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Financial Reporting ACCT2006 Assignment

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Financial Reporting (ACCT2006)

   

Added on  2020-05-08

Financial Reporting ACCT2006 Assignment

   

Financial Reporting (ACCT2006)

   Added on 2020-05-08

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Financial Reporting ACCT2006
Financial Reporting ACCT2006 Assignment_1
SECTION 2Comparison of sustainability reportsBHP Billiton is one among the leading producers of iron ore, copper and uranium, andmetallurgical coal. The year 2015 and 2016 were faced with volatile economic conditions,however, the company has remained committed to sustainably. In both the years’sustainability report, the performance of the company is measured in the areas of health andsafety, community engagement and environmental responsibility against the tragedy atSamarco. The sustainability report of BHP for the year 2016 includes the operations onSamarco – our non-operated joint venture held between Vale S.A. and BHP Billiton BrasilLtda (BHP Billiton Annual report 2016, 2017).In November 2015, on the date 5th, the Fundão dam was failed which was Samarcoprimary tailings dam. From the failing of this dam, a lot of mine tailings such as water andmud waste was released that has affected nearby communities including Bento Rodrigues,Paracatu and Gesteira , even other communities named the Rio Doce was also affected. Priorto this incident, BHO Billiton was focused towards minimising the environmental impacts ofour operations, however, Samarco failure leads to affect its environmental performance (BHPBilliton Annual report 2015, 2017). After the issue, the company has faced an ethicaldilemma and major stakeholders were affected due to the incident. The Stakeholder Theoryof Freeman is applied here, according to which company is responsible workforce,customers, employees, communities, shareholders, and suppliers and it must create value fordifferent stakeholders (Phillips, 2003). As per the data of 2016 sustainability report, BHPBilliton was more focused towards creating value not profitability. The immediate responseof business was the welfare of the Samarco workforce as well as welfare of affectedcommunities.To show its social responsibility, Company started offering temporaryaccommodation, food and water aid to the people from different communities. The companyhas provided financial support to the affected farmers as a Brazilian minimum wage + 20%.The company started working towards forest restoration and water production, education,communication, recovery of water quality and biodiversity conservation as these areas werehighly affected. The sustainable operations of BHP are focused towards Samarco as it hasstarted enhancing dam management. The actions taken by Company after the issue indicatestowards Legitimacy Theory, as it indicates that business has taken desirable, proper, orappropriate actions within a socially constructed system (Jay, Blumenberg and Wallace,
Financial Reporting ACCT2006 Assignment_2

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