BUGEN 59301 Contents Question 1: Overview......................................................................................................................2 Question 2: Nature of Sustainability Report....................................................................................3 Question 3: Sustainability Development Goals...............................................................................4 Question 4:Sustainability phase......................................................................................................5 Question 5:Reflection of the stated values.....................................................................................7 Question 6:Reflection of group discussion...................................................................................11 References......................................................................................................................................12
BUGEN 59302 Question 1: Overview Corporate social responsibility is becoming an important aspect of business these days. Every organization is required to be responsible for many elements such as society, government, employees, and the environment. The environment is being an important stakeholder and therefore businesses, on their practice need to take care of this element. Sustainable development plays an important role here. Many entities are developing their focus on sustainability and also producing separate reports on this topic. Two of such companies selected for this report are BHP Billiton and Wesfarmers. Both of these are Australian companies but belongs to different industries. In order to provide the basic information related to these companies, this is to state that Wesfarmers is a conglomerate company which has its headquarter in Perth, Australia (Craft.co, 2019). This company has its diverse business operations in many areas that include industrial and safety products, office supplies, general and apparel merchandise, outdoor living and home improvement. The company is one of Australian’s largest employers and gives employment to approximately 490000 people (Wesfarmers.com.au, 2019). BHP Billiton on the other side is an Anglo Australian multinational petroleum, mining, and metals company which has its headquarters in Victoria, Australia (Bhp.com, 2019). As mentioned both of these companies are multinational companies, this is to say that Wesfarmers has its operations in the UK, New Zealand, and Ireland. Whereas on a different side, BHP Billiton has its operations in Brazil, North America, Chile, South America and more. In the presented report, the focus will be made on the sustainability report of each of the company including the sustainable business goals, the scope of their reports and values contained in the same.
BUGEN 59303 Question 2: Nature of Sustainability Report Both of the selected companies are engaged in the practice of corporate social, responsibility in their related industries and this reflect through their code of conduct and corporate social responsibility/sustainability report. If to talk about an area of focus developed by these companies, this is to mention that in the year 2018, Wesfarmers focused on people development, community contribution, climate change resilience, waste and water use, and Robust governance. Whereas on a different side, BHP developed its focus on various stakeholders such as suppliers, employee, social investment, shareholders, investors, and lenders. The sustainability efforts of this company can be seen in different areas such as environmental resilience, educational equity, and natural resourced governance. Both of the companies taken initiates and developed the programs in order to achieve the results in favor of sustainability goals decided by them. Further Wesfarmers, as well as BHP, is taking steps in the direction of safety, security, and wellbeing of the employees with the help of various policies and programs. Wesfarmers reports its sustainability practices on various topics which are majorly divided into two parts that are principles and businesses. Principles further consist of many factors such as people, sourcing, environment, community, and governance. On the different side business consists of bunnings, Coles, department stores and many others. The company states its good practices in each country which make the internal comparison possible among them. Sustainability report of BHP seems to be different here as the same report its sustainability and governance practices under various issues such as climate change, society, and environment. This company does not report its practices focusing on business in different nations and therefore one may not make the internal comparison. It means where Wesfarmers’s report is based on national practices, report of BHP makes its focus on issues.
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BUGEN 59304 Sustainability report of BHP does not include its business activities such as mining, coaling and therefore one may not check its area wise suitability practices, whereas the same is possible in case of Wesfarmers. In a conclusive way, this would not be wrongful to state that Wesfarmers reports its sustainability in more detail in comparison to BHP. Question 3: Sustainability Development Goals Wesfarmers have identified the eight most relevant sustainability goals on that the same has the most impact and where the same can contribute the most. As the company is engaged in theconglomerate industry, it affects society. Further the same plays an important part in the economy of the company, therefore, the same is required to adopt decent work practices. At last, the environment is another area which is affected by the practices of Wesfarmers. Wesfarmers has its huge responsibility towards the environment. Company is working on a large scale and in this manner affect climate change and water uses. The most relevant sustainability goals of the company and its industries are similar that are mentioned below:- SDG 1:- No Poverty (Sustainabledevelopment.un.org, 2019) SDG 2:- Zero Hunger SDG 5:- Gender Equality (Undp.org, 2019) SDG 6:- Clean water and Sanitation SDG 8:- Decent work and economic growth SDG 10:- Required Inequalities SDG 13:- Climate Action (Globalgoals.org, 2019) SDG 15:- Life on Land (Sustainability.wesfarmers.com.au, 2019)
BUGEN 59305 In the sustainability report 2018, Wesfarmers addressed all these goals in an effective and detailed manner. However, the efforts made in direction of these goals are not mentioned by a separate heading but by reviewing this report one may check that company addressed these goals For instance goal 1 is reflected under community contribution heading mentioned in the report. Further goal 6 is reflected under the section of the environment. Other goals are also addressed in the reports under relevant headings. Moving towards BHP, this is to state that belonging to mining industry SDG 13 is the most related goal, which addresses the issue of climate action. Further, as the company significantly contributes to the Australian economy hence goals 1 and 2 i.e. no poverty and zero hunger are also relevant for the same. At last, BHP has 62000 employee and contractors associated with the company hence the same is required to focus on goal 5, which is based on gender equality. In order to discuss consideration of these goals in the sustainability report, this is to state that the latest sustainability report of BHP addressed Gender balanced issue. In comparison to last year, this year the company had 915 more woman employees. The subjective report specifically addresses goal 13, which is the most relatable one. The company made a huge contribution to the restoration, conservation, and sustainable use of terrestrial ecosystem and marine in all region of operation and in this manner taken steps towards goals 14 and 15. The report does not make any explicit or implicit focus on goals 1 and 2 and no particular efforts towards eradication of poverty can be seen in this report. Question 4:Sustainability phase
BUGEN 59306 According to Dunphy, Griffiths, and Benn, there are six phases of organizational sustainability namely Rejection, non-response, compliance, efficiency, proactivity and sustaining the organization. Reviewing the sustainability report of both of these companies, this is to state that Wesfarmers sit on proactivity phase. As per the above-mentioned authors, a company falls in proactivity phase when the same is proactive and strategic, engaged in stakeholder management, has high-level interpersonal skills and has structural redesign for flexibility. It means the same has an innovative capacity. The company considers the interest of all the stakeholder such as employees, suppliers, and customers. Company has started training and development programme for its employees. Further, the same is making continuous efforts to maintain and manage workplace relations. Company is reducing its dependency on international suppliers and contributing to the Australian economy in each way possible. This can be understood by the fact that in the financial year 2018, the company purchased 100% of pork, chicken, fresh lamb, and beef from Australian suppliers. The company adopted innovative technologies that automate inspection at CSBP in 2005 and now is investigating the way in which the same can used this technology for statutory inspection. In this manner, it is clear that the company is innovative and the same has high-level interpersonal skills in relation to its employees. BHP on the other side seems to be on efficiency phase. An organization is considered efficient when the same has systematic HRM, risk avoidance mechanism and that emphasis on reporting (Dunphy, Griffiths & Benn, 2007). Although BHP also supports biodiversity through innovation but efforts of the same are recent. Company has systematic HRM as it believes investing in the workforce so that employees have a healthy culture and right skills. In the financial year 2018, company provided flexible working to 2,183 people. The company invests its funds and resources to avoid risk. The reporting structure of this company is good as it reports
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BUGEN 59307 every possible aspect where the same is engaged in addition to its plans. The company seems to jump on the next phase of sustainability very soon where the same would have a great level of innovation and stakeholder management. Question 5:Reflection of the stated values Wesfarmers, as well as BHP, has their certain values, which also reflect in their sustainability report, starting from the Wesfarmers this is to state that lead motive of this organization is to provide satisfactory returns to investors (shareholders) considering human and community factors. BHP on the other side believes in creating long-term shareholder value via acquisition and marketing of natural resources. BHP adopts values such as performance, integrity, sustainability, accountability, and respect in its business practice. Both of these companies took initiatives to co-operate with their stated values. 87% of Wesfarmers employees are covered by collective agreements. Company has ethical sourcing and respect human rights. Wesfarmers spent $ 147.5 million as community contributions. Following is a statistic related to the same:
BUGEN 59308 (Sustainability.wesfarmers.com.au, 2018a, 26) Greenhouse emission is another value of Wesfarmers that again reflect in its report. 3,945 thousand tonnes of carbon dioxide equivalent in the financial year 2018. Following is the data related to Greenhouse gas emission.
BUGEN 59309 (Sustainability.wesfarmers.com.au , 2018b, 31) Sustainability is one of the core values of BHP. A mentioned above respect and dignity are an important factor for business, this is to state that the company is very active in providing a healthy and safe environment to its employees in addition to transparency and accountability on the part of business managers. As per the Engagement and Perception Survey conducted in the financial year 2018, an employee of BHP stated that they feel proud to be a part of this organization.
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BUGEN 593010 (Bhp.com, 2018) In addition to employees, BHP also made significant efforts for the wellbeing of society. Early childhood development, physical health, and mental wellbeing are some areas where the company made its efforts.
BUGEN 593011 Question 6:Reflection of group discussion In order to summarize findings on the activities performed by two of the chosen companies, we made a group discussion. First of all the activities related to Wesfarmers were discussed and two members of groups raise the concern of ethical issue in agriculture product procurement. In order to address this issue, we referred corporate social responsibility report of the company and found that even being engaged in many industrial activities, the company performed many social activities including supporting the art in Australia, which is not even related to, is business operations. Another group member asked whether the company takes responsibility for data privacy or not and it was founded that in addition to data safety, the company is also taking product safety initiative. We found that this company is being ethical in its operations. Then we diverted our discussion to another company that we have chosen for this report, i.e. BHP. As the company is engaged in the extraction of natural resources, the main concern regarding this company was employee safety. It was found at the page number 29 of the sustainability report of this company that safety is the primary concern for this organization and a total number of recordable injury is decreasing year by year. In order to reach up to a conclusion, we continued the discussion and it was concluded that being from different industries both these companies are behaving ethically on their own places and are required to continue their sustainability efforts in order to be more responsible in future.