Corporate Social Responsibilities of BHP Billiton Company

BHP BILLITON COMPANY
Corporate Social Responsibilities
CSR Program and issues faced by BHP
Name of the Student-

Executive summary
Each and every company needs to take proper CSR activities and comply with the all the
ethical and legal requirements if it wants to grow its business on sustainable basis. The Concept
of CSR is meant to allow company to give back to society what it has taken while running the
business. In this report, corporate social responsibilities issues recommendation to solve those
issues and way of solving the issues also along with the examples has been discussed. It will
assist owners and key managerial persons of BHP Billiton Company to understand the hindrance
and proper issue solving methods to mitigate these CSR issues in effective manner. This
company has faced the corporate social responsibilities issues in its business due to the
mishandling of hazardous substance and non-effective regulatory legal compliance. The main
CSR issue has emerged as company has failed to establish harmonization in its domestic CSR
policies and international CSR policies of company. In addition to this, company has also faced
issue in its high employee turnover due to the non-effective employee development plan. It is
also one of the biggest reasons of less complied CSR program.

Table of Contents
Executive summary.....................................................................................................................................1
Introduction.................................................................................................................................................3
Description of company...........................................................................................................................3
Research methods.......................................................................................................................................4
CSR issue identified and undertaken program of BHP Billiton.....................................................................4
Evidences.....................................................................................................................................................5
Stakeholder’s impact...................................................................................................................................6
Recommendation-.......................................................................................................................................7
Legitimacy theory....................................................................................................................................7
Public relation..........................................................................................................................................7
Evaluating of theories..............................................................................................................................7
Critise of theory.......................................................................................................................................8
Recommendations.......................................................................................................................................9
Triple bottom line theory.........................................................................................................................9
Business ethics theory...........................................................................................................................10
Evaluation of theories............................................................................................................................10
Critises of theory...................................................................................................................................11
Implementation plan.............................................................................................................................12
Issues after implementation plan..............................................................................................................14
Conclusion.................................................................................................................................................14
References.................................................................................................................................................16
Appendix...................................................................................................................................................19

Introduction
With the changes in ramified economic changes, every organization needs to follow
proper strategic program and compliance program to mitigate the social and environmental
issues. It is analyzed that organization operates its business in the society and has to manage it’s
all the business operations with a view to strengthen the business functioning in effective
manner. The corporate social responsibilities is also used as sustainable business, corporate
governance and self-regulatory compliance program of company to strengthen its social and
environmental safety program. In this case, BHP Billiton Company has been taken into
consideration to determine the CSR activities of the company. In many case, CSR activities have
been described as business approach of the company that contribute to the sustainable business
development by delivering the economic, social and environmental benefits for all of its
stakeholders. In this report, through analysis of Corporate social responsibilities of BHP
company, it has been taken which is used to maintain an effective strategic approach. In the CSR
activities of the BHP Billiton Company, it is considered that company has responded to
community expectations with combinations of the policy’s including code of conducts
sustainable development policy and other designed set of standards which conducts its business
for the effective business functioning (BHP Billiton, 2016). BHP has defined its CSR policies
and activities program as requirement to address risks and explicating the zero tolerance of the
Misconduct act upon the child labour, issue related to forced labour, and employee development
program and corruption, bribery and extortions.
Description of company
BHP Billiton Company is the world’s largest company which was formed in 2001 merging of the
Australian Broken Hill Proprietary Company, and Billiton of the UK. The main business
operation of company is related to production of ore, Manganese, Petroleum, Aluminum, Base
Metals, Metallurgical Coal, Thermal Coal, Stainless Steel resources, mine and
Diamonds/Specialty materials by using the natural resources (BHP Billiton, 2016).

Research methods
It is analyzed that the BHP Billiton Company’s scale of diversity is related to worst
ravage of the cotemporary economic downtown which negatively impacted the employees and
other owners of the company. However, there are major communication channels which have
been used by BHP Billiton Company such as reporting process, announcement, multimedia and
media feedbacks. The issue in the global and corporate accountability arises due to the non-
sustainable business practice and less effective business policy which might negatively impact
the society, economic and environment at large. In this research, the main research methods are
journals, articles, documents and other web news which have been used to collect the required
amount of information. However, qualitative and quantitative data have been collected to
determine whether the CSR activities of the company have created value to its stakeholders.
CSR issue identified and undertaken program of BHP Billiton
It is analyzed that business organizations hampers economic, society and environment while
operating its business and in order to mitigate these issues and payback to society, CSR program
and sustainable business practices are undertaken by organizations (BHP Billiton, 2016).These
activities are the most suitable methods which are used to implement the strategic approach and
implementing the strategic approach to manage its business. However, after assessing the annual
report of company, the main issue which has emerged due to the business functioning of BHP
Billiton Company is related to emergence of hazardous substances and gases which negatively
impact the society and environment at large. These hazardous gas and substances emerged due to
the functional program of exploiting the natural resources. It has high level of social pressure and
negatively impact the environment in which people lives.
It is analyzed that due to the financial crises of the business, BHP Billiton Company had to
dismissal all of its six thousand employees and contractors which eventually negatively impact
the society and environment at large. This CSR issue emerged due to the non-effective strategic
program and less effective CSR policies program of company. Company adopted CSR activities
with a view to promote business accountability to wide range of stakeholders besides

shareholders and investors who may have direct and indirect interest in the business organization
(Kirsch, 2008).
Another global CSR issue and sustainable program of company is based on the communication
and responsibilities program. Company has inclined towards opting for a utilitarian, relativist
interpretation of 'good and reflects the use of the relative efficiency to use the vast portfolio of
extractive activities in such a way that could be hard for the organization if takes more
obstructive stances. Nonetheless, company endeavored towards developing the economic and
social benefits CSR activities and standards which will assist management to mitigate the
negative impact of its business operations. BHP Billiton Company followed its set protocol and
discharged its all the CSR activities by implementing its strategic plans and investing capital in
the particular certain areas. However, after assessing the market details, it was found that BHP
Billiton Company failed to manage its negative impact on the concerned society which emerged
due to the excess use of iron ore and other hazardous substance (Kemp, Boele, and Brereton,
2016). The main issue of the CSR activities of the company has been emerged due to non-
effective employee development program. It has reflected that company has already set up the
grievance portal in its different department so that every employee could easily share their issues
and problem in the process system of organization.
The CSR program is the most suitable sustainable business practice which promotes each and
every organization to undertake strategic activities to deliver the best outcomes to society and
eliminate the negative impact of its business on society and environment for the sustainable
business practice. After analyzing all the details, it could be inferred that CSR program and
concern of the stakeholders should be harmonious which reflects that company endeavored
towards setting the harmonization for the social and economic development together (Hilson,
2011).
Evidences
These evidences are given to determine the CSR activities of the BHP billiton company and how
the CSR activities have impacted the stakeholders. These corporate laws and applicable CSR
policies should be followed by BHP Billiton Company to strengthen its CSR activities and