminary education but the skills that are needed for mining jobs. It is the duty of the organization to teach the aboriginals about the mining techniques and help them get a job. In this way, they will be able to attain the strategic sustainability phase. The organization has been able to witness a reduction of 30% in the indigenous turnover. Environmental concerns, which is another area that should be taken into consideration (Sloan, Klingenberg & Rider, 2013). If more number of aboriginal populations is employed in the organization, they will be able to know the ways that will help them save the land of the aboriginals even after mining is done (Werbach, 2013).
Rio Tinto is a British-Australian multinational mining company with its headquarters in London, United Kingdom (Riotinto.com, 2017). The company consisted of Rio Tinto Plc, which is a London and New York stock exchange company and Rio Tinto Limited, which is an Australian Securities Exchange. The business of Rio Tinto is based on four factors:
They aim at finding the mineral resources and deliver them to the customers and the clients. They value the shareholders of the company and work to deliver the best returns with the help of the assets of the company and projects that they take up for the clients.
As far as the workforce is concerned, Rio Tinto possesses 55,000 employees. The operations of the organization are spread in 40 countries and the employees work in strong teams. The organization always follows the motto of safety first when it comes to the employees. They believe in innovation and the employees work hard to make those innovations a reality and never steps back from learning something.
The major products for Rio Tinto are industrial minerals like salt, titanium dioxide and borates. Other major products are gold, aluminum, diamonds and copper (Riotinto.com, 2017). The metals that are mined by Rio Tinto are converted into end-products and those products are used for development of the living standards and other economic developments of the society.
The innovations that are applied to work are not limited to work. Innovations are applied for sustainable development. The organization faces with various challenges like climate change, regional community development, resource scarcity and community employment. The best part of Rio Tinto is that the organization does not see the challenges as challenges but opportunities. They aim at getting over the challenges and help in developing a sustainable business.
Conclusion
After going through the case of Rio Tinto and placing it on the Dunphy’s Scale it can be concluded that the organization is performing well as it is on the efficiency phase of the scale. The company involves the aboriginals in their business as most of their land has been used for the mining purposes. However, there is a huge gap between the number of urban employees as and the aboriginal employees. In addition to this, the land exploitation is affecting the environment. It can be said once they employee more aboriginal employees, they will help in giving ides to save the land. The monitoring system suggests that they need to keep a check on the profit, the employee engagement and the result of the external organization. The development plan includes the business model canvas, which will help Rio Tinto to go up from the ‘efficiency’ phase to ‘strategic sustainability’ phase.
References
Beckmann, M., Hielscher, S., & Pies, I. (2014). Commitment Strategies for Sustainability: How Business Firms Can Transform Trade?Offs Into Win–Win Outcomes. Business Strategy and the Environment, 23(1), 18-37.
Buxel, H., Esenduran, G., & Griffin, S. (2015). Strategic sustainability: Creating business value with life cycle analysis. Business Horizons, 58(1), 109-122.
Ferguson, M. E., & Souza, G. C. (Eds.). (2016). Closed-loop supply chains: new developments to improve the sustainability of business practices. CRC Press.
Globalreporting.org,. (2017). About GRI. Globalreporting.org. Retrieved 10 January 2017, from https://www.globalreporting.org/information/about-gri/Pages/default.aspx
Integratedreporting.org,. (2017). Integrated Reporting. Integratedreporting.org. Retrieved 10 January 2017, from https://integratedreporting.org/
ISO,. (2017). ISO – International Organization for Standardization. ISO. Retrieved 10 January 2017, from https://www.iso.org/iso/home.html
Kiron, D., Kruschwitz, N., Reeves, M., & Goh, E. (2013). The benefits of sustainability-driven innovation. MIT Sloan Management Review, 54(2), 69.
Riotinto.com,. (2017). About Rio Tinto. Riotinto.com. Retrieved 9 January 2017, from https://www.riotinto.com/aboutus/about-rio-tinto-5004.aspx
Riotinto.com,. (2017). Working together for a better future. Riotinto.com. Retrieved 10 January 2017, from https://www.riotinto.com/ourcommitment/spotlight-18130_18749.aspx
Sharma, S., & Hart, S. L. (2014). Beyond “saddle bag” sustainability for business education. Organization & Environment, 1086026614520713.
Sidiropoulos, E. (2014). Education for sustainability in business education programs: a question of value. Journal of cleaner production, 85, 472-487.
Sloan, K., Klingenberg, B., & Rider, C. (2013). Towards sustainability: Examining the drivers and change process within SMEs. Journal of Management and Sustainability, 3(2), 19.
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