Discuss about and Corporate Communication Strategy of your chosen Company.
In the modern day business, corporate social responsibility has become one of the most important aspect. It has become an opportunity for the firm to partner with customers, employees, government, communities, and stakeholders, shareholders to pursue and give unmatchable outcomes (Fernando & Lawrence, 2014). It gives positive difference for the individuals, society and the community. It not only helps in improving the image of the firm but also ensures long term sustainability of the company. BHP (Broken Hill Proprietary Company) is a one of the biggest mining and resource firm. It is having approximate global revenue of US$38 Billion. It is headquartered in Australia and was established back in the year 1885. It is having 60000 workers as well as contractors worldwide. This report showcases the Issue management and CSR that is practiced in BHP. It also provides information regarding the theories integrating issue management as well as CSR. It also illustrates the role of CSR and Issue management in BHP. Consistency regarding company’s corporate communication message has been discussed.
CSR and its associated theories
It is probably difficult to give exact definition of the CSR. But the general understanding of CSR is that it is the act of the organisation that emphasize on both responsibility to interact ethically with the surrounding as well as responsibility to make money. It is also sometimes known as the responsibility of the organisation to share its profits with players that are somehow affected by the business of the firm (Rodríguez Bolívar, Garde Sánchez & López Hernández, 2015). Effective CSR is described as a firm proactively showing respect for the interest of the community. In this, organisation tends to expand their focus beyond what is called financial profit and consider the broader impact of firm on community.
There are several theories that surround CSR. First is the CSR itself; Using this theory organisation interacts with bigger world as well as surrounding community. This theory revolves around four obligations. They are economic, legal, ethical and philanthropic responsibility. Second is “The Triple Bottom Line”. This is the theory that believes in forming CSR dictating corporate leaders to tabulate bottom-line results not only in the economic ways but also in the ways a firm affects in social realm as well as w.r.t the environment (Louche & Idowu, 2017). This theory revolves around three aspects namely economic, social and environmental. Third and most important theory is stakeholder theory which was given by Edward Freeman. This theory states that those whose lives are affected by the organisation has a right as well as obligation to participate in directing it.
Issue management and its associated theories
Issue management is an organisational communications process by which a firm finds the key issues and hence prepare possible appropriate responses to these issues in advance (Epstein & Buhovac, 2014). This is very essential in the modern day business environment where the number of issues surrounding the company is large in numbers. This is done by the organisation to limit the damage that an issue can make since all the preparations are done before hand. There are three stage processes for IM that begins with finding latent and emerging issues, secondly finding the impact of the issues and finally reacting to the issue. For early detection of the issues an effective stakeholder research needs to be carried out. This can help to potentially transform issue into an opportunity. It is understood to be long-term process and often have influence formation to minimise the potential negative impact of issues. It can be amplified using the normal suite of promotional marketing tools involving direct marketing, corporate advertising as well as public relations activities. The issue which was not taken care at the early stage become a crisis. Crisis management is a part of issue management.
CSR issue management is a critical term to modern day firms and have to be checked with a proper attention (Bartlett & Devin, 2011). In order to make CSR issue management a firm like BHP Billiton must understand stakeholders of firm with the help of timely research. Checking the concerns, issues and needs is common to both IM and CSR. All these issues need to be handled by the management before it becomes a headache for the company. Most of the time it may results in failure in term of corporate reputation if issues related to CSR are not taken care. On the other hand if it is executed in a well manner then it may enhance corporate reputation.
Role of CSR within BHP
BHP has a big name in the market and is one of the biggest companies that are publicly listed in the whole world (Kolk & Lenfant, 2010). With such a large name carrying at their back, their responsibility towards the society has increased considerably. Understanding their position in the market, they have put CSR in their spotlight. They have made a very descriptive CSR plan as well as have developed extensive program for managing issues related to the stakeholders. Various core CSR principles have been featured in BHP’s CSR plan. It describes BHP’s value and purpose. Their stated value included respect, integrity, sustainability and accountability in the form of putting safety and health at first priority. It also included being environmentally responsible and supporting the community that are affected by their business. Their other main feature of CSR is that, it has developed a Forum on Corporate Responsibility apart from their Executive leadership teams which included leaders from various environment, community and non-governmental organisations. This forum was designed for challenging their thinking as well as providing BHP with multiple CSR perspective. They produce their annual sustainability report.
This company has a name in the market in terms of communication they are using. A very sound internal communication helps them in smoothening of the work process while the corporate communication that they have adopted facilitated them in their CSR activities (Mària & Devuyst, 2011). They have provided a platform where every stakeholder can raise their ideas as well as suggest the problems they are facing. It is the role of the communication within BHP that it has been able to provide high quality services to their clients. In this process they have designed and produced a range of banners that depicts culture, conversation cards as well as culture case studies. All these have helped them in communicating their values, code of business conduct and internal work culture to their clients (Schutte, 2010). This platform also supported communities to talk with the management so as to be the part of their business process and ensuring each other benefits.
They have made a framework where concerns related to each of their stakeholders have been addressed. This also gets possible due to the communication mechanism they use. Their CSR activities had a greater impact on their brand name. This can be understood by the fact that this company has mines in the off-site places which is not so well developed. With their CSR activities they have made their name in that area also. The most important thing that CSR does is that it changes the perception of the consumers about the firm and hence helping in increase of brand loyalty (Perrott, 2015).
Role of CSR issue management for BHP
There are various issues that are arising in the operations of the BHP. It is also present in their CSR management (Cornish, 2013). Since there are large numbers of stakeholders attached with the firm hence managing such issues becomes more important. They have also made sure that they have an effective risk management system. This helped in making edge in the market as they were capable of finding the issue in their CSR activities before hand and hence making edge in the market. Their sustainability report addresses the issues that their stakeholders are facing and hence they make plans for eliminating (B.H.P., 2017). It is due to this reason that they have made edge in the market. This has helped them in narrating the mind-set of the people. They have also accumulated all the issues in their community by taking use of their media campaigns. The major thing about BHP is that they have gathered all their stakeholders at common platform. This has helped them in identifying issues as well as finding a better solution which directly or indirectly assists them in making a better sustainability program.
Apart from this it is to be also made sure that there are various sections which their CSR report has addressed. In this the role of their BHP foundation and Media is higher. Their media includes ‘Think big’, other news report and releases. Their campaign of think big is a landing page dedicated to BHP’s most recent corporate identity. It is a rebranding campaign which involved advertisements through TV and hence reinforcing their sustainability values (Schmitt & Raisch, 2013).
It has also tasked with ensuring that appropriate links among HSEC and executive remuneration performance. With their marketing and media management they have been able to find out the issues they are facing and hence eliminating it (Garcia, Ribeiro, Oliveira Roque, Ochoa?Quintero & Laurance, 2017). This has helped them in making sure that they have better image in the minds of the stakeholders. The appropriate images of the stakeholders have helped them in gaining popularity in the mining region. It is due to this rebranding campaign that they have been able to make their mark in the industry. Their concerns towards the community development have helped them in gaining popularity in the mining region.
Consistency of company corporate communication message
BHP’s messaging related to CSR issues as discussed is well-honed as would be expected from any firm. Since it is to be understood that resources and the size of BHP has helped them in gaining CSR objectives. In the last few years when the new CSR issues have emerged they have been failing in achieving their CSR objectives (Hogan & Lodhia, 2011). In the past few years they have faced challenges in their CSR campaigns. Their consistency can be reviewed by following points:
Communication at BHP
On the larger note it can be evaluated that BHP has given proper care to the communication they follow in the firm. Public relations website, activities, corporate reports, videos and advertisements of BHP is used by the firm for illustrating a high skilled and well-resourced corporate communication team. In relation to their mining activities, they do not use marketing campaigns and still it gives them maximum benefits (Pellegrino & Lodhia, 2012). In BHP’s case they dress the windows in a very well manner. On the other hand some researchers believe that their own employees believe that they have no intention of providing communities with benefits that are long ranging. Stakeholders feels that cited firm has poor reputation of balancing environmental, economic and social interests. At various platforms of communication they have professionally portrayed CSR still the gaps exist in issue management processes. Stakeholders see BHP on the back foot instead of being proactively in control of major agenda items. Not all bad exist in its communication as they have done well to address the issues through the help of representation that they give to each of their stakeholders in the decision making (Floris, Grant & Cutcher, 2013).
BHP must focus on their communication especially related with improving communication with communities regarding employment opportunities. It includes stakeholders and workers in government, unions, the media, community leaders and suppliers. The communication requirement requires being much more than a promotional exercise as showed in Think Big campaign. It must focus on long-term consultation and plan sharing. This activity requires being a long-term IM agenda item and must address all the concerns the concerns related to stakeholders. They must jointly work with Queensland Resources Council and mineral council of Australia so as to bring sustainability in their work process.
Apart from this, different green marketing or green washing campaigns can help them in making a positive impact on the minds of their important stakeholders. They have noticed the fact that different stakeholders have different messages required for believing in them. Different stakeholders concerns as well as the steps that they have taken have been highlighted. While supporting community they must give proper care of the culture that is present in the community. They should make changes in their rules and regulations in order to make sure that they have support of the Australian Government in their operations. Their program for sustainability development along with the values that they believe in is conveyed to them by different mediums to their stakeholders.
Along with this, company must also focus on the safety of their employees and community. Deaths at mine sites have a significant negative impact on their families and workforce. Structural failures like tailing dams must be avoided by providing best of infrastructure. They have made safety their priority as it is evident from their annual report. Safety must at the highest priority in the IM agenda.
From the above report it can be concluded that CSR and Issue management has been the first priority of BHP’s management. BHP’s communication team has designed their collateral to position the firm in the most positive light possible. Their efforts towards corporate messaging have been unique and strategy based. Apart from this they have not been able to perform well in the aspect of triple bottom line. Despite of the efforts put by the different communication platforms of BHP it has been seen that their stakeholders do not have believe on them. The government and employees both considers its CSR program to be the worst. Their IM has somehow improved reputation of the firm. There are many communication flaws present in the company which they need to address
References
Bartlett, J. L., & Devin, B. (2011). Management, communication, and corporate social responsibility (pp. 45-66). Wiley?Blackwell.
B.H.P.(2017)Retrievedfrom:https://www.bhp.com/-/media/documents/media/reports-and-presentations/2017/170927_bhpsustainabilityroundtable.pdf
Cornish, L. (2013). BHP Billiton Energy Coal South Africa: preserving the environment for future generations: water preservation. Inside Mining, 6(2), 38-39.
Epstein, M. J., & Buhovac, A. R. (2014). Making sustainability work: Best practices in managing and measuring corporate social, environmental, and economic impacts. Berrett-Koehler Publishers.
Fernando, S., & Lawrence, S. (2014). A theoretical framework for CSR practices: integrating legitimacy theory, stakeholder theory and institutional theory. Journal of Theoretical Accounting Research, 10(1), 149-178.
Floris, M., Grant, D., & Cutcher, L. (2013). Mining the discourse: Strategizing during BHP Billiton’s attempted acquisition of Rio Tinto. Journal of Management Studies, 50(7), 1185-1215.
Garcia, L. C., Ribeiro, D. B., Oliveira Roque, F., Ochoa?Quintero, J. M., & Laurance, W. F. (2017). Brazil’s worst mining disaster: corporations must be compelled to pay the actual environmental costs. Ecological applications, 27(1), 5-9.
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Kolk, A., & Lenfant, F. (2010). MNC reporting on CSR and conflict in Central Africa. Journal of Business Ethics, 93(2), 241-255.
Lannin, S., (2017) Retrieved from: https://www.abc.net.au/news/2017-12-22/bhp-provides-millions-more-after-samarco-dam-disaster-brazil/9282394
Louche, C., & Idowu, S. (Eds.). (2017). Innovative CSR: From risk management to value creation. Routledge.
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Rodríguez Bolívar, M. P., Garde Sánchez, R., & López Hernández, A. M. (2015). Managers as drivers of CSR in state-owned enterprises. Journal of Environmental Planning and Management, 58(5), 777-801.
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The guardian, (2015) Brazil dam disaster: judge freezes assets of miners BHP and Vale. Retrieved from: https://www.theguardian.com/world/2015/dec/20/brazil-dam-disaster-judge-freezes-assets-of-miners-bhp-and-val
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