CSR of Santos Limited

This report discusses the corporate social responsibility initiatives of Santos Limited, including their focus on the environment, communities, training and education, healthy living, and indigenous people. It also explores the triple bottom line theory and the importance of integrated reporting for sustainability.

Running Head CSR of Santos Limited 0
Corporate social responsibilities
SANTOS Limited

CSR of Santos Limited 1
Executive Summary
This report includes the Santos Limited detailed background along with the newspaper
story where Santos outlined the future plan of coal seam gas exploration where farmers and
businesses were concern about the plan that it will cover all the area of Liverpool Plains. The
accounting theory will is discussed. The CSR framework of Santos Limited will be discussed
and the focus is made on the integrated reporting as it helped the firm for the development of the
future. The triple bottom line theory will be explained which includes people, profit and planet in
relation to the newspaper story. The prediction will be done for the future than how it will help in
running the business in the future. The impact of the CSR reporting on business along with its
pros and cons will be highlighted. Also, the need for accounting theory will be explained.
Contents

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Introduction......................................................................................................................................3
Company background......................................................................................................................4
CSR of Santos Ltd...........................................................................................................................4
Triple bottom line theory of CSR....................................................................................................7
Conclusion.....................................................................................................................................10
Reference.......................................................................................................................................11

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Introduction
South Australia Northern Territory Oil Search
SANTOS Limited is a public company founded on 18 March 1954. It is an Australian
energy pioneer which is Natural Gas Company. It produces and provides natural gas to homes
and businesses by delivering environmental benefits. It also delivers the long term value to its
shareholders. Headquarter of SANTOS limited is in South Australia. The CEO of the company is
Kevin Gallagher. The products of SANTOS limited are Gas and Petroleum exploration, LPG,
CSG, crude oil.
Corporate social responsibility is the regulations of the organization which they follow to
run a business effectively without any repercussions to the nearby environment and people.
Every company has their responsibilities towards society, stakeholders and public. It includes
sustainability, social impact, and ethics, and the business should be done correctly to make
money. Companies create a positive impact on society. It is a commitment by the company to
behave morally and contribute to economic development while improving the lives of employees
and their families and also the community and society on large. To sustain in the market it has
become an important part of creating wealth (Witkowska, 2016).
The report is all about the corporate social responsibility of SANTOS Limited. It makes
the commitment to society for the establishment and maintaining the mutual benefit relationship
with society. The activities of the company rely on five pillars which are environment and
climate change, communities, training and education, healthy leaving and indigenous. Santos had
outlined the plan for the future of Liverpool plains coal seam gas. Accounting theory relevant to
theory is the triple bottom line in which people, profit and planet are important for the company
(Fernando & Lawrence, 2014).

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Company background
Santos Ltd is a leading Australian growing company in oil and gas exploration. It has
operations mostly at every corner of Australia with wide exploration licenses. It has launched an
international program in 2000 for expanding the operation and shareholding in the United States
(US), Egypt and Indonesia. The company also deals in trading oil and other gas-based liquids
and also petroleum to the national and international marketplace. It is also listed in the Australian
Stock exchange market.
The revenue of the SANTOS limited in 2018 is approx. US$ 3.660 billion. And the
number of employees in the company is 2,190 till 2018 (Witkowska, 2016). It supplies gas to all
the main states and territories of Australia and also trades oil and liquids to international
customers.
Santos Limited has been compared with the other 17,268 companies from the 141
countries in ranking the CSR; it holds the rank 76 as compare to others which include the ESG
analyst, government, public, and not-for-profit data (Georgeta, 2008). They had already spent
$200 million for maintaining the CSR by funding on infrastructure, donations, research grants,
and scholarships..
CSR of Santos Ltd
Environment and climate change
Santos Ltd understands the impact on the environment and climate change because of oil
and gas exploration. They understand very well how to keep the environment and not to affect
the environment. So for that CSR become an important part in protecting the environment. They
had launched and maintained the projects in various areas to keep the environment clean and
maintain it. The projects which they had started our community carbon abatement schemes,
environmental research, and education, water conservation, land conservation, community clean-
up, and replantation. Also, they had invested amount USD 210 million with its partner to
upgrade the roads of rural areas of Queensland (Wright, 2006).
For the environment, they had made the scientific organizations to conduct the research
for monitoring the water wastage and how their activities are affecting the water resources and

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how they can manage the risk (Kotler & Lee, 2008). They manage the use of water by a
sustainable approach. They took the initiative to reuse the water which they use in their
operations and also make sure to make the water availability for landholders.
Santos has its operation in diverse locations, they focus on place to identify the
biodiversity and mitigate potential risks. They make ensure to provide the natural gas which
helps in improving the air quality in their region.
Communities
Santos main aim is to make the contribution in communities in which they operate their
business. They ensure to make a strong relationship with stakeholders and the community to run
the business. Their strategy is to make the use of local suppliers, employment to locals, health
services, investment in infrastructure, and also manage the events and programs for the
community. They listen to their communities for improving quality.
They had also taken the initiative in upgrading the roads of the GLNG infrastructure.
They had sponsored the Mt Larcom show. They took the initiative in supporting the gymkhana
and Motorkhana. They also helped in aiding the Darwin festival (Kotler & Lee, 2008).
Training and education
Santos has made a clear statement for providing the training and education because it will
affect in the positive future. Education helps in moving society forward. They not only invest in
educational institutions but also provide scholarships to enhance their talents. Their initiative
towards the education they had supported the Monarto Zoo's management. They are a founding
partner of the Royal Institution of Australia. They conducted the Santo's professional ATSI
cadetship Program.
Healthy Living and safety
They had a very much focus on Healthy Living. They make the investment in healthy
living programs by funding and supporting the programs Oz Harvest, Asthma Foundation SA
and by investing in hospitals of their regions. Also, ensure to keep the safety also at their
workplace, they believe in keeping the safe workplace and save others also. They believe that

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business needs performance and it starts with their people. They focus on preventing employees
and the environment from harm and control the place for high-risk exposures.
Indigenous
For the growth of indigenous people, they had invested heavily. They believe in working
with them collaboratively. They are committed to building and maintaining the beneficial
relationships with the locals of their region, other businesses, and the Aboriginal people.
They believe that in providing employment, training and education will bring more
opportunities for the industry and also will benefit natural gas development. For the
management, they apply the best practice and also made the cultural heritage management
system. All the CSR activities of the Santos reflect their commitment towards making a better
future and making a better society in which they live. They had also found a way to help the
aboriginal people of Australia and help them to grow.
Recently their contribution towards the society and economy across Australia, they had
introduced USD 57 million for the better lifestyle and economy of South Australia. They
provided support for the employment of indigenous people of $10 million for the training and
educational activities. Santos had made consistent efforts by taking the CSR operation for the
upliftment of society. They give back to the society by running their business efficiently.
Newspaper story
Santos had a plan of Coal seam gas exploration for the future. But when farmers got to
know about the plan of Santos Ltd, they had expressed the concern as Santos wants to drill the
four core holes in the future. Santos had a plan to cover the large area for the Liverpool Plains
and they had intended to spend about $3.9 million over five years on work for drilling the four
holes. Farmers were really worried about the future that it will affect the environment. The
farmers and businesses that were in the region area of Liverpool Plains were worried that their
coal seam gas will bring a terrible threat in their country. Also in the future, it will allow Santos
to conduct the exploration activities in alignment with the minimum standards.
As all the staged activities include the community and stakeholder activities also,
managing the environment and rehabilitation activities in the future, also evaluating and planning

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the exploration and activities for appraisal and it will help in providing the data to inform the
requirements in the future of relinquishment.
But the news came out that Santos will not plan any work outside the Narrabri Gas
project area at this time. General manager of Santos of energy for the new South Wales was
concerned about the environment and gave the statement in favor of not affecting the
environment because of any project and also will not harm the people and businesses of their
region.
They started the Narrabri Gas project which is a strategic gas project under the NSW plan
of Gas. The company is focused on developing the need for gas in the Pilliga and they will work
in the future also in obligations of the licenses with they have PEL1. They had also said that any
future work will be planned according to the landowner consent and after consulting the
community and regulatory assessment (Cheng, Green, & Romi, 2014).
The coal seam gas plan will be in the Narrabri Gas Project plan as it is the real intention
of the Santos. For the requirement of the sustainable development of the integration of social,
environmental and economy must be considered to make the long term decision. It is important
to make the organization strategies in order to maintain the development of the business.
Triple bottom line theory of CSR
Triple bottom line theory is recommended to companies that on the social and
environmental concern to make the profits in business. There should be three lines which are
profit, people and planet. TBL is adopted by companies to make the profits by keeping the social
and environmental issues in mind while doing the business (Brown & Forster, 2013).
Companies work on the three bottom lines:
1. Profits- it is the economic bottom line which deals in the value created by the company
after deducting all the costs which had occurred. The purpose is to make the profits for the
organization and measure all the corporate profits in profit and loss account.
2. People- it is the social bottom line, which measures the responsibility of an organization
towards the society and conducting the fair business for their labor and human capital also. It

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considers the employees who are associated with the corporation in any way. In this, the
companies make extra efforts to pay back to society (Norman & Macdonald, 2004).
3. Planet- when a company makes an effort to reduce and harmless to the environment. It is
necessary for the organization to ensure that they are not damaging the environment with its
process of operation (Elkington, 2013). It includes investing in renewable energy, reduces the
wastage, improving the logistics operation and use the natural resources efficiently so that it will
the environment.
TBL will help in taking the initiative for the success and profitability of the organization
because sustainability is the future of the company. Santos always adopted the triple bottom line
theory in the company. The predictions for the future of the triple bottom line can help in making
more profits in business. TBL makes the path for a sustainable future. TBL will help Santos to
build more stakeholders for the company.
People bottom line will help in the development and enable them to attract more people
towards the company because of its positive attitude toward the development of the employees
and by giving the rights to the people. It will help in increasing the productivity of the company.
When the initiative is taken to reduce the waste and utilize the maximum sustainable operation
will play a major role in saving cost and improving productivity (Anvari & Turkay, 2017).
When the CSR is adopted by companies for the improvement it will help in maintaining
the reputation in the future also. The positive effect will reflect on the consumers, organizations,
and employees also.
TBL will help in expanding the business in more regions. Santos can grow more in the
future by adopting TBL and focusing to maintain the same in the future also. Prediction made for
the project of coal seam gas fear where the farmers are really worried about the agriculture.
Santos had made sure that it will not affect the environment in any way and adopted the planet
bottom line (Hammer & Pivo, 2016).

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Accounting for the triple bottom line
Companies adopt the triple bottom line where the general framework is made and
structure, policies and nature, and requirements of the businesses are defined according to their
needs. It is important for every business to convert the stakeholders into customers.
Integrated reporting is a report to present financial and non-financial performance. It
helps in providing the company performance on ESG parameters (environment, social and
governance) that how they have sustainability in the business's strategy (McWilliams & Siegel,
2001).
The company's integrated reporting helps in incorporating sustainability in its business
and will help in improving the company's performance by making the right decisions. It will help
in increasing the engagement of internal and external stakeholders. When the firm is facing some
issue IR framework because it includes all the information related to the business process and
contains all the information about the organization, governance, opportunities and risk, their
strategies, and also the performance (Valenzuela Fernandez & Jara-Bertin, 2015). In Santos, the
IR framework includes the renewable and non-renewable resources also and oil and gas products
and services which they are producing for the growth of the organization. The aim is to build on
reporting development to provide a value for the business, by considering non- financial
resources such as humans, social and intellectual capital as well as financial capital. It also helps
in making long term strategies for management and business plans of the business. It will
restructure processes, and reduce the costs and improve efficiency.
Financial Reporting Framework
It provides all the financial information about the company so that it will be useful for the
investors, shareholders, lenders, and creditors so that it will help them in making the decisions. It
is used in determining the position of the firm (Schwartz & Carroll, 2003). It provides the entities
detailed information regarding the assets, liabilities, sales, revenues and other financial
information. The financial reporting framework is used to set criteria of measurement,
recognition, presentation, and disclosure of all material items appearing in the financial
statements (Wyatt, 2002).

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Conclusion
To conclude the report the CSR's will impact on the financial performance, employees,
customer satisfaction, stakeholders, and environment and sustainable development. It will help in
maximizing the performance of the business in the future. CSR reporting will help in
understanding the risks and opportunities in business. It is an alternative framework for the IFRS
reporting framework as CSR reporting will help in analyzing the financial and non-financial
performance of the business. It will also influence the strategy of management and also helps in
making business plans (Simionescu & Dumitrescu, 2014). It will help in comparing the
organization's performance internally as well as with others. Accounting regulation is needed in
every business because it will help in understanding the performance of the business in the
market. As the accounting standards will help in measuring the performance with other
companies. Also, it will help in taking the decision on time and also provide financial information
to the stakeholders (Visser, 2012).
Financial reporting can be improved by maintaining the CSR effectively. It will help an
organization to improve the financial position. Provide relevant information to the stakeholders.
Segment information should be done for the diversified companies so that investors get to know
about the whole business performance. The problems faced in the past and mistakes should not be
repeated in the future. In order to improve financial reporting, the latest technology should be
adopted to improve the speed and accuracy of financial reporting.

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