BFA715 Assessment 2: Accounting Information Case Study Analysis

This case study examines the concerns of the Senate Committee regarding the mining company Rio Tinto, particularly focusing on the role of Robin Batterham. The assignment analyzes Batterham's dual roles as chief scientist and chief technologist, and the committee's concerns about potential conflicts of interest. It delves into the application of the regulatory capture theory, exploring how the committee's concerns align with the theory's perspective. The study highlights the recommendations made, the modifications to Batterham's role, and the final conclusions drawn by the committee. The case study also discusses how the allegations against Batterham were handled and the implications of these events within the company. The paper concludes that the report's findings supported Batterham's position, reinforcing his role within the company.

Running head: ACCOUNTING INFORMATION
Accounting Information
Name of the Student
Name of the University
Author’s note

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Table of Contents
Introduction................................................................................................................................1
Discussion..................................................................................................................................1
Concerns of the Senate Committee............................................................................................1
Capture theory............................................................................................................................3
Relation of the concerns stated by the Senate Committee with the perspective of the Capture
Theory........................................................................................................................................3
Conclusion..................................................................................................................................3
Bibliography...............................................................................................................................5

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Introduction
The primary objective of the paper is to discuss about a case-study which is related to
the concerns of the senate committee of a mining company named as Rio Tinto. One of the
important points of concerns is about an important member of the board who is named as
Robert Batterham. The compatibility of the position of Batterham has been judged through
different kinds of evidences by the senate committee. All other points are primarily related to
the In this context a theory has been stated broadly named as capture theory. The concerns
stated in the senate committee of Rio Tinto are then explained by keeping the perspective of
the capture theory inclined with the case.
Discussion
Concerns of the Senate Committee
The primary concerns that have been highlighted by the Senate Committee of the
mining company, Rio Tinto are all related to Robin Batterham. He had been the chief
scientist and chief technologist of the Federal Government belonging to the mining company
which has been named as Rio Tinto. The first concern that has been broadly highlighted was
about the dual role of Robin Batterham, that is, as a chief scientist and also as a chief
technologist. The committee had recommended for a full time position of Robin Batterham as
a chief scientist. The committee came up to a decision that the dual role of Robin Batterham
had not been compatible for him as well as for his position. The committee had looked upon
for a potential conflict that had arised due to the dual roles of Robin Batterham. Further the
committee noted that such a dual role had resulted in the loss of a level of public faith in the
office.
It had been noted by the company that the allegation which had been brought up by
the public against Robin Batterham had no valid or proper evidence. There had been no such

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evidences that Robin Batterham had behaved improperly or inappropriately being performed
the dual role, both as chief scientist and as chief technologist. Due to lack of evidence, the
Government had prevented Dr Batterham from providing any kind of explanation to the
public regarding the allegation of the conflict of interest. Dr Batterham had been prevented to
answer these conflicts in front of the Senate Estimates Committee. Another leader named as
Bob Brown also explained about his concerns about the position of Dr Batterham. This was
mainly due to the chief scientist’s vital role which would be required in the process of
burying the greenhouse gas emissions. This had been a process of coal mining industry.
Through the results provided by the report, there had been no sign of resignation of
Robin Batterham. Bob Brown, however, stated that it was already time for Robin Batterham
to give his resignation in the company. There had been four recommendations which were
made in favour of Robin Batterham. These recommendations were made by Labour of the
company, the Democrats and the Greens. Abiding by these recommendations, the role of
Robin Batterham had finally been modified. He had been given the full time position in the
company as a chief scientist. This had also strengthened the accountability of the position of
Robin Batterham in order to make the position similar to the other senior offices of the
federal public service.
Finally, a conclusion had been drawn by the senate committee that these potential
conflicts of interests had hampered the work of Robin Batterham as a chief scientist. This had
further upgraded the level of damage in the company. Due to these allegations, the role had
been hampered as much as a real conflict of interest. However, Government senators did not
agree to this fact and further stated that the report went completely into the favour of Robin
Batterham and as a result of it the position of Robin Batterham got strengthened inside the
company. There had been no evidence provided in the report that disagreed with the findings
that were provided by the Senate Committee.

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Capture theory
Regulatory capture theory is a kind of economic theory through which the regulating
agency should be compelled to behave according to the set of rules given by the industries.
Instead of complying with the interest of public, the regulations have been made in such a
way that it would provide benefit to the industry.
Relation of the concerns stated by the Senate Committee with the perspective of the
Capture Theory
In the meeting of the Senate Committee, there had been concerns stated regarding the
allegations provided regarding Robin Batterham. In this context capture theory had been
followed which revealed that the regulatory agencies had been compelled to follow the
standards of industry even if there was no such evidence. As a result of this, there had been
huge destruction in the different processes of research that were previously carried out by
Robin Batterham. The person was demotivated and his efficiency got hampered as a result of
the allegation. However, the report finally went on to the favour of Robin Batterham. All the
critics who thought for the resignation of Robin Batterham got discouraged. The report
resulted in the strengthening of position of Robin Batterham in the company and he was
given the full-time position of chief scientist. The dual role who was considered to be the root
cause of the conflict was completely abolished after the publication of the report.
Conclusion
From the above paper it can be concluded that there should be fair decision given by
the report of the government against any allegation in relation to the regulatory capture
theory. In this case the allegation had been which had been given against Robin Batterham
proved to be completely wrong by the results of the report. From the conclusion drawn from
the report, Robin Batterham had been found compatible and suitable for a full time position

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within the company. Immediate action had been taken to dismiss the allegation and with the
help of other members and leaders of the company, Robin Batterham had been given his
earned position.

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Bibliography
Downie, C., 2017. Business actors, political resistance, and strategies for
policymakers. Energy Policy, 108, pp.583-592.
Starr, J., Mead, J. and Gorman, M.E., Rio Tinto and the Resolution Copper Mining Joint
Venture (a): The Land Exchange.
Thornthwaite, L. and Sheldon, P., 2014. Employer and employer association matters in
Australia in 2013. Journal of Industrial Relations, 56(3), pp.397-414.
Tinto, W.R., Rio Tinto: The way it really works.
Wirth, H., Kulczycka, J., Hausner, J. and Koński, M., 2016. Corporate Social Responsibility:
Communication about social and environmental disclosure by large and small copper mining
companies. Resources Policy, 49, pp.53-60.
Zingales, L., 2014. Preventing economists' capture.