The Roles of Leadership in Corporate Greening for Sustainability

This report discusses the principles of sustainability, market and regulatory issues associated with sustainability, and the current position of BHP Billiton. It also evaluates mandatory and voluntary reporting and the risks of external reporting. The report emphasizes the importance of communication with stakeholders and the use of renewable resources to achieve sustainability and gain competitive advantages.

Running head: PRINCIPLES OF SUSTAINABILITY
The roles of Leadership that are relevant to Corporate greening in ensuring Corporate
sustainability
Name of the Student:
Name of the University:
Author’s Note:

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Executive Summary
This present report deals with the strategic management in the context of BHP Billiton in order
to achieve the sustainability of the business. However, it is important for this organization to
develop an environmentally friendly business to enhance their growth. However, it has been
received that a sustainable business focuses on the environment, social and economic
sustainability. In the recent years, environmental sustainability is the major concern for every
business. It is important for the business to develop environmentally friendly product reduce the
impact of their business on the environment and society. On the other hand, communication with
the stakeholders will be helpful for this organization to enhance sustainability in their business.

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Table of Contents
Introduction......................................................................................................................................4
1. Principles of sustainability in a global business environment and discussion of the issues
regarding the future sustainability of the corporate business environment.....................................4
2. Identification and compassion of the market and regulatory issues associated with the
sustainability at the local and global level along with the report of triple bottom line...................6
3. Analysis of the current position of BHP Billiton and development the sustainability strategy to
gain competitive advantages............................................................................................................7
4. Evaluation of the mandatory reporting, benefits of voluntary reporting and risk of external
reporting...........................................................................................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

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Introduction
A business can achieve sustainability through proper strategic management. However,
green business or sustainable business has minimal effect on the environment, economy, society
and the community. Such business tries to meet the triple bottom line strategy (Galea, 2017).
However, sustainable business consists of human right policies and progressive environmental
policies. It is crucial for every business to maintain the environmental sustainability to gain the
competitive advantages. In order to make a business green, it is crucial for the every business
industry to serve the products, which are environmentally friendly. This study deals with the
development of the strategies in the context of BHP Billiton to make their business sustainable.
BHP Billiton is an Australian mining industry and it is the fourth largest organization in the
mining industry of Australia. However, adoption of the triple bottom line strategy will be
discussed in this study. On the other hand, principles of the sustainability and the market issues
regarding the sustainability will be analyzed in this section.
1. Principles of sustainability in a global business environment and discussion of the issues
regarding the future sustainability of the corporate business environment
Maintenance of the sustainability is crucial for every business to achieve the competitive
advantages in the global market. One of the major principles of the sustainability is a protection
of the human right (Robertson, 2017). It is important for any business to respect and support the
proclaimed human right and they should not abuse the human right. However, elimination of the
discrimination in respect of occupation and employment and reduction of child labor is another
major principle of the sustainability. On the other hand, business should take a precautionary
approach to meet the environmental challenges (Ragazzi & Ghidini, 2017). In the context of

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BHP Billiton, it is mandatory to develop environmental responsibility and adopt environmentally
friendly technologies.
BHP Billiton focuses on the protection of human rights, as it is one of the major
strategies of the business to maintain the environmental sustainability. They focus on the
improving living standards and developing the economy of the economy to make their business
sustainable. Social investment, indigenous people, and engagement of the stakeholders are their
major priorities (Bhp.com, 2017). Several issues are associated with the corporate business
environment regarding the sustainability. One of the major issues that may come in future is the
resource scarcity. Due to the growth of the population and high consumption of the natural
resources resource scarcity can be taken place. This will affect the business of BHP Billiton. This
resource scarcity will result into the higher price, changing supply landscape and market
volatility. Growing inequality is another sustainability issue in the near future in a business. In
the global business the tension between free movement, employment rate, the living standard of
the people and free trade influence such inequality in the business, which is a major concern for
the future (Ragazzi & Ghidini, 2017).
One of the major future challenges for BHP Billiton is increased risk and hazards in
their business. Health risk is a common factor for the mining industry hence; the climate change
may bring the risk for the health of workers. This risk is categorized as operational risk. Apart
from this, strategic risk and financial risk are other risks associated with the sustainability.
However, often-societal challenges may bring the strategic risk to the business (Bhp.com, 2017).
As for example, resource depletion causes risk for maintaining the sustainability of a business.
On the other hand, an organization may face the high cost of operation due to huge consumption
of the natural resources. In the context of BHP Billiton, they will face operational risk during the

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mining, on the other hand, financial risk is another sustainability issue that may occur in future.
Apart from this, BHP Billiton is a petroleum and metal mining company thus; scarcity of the
resources will be a major future risk for them that will affect the sustainability of the business.
2. Identification and compassion of the market and regulatory issues associated with the
sustainability at the local and global level along with the report of triple bottom line
Environmental Protection Act is the major regulatory framework that is associated with
sustainability. However, maintenance of the environmental sustainability is a major issue in the
recent years. However, BHP Billiton is situated in Melbourne where it is crucial for this
organization to protect the environment while conducting their mining operation. Environment
protection is the common sustainability issue in both local and national level. According to the
Environmental protection and Biodiversity Conservation Act, 1999 the natural resources of the
environment should be protected during any business operation (Kourula, Pisani & Kolk, 2017).
Therefore, environmental sustainability issue is a major concern both the local and global level.
BHP Billiton focuses on the Health, safety, Environment, and Community (HSEC)
standards to keep sustainability in the business. As health, safety, community, and environment
are the major regulatory issues of sustainable business. This HSEC standard is aligned with the
international policies. BHP Billiton follows the ICMM sustainable development framework that
also focuses on the requirements of HSEC (Bhp.com, 2017). Hence, it has been found that HSEC
is an organizational policy, which also fulfills the requirements of the national policy. On the
other hand, BHP Billiton also tries to maintain the human right to reduce the sustainability issues
like inequality. Protection of the human right is a crucial part of the business sustainability if it is
not maintained properly then business can be affected. On the other hand, United Nations

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Declaration of Human Right is a national policy that focuses on the human rights and security.
Hence, the organizational policy regarding the protection of the human right is relevant to the
national policy however, it does not cover another requirement of the national policy that the
security. Hence, it can be said that the sustainability issues regarding the environmental
protection and human right influence the regulatory frameworks in both local and national level.
Triple bottom line or TBL is a tool that enables an organization to meet the sustainability
goals (Kandachar & Halme, 2017). In the context of BHP Billiton protection of the environment
and the human right are their main areas of sustainable business. Hence, by following this
accounting framework (TBL) this organization will be able to focus on the environmental,
financial and the social dimensions to achieve sustainability. By maintain the human right and
producing an environmentally friendly product they can achieve sustainable business in near
future.
3. Analysis of the current position of BHP Billiton and development the sustainability
strategy to gain competitive advantages
BHP Billiton contains simple and diverse portfolio with low-cost operation process
across the world. They have a multifunctional team in order to connect with the entire
organization and share the business practice, however, maintenance of the human right,
compliance with the HSEC are the major areas of their business. They have adopted technology
to get a significant return on their assets (Bhp.com, 2017). However, in the recent year, this
organization has been facing strategic issues due to the emission of green house gas and climate
change as this is an energy-oriented product manufacturer. However, in their manufacturing
process huge amount of fossil fuel is required that increase the green house gas. In order to deal

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with this issue, BHP Billiton has decided to adopt regulatory change. This makes the service
users more concern, as a result, this will bring a big threat to the position of this organization and
conduction of the business. For this organization, communication with the stakeholders will be
helpful to understand the requirements regarding the sustainability. However, such
communication will help to get stakeholders feedback regarding their strategic issues, which will
allow them to identify the strategic imperatives for the sustainable business (Charter, 2017).
Therefore, use of renewable resources during the manufacturing they will be able to make their
business unique and environmentally friendly, which has less impact on the society and
environment. This will help them to gain competitive advantages in the global market.
4. Evaluation of the mandatory reporting, benefits of voluntary reporting and risk of
external reporting
Mandatory reporting is associated with the changing corporate culture, equality, cost
saving and standardization (Schaltegger & Wagner, 2017). In the context of BHP Billiton
mandatory reporting legislation needs professional’s report regarding the sustainability issues in
the business. On the other hand, voluntary reporting enables an organization to increase their
flexibility. In the context of BHP Billiton, the voluntary report will help them to increase
proximity and flexibility in the business. This will allow the organization to comply with the
sustainable requirements. One of the major risks of the external reporting is the inappropriate
data representation as the external audit agency has a poor idea of the internal operation process
(Abraham & Dao, 2017). Hence, in the context of BHP Billiton, the external reporting may
execute inappropriate data regarding their business operation, which may affect their brand
image and growth of the organization.

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Conclusion
The entire study gives a brief idea regarding the sustainability issues in the context of
BHP Billiton. However, it has been found that this mining industry also refines the oil, which
consumes high energy. In order to maintain the environment sustainability and to deal with the
climate change communication with the stakeholders is crucial for this country. Use of
renewable resources will be effective for this organization to gain competitive advantages by
creating the environmentally friendly business.

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References
Abraham, T., & Dao, V. (2017). An Empirical Investigation of Sustainability Innovation
Systems and the Stages of Sustainability Maturity.
Bhp.com. (2017). BHP Billiton. Retrieved 28 November 2017, from
http://www.bhp.com/-/media/bhp/documents/investors/reports/2009/oursustainabilityfra
mework2009.pdf?la=en
Bhp.com. (2017). BHP. Retrieved 28 November 2017, from
http://www.bhp.com//media/bhp/documents/investors/reports/2007/sustainabilityreport.p
df?la=en
Bhp.com. (2017). Sustainable Development. Retrieved 28 November 2017, from
http://www.bhp.com//media/bhp/documents/investors/reports/2007/sustainabilityreport.p
df?la=en
Charter, M. (Ed.). (2017). Greener marketing: A responsible approach to business. Routledge.
Galea, C. (Ed.). (2017). Teaching Business Sustainability Vol. 2: Cases, Simulations, and
Experiential Approaches. Routledge.
Kandachar, P., & Halme, M. (Eds.). (2017). Sustainability challenges and solutions at the base
of the pyramid: Business, technology and the poor. Routledge.
Kourula, A., Pisani, N., & Kolk, A. (2017). Corporate sustainability and inclusive development:
highlights from international business and management research. Current Opinion in
Environmental Sustainability, 24, 14-18.

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Ragazzi, M., & Ghidini, F. (2017). Environmental sustainability of universities: a critical
analysis of a green ranking. Energy Procedia, 119, 111-120.
Robertson, M. (2017). Sustainability principles and practice. Taylor & Francis.
Schaltegger, S., & Wagner, M. (Eds.). (2017). Managing the business case for sustainability:
The integration of social, environmental and economic performance. Routledge.