CRSE108 - Corporate Social Responsibility: Caltex Australia Case Study

This report provides an overview of Caltex Australia's corporate social responsibility (CSR) initiatives. It examines the company's approach to environmental protection, human rights, governance, and philanthropy, referencing Carroll's model and Wartick and Cochrane's Typology to classify its CSR position. The report identifies key stakeholders and analyzes Caltex's efforts in reducing environmental impact, promoting ethical management, and contributing to society. It also explores the company's governance structure and philanthropic activities, highlighting its commitment to operational excellence, employee well-being, and community engagement. The analysis showcases Caltex Australia's integrated approach to CSR and its efforts to balance economic responsibilities with ethical and social obligations.

Running head: CORPORATE SOCIAL RESPONSIBILITY OF CALTEX AUSTRALIA
Corporate Social Responsibility of Caltex Australia
Name of the student
Name of the University
Author note

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Executive Summary
The report throws light on the corporate social responsibility in relation to Caltex Australia. It
discusses about the key stakeholders in relation to the company and discusses about the
initiatives that the company has taken in order to protect the environment. It elaborates on
how the company takes cognizance of that of the human rights. It further elaborates on the
governance structure along with the philanthropy aspects in relation to the company.

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Table of Contents
Introduction................................................................................................................................3
Corporate Social Responsibility of Caltex Australia.................................................................3
Key Stakeholders.......................................................................................................................4
Environment...............................................................................................................................5
Human Rights.............................................................................................................................6
Governance................................................................................................................................7
Philanthropy...............................................................................................................................7
References:...............................................................................................................................10

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Introduction
Corporate Social Responsibility (CSR) is indicative of corporate self-regulation that is
integrated in the business model of a company. The policy pertaining to CSR acts like a self-
regulatory mechanism with the help of which a business can monitor and ensure compliance
with that of law. CSR is suggestive of the ethical standards along with international norms
that can help in the functioning of a company. The roots of Caltex Australia goes back to that
of 1900 and it is an Australian fuel along with convenience brand that is listed on that of
Australian Securities Exchange. Caltex is responsible for the operation of the biggest oil
company retail network within that of Australia. It is a petroleum brand name pertaining to
Chevron Corporation that is used in more than that of 60 countries (Caltex.com.au 2018). The
report talks about the key stakeholders and the environmental policies that they have
undertaken in order to protect the environment. It discusses whether the company has taken
any voluntary initiatives and the governance structure of Caltex Australia. It also elucidates
on the aspect of philanthropy of the company.
Corporate Social Responsibility of Caltex Australia
Carroll’s model makes use of a number of theories that can be summarized under
different social obligations like that of economic responsibilities, legal responsibility, moral
responsibility and that of philanthropic obligation. On the basis of the 2017 full year result, it
was seen that the replacement cost operating profit was around $621 million that is 18 %
above that of the previous corresponding period. Improved result was on account of strong
operating performance from that of Lytton Refinery (Utama 2017). The legal responsibility
of Caltex Australia revolves around the fact that operational excellence is adhered to and the
policies are on the basis of environmental policies. It is their legal responsibility to ensure
that the tenet principles in relation to Caltex Australia are abided by. Any kind of breach in

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relation to health and safety is communicated to that of the manager. Culture pertaining to
operational excellence places high priority on that of safety of the workforce that is a moral
obligation on the part of Caltex Australia. The way the products of Caltex are produced
makes sure that they are environmentally accountable. Vehicles prove to be a major source in
relation to emission and the use of cleaner fuels can help in reduction of Australian
greenhouse emission. Caltex Australia has got philanthropic obligation and hey have invested
$500 million for the upgradation of the refineries (Dobele et al. 2014).
According to Wartick and Cochrane Typology, four part framework in relation to
corporate social responsibility should be able to address the four obligations to that of the
society. Each of the responsibility is a part of that of total social responsibility and it helps in
reflecting the societal expectation in relation to the business. Caltex Australia pursues the
economic responsibilities and at the same time it fulfils the legal responsibilities towards that
of the community. Caltex Australia is addressing the issues related to that of climate change
and they are working with governments so that they can develop policies that are effective.
Under that of Reverse Auction Process, project suitability was carried out in the year 2015
(Bruns and Skretowska 2016). Caltex Australia has also participated in that of technical
workshops with the help of Australian Industry Greenhouse Network. These shows that
Caltex Australia occupies a high position in terms of Wartick and Cochrane Typology.
Key Stakeholders
The primary stakeholders in relation to Caltex Australia are the consumers along with
that of the people involved in the business. The Telematics Technology in relation to Caltex
is integrated with that of the engine management of the vehicle that helps in providing
insights in relation to the performance of the drivers. The superior technology pertaining to
Caltex Australia can help in the identification of the potential problems that can lower the
amount that is spent on maintenance. It thus helps in keeping the fleet safe and run in an

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efficient manner on that of the road. The Caltex Marine Group can help in providing
information about the best ports that can bunker fuel within that of Australia. The technical
group of Caltex Australia can provide the customers with information regarding oil analysis
along with that of lubricant surveys. Caltex Australia also helps in providing
recommendations that can maximise the productivity in relation to the consumers. The
primary stakeholders in relation to Caltex Australia are the customers and the employees. The
Carroll’s pyramid of social responsibility focuses on why the organisations should meet that
of the social responsibilities. This pyramid can help in ensuring that the business complies
with the laws along with the regulations. The employees of Caltex Australia gets the right
kind of working environment. The benefits that the employee gets from Caltex Australia is
that of flexible work arrangements and different kinds of incentives (Stephens 2017). They
also get to prosper from being associated with such a brand that creates products that do not
harm the environment. The distributors of Caltex Australia come from that of local network
that includes that of depots and that of diesel stops spread throughout Australia. They are
found to be present in all the territories of Australia that is inclusive of the remote locations.
Environment
Caltex aims in order to ensure that quality products are supplied to that of the
customer. The Quality Policy in relation to Caltex Australia will focus on respecting and
complying with that of product quality commitments. It can achieve this by supplying the
products that conforms to that of relevant specifications. It makes sure that the regulatory
requirements are abided by the organisation. The management systems are continuously
improved and they are integrated with that of health along with safety activities. The Quality
Policy seeks relevant certification in relation to the management system and they should be
appropriate to that of International Quality Standard (Chandler 2017). They continuously
audit and review the management systems that can contribute to that of reliable operation in

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relation to the business. The quality objectives should be integrated into that of the business
plan and it should ensure that the business units should include that of the quality objectives.
Caltex Australia carried out project suitability assessments in the year 2015. The
Safeguarding mechanism started on 1st July 2016 and they have participated in different kinds
of technical workshops by taking recourse to Australian Industry Greenhouse Network. The
ethical responsibility pertaining to Caltex Australia focuses on acting in a moral manner and
benefitting society in the long term. Caltex Australia is continuing to participate in different
greenhouse gas reduction policy that can help in maintenance of international
competitiveness in relation to the Australian industries. National Greenhouse and Energy
Reporting is a national framework that is abided by that of Caltex Australia and it helps in
informing that of the Australian public (Shelton 2015). It sees to it that Caltex Australia
meets that of international reporting obligation in relation to Australia. Clean Energy
Regulator helps in administering that of the NGER Act and the legislative instruments. The
Wartick and Cochran Typology believes in the fact that organisations exist on account of
pleasure pertaining to society and the business has a social contract that includes rights and
regulations. Caltex believes that biofuels can help in reduction of greenhouse gas emission
and thus provide long term solution to that of climate change. Caltex Bio E10 Unleaded is a
blend of that of unleaded petrol that contains 10 5 of ethanol. Bio E-Flex has been specially
designed for that of flex-fuel vehicles (Rowell 2017). The different bio-diesel blends are
made by the using of cooking oil along with that of tallow.
Human Rights
Caltex Australia takes into cognizance the human rights and provides a healthy
workplace to the employees along with that of the contractors. They act in a manner that will
not adversely harm the safety of the public. The Wartick and Cochran Typology believes in
the fact that business should act as a moral agent within that of the society. On the basis of

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this, the human rights audit systems has been implemented within the organization that can
help in monitoring the improvement. Their primary goal is to ensure that there are zero
injuries and while working the employees of Caltex Australia has to take responsibility of the
individual fitness in relation to work. Caltex Australia believes in the advantages of that of a
diverse workforce and the individuals coming from different backgrounds are respected in the
organization. It is the right of the employees to be well-cared for in the organization and
creation of an environment in which the employees can exhibit their full potential is
important for an organization. Caltex Australia is currently working with the government in
the arena of policies that can help in curbing emission (Warner and Sullivan 2017). The
Wartick and Cochran Typology believes in the fact that business should be able to meet the
conditions pertaining to moral agency and act in a responsible manner. Caltex Australia
abides by this model and it has continued to support that of reduction policies in relation to
greenhouse gas that can help in maintaining the international competitiveness in relation to
the Australian industries. Caltex supports the Australian farmers and it favours biofuels that
are produced from that of local feedstock. Caltex sources the ethanol from that of the
producers in NSW along with that of Queensland (Sovacool and Dworkin 2015). The ethanol
is made from that of renewable sources like that of waste starch. Caltex Australia does not
make use of bio-fuel that is produced from that of palm oil feedstock.
Governance
Corporate governance arrangement in relation to Caltex Australia and the other group
companies are set with the help of the Caltex Board that has great regard in relation to the
interests of the shareholders. Caltex maintains the best practice in relation to corporate
governance and these practices help in adding value to that of Caltex Australia. The
management in relation to Caltex is taken care of by the Managing Director along with that of
CEO (Mol 2017). The operations are subject to that of specific delegations that is approved

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by that of the authority. Transaction that is outside that of the delegation in relation to
authority should be referred to Caltex Australia company for facilitating the process of
approval. Performance pertaining to Managing Director along with CEO is assessed against
that of performance benchmark that has been written down in the performance agreement.
Executive leadership team in relation to Caltex reports directly to that of Managing Director.
The Board assesses the independence in relation to each director during the time of
appointment. The directors have to disclose that of relevant personal interests along with that
of conflict of interest.
Philanthropy
Systematic management in relation to safety and health can help Caltex Australia in
achieving benchmark performance. Culture pertaining to operational excellence is embedded
in the culture of Caltex Australia which lays high priority on the aspect of health within the
workforce. Caltex has got environmental accountabilities and vehicles can prove to be a
major source in relation to emission. The usage of that of cleaner fuels can help in the
reduction of the Australian greenhouse emission (Galaskiewicz 2016). Caltex Australia has
invested a sum of $ 500 million for the upgradation of the refineries so that it can produce
fuels that is lower in terms of sulphur. Product stewardship is an integral part in relation to
the licence of operation. Caltex Australia takes immense care to manage the products through
the entire lifecycle and meets the legal along with that of the regulatory requirements. It
effectively communicates the necessary information to that of the customers.
The Carroll’s pyramid focuses on the arena of philanthropic responsibility which
highlights that the resources of the organization should be able to solve a cultural purpose.
For fulfilling this responsibility, Caltex Australia is currently working with the governments
so that they can develop policies that can help in the reduction of the emissions. Caltex
understands the fact that climate change poses a threat to that of economies along with that of

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the environment (Ke, Qiu and Jiang 2015). They have to incur costs for reducing the
emissions but they fell responsible to that of the community so they act along that direction.
They set a national goal for the reduction of that of greenhouse gas emission that can be
adjusted based on available science. It has been stated that the safeguarding mechanism will
help them in the process of participation in that of technical workshops with the help of the
Australian Industry Greenhouse Network (Romero-Merino and García-Rodriguez 2016).
Caltex Australia supports the greenhouse gas reduction policy that can help in maintaining
the competitiveness in relation to the Australian industries. Caltex believes in the fact that
biofuels can play an important role for the reduction of that of greenhouse gas emission. It
can thus help in providing solutions to that of climate change. Caltex sources the biofuels that
have been sustainably produced. The current method of production of bio-fuels within that of
Australia does not give rise to any kind of conflict between that of food and that of fuel uses
of the crops. Caltex also supports the Australian farmers along with that of the industry. They
favour the bio-fuel that is produced from that of local grown feedstock.

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References:
Bruns, P.A. and Skretowska, D., 2016. Assessing Quality not Quantity: A Unique Cross-
Country Comparision of CSR Reporting Quality.
Caltex.com.au (2018). Caltex Australia | Fuels, Convenience Retail & Lubricants. [online]
Available at: https://www.caltex.com.au/ [Accessed 24 Apr. 2018].
Chandler, G., 2017. The evolution of the business and human rights debate. In Business and
Human Rights (pp. 22-32). Routledge.
Dobele, A.R., Westberg, K., Steel, M. and Flowers, K., 2014. An examination of corporate
social responsibility implementation and stakeholder engagement: A case study in the
Australian mining industry. Business Strategy and the Environment, 23(3), pp.145-159.
Galaskiewicz, J., 2016. Social organization of an urban grants economy: A study of business
philanthropy and nonprofit organizations. Elsevier.
Ke, J.L., Qiu, X.W. and Jiang, Y.F., 2015. The effect of corporate philanthropy on
organization commitment and job performance of employees: Workplace spirituality as
mediating variable. American Journal of Industrial and Business Management, 5(06), p.466.
Mol, H., 2017. Introduction. In The Politics of Palm Oil Harm(pp. 1-32). Palgrave
Macmillan, Cham.
Romero-Merino, M.E. and García-Rodriguez, Í., 2016. Good governance in philanthropy and
nonprofits. The Routledge Companion to Philanthropy, p.395.
Rowell, A., 2017. Green backlash: Global subversion of the environment movement.
Routledge.

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Shelton, D., 2015. Remedies in international human rights law. Oxford University Press,
USA.
Sovacool, B.K. and Dworkin, M.H., 2015. Energy justice: Conceptual insights and practical
applications. Applied Energy, 142, pp.435-444.
Stephens, B., 2017. The amorality of profit: transnational corporations and human rights.
In Human rights and corporations (pp. 21-66). Routledge.
Utama, A.G.S., 2017. Framing Corporate Social Responsibility On the Websites Of
Company (Mudflow Incident). Archives of Business Research, 5(12).
Warner, M. and Sullivan, R. eds., 2017. Putting partnerships to work: Strategic alliances for
development between government, the private sector and civil society. Routledge.