Contemporary Issues in Accounting: Adani Coal Mining Report

This report delves into the contemporary issues surrounding the Adani coal mining operations in Queensland, focusing on stakeholder theory and its application. It begins with a general explanation of stakeholder theory, outlining its significance in business management. The report identifies and analyzes the key stakeholder groups affected by the Adani mine, including the local indigenous community, capital market stakeholders (investors), product market stakeholders (suppliers/buyers), and organizational stakeholders (employees/workers). The analysis includes a comparative table detailing the interests of each stakeholder group and the impacts of the mining operations on them. The report also examines the ethical dimensions of the project, particularly concerning the indigenous community, environmental concerns, and worker health. It explores how stakeholder interests should be managed from an ethical perspective. Finally, the report applies stakeholder theory to explain how the interests of these groups have been and should be managed in the future, considering the actions taken by the company and the potential implications for its future operations. The report is supported by various references to credible sources.

Running Head: Contemporary Issues in Accounting
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Contemporary Issues in Accounting
September 2
2019

Contemporary issues in Accounting 1
Table of Contents
Introduction......................................................................................................................................2
Stakeholder Theory..........................................................................................................................2
Background of the Company...........................................................................................................3
Stakeholder groups..........................................................................................................................3
Difference of Interests amongst the stakeholder.............................................................................6
Ethical View....................................................................................................................................7
Relative Power and Influence of Stakeholder.................................................................................7
Action taken by the Company.........................................................................................................8
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

Contemporary issues in Accounting 2
Introduction
The assignment is completely based upon the study of Operation of Adani Coal mining. The
main aim of the assignment is to understand the stakeholder theory of the company and the
indigenous community. In the assignment interests of the stakeholder theory is also described so
that the groups of stakeholders could be managed in future. The report is prepared after
conducting research over the chosen company. The report includes the background of the
company in Queensland. Basically, the report defines the contemporary issues which can be seen
in the organization. The comparison between the three groups of stakeholder is conducted by
designing the table.
Stakeholder Theory
Theory of the stakeholder was used in the book with the title “Strategic Management: A
stakeholder approach; this book was written by R. Edward Freeman. For the small tactical
projects and planning of CEOs stakeholders play critical role in order to complete the strategy of
business (Miles, and Miles, 2019). Simply stakeholders are individual or groups who show their
interests to support an organization. Stakeholder includes employees, suppliers, environmental
groups, financial instruments, etc. The implication of the stakeholder theory is that it is the
widely recognized theory for the management of any organization as it is providing assistance
for the decision making to higher authorities which impacts on the organization and its function.
(Freudenreich, Lüdeke-Freund, and Schaltegger, 2019).
Managerial Branch Ethical Branch
The orientation of this branch is positive The ethical branch of the stakeholder theory is
has the tendency of normative
This branch has the focus on stakeholder who
can affect the company
This branch is concerned for the stakeholder
who are getting affected with the organization
and who are affecting the organization

Contemporary issues in Accounting 3
This branch explains that the organization must
be managed for the benefit of its owner and its
powerful stakeholder.
This branch states to manage the organization
for the benefit of the organization.
The branch which explains that the power of
the stakeholder is not relevant for the
consideration as it is their right.
This branch states that power of the
stakeholders is relevant for considering them
which is depend upon their need and interests
for the organization
Background of the Company
The thermal coal industry which is situated in central Queensland, the coal mine is also known as
Carmichael coal mine which is a subsidiary of Adani Group. This company will become the
largest coal mine of Australia once it gets completed. According to the estimation of the
government of Queensland the life span of the coal mine will lie between 25 to 60 years. The
main aim of the mine is to supply coal to power plants of India to generate the electricity. As per
the estimation of the Adani group the mine will be able to generate $16.5 billion to support the
economy of Australia this data is also dependent upon the life span of the mine (Schäfer, 2019).
The company is getting huge opposition by the indigenous people of Queensland; according to
them company is ruining their values and environment.
Stakeholder groups
Affected
Group
Values Impact
S.No. Economic Environmental Social
Indigenous
Community
This
community
understands the
importance of
the land and
environment
they remain
The company
has the approval
for the land use
for the coal
mine where the
indigenous
people are
According to the
indigenous
community, the
company will harm
the environment and
land of Australia as
well as the pollution
With the
development of the
coal mine, the
supply in the
housing will
decrease as well as
the affordability

Contemporary issues in Accounting 4
close to the land
as well as they
always want to
protect the
environment
and nature
(Jones,
Harrison, and
Felps, 2018).
living due to
which the
company is
facing
opposition.
will rise in excess
which will lead to
different kind of
respiratory diseases.
will be reduced.
The cost of living
for everyone will
increase especially
to those who are
not employed in the
mining sector.
Capital
Market
stakeholder
The investors
provide their
investment to
corporates so
that they can
grow and
develop their
business in the
national and
international
market in return
of their invested
capital investors
get equity or
share in the
organization.
Company has
announced a
profit of $16.5
billion every
year and it will
increase with
the time.
(Blondeel, and
Van de Graaf,
2018).
The impact of the
operation of the
Adani coal in their
environment as the
product of the coal
affect the nature and
its activity apart
from this the
company is already
in the controversy
with the land issue
of the indigenous
people.
The social impact
on the capital
investor will not
good because the
company is facing
huge opposition in
the country by the
common people of
Queensland hence
if they would found
that people of their
own region is
supporting the
company then their
social respect
amongst other
people will affect
adversely (Moore,
2018).
Product
market
stakeholder
These
stakeholders
develop the
The economy of
these
stakeholders
The environment of
the stakeholder will
affect adversely due
In Australia, the
people not
preferred to work

Contemporary issues in Accounting 5
relationship
with any
business
organization on
the basis of
their rapport in
the market and
on trust. The
organizations
who build their
trust with these
stakeholders are
able to grow
better in
market.
will increase
because the
company has
proposed the
big project of
the coal mine
and rail link as
well. It will
help the region
to generate the
revenue also the
international
investment for
the nation and
place will also
improve.
to releasing of coal
pollutant in the
environment. The
coal mines are the
reason which affects
the surrounding and
nature. The rise in
the temperature in
the surrounding is
one of the major
disadvantages of the
coal mine.
with the coal
industry due to
several factors in
which social factor
play critical role.
The society
opposes the
pollution these days
also the coal
production is one of
the most harmful
production business
from perception of
health, and
environment.
Organizational
Stakeholder
The
stakeholders
who are
internally
connected with
such
organization
which provides
supports and
respect to their
members, staff
also appreciate
their efforts
made for the
development of
According to
estimation, the
company will
create 6750
indirect jobs,
1500 direct
jobs. The
company has
announced has
850-1500
ongoing jobs
(Gleeson,
2018).
Workers and
employees who are
working in the
construction site of
the company or at
the production unit
they will get on
contact with the
pollutant particles
which would affect
their health and can
be infected with
diseases.
Employees who are
working with the
Adani coal mine
have to face issues
in the society
(Johnston, and
Lane, 2018). The
company is not
under the
fulfillment of the
CSR.

Contemporary issues in Accounting 6
the
organization.
Difference of Interests amongst the stakeholder
Groups Interests
Indigenous Community According to the decision of indigenous people
there is choice between the preserving their
history, land and environment or showing their
interests for coal and gas they will defend their
land and values instead to choose the coal mine
(Brueckner, and Eabrasu, 2018). Their
perception is based upon the ethics.
Capital Market Stakeholder
(Investors/Bank/Share holder)
The capitalization market of the company is
US$ 1.9bn as well as the total debt is of US$
2.5bn. The company will face challenge to
share the equity for the project of $5bn.It is
evaluated as high level risk by the shareholders
and potential financiers.
Product Market Stakeholder
(Suppliers/Buyers)
Countries with the large population such as
India, china and countries which are following
renewable resources such as Korea are
showing their interests to purchase coal from
Adani Carmichael mine Queensland.
Organizational Stakeholder (Employees,
Worker)
The combined project of the Adani coal mine,
rail and port operation have announced 10,000
direct and indirect jobs has developed interest
in people. (Paynter, Halabi, and Tuck, 2019).

Contemporary issues in Accounting 7
Ethical View
Adani Carmichael coal mine will be the largest coal mine in Australia which is approved in the
land of Great Barrier Reef. The indigenous community is not interested for the establishment of
this coal mine as it will near to their living area and also harmful for the nature. From the ethical
point of view the fossil fuel burns the carbon which is five times greater than the capability of a
planet to handle. Hence it starts impact on the environment as a result the temperature of the
surrounding will rise and complete ecosystem will get affected. Apart from this the workers who
are working at the mines their health will also get affected as a result they get infected with
many diseases associated with the breathing. By considering all these ethical view should be
consider by Adani and have to work according to them.
Relative Power and Influence of Stakeholder
Capital Market Stakeholders: As the Adani coal mine is under the debt of the US$ 2.5bn as well
as the company is suffering with the loss consistently. If the company is influenced with the
demands the company will be able to recover from some losses and their pending work will also
get complete.
Product Market Stakeholders: Basically, the product market stakeholders are willing to purchase
the coal in efficient cost hence as per the announced rates if the company able to supply the coal
in the same rate and will able to maintain it then this group of stakeholder will become a medium
of the revenue generation for the company.
Organizational stakeholders: Company faced huge opposition by the indigenous people of the
Australia as a result it impact on the work of company they were not able to recruit the expected
employees and worker. Company has to select the Ethical branch of the stakeholder theory and if
the announced jobs get fulfilled then all the pending projects can be conduct and the company
will become the largest coal producing mine.
Action taken by the Company
After facing huge opposition Adani coal mine is still working for their future dream projects and
in order to achieve the trust of people. The actions which are taken by the Adani decided to
manage the groundwater as well as protecting the endangered species of bird in Queensland.

Contemporary issues in Accounting 8
Adani coal mine also get success for the approval to build Carmichael Coal Mine and Rail
Projects in the state of Queensland.
Conclusion
The assignment concludes about the contemporary issues which are arising for the Adani coal
mine in Queensland. The complete assignment is based upon the controversy of the mining
company and indigenous people. The assignment is including with the general description of
stakeholder theory. The three groups of the stakeholder are described including the impact on
them due to operational work of the chosen company. As the company is facing challenges to
implement their business from the indigenous community so the ethical ways through which the
company can manage them are described in this report. The report also explained the methods
through by applying the stakeholder theory to manage their stakeholder for development of their
business.
References
Blondeel, M. and Van de Graaf, T., 2018. Toward a global coal mining moratorium? A
comparative analysis of coal mining policies in the USA, China, India and Australia. Climatic
change, 150(1-2), pp.89-101.

Contemporary issues in Accounting 9
Brueckner, M. and Eabrasu, M., 2018. Pinning down the social license to operate (SLO): The
problem of normative complexity. Resources Policy, 59, pp.217-226.
Freudenreich, B., Lüdeke-Freund, F. and Schaltegger, S., 2019. A stakeholder theory perspective
on business models: Value creation for sustainability. Journal of Business Ethics, pp.1-16.
Gleeson, M., 2018. Acland Stage 3 mine expansion stumbles at latest legal hurdle. Green Left
Weekly, (1204), p.8.
Gleeson, M., 2018. Wangan and Jagalingou v Adani-the fight resumes. Green Left Weekly,
(1169), p.6.
Howlett, C. and Lawrence, R., 2019. Accumulating Minerals and Dispossessing Indigenous
Australians: Native Title Recognition as Settler‐Colonialism. Antipode, 51(3), pp.818-837.
Johnston, K.A. and Lane, A.B., 2018. The role of time and social churn in impact assessment:
An engagement-based model. Environmental Impact Assessment Review, 71, pp.102-109.
Jones, T.M., Harrison, J.S. and Felps, W., 2018. How applying instrumental stakeholder theory
can provide sustainable competitive advantage. Academy of Management Review, 43(3), pp.371-
391.
Miles, S. and Miles, S., 2019. Stakeholder Theory and Accounting. The Cambridge Handbook of
Stakeholder Theory, p.173.
Moore, F., 2018. Mining projects good news for regional real estate. REIQ Journal, (Feb 2018),
p.21.
Paynter, M., Halabi, A. and Tuck, J., 2019. Storytelling and Corporate Social Responsibility
Reporting: A Review. The Components of Sustainable Development: Engagement and
Partnership, p.205.
Schäfer, H., 2019. Key Points of Sustainability and CSR: Stakeholder Theory and the Theory of
External Effects. In On Values in Finance and Ethics, pp. 43-59.