BUSM4690 - CSR and Sustainability: BHP Billiton Company Analysis

This essay provides a comprehensive analysis of BHP Billiton's Corporate Social Responsibility (CSR) and sustainability initiatives. It begins with an overview of BHP Billiton, followed by an explanation and evaluation of its CSR work, incorporating theories such as Carroll's Pyramid, GRI reporting, and the Stakeholder Approach. The essay examines BHP Billiton's economic, legal, ethical, and philanthropic responsibilities, highlighting both the company's efforts and shortcomings in addressing environmental and social concerns. It discusses the triple bottom line theory and GRI reporting, emphasizing the importance of transparency and stakeholder engagement. The essay also identifies challenges faced by BHP Billiton in achieving CSR benchmarks and sustainability goals, including issues related to environmental impact, ethical conduct, and stakeholder satisfaction.

CSR AND SUSTIANBILTIY

Contents
Introduction................................................................................................................................3
Overview of BHP Billiton..........................................................................................................3
Analysis and evaluation of CSR................................................................................................4
Explanation of CSR work of the organisation........................................................................4
Examination of the CSR Company............................................................................................4
Recommendation........................................................................................................................9
Conclusion..................................................................................................................................9
References................................................................................................................................11

Introduction
With the increasing and upsurging competition, it is seen that manufacturing organisations
have been facing cutthroat competition that are forced to generate maximum profits. When
MNCs operate in the environment with maximum potential tries to achieve goals and become
competitive blindly. Furthermore, with a flow it started engaging in several works, which are
not ethical. With an aim to rectify these issues, the concept of sustainability aims to focus on
long term focus on competiveness and blindness of the organisation. In the procedure of
affecting BHP for the long-term existence (Nicholas, and Sacco, 2017).
The companies have to engage in activities, which is not ethical and it is important to rectify
the issues. From this, the organisation has received the importance of financial and
environmental impact, which is laid down in the importance of sustainable business actions
(Chen, Hung, and Wang, 2018). CSR and sustainability perspective will be considered
because of the government imposition and strict regulations. CSR improves the society by
enforcing to donate money, create environmental friendly policies, health safety, and also
human rights. The report applies several theories such as Carroll pyramid, GRI reporting, and
Stakeholder`s approach to analyse the sustainability issues based on economic, environmental
and social perspectives (Bögel, 2019).
Overview of BHP Billiton
BHP Billiton is a trading entity of BHP limited, which deals in multinational mining, metal,
and mining operations in Australia. The employee base of company is 72000. The company
is the largest producer of mining items such as nickel, uranium, iron ore, copper, manganese,
and titanium over 25 nations (BHP Billiton, 2018).

Analysis and evaluation of CSR
Explanation of CSR work of the organisation
CSR is the responsibility of the organisational action on moral, communal, economic, and
environmental issues. CSR has to actively coordinate and integrate social, economic, and
other human right activities to reflect organisation, and international values to reap the
advantages of operations and create goodwill at place where it operates (Böcker, and Meelen,
2016). It is quite complex to maintain considerable social and environmental enforcement in
relation to the environmental issues. Mining affects the entire ecosystem by exploitation as it
creates lack of considerable CSR practises (Muñoz, and Cohen, 2018). Furthermore, mining
sector has been inclined to conduct the code of ethics. Management aims to reduce the effect
on local community as services, facilities, and social profiling with the direct action and
collaborating governmental and non-governmental institutes (Böcker, and Meelen, 2016).
Sustainability is important factor when it comes to manufacturing organisation. BHP
Billiton’s is defined by the triple bottom line theory, which manages financial, social risks,
opportunities, obligations, and environment (Muñoz, and Cohen, 2018). With a focus on
manufacturing sustainability, it is seen that CSR is valued as the priority with the
environment protection. For example- replacing the electric bulb with the energy efficient,
which will last three times more than electric bulb saving the electric energy (Ehie, 2016).
Increasing CSR issues has become major concern in mining industry due to huge awareness
of unethical practises. BHP faces several challenges in accomplishing environmental
compliances such as improving and minimising the environmental effect, enhancing
performance, managing risks, complying with the regulatory reports needs and finally
addressing the sustainability issues. BHP Billiton has to define and address several risks as
being stated that the compliance have “zero tolerance” to prevent the misconduct such as
child labour, forced compulsory workforce, treatment of employees, workforce living wages,

corruption in the top level management, compliance with the laws, workplace safety and
health issues.
Examination of the CSR Company
BHP defines the goal of creating the long-term goals while creating the shareholder value but
at the same time, it has steady line in fossil fuels. The company is no more related to the
corporate climate sceptic responsible for voluntary GGH emissions and it is an early pioneer
among the company focusing on water footprint (Bögel, 2019).
Through Carroll pyramid, it is seen that organisations can check they are able to meet the
necessary CSR responsibilities (Ehie, 2016). Carroll is the foundation of profit, coming with
the need to foresee the business to ensure they will be able to accomplish laws and
regulations. It is divided into four responsibilities such as economic responsibilities, legal
responsibilities, ethical responsibilities, and philanthropic responsibilities. Business have the
economic obligations towards the society, which permitted to be sustained. BHP Billiton can
accomplish it by distributing and incentivise shareholders to invest and use enough resources
to continue the business operations. Society allow BHP Billiton to opt for profits and add
value in doing so and benefit stakeholder (Bögel, 2019). In this regard, BHP Billiton
maintains positive economic impact through distributing the appropriate profits among the
stakeholders. As far as the legal responsibilities are concerned, management of BHP Billiton
talks about legal responsibilities to adhere to compliance and laws by society and authorities
in relation to nature of business and its operations (Carroll, 2016). BHP Billiton undertakes to
avail minimal accomplishment and wages to the employees on the basis of national and
domestic benchmarks (Smith, 2016). As the company strives to employ people from the
aboriginals, which further suffer from health safety issues, and less paying population. It

invites dangerous situations, weak working conditions, and estimated dangers from the air
pollution (Muñoz, and Cohen, 2018). Legal responsibilities are expected to society`s view of
ethics on the basis of articulation based on fundamental notions as regulated by the
lawmakers (Carroll, 2016).
Ethical responsibilities of societies hold that cooperative laws are essential but they are not at
all sufficient. Society anticipates organisations to operate and conduct affair in an ethical
way. Aspect of ethical expectation will conduct affair in an objective and fashionable way
(Carroll, 2016). The core goal of BHP Billiton is to remain responsible and responsive to
norms, standards, values, principles, and the expectations to entire owners, community,
employees, and consumers with an aim to respect the stakeholder`s rights. For example- BHP
Billiton does not follow the aspect of utilitarian theory where no one must get negative
impact because if the organisation’s operations (Hielscher, and Husted, 2019). As far as the
ethical approach is concerned, it is seen that BHP Billiton often contribute to the social and
environmental characteristics. The core difference between ethical and legal responsibilities
is ethical responsibilities, which totally depends on the discretion of management to fulfil the
expectation of society. It refers to the ethical behaviour of company when conducting
operations as a guideline for future (Mgbame, Mgbame, Akintoye, and Ohalehi, 2019). As far
as ethics is concerned, it is seen that CSR is enforced to engage in natural and expensive raw
material, which will not affect animal’s survival that has created image itself by operating
and achieving the sustainability. BHP must accomplish the performance with expectation to
the societal and ethical norms (Santoso, Sayekti, and Sulistiyo, 2017). Identifying ethical
norms, which are compromised to achieve the organisational goals. There is a need to
maintain corporate citizen by doing to expect it in an ethical way. Identifying the business
integrity and ethical behaviour, which will go beyond compliance of laws and regulations
(Bagnoli, and Watts, 2017).

Philanthropic responsibilities affect the morale of employees and improve the brand value,
which will create major impact on community (Chen, Hung, and Wang, 2018). Philanthropic
responsibilities in corporate includes all the forms of business activities embracing the
discretionary activities. However, it is expected in business and it is the part of everyday
expectation of public (Paynter, Halabi, & Tuck, 2019).
The triple bottom line is a tool through which one can commit to social and other
environmental concerns by generating maximum profits and employing people in an
appropriate way to ensure them health safety (Hielscher, and Husted, 2019). The planet,
profit, and people considers to accomplish the targets-
(Source: University of Wisconsin System, 2020)
BHP Billiton is the largest company, which is marked as responsible to destroy planet for the
planet. BHP Billiton is the guilty of world`s biggest environment issues and crimes. It will
produce 50 million tonnes of greenhouse pollution, which is equivalent to nearly 10 percent
of total emissions of Australia (Bagnoli, and Watts, 2017). Rather than setting the goals with
an aim to reduce the emissions by more than 15 percent, the company`s emissions will
continue to increase with the continuous growth of the company (Paynter, Halabi, & Tuck,

2019). When government has set benchmarks that it will reduce the greenhouse emissions by
90 percent until 2030, the government has noticed that BHP has only maintaining been
sophisticated public relation strategy with an aim to promote environmentally friendly rather
than thinking to reduce the emissions. Just to earn the profits and maximise the scale of
operations of BHP Billiton, the company`s operations has been spoiling the environment
(The socialist magazine of socialist actions in Australia, 2020). Triple bottom line has
expanded the framework related to traditional accounting, which include environmental and
social impact. People will consider employees and their involvement in the company while
operations. BHP highly affects the health of the employees, as the smoke of mines is so
harmful that the employees suffer from high health risks (Nicholas, and Sacco, 2017).
BHP Billiton can contribute towards the environmental and social activities by featuring the
biodiversity in nearby places, climate changes, and managing the mitigation of climate
changes and disasters. The strategies will align to clean and sanitation, life on land, and
collaborating with an aim to achieve maximum goals (Hielscher, and Husted, 2019). BHP
Billiton will support conservation and allocation of resources to advantage the upcoming
generating and to achieve the goal if sustainable development. Company can start investing in
enhancement where it is important to value the society benefits (Muñoz, and Cohen, 2018).
Company will contribute towards elaboration of appropriate methods towards the
implementation (Paynter, Halabi, & Tuck, 2019). On the other hand, BHP Billiton limited
already reflect anti-social behavioural factors, competition, and accessibility towards the
accommodation (Bagnoli, and Watts, 2017).
GRI reporting of BHP Billiton is laid down-
Sustaining and reporting factors GRI Index
Board of directors 49

Leadership ethics 40
Training, safety and health 51
Management of resource 51
Reporting and transparency 51
Human rights, compensation and benefits 40
Diversity 49
Labour relations 40
GRI reporting of BHP Billiton must be applicable to create transparency amongst the
stakeholders, if the company is successful in serving safety, integrity, humility, enthusiasm,
determination, courage, and empowerment (Salins, Mendon, & Aithal, 2019). In order to
accomplish and follow stakeholder`s approach, it is seen that company has to satisfy
stakeholders such as partners, government organisations, employees, shareholders, local
communities and customers (Hielscher, and Husted, 2019). With an aim to maintain
appropriate communication among the stakeholders, one has to create transparency by annual
reports, corporate meetings, community programs, and organisational website. Stakeholder
approach ensures quality, trust, and faithfulness while maintaining transparency of the
financial positioning (Paynter, Halabi, & Tuck, 2019). However, BHP Billiton faces several
challenges in accomplishing GRI reporting-
With increasing number of mining companies, it is seen that largest companies will have to
meet maximum CSR benchmarks as these standards can bring accomplishment of sustainable
profits with social justice and protecting the nature. BHP conveys disclosures regarding
organisational effect (Belkhir, Bernard, and Abdelgadir, 2017). It includes changes such as
financial reporting, risks, human rights, and tax transparency after it has been seen that there
were several changes towards the sustainability-

Widespread and fastened evolution of the frameworks, reporting and the standards.
Companies can prioritise and work the profitability theme to ignore sustainability reporting
that are against rules and regulations (Belkhir, Bernard, and Abdelgadir, 2017). New process
are complex as it not only engage stakeholder but also threaten independent verification,
which will include collaboration, corporate governance, displacement, solid waste and
employment (Muñoz, and Cohen, 2018).
Lack of support from the management, which creates understanding of fear regarding
misinterpretation and risky events. Sustainability reporting focus on stock exchange at its
competitive disadvantage (Carroll, 2016). Sustainability reporting has no longer remained a
preferences and priority as the parties is not supposed to rules and regulations (Kennedy,
2017). The compliance and reporting is to make abstract issues tangible when they have
started taking understanding of the sustainable reporting with sustainability report as an
element of integration of social services incurred (Parikh, 2019).
Recommendation
BHP Billiton must create more sustainable development and transportation strategies, which
will help the organisation in reducing the emissions from the greenhouse gases especially
CO2 in long term. Recent climate changes have led to suffering on the part of BHP Billiton’s
operations. BHP Billiton should develop renewable energy in generation of electricity. BHP
Billiton must use the economic instruments while controlling emissions from the greenhouse
gases (Mgbame, Mgbame, Akintoye, and Ohalehi, 2019).
It includes emission free that permits organisation to achieve environmental costs (Nicholas,
and Sacco, 2017). BHP Billiton must implement extra measures of the energy efficient while
considering industrial and commercial sector to take procedures to reduce the emissions of
non-energy such as controlling the methane emissions from the sites of landfills and enhance

sinks of CO2 from increasing forests around it (Bagnoli, and Watts, 2017). BHP Billiton
must avail safe and clear working conditions to safeguard against hazards and other
dangerous working conditions. BHP Billiton must ensure children`s working conditions who
are under 14 must accomplish rules and regulations regarding the international agreements
(Santoso, Sayekti, and Sulistiyo, 2017).
Conclusion
From the above discussion, it is seen that Billiton came up with new policies, rules, and
regulations regarding climate changes to encouragement of the sustainable advisor of the
environmentalist. It is pleasant to view that the large company is taking seriously responsible
to adopt and grow business programs. Various obligations on company is to achieve
maximum CSR obligations by managing emissions form greenhouse gases can be done
through improved energy efficiency where employees must not be hired before the
completion of elementary education and create environment so that employees can be treated
with extreme dignity and self-respect. The report has applied various models and pyramids
such as Carroll CSR pyramid, stakeholder approach, and CSR models to foresee whether the
company has been complying with the CSR and sustainability. However, the implications are
quite visible on the company, as it has to handle environmental and social issues.

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