Corporate Social Responsibility: Review and Analysis of Sustainable Development Report of Rio Tinto

This study is based on review and analysis of the given articles connected with concept of corporate social responsibility. It contained a summary of each paper along with issues and major points supported by its relevancy. Along with the provided paper, this study also contained the critical review and analysis of sustainable report of Rio Tinto of the year 2017.

Financial accounting

Table of Contents
Introduction......................................................................................................................................3
Review and Analysis.......................................................................................................................3
Environmentally Sustainable mining: The Case of tailings storage............................................3
An Examination of the corporate social and environmental disclosures of BHP from 1983-
1997: a test of legitimacy theory.................................................................................................4
Using sustainability reporting to assess the environmental footprint of copper mining.............4
Corporate accountability in the Samarco chemical sludge disaster.............................................5
Corporate governance and environmental reporting: an Australian study..................................5
Corporate social responsibility and the parameters of dialogue with vulnerable others.............6
Discussion of sustainable development report of Rio Tinto............................................................6
Conclusion.......................................................................................................................................9
References......................................................................................................................................12

INTRODUCTION
The present study is based on review and analysis of the given articles connected with concept of
corporate social responsibility. It contained a summary of each paper along with issues and
major points supported by its relevancy. Along with the provided paper, this study also contained
the critical review and analysis of sustainable report of Rio Tinto of the year 2017. It revolves
around the social obligations of company while running their business activities, and whether
they take adequate measures for fulfilling their obligations.
REVIEW AND ANALYSIS
Environmentally Sustainable mining: The Case of tailings storage
The main objective of this paper is to analyze the aspect related with mining such as, it is
possible to conduct mining in a manner that mitigate the adverse effect on the environment,
which assist in safety and security of life of society. This main emphasis of paper is on tailing
storages facilities, as it is basis of major disaster linked with mining. Further, it assists in
analyzing the element which results in disaster. It has been concluded technical reason is reason
by which tailing storage facilities fails. Instead it is due to political aspect. If the mining
companies set their standard, then they can reduce negative environmental impact. Further, this
paper provides information related with requirement by regulatory authorities, so that calamity
can be minimized (Schoenberger, 2016). It was also suggested that social scientific observation
of engineered project requires give attention, as there is complex link among environmental,
social, and engineering. In other words, it can be said that if the social scientist analyzes the

problematic aspect of environmental issues by mining, then it can advance more understanding
of engineering.
An Examination of the corporate social and environmental disclosures of BHP from 1983-1997:
a test of legitimacy theory
BHP Limited is one of largest company in Australia during the year 1983 to 1997. This article
provides the explanation regarding the disclosures by company links with social and
environmental aspect in the annual report and if or if not these concepts are explained by
application of social contract and legitimacy theory. It shows that there is close relationship
among public concern and social disclosures. This study uses media attention dedicated to the
operations of BHP as a measure of public concern because the anxiety of community can be
shaped by media attention. Legitimacy theory should be applied at the time of social and
environmental disclosures (Deegan, Rankin & Tobin, 2002). It is based on the concept of social
contract and assumes that management of company accept strategies, consisting of disclosure
strategies, that depicts organization is trying to fulfil the expectation of community. It has been
concluded that for any specified issues level of concern of community can be affected by media.
Using sustainability reporting to assess the environmental footprint of copper mining
The main aim of this paper is to predict about the energy, environmental footprint, greenhouse
gases, and water intensity occured due to international primary copper production. In the new
era, copper is considered as an essential metal as it has a variety of uses. It assists in significant
increase in demand. However, production of copper assists in significant negative impact on the
environment, therefore it is essential for companies to consider their corporate social
responsibility (Northey, Haque & Mudd, 2013). In addition, it is suggested by article that
company should clearly disclose in their sustainability report regarding use of fuel, sources of

electricity, water, and many other aspect. Further, for the improvisation of sustainable
development, the report should be provided by companies within fixed period of time (Calvo,
Mudd, Valero, & Valero, 2016). The study provides proper knowledge regarding the aspect of
sustainable development.
Corporate accountability in the Samarco chemical sludge disaster
In the year 2015, Samarco chemical sludge disaster happened in Brazil. With this aspect, this
paper examines the corporate social responsibility failure by company linked with this disaster. It
also provides some realistic condition of disaster. This article explains several ways of
accelerating corporate responsibility in the disaster. In addition to this, it also gives useful
information for companies and communities facing similar issues connected with globalized
corporate activities that impact human rights and environmental issues in negative manner
(Kathy Rao, Tilt & Lester, 2012). Further, it can also help the company by bringing normative
principle relatively not known to the disaster community, which may assist in enhancement of
interest on them, and in future incident condition they can use of it. However, this study is
mainly based on documental observation instead of fieldwork.
Corporate governance and environmental reporting: an Australian study
The main objective of this article is to examine the connection between environmental reporting
by companies and qualities of corporate governance in Australia. The board of directors of
company is responsible for running the activities by considering their responsibility towards
society. In Australia, Australian Stock exchange takes into account the expansion of Corporate
Governance Council guidelines to contain consideration of environment, which is considered as
vital aspect of corporate social responsibility (Mayes, Pini & McDonald, 2013). This analysis
shows a positive connection among the degree of environmental reporting and proportion of

female and independent director in composition of board. Environmental reporting means the
impact on the environment due to the operations of the company. However, this examination
only contained four corporate governance variables which are not adequate to show the
connection between reporting of environmental issues and corporate governance of company
(Rao, & Tilt, 2016).
Corporate social responsibility and the parameters of dialogue with vulnerable others
The main objective of this study is to showcase study related to corporate dialogue with
vulnerable others. With the aspect of corporate social responsibility, corporate public
communication plays an important role. It assists in involvement of community (Schaltegger, &
Burritt, 2018). Dialogue with marginalizes external group is significantly given in this study as it
is vital to creating corporate social responsibility possible by way of corporate learning. Further,
it also reflects situations for undervaluing corporate dialogue with marginalized stakeholders.
Overall, this article shows good understanding regarding corporate social responsibility and
vulnerable other dialogue with parameters. On the other hand, it only reflects organizational
research related with marginalized stakeholders
DISCUSSION OF SUSTAINABLE DEVELOPMENT REPORT OF RIO
TINTO
Rio Tinto is the world’s largest multinational company that is engaged in mining, finding, and
processing of the mineral resources of earth. It is committed to running the operation in a
responsible manner by considering the safety and health of employees and society. For
observation of sustainable risk, company developed sustainability committee, which oversees the
risk associated with operations of company (Jamali, Karam, & Blowfield, 2017). As a leading

globalized mining and metal company, it has a significant role for creating positive impact for
the advantages of its stakeholders such as consumers, society, employees, government, partners,
suppliers, and shareholders. It has been recognized that operation of company affects
environment, community, and individual in a positive as well as negative manner, therefore it is
engaged in making strategies by which negative impact can be minimized (Wirth, Kulczycka,
Hausner, & Koński, 2016). Moreover, company has executed shared value approach that is
based on long term planning of company. With this aspect, company develop high-grade ore
bodies into effective operations, and execute techniques at mines, plants, structure to create safer
and efficient working environment, and decrease the impact on surroundings. The business
strategy of company is connected with sustainable development approach that produces excellent
value for shareholders by life cycle of business (McKenna, 2015).
The company consider its employee as most significant asset. Therefore it requires engagement
of security, safety, healthy human force for enhancement of operations, innovation and
techniques. In the year 2017, company improvised injury frequency rate by 5%. Further, in the
total workforce of company, 18% is consisting of women employee (Rio Tinto, 2017).
Company has adopted an approach which is focused on eradicating fatalities, injury, illness, and
reduction of hazard risk. For this, management of company started critical risk management
program in the years 2015, which assist in significant eradication of fatalities. In addition to this,
due to complexity of operation it is required to understand significant hazard risk and control to
safeguard significant risk event. The company manages this risk by principles, detailed
observation and outside reviews that are observed by Major Hazard Risk Management Steering
Committee. Further, for identification of critical control company has Investment Committee that
permitted capital project so that security risk to individual who resides in building can be

reduced by installation of protection and detection technology. For the operational activity of
business, company uses simple tools, and technique for ensuring security outcomes of workers
so that they can work in more effective and efficient manner (Graetz, & Franks, 2017). The
company also encourages participative working environment, by which workers can handle
mental pressures. Moreover, it is also working with regional government and health institution to
ensure proper knowledge in, treatment of workers, contractor, and society surrounding with their
operations for infections such as Ebola, HIV/AIDS, Plague and others. In the year 2017, there
was reduction of 43% in new cases related to occupational illness as compared with its earlier
year. Further, there were 2 fatal events in the year 2017 (Rio Tinto, 2017).
In the recruitment, Process Company does not discriminate on the basis of gender, origin, age,
politics, religion, and any other aspect. It considers the right of employee to select their union
and ask to bargain in collective manner (Graetz, & Franks, 2016). In addition, the company also
employees disable people and provide a pleasant atmosphere in which they can work in an
effective manner. For development of skills and knowledge for a charitable company engaged in
working with a local government program. It has adopted a performance-based culture, in which
employee receives benefit or rewards on the basis of their performance (Banks, Scheyvens,
McLennan, & Bebbington, 2016). In the year 2017, company instituted latest Rio Tinto objective
and improvise value of organization and international code of business conduct. In addition to
this, it has also launched standard for paid parental leave, which is given to every employee. It
has also provided the support to the families who are impacted because of domestic fierceness
(Shaukat, Qiu, & Trojanowski, 2016). Further, in the year 2017, the company has more than
1431 indigenous employee as a full time, which represents around 8% employees of Australia
(Rio Tinto, 2017).

It has been observed that health and safety is the priority of the company. With this aspect,
company introduced healthful mind as a new strategy in the year 2017. For mental health aspect,
company started Employee Assistance Program, in which over 95%employee of company
involved. This program provides training, advice, help, coaching to workers and their families.
For enhancement of community, the company uses an approach of Communities and Social
Performance, which assist in security and managing the right relationship with society those are
affected by its activities. In the year 2017, community contribution spends of US $ 176 M, which
was more than as compared with year 2016. In this year, there was five major society event
identified which is related to the illegal effect on cultural heritage and society security event (Rio
Tinto, 2017).
Company is planning and running the activities so that negative impact on the environment can
be minimized. In the year 2017, there was 27% reduction in greenhouse gas emission from the
year 2008. Further, the company utilized 69% of total electricity from renewable energy. It has
also created biodiversity safeguards and management standard for natural resources (Rio Tinto,
2017).
By considering all above aspect of sustainable development by Rio Tinto, it has been observed
that the company running their activities by considering their social obligations. Further, as
compared with previous year company has improvised its sustainable practices. However, it still
requires further improvement for protection of environment and safety of people.
CONCLUSION
By considering the above analysis, it has been asserted that each paper has its own strengths and
drawbacks. The central aspect of discussion of all paper is related to concept of sustainable

development. On the basis of sustainable report of 2017, Rio Tinto, it can be drawn that safety
and security of people, customers, suppliers, employees, and society is the core value of
company. Company adequately complies with all principles and standard of corporate social
responsibilities. However, activities of the company impact its stakeholders in positive as well as
negative manner.

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