Sustainability Policies Of The BHP Billiton Company

Sustainability Policies of BHP Billiton Company

With the ramified business changes, sustainability policies are gaining momentum throughout the time. All companies required to adopt the proper sustainable policies which could be used by it to align the interest of the organization with the economic environment.  The business sustainability policy could be defined as laws and regulations of the business in such a manner which will allow equal consideration towards the environmental protection alongside of the financial and social responsibilities. In this report, sustainability policies of the BHP Billiton Company have been taken into consideration.  This sustainability policy is determined on the basis of the how firm wants to discharge its responsibilities towards the society and environment.

Sustainability policies of the BHP Billiton Company are an integral part of its business which aligns the interest of the stakeholders with the organization development. It goes beyond the economic, legal, regulatory motives. It provides the governing platform for the sustainable business practice of BHP Billiton in long run.  This policy defines to all level of company across its business operations excluding its sales and client based services (Boons, and Lüdeke-Freund, 2013). The scope of the Sustainability policies of the BHP Billiton Company is good as by using this Sustainability policies, company could pay back to society what it has to take while operating its business in long run.

The BHP Billiton Company has been indulged in the oil and gas business operations and it has to implement the effective sustainable practices for the long term use of natural resources. The information could be gathered from the annual report of other competitors company, official gazettes and government documents. Company needs to focuses on the resources optimization of electricity, oil and gases. The other focus of the developed sustainable policy would be on reducing the carbon emission and waste in environment. All the employees of the company also endeavor towards Setting, monitor and review environmental targets on a regular basis toward achieving continuous improvement. This will obliged them to understand the usefulness of the scarcity of the resources (Carroll, 2015).

It is analyzed that developed sustainability practice should be developed to ensure the continued applicability and relevance to the business operations which may evolve the stakeholder expectations. Employees must be indulged in complying with the applicable laws and regulations so that all the scarcity of resources should be used effectively. In addition to this, legal department would also focuses on the transparency and compliance program to make the business more sustainable. The internal control department and auditors will check whether the asset and liabilities of the company has been properly used or not in business (Charles Schmidheiny, and Watts, 2017). 

Scope of Sustainability Policies

The Sustainability policy shall be reviewed to ensure its continued applicability and relevance to our operations and evolving stakeholder expectations. This exercise shall be conducted once a year or as & when there are changes. We will build transparency by publishi1ng the sustainability details to employees, customers and all other stakeholders.

It is analyzed that BHP Billiton Company would firstly have to install the eco-support system in its value chain activities which could not only mitigate the hazardous gas issues and toxics from its business operation. In addition to this, strengthen the legal compliance program at all stages of work activity will also be needed in minimising resource use, reducing toxic material and hazardous chemical use and employing life cycle management approaches (Cheng,  Ioannou, and Serafeim, 2014).

All the sustainability policy developed by company shall be reviewed to ensure its continued applicability and relevance to our operations and evolving stakeholder expectations. This would be communicated to the stakeholders through the notice. In addition to this, company will have to include the sustainbitiy policy in its CSR reporting (Epstein, and Buhovac, 2014). The communication for the stakeholders will be done by convincing the general meeting and disclosing the required information on the website portal of the company. 

It is analyzed that in order to implement the sustainable business policy, company needs to analysis the environmental factors and economic resources. The implemented policies and outcomes associated with the program showcases in the annual report. This would be measured while comparing it with the employee performance and business CSR limits of the business. BHP Billion could easily implement this sustainable business practices by making these policies more acceptable towards the business organizational policies. Company needs to focuses on the resources optimization of electricity, oil and gases. The implementation of developed sustainable policy will lower down the carbon emission and waste in environment. All the employees of the company will also indulged in endeavor towards Setting, monitor and review environmental targets on a regular basis toward achieving continuous improvement (Grayson, and Jane, 2017).

In order to review the sustainable business policy, company could take use of the annual report. It will showcase the impact of sustainable business policy on the financial performance. In addition to this, CSR statement would also be used by company to assess the how company could contribute towards the society and environment. The monitoring process would be done by evaluating these two statements. In order to modify the policies, company should pass board meeting in which all the important aspects will be discussed to strengthen the existing sustainability policies.

Implementation of Sustainable Business Policy

All the sustainable policies related to install the eco-support system in its value chain activities, continued applicability of the economic laws and regulation, and relevance to our operations and evolving stakeholder expectations are very much needed to reduce the unnecessary use of the scarcity of the resources. BHP Billiton Company should also focus on hiring the separate department which will solely make efforts to lower down the abnormal wastages of the resources and strengthen the business efficiency of the business. In addition to this, material risk of the business should also be managed by the organization if it wants to sustain its business in long run.  These sustainable policies adopted by BHP Billiton Company will surely help in lower down the misuse of the resources and also sustain the business in long run.  The daily activities and long term decisions of the company should also be supported by the mandatory performance requirement which articulated to the sustainability requirement standards.

These are the foundation for the developing and implementation of the system at the business operations to keep the sustainable business practices.  These all above sustainability practices would be aligned with the business operations at very low cost. Company might face changes in its production cost by 12% at the time of implementation of the system at the business operations to keep the sustainable business practices. After certain period of time, it will reduce the business costing by 20% at least and will increase the sustainable business practice (Mayes, 2015).

The developed business sustainable business practice should be maximum 6 months and minimum 3 months. It is the estimated time frame which would be requires setting up the newly adopted sustainable business practice (McGuire, Sundgren, and Schneeweis, 2008).

There are several business sustainability policies which could be adopted by the BHP Billiton Company to sustain its business in long run. However, in order to make the business more committed to the sustainable business practice as integral business practice and planning it has to align the interest of the stakeholders with the organization development. Company needs to focus on setting proper code of conduct and performance policies which would be followed by employees to strengthen the business outcomes. It will not only increase the overall outcomes but also lower down the business complexity. Many other companies have used sustainability business practice to strengthen their brand image on international level (Ngai, et al. 2018).

Continuous Improvement and Evaluation of Sustainability Practices

There are several methods of adopting the business sustainability practice in organization. BHP Billiton Company could easily adopt the Sustainability policy by changing its business policies and aligning the interest of the business sustainability with the employee performance. This would oblige the employees to comply with the code of conduct and business practices to strengthen the business outcomes (Ruggie2017). This method part could also include the changing the business policies and mandate the CSR and sustainbitiy practice in the busienss reporting framework of organization. 

Conclusion 

After analyzing the sustainable business practice of the company, it could be inferred that there is need to align the interest of the stakeholders and environment with the organization if company wants to sustain its business in long run. The sustainable policies are given above focuses on the install the eco-support system in its value chain activities, setting performance measurement of employees which could strengthen the business outcomes effectively. It will also allow organization to sustain its business in long run. Now in the end, it could be inferred that company should also focus on the time frame, cost and benefit analysis associated with the implemented CSR business practices which would allow it to implement its CSR activities in effective manner.

References

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Carroll, A.B., (2015). Corporate social responsibility. Organizational dynamics, 44(2), pp.87-96.

Charles Jr, O.H., Schmidheiny, S. and Watts, P., (2017). Walking the talk: The business case for sustainable development. Routledge.

Cheng, B., Ioannou, I. and Serafeim, G., (2014). Corporate social responsibility and access to finance. Strategic Management Journal, 35(1), pp.1-23.

Epstein, M.J. and Buhovac, A.R., (2014). Making sustainability work: Best practices in managing and measuring corporate social, environmental, and economic impacts. Berrett-Koehler Publishers.

Grayson, D. and Jane, N., (2017). Corporate responsibility coalitions: The past, present, and future of alliances for sustainable capitalism. Routledge.

Mayes, R., (2015). A social licence to operate: corporate social responsibility, local communities and the constitution of global production networks. Global Networks, 15(s1).

McGuire, J.B., Sundgren, A. and Schneeweis, T., (2008). Corporate social responsibility and firm financial performance. Academy of management Journal, 31(4), pp.854-872.

Ngai, E.W.T., Law, C.C., Lo, C.W., Poon, J.K.L. and Peng, S., (2018). Business sustainability and corporate social responsibility: case studies of three gas operators in China. International Journal of Production Research, 56(1-2), pp.660-676.

Ruggie, J.G., (2017). The theory and practice of learning networks: Corporate social responsibility and the Global Compact. In Learning To Talk (pp. 32-42). Routledge.