Free Essay

Csr Practice in Australia

In: Business and Management

Submitted By jass2212
Words 2998
Pages 12
Corporate Social Responsibility
Practice in Australia

24 April, 2016

prepared by

Executive Summary

This report provides an analysis and importance of CSR reporting in mining industry, how well companies disclose social and environmental issue according to GRI guidelines. This article’s main focus is to describe trends of CSR reporting in mining companies in Australia. This article provides detailed overview of companies reporting format and structure, CSR disclosing motivation, how well company account for job losses and impact of reduction of oil price on companies. The purpose of this report is to describe CSR practice of mining companies in Australia and highlights the importance of sustainability reports regarding social and environmental perspective. This report is based on two major mining companies namely BHP Billiton and Rio Tin. The information used for writing this article is gathered from different researcher, annual reports, newspapers, and online articles, GRI guideline. Only Secondary data used to write report and study based on ASX registered companies companies in Australia are more aware of GRI reporting standards now and also know that how crucial it is to report on the sustainability issues from social and environmental perspective to have long term business and secure future.

Executive Summary i

Contents ii

Introduction 3

Question a 3

Question b 5

Question c 7

Question d 8

Question e 9

Conclusion 11

Reference List 12


Corporate social responsibility is a business approach which help companies to sustain improvement by providing social, environmental, and economic advantages to all kind of stakeholders. The biggest reason industries follow CSR is to clean environment and have a good society (Govindan et al, 2014) This report aims to generate a sound understanding and importance of the CSR reporting and how well mining companies follow GRI guidelines. Also this study focus on social, financial, environmental impact on companies due to continues fall in oil price. Many people already researched CSR in different counties. The role of different stakeholders in mining industry is crucial. After introducing stakeholder theory, in most of the organizations importance of stakeholders have increased. In Past year’s companies prepare CSR policies according to stakeholder’s point of views. In most of mining industries Stakeholders cooperation on large scale is a reason to disclose CSR reporting. To describe ‘motivation to CSR reporting’ stakeholder theory is applied in this report. This study is only based on some previous researches done by different researcher and secondary data collected from company’s annual reports, newspapers and online articles. For this report, only two mining companies have been chosen out of ten, from ASX listed companies. All other kind of industries have been ignored for this report.
Section 1 focuses on GRI Reporting Guideline,
Section 2 provide analysis of GRI reporting of two companies, section 3 provide disclosing motivation, section 4 highlights impact on stakeholders, section 5 explain how oil reduction price affected companies condition, section 6 conclusion.

A. ASX listed mining companies

Ten selected mining companies from ASX, namely:

• BHP Billiton • Bougainville Copper Ltd • Cuest Coal Ltd • Fortescue Metal Group • Interatowa Resources Ltd • Rio Tinto Ltd • OZ Mineral Ltd • Anglo Australian Resources • Anson Resources Ltd • Ausroc Metals Ltd

External reporting documents • Financial Statement • Strategic Report • Sustainability Report • Economic contribution and government payment Report • Director Report • Shareholder information Report • Auditor Report

GRI reporting guideline

Over the years most of the mining companies have been producing a single and short environmental and social report every year which was defiantly not according to the GRI reporting guidelines. Back in 1999, only BHP and Rio Tinto were the only two companies producing standalone social and environmental reports, rest of the companies only wrote few pages about the subject in their financial annual reports (Jenkins & yakovleva, 2006). In 2002, only two of the companies stated that they were reporting according to the GRI reporting guidelines covering core aspects like health & safety, environments & community/society, sustainability, environment, external auditing, etc. and the figure rose to six in 2003 (Jenkins & yakovleva, 2006). And since then the social and economic reporting has become more sophisticated and detailed. Now most of the companies are producing standalone social and environmental reports in accordance with the GRI reporting guidelines as they understand that how crucial these factors are to run a long term business.

B. Social and Environmental reporting in Australia mining industry

In this report, I choose two leading company of Australia i.e. BHP Billiton and Rio Tin Ltd for my research. According to BHP Billiton 2015 sustainability report to apply sustainable approach in the organization BHP Billiton has developed a new framework comprising themes like governance, human capability and social inclusions and environmental resilience. The report states that sustainability is essential part of their strategy, they ensure that they must integrate health, safety, environmental, social and economic factors while taking any decisions for the organization. The report covers all the major core aspects and the additional indicators in their report (BHP sustainability Report, 2015) • Applying sustainable approach within the company: In 2015 BHP Billiton has sustainably provided energy and resources which are required for economic growth and development along with delivering value to shareholders. The sustainability report is well supported by case studies listing specific activities that has been developed or used to maintain the sustainable development (case studies www,

• Governance: Operating with integrity and ethically is essential part of governance. Ability to work ethically and with integrity is very well covered in the report. The projects like delivering greenhouse gas emissions reductions, building climate resilience in our environment are the projects being carried out in Australia for climate change.

• Safe and healthy work environment: Keeping people and operations safe, focusing on health of people, developing workforce are the key aspects of BHP Billiton sustainability report. In the mining industry mobile equipment and light vehicle collision is one of the major risk and steps are being taken like focusing on road designs and the separation of mobile equipment and light vehicle are explained in the report. Other health issues like fatigue and impairment from illegal or legal drugs including alcohol which impairs the ability of workers to perform their work is also well addressed in the report.

• Society: Many projects are held to engage effectively in communities based on open communication so to develop relationships and hence ensuring a meaningful contribution to economic and social development. Some of the examples are Collaborating on regional planning and development in Chile, Indigenous training and employment in Australia, etc.

• Environment: In Mining due to nature of the operations it has significant effect on the environment. In order to have minimal impact on environment various plans are put in action like Managing for excess water in Australia, managing for water supply variability in Australia, minimizing impacts to shared groundwater resources in USA, etc.

Rio Tinto is another company which I picked to study social & environment reporting. Their format is almost similar to BHP Billiton; the difference would be that BHP Billiton have a detailed report but very sophisticated while Rio Tinto’s sustainability report is very interactive and detailed comparing their figures in graphs from previous years, etc. This report also follows the GRI reporting guidelines covering core aspects like social, environment, economic, governance, etc.

Under SOCIAL aspect they have covered topics like: • Safety: The motto of the company is “Striving to be Fatality-FREE. Risk management, identifying critical risks, verify that we have controls in place and provide employees with appropriate training are few of the steps to fulfill this motto. • Communities & regional development: Developing good community relationships is essential part of Rio Tinto. Recognize and respect the cultural heritage of all communities in which they operate, resettling communities as groups in order to minimize cultural and social impacts, a complaint, disputes and grievance procedure is set up to timely resolve the complaints. • Health: According to the report occupational illness (musculoskeletal disorders, noise induced hearing lose, stress) cases has decreased in 2014-2015. • People: Under people strategy company has recruited employees based on skills and experience and without any discrimination. Throughout 2014, we remained one of the largest private sector employers of Indigenous Australians, with over 1,650 full-time Indigenous employees, representing approximately 7.5 per cent of our permanent Australian workforce (Rio Tinto sustainable Report, 2014).

Under the ENVOIRNMENT aspect they have explained the categories like: • Air: The Company has taken several measures to minimize impacts to air quality like controlling air emissions at their source, etc. • Biodiversity; climate change, energy, land, waste: Various strategies have been put in place to deliver better biodiversity outcomes like Emphasis on the application of the mitigation hierarchy, Increased flexibility in accounting methodologies for biodiversity losses and gains, Stakeholder participation to ensure transparent, credible and relevant programme, etc. • Water: As water is one of the most precious resource of the world company has done projects to conserve water e.g. In Mongolia 80% of the water is being reused for domestic purpose in their copper-gold mine, in Canada hydropower plant gives power to 72% of their Aluminum industry, etc. • Climate change: “Their climate change programme focuses on reducing the energy intensity of the operations, as well as the carbon intensity of the energy. This includes the use of renewable energy and reduction in emissions intensity from chemical processes” (Rio Tinto sustainable Report, 2014).

In the Governance aspect following given issues have been covered: • Business Resilience: • Engagements; human rights, Integrity & compliance. • Internal controls:

C. Motivation for disclosing social and environmental reporting Every Company is motivated to report for different reasons, larger company like BHP Billiton and Rio Tinto report more than small scale companies.

Different author used different theoretical approaches to describe CSR disclosures importance and motivation. Few author used social political theory, some used political theory but most important theory used for CSR motivation for reporting is stakeholder’s theory and legitimacy theory (Patricia, 2012). This article is related with CSR reporting of mining industry thus main focus is on some the importance of stakeholder’s theory.

Stakeholder theory According to Freeman definition, stakeholders explain as” any group or individual who can affect or is affected by the achievement of the organization’s objective” and in later studies Mitchell, agle & wood describe this theory in broad way, that how various parties treated as stakeholders (miji kim, 2011). With the rise of different types of stakeholders group, organizations also developed new form of communication techniques like CSR report.

Reason to use stakeholder’s theory (Ten) according to ullmannn, stakeholders are first pillar to describe his model. In past, companies only gave importance to the management and shareholders but now relationship between companies and stakeholders are also important. He suggested companies believe stakeholders are more worried about social and environmental issues, thus the companies are more motivated to disclose their CSR reporting. Shareholders pressures, Creditors pressures, Government rules & regulations, Employees,
Community are also the major reasons which made companies to release more information on CSR reporting

D. how companies account for job losses? The recent job losses in the two major companies are accounted for the sharp drop in commodity prices. Mining companies have cut thousands of jobs over the past two years due to the steep and sustained decline of most major commodity prices. BHP Billiton slashed 16,924 employees and contractor jobs in the past financial year i.e. 14% of their workforce. The annual report revealed that employee and contractor’s numbers have dropped considerably from123, 803 in 2013-14 to 106,879 in 2015-2016. The cuts mean BHP’s workforce is now at its smallest since 2011 (the Australian, 2016). BHP Billiton revealed that they are focusing on cost cutting and efficiency thus making $US4.1 billion of productivity gains in 2014-15, hitting a previous target two years early. Another major mining company Rio Tinto is poised to cut up to 700 jobs in Western Australia. The companies explained these cuts are because they are transforming their business to remain globally competitive. (Australian mining, 2016). Yes, it is a challenge for the companies to show the profits with decreasing number of employees. With the statements released by them from time to time put them to a little ease for e.g. After the job cuts BHP Billiton released a statement that “Further operational productivity will stretch the capacity of existing operations to safely increase volumes at very low cost and increased capital productivity will reduce the cost of investments”. Now this sought of statement defiantly makes a positive effect on the stakeholders (the Australian, 2016).

E. Oil prices fall to their lowest level since 2003 is accounted for two reasons: • Oversupply of oil in the market. • Fall in demand because of a slowdown in economic growth in China and Europe. The effect of falling prices is being felt economically all around the world (BBC News, 2016) Figure 1. Brent crude oil price . [pic] Source: Bloomberg

The most obvious impact of the oil prices drop is on company’s financial accounts due to increased risk of impairment of assets. “Rapidly changing oil prices make it difficult to judge the present value of assets for investment decisions on capital allocation, an acquisition or for accounting impairment purposes” (deloitte, 2016). Lower oil price predictions mean that producers should expect lower future profits from an asset which in turn reduces the present value of the asset, and if the value currently carried on balance sheets cannot be recovered in full, thus company will suffer loss. There could also be a severe effect on related deferred tax and company’s investment balances. Further, the reduced operating cash flows can ultimately result in business failure, so company boards will need to give greater thoughts towards the fact that whether the company will be able to continue trading for the foreseeable future. (deloitte, 2016) The sustainable development helps secure the future as it provides real, long-term business value and is a source of competitive advantage. Low oil prices does not mean the oil is “cheap” as it is still coming to us at the cost of people’s health, environment; where the drilling takes place and world’s climate. Drilling, fracking and ongoing production have adverse effects on health, the local economy, and the livability of a community or the local ecology. Today’s low oil prices and the expected market forecasts on the oil prices which says “oil will not recover its production cost until 2024” may lead to cancellation of various oil production plans which in turn is good from the environment perspective.( Goldstein, 2016) The drop in oil prices is expected to give positive effect on Australian economy. (RBA, 2015) As a net importer of oil, falling prices could mean increase in Australian trade. Many of the industries largely depend on oil as a fuel especially mining, transportation and manufacturing; lower prices of fuel will lead to lower production cost of the products which will make company profit and they can also defer some of the profit to the customers by reducing the price on commodities. Thus making good relations with the customers and developing socially as well.

This study based on mining companies to anlyse their social and environmental behaviour. For this study GRI reprting guideline used to describe their format and other aspects. By adopting Freeman stakeholders theory in this paper to explain sakholders impotance in mining industries. after analyse Sample from 10 mining companies, found that small mining companies only provide sustainability report included in annual report but on the other hand large companies BHP billiton and RioTin issued separate sustainability reports every years. The end result of the analysis between two companies figure out is, mining companies are more aware for sustainability reporting in australia for external parties.companies like BHP billiton and Rio Tin are mainly concerned about enviorment.
Other major finding in this study show that how companies can still show profit even after loosing employees. The report reveals that with the steap and sustained decline of comodity prices like oil, companies are focusing on costs cutting and increase in efficiency to maximize their profit targets.
Reference List
Aldrugi A, Abdo H, 2014. Determining the Motives or Reasons that Make Companies Disclose Environmental Information. Journal of Economics, Business and Management, Vol. 2, No. 2, 119.

BHP Billiton. 2015. sustainability Report 2015. [ONLINE] Available at: [Accessed 23 April 2016]

Evangeline Elijido-Ten, Applying Stakeholder Theory to Analyze Corporate Environmental
Performance: Evidence from Australia’s Top 100 Listed Companies, Faculty of Business & Enterprise, Swinburne University of Technology

Falling oil prices: How are countries being affected? [ONLINE] Available at: [Accessed 23 April 2016]

Govindan, K, Kannan, D & Shankar, KM 2014, 'Evaluating the drivers of corporate social responsibility in the mining industry with multi-criteria approach: A multi-stakeholder perspective', Journal of Cleaner Production, vol. 84, no. [*ISSUE REQUIRED*], pp. 214-232.

How low oil prices can be good for the environment [Accessed 23 April 2016]

Jenkins, H & Yakovleva, N 2006, 'Corporate social responsibility in the mining industry: Exploring trends in social and environmental disclosure', Journal of Cleaner Production, vol. 14, no. 3, pp. 271-284.

Job cuts loom closer for Rio Tinto Pilbara operations [Accessed 23 April 2016]

Rio Tinto. 2014. sustainable Development 2014. [ONLINE] Available at: [Accessed 23 April 2016].

Statement on Monetary Policy [ONLINE] Available at: [Accessed 23 April 2016]

The impact of plummeting crude oil prices on company finances [Accessed 23 April 2016] [Accessed 23 April 2016]

Similar Documents

Premium Essay

Tax Planning

...REPORT Corporate Social Responsibility: Innovation and Business Skills Australia March 2011 Better business through innovation... Acknowledgements IBSA wishes to acknowledge the work of the project team who have prepared this report. CSR Sydney David Morrissey Franziska Kleedehn Sustainability Learning Institute Bruce McKenzie Cheryl Hardie Ian Hardie Andrew McKenzie Damian Collins IBSA is grateful to the large number of people and organisations who have supported IBSA in this project and who participated in workshops and in other ways contributed their time and insights. For further information about this report or any other work being undertaken by Innovation & Business Skills Australia Ltd, please visit Innovation & Business Skills Australia Ltd Level 11, 176 Wellington Parade East Melbourne VIC 3002 Australia P +61 3 9815 7000 F +61 3 9815 7001 E W This work has been produced with the assistance of funding provided by the Commonwealth Government through the Department of Education, Employment and Workplace Relations (DEEWR). The views expressed in this work do not necessarily represent the views of DEEWR. In addition, DEEWR does not give warranty or accept any legal liability in relation to the content of this work. © IBSA 2011 No material contained within this publication may be reproduced in full or in part without......

Words: 14126 - Pages: 57

Premium Essay

Google Media Report

... Word Count: 1,364 Anne bui - 42871638 BBA 340 Assignment 2 – Media Report Yige Ma’s Thursday 7pm Tutorial Word Count: 1,364 Table of Contents 1. Introduction 2 2. Corporate Social Responsibility 3 i. TRIPLE BOTTOM LINE 3 ii. GOOGLE'S CSR REFUSAL/ACCEPTANCE: DEFENSIVE STANCE 4 3. Conclusion 6 4. ARTICLE– Google paying a fraction of the tax in Australia it should 7 5. REFERENCEs 9 1. Introduction It is without a doubt that globalisation has been the driver of the increased link between nations, allowing for the operation of many organisations in borderless economies. As globalisation continues to impact organisations, they are forced to undertake new and innovative approaches in order to maintain or gain a competitive advantage. As a result of this, many ethical issues have come to light, so it is important to acknowledge organisations adopting methods of corporate social responsibility. Corporate social responsibility (CSR) essentially encompasses the refraining from any action that will attract unfavourable publicity due to its social unacceptability (Carroll, 2010). The concept of CSR has proven to be an area of focus in recent times, especially in regards to consumers and stakeholders. This report will explore Google Inc’s corporate social responsibility when implementing strategies in tax dealings in order to reap the benefits of globalisation, especially as CSR’s importance and......

Words: 2614 - Pages: 11

Premium Essay

Accounting for Managers are from any company you like. This access has changed the “rules of the game” to a point that it is a legal requirement in some countries to have a Corporate Social Responsibility (CSR) and in the future, I think that more countries will follow Indonesia’s lead to combat environmental damage. Environmental concerns is not the only area there CSR encompasses. Words like ‘continuous disclosure’, materiality assessment and CSR is becoming somewhat of a growing ideology, which is being injected into the corporate psyche with a standard demand from stakeholders. In this report, I will show through a number of company views that the rules of the game has changed not just through regulation but expectable social views. 2. Body: Corporate Social Responsibility Within Australia there are federal based reporting system for accounting and it is an evolving regulations the bring standard and the ability to compare companies for investors and other interested parties. The Australian Securities and Investments Commission (ASIC) is the agency that ensures that the information available to investors and consumers is fair and transparent within Australia’s financial markets. Investors and stakeholders that want information have only to find the company on internet and follow the links to the CSR or accounting documents. The Australian Accounting Standards Board (AASB) is also one of...

Words: 2112 - Pages: 9

Free Essay

International Business

...International Business Theory & Practice (MGF 5966) Lecturer/Tutor Mr. Sharif Rasel Name & ID Junaidul Haque – 263 512 50 Dalaphone Phengrattanavong – 266 785 94 Girish Balar – 274 718 53 Maike Nan – 263 994 90 Due Date – Week 11 Introduction BHP Billiton, which is Broken Hill Proprietary Billiton, is an Anglo-Australian multinational mining and petroleum company. BHP started its operation in Melbourne in 1885 which is one of Australia’s largest and oldest companies, and it focused on development, discovery, production, and marketing of natural resources. In value-added flat steel products, BHP was also a market leader. In 1860, Billiton was established in The Hague, Netherlands. Billiton developed a growing and substantial copper portfolio. It was also a global leader in the metals and mining sector, and a major producer of aluminum and alumina, steaming coal, nickel, and titanium, chrome and manganese ores and alloys. BHP Ltd of Australia and Billion Plc of UK established merger in 2001, and the result was the dual listed company (DLC). BHP Billion becomes one of the world’s largest mining and Petroleum Company. It expands its business in twenty countries, and its major commodities are iron ore, metallurgical coal, energy coal, conventional and unconventional oil and gas, copper, aluminum, manganese, uranium, nickel, and silver. This essay will deeply analysis the effects of BHP Billiton’s sustainability practice on the ownership......

Words: 3105 - Pages: 13

Premium Essay


...ePublications@bond. It has been accepted for inclusion in Corporate Governance eJournal by an authorized administrator of ePublications@bond. For more information, please contact Bond University's Repository Coordinator. Corporate Social Responsibility: Impact of globalisation and international business Abstract [Extract] Corporate Social Responsibility (CSR) is associated with the conduct of corporations and in particular whether corporations owe a duty to stakeholders other than shareholders. Whilst the phrase ‘Corporate Social Responsibility’ may be gaining momentum, the concept itself is not new. The question as to whether corporations owe duties to broader stakeholders has been debated at various times throughout the twentieth century. Keywords corporate social responsibility, corporations, globalisation, international business This journal article is available at ePublications@bond: Corporate Social Responsibility ‐   Impact of globalisation and international business    By Kim Kercher  Date of publication: 11 December 2006  Introduction  Corporate Social Responsibility (CSR) is associated with the conduct of corporations and in particular  whether corporations owe a duty to stakeholders other than shareholders. Whilst the phrase ‘Corporate  Social  Responsibility’  may  be  gaining  momentum,  the  concept  itself  is  not...

Words: 6423 - Pages: 26

Premium Essay

Csr Activities

...critical importance. The motivations for these contracts are continuously being revisited to understand how CSR programs can nurture and contribute to the growth of firms. While CSR issues are attracting a great deal of attention in the developed world, there is a need for more research into CSR in the developing world. This paper considers the CSR practices of a small sample of multinational corporations (MNCs) and local firms in Bangladesh to better understand this situation. Introduction Corporate social responsibility (CSR) has generated significant debate in academic and corporate circles in recent times. This debate acknowledges the importance of CSR in the first-world, but raises questions regarding the extent to which corporations operating in developing countries have CSR obligations (Jamali and Mirshak, 2007). Conventional wisdom suggests that CSR is more relevant to corporations operating in the developed countries due to elevated community expectations of socially responsible behaviour. In contrast there is also a belief that societal expectations in the developing countries mainly centre on economic growth; therefore relegating CSR to be of lesser importance to the society and the firms (Khan, 1985). Against this back drop, this paper discusses the situation prevailing in the developing world to broaden our understanding of the perceptions and practices of CSR. Bangladesh is used as a test case for this purpose because this country is believed to posses the......

Words: 2454 - Pages: 10

Premium Essay

Should Csr Be Used as a Marketing Tool by Producers in the Cosmetics Industry?

...Should CSR be used as a Marketing Tool by Producers in the Cosmetics Industry? ABSTRACT The purpose of this paper is to prove that CSR can be used as a positive approach in the area of marketing and promotion, particularly in the cosmetic industry. The paper substantiates this hypothesis by drawing on theory from scholarly articles and literature and analysing data from annual reports. A portion of the research is dedicated to the Body Shop, based on analysis of their annual reports, as well as the reaction of different stakeholder groups based on several literatures. The paper finds that there are positives and negatives in using CSR and promoting it using marketing depending on the consumers’ perceptions. It also finds that there exists an information asymmetry between producers and consumers in terms of CSR for their products. The paper supports previous ideas that CSR is useful in benefitting the company brand and value and that it can also be used to influence a consumer’s purchase decision of the cosmetics. INTRODUCTION In conceptual theory, CSR is how a company incorporates “social, environmental and economic issues into their values and business operations in a transparent and accountable manner” (FAITC, 2012). In simple terms, CSR is the actions that a company undertakes or doesn’t undertake during their business functions to benefit society and their stakeholders. There are many arguments for and against CSR and also differing views on whether it actually......

Words: 3361 - Pages: 14

Premium Essay

Free Paper

...Proceedings of the Fourth International Annual Conference of the Asia Pacific Academy of Business in Society Sustainable Decision-Making in a Time of Crisis Public and Private Perspectives Malcolm McIntosh and Susan Forbes Authors Malcolm McIntosh Director, Asia Pacific Centre for Sustainable Enterprise Susan M Forbes Adjunct Research Fellow, Asia Pacific Centre for Sustainable Enterprise © 2011 Asia Pacific Centre for Sustainable Enterprise Published by Asia Pacific Centre for Sustainable Enterprise Griffith Business School Griffith University, South Bank campus 226 Grey Street, South Brisbane Queensland, 4101 Australia All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic or mechanical, photocopying, recording or otherwise without the prior permission of the copyright owner. Copyright rests with the individual authors. ISBN 978-1-921760-45-7 Foreword The conference reflected lessons learnt and being learned from the global financial crisis, from the climate change prognosis and from rethinking global governance. The conference preceded the Asia-Pacific Economic Cooperation (APEC) 2010 Meetings and Summit (7-14 November in Yokohama, Japan) and coincided with the 10th anniversary of the United Nations (UN) Global Compact, and the UN Year of Biodiversity. Given the birth of the G20 group of nations,......

Words: 32741 - Pages: 131

Premium Essay

Corporate Social Responsibility

...Unlocking the value................................... 3 1.4 World Economic Forum & CSR ..................................................................... 3 1.5 Case Studies ................................................................................................. 4 1.6 Should ASOCIO have a role? ....................................................................... 5 CORPORATE SOCIAL RESPONSIBILITY ASOCIO Policy Paper June 2004 1 CORPORATE SOCIAL RESPONSIBILITY Corporate Social Responsibility (CSR) is becoming an increasingly important activity to businesses nationally and internationally. As globalisation accelerates and large corporations serve as global providers, these corporations have progressively recognised the benefits of providing CSR programs in their various locations. CSR activities are now being undertaken throughout the globe. 1.1 What is corporate social responsibility? The term is often used interchangeably for other terms such as Corporate Citizenship and is also linked to the concept of Triple Bottom Line Reporting (TBL), which is used as a framework for measuring an organisation’s performance against economic, social and environmental parameters. The rationale for CSR has been articulated in a number of ways. In essence it is about building sustainable businesses, which need healthy economies, markets and communities. The key drivers for CSR are1: Enlightened self-interest -...

Words: 1624 - Pages: 7

Premium Essay

Tobacco Industry Essay

...The tobacco industry continues to abuse the ethics of corporate social responsibility (CSR) to change their public image, whilst also attempting to achieve their goals. This is evident in the ways the industry manipulates data and targets youth smokers. This could be characterised by the analysis of the transparency, dignity and citizenship principles of the Global Business Standards Codex (GBSC). The manipulation of data by the tobacco industry expresses the abuse of the transparency principle, demonstrating their involvement in deception. The tobacco industry has utilised its economic power, political influence, marketing and manipulation of the media to discredit scientific research and, lobby governments to propagate the sale and distribution of its deadly product (Friedman 2009). According to the World Health Organisation (WHO) the tobacco industry has utilised their power to undermine tobacco control through inappropriate relationships with staff, to discourage initiatives, and using front groups for indirect influence. In a historic judgement, United States (US) District Judge Gladys Kessler, ordered tobacco makers to buy newspaper advertisements detailing adverse health effects in smoking. Justice Kessler in her judgement blamed the tobacco companies of suppressing research, destroying documents, distorting the truth about low-tar and light cigarettes to encourage smokers to switch, instead of quitting, and abused the legal system in order to make profit with......

Words: 1415 - Pages: 6

Premium Essay

Csr Axiata

...Journal of Economics, Business and Management, Vol. 1, No. 1, February 2013 Corporate Social Responsibility to Reflect Organization‟s Corporate Identity: A Content Analysis Musdiana Mohamad Salleh, Nabsiah Abdul Wahid, and Malliga Marimuthu  Abstract—The authors propose corporate social responsibility (CSR) as a useful element in reflecting an organization’s corporate identity (CI) to its target audiences. The inclusion of CSR highlights organization’s role as a ‘good’ citizen in society and is the basis for any beneficial exchanges between the parties. Content analyses on CSR of 10 top ranked Malaysian companies supported this proposition. Index Terms—Corporate social responsibility, corporate identity, content analysis. effort in integrating their stakeholders‟ social and environmental expectations and/or concerns into their daily operations and their interaction with the stakeholders. B. Corporate Identity Corporate identity (CI) has been used as the basis for other various corporate level concepts like image, reputation or corporate communications; and is even considered fundamental in corporate marketing field [1]-[2]. The traditional VI perspective sees CI being used at the early stage of organization‟s operation as it becomes the mean for CI transmission e.g. through logos, brand images and other visual manifestations representing them [3]. CI has evolved from this definition from focusing only on the minor elements of the organization to now emphasizing more on the...

Words: 3460 - Pages: 14

Premium Essay

Corperate Governance Report Caltex

...4 1.4 Potential ethical considerations impacting on the company and the industry in which it operates 4 1.4.1 Petroleum Industry 4 1.4.2 Price Fixing 4 1.5 Theoretical Frameworks supporting Caltex CSR disclosures: 5 1.5.1 Stakeholder/Legitimacy Theory 5 1.5.2 Agency Theory 5 2.1 Part a 6 2.1 Part b 7 Recommendations: 8 References 9 Section 1 1.1 Company Profile: Caltex is regarded as the leading transport fuel supplier and convenience retailer in the Australia and are the only integrated oil refining and marketing company that are listed on the Australian Securities Exchange. Caltex sources and refines over 75 million barrels of crude oil a year and supplies a third of Australia’s transport fuel (Caltex 2013). As a percentage of crude oil is sourced overseas Caltex operates in a sensitive industry for a number of different reasons, the risks of transporting oil alone is not to be taken lightly given the corporate governance issues that arose from the infamous Exxon Vladex spill that cost the company not only financially but also significantly damaged the environment and their reputation (Miranda, Ferrara & Michele 2012). According to (Davison 1963) the domestic crude oil industry has been negatively associated with wasteful production practices and has been required much legislation. With this in mind Caltex has developed an Environment Incident Response policy that involves pollution Incident Response Management Plan. In addition to this,......

Words: 3832 - Pages: 16

Premium Essay

A Study of Corporate Social Responsibility in Indian Organization: an-Introspection

...Corporate Social Responsibility in Indian Organization: An-Introspection Hoshang Bhesania India is a developing economy, here Corporate Social Responsibility (CSR) play important role in organizations. In Indian industry one can easily notice a paradigm shift from corporate philanthropist to being socially responsible. The importance of CSR is increasing in Indian corporate scenario because organization have realize that ultimate goal is not profit making beside this trust building is viable and assert able with societal relationship. The compulsion of CSR has emerged in last two decades when Indian organization realizes the importance of sustaining in this cutthroat competition era. Before this Indian industries had materialistic culture. In the hue and cry of LPG (Liberalization, Privatization and Globalization) companies were only focused toward profit maximization which led social backwash. To overcome this fashion CSR play an important role in sustainable development which is only possible when there is a balance between profit and lowering social backwash or eradicating it. The problem with Corporate Social Responsibility is that nobody is very clear about what exactly it encompasses. The Indian government has been trying to make it mandatory for companies to spend at least 2% net profits on CSR. Today CSR to some companies means providing lunch to their employees or tackling global warning issues. Now a day’s company have become more transparent......

Words: 3944 - Pages: 16

Free Essay

A Review of Mission Statement for Fast Food Industry

...HBM 524/533 Marketing Strategy Development A Review of Mission Statement For Fast Food Industry Prepared for: Dr Tony Lobo Submitted: 29 March 2010 Prepared by: Wei Zhao Student ID: 6623484 Executive Summary This report is written to evaluate if the mission statement is still necessary for company's succuss and to review mission statements for five quick services restaurants which are competing in the fast food industry including: Hungry Jack’s, McDonald’s, Domino’s Pizza, Kentucky Fried Chicken and SUBWAY chain. This report finds that a well written mission statement is able to guide the direction of the company and positively change employees’ behaviours which directly link to company profitability. Therefore is essential for successful organizations today. This report also finds that except for McDonald’s, all other four companies’ mission statements are either focusing on these companies’ growth or profitability. This report believes it might be difficult for them to cope with this changing macro-environment and plan for the future scenarios. McDonald’s is the only organisation in these five companies that mentions customer experiences and perception towards the cooperation is also it is the only one communicate effectively this to the target audiences. Table of Contents 1.Introduction 1 2.The need of Mission Statement 1 3. Hungry Jack’s 2 3.1 Company Description 2 3.2 Review of the Mission Statement 3 4. McDonald’s 5 4.1......

Words: 3180 - Pages: 13

Premium Essay

Csr at Koto

...CSR PROGRAM ‘’KNOW ONE, TEACH ONE’’ CSR PROGRAM ‘’KNOW ONE, TEACH ONE’’ Corporate Social Responsibility Department Corporate Social Responsibility Department TABLE OF CONTENT I. OVERVIEW OF CSR IN VIETNAMESE HOSPITALITY INDUSTRY II. CSR PROGRAM ‘’KNOW ONE, TEACH ONE’’ 1. General information 2. Programs III. REASONS AND DRIVERS 1. KOTO as a great contribution to society 2. KOTO as a sustainable impact IV. CONCLUSIONS V. REFERENCES I. OVERVIEW OF CSR IN VIETNAMESE HOSPITALITY INDUSTRY It is probable that CSR process in Vietnam arises from the reform in the early 1990s and attracts more and more attention as the norms, policies and perquisites protocol of international trade have sharpened the development process. Today, companies gain competitive advantages not only by quality of product and service, pricing strategy or location but also by their consideration and responsibility for the environment and community. While CSR is a growing movement in the hospitality industry in Asia, there are only a few enterprises really pay attention to CSR in Vietnam. One of the most outstanding program is carried out by Joma Bakery Café, which is called ‘’The Joma Way’’ (1). The program includes three main initiatives: -Donate 2% of revenue supporting grassroots initiatives focused on meeting basic life needs -Offer training and growth opportunities for disadvantaged persons -Involve in community......

Words: 1645 - Pages: 7