Corporate Social Responsibility Analysis: BHP Billiton's Performance

This report provides an in-depth analysis of BHP Billiton's Corporate Social Responsibility (CSR) practices. It begins with an executive summary outlining the report's focus on the mining industry's environmental and social impacts, alongside the theoretical frameworks of Carroll's Pyramid and Wartick and Cochrane's Typology. The report then offers an overview of BHP Billiton, detailing its CSR activities and governance structure. It delves into the theoretical understanding of CSR, synthesizing these theories with the company's actual performance. The analysis includes an examination of stakeholder expectations and the challenges BHP Billiton faces, particularly concerning greenhouse gas emissions and community impact. Finally, the report proposes potential resolutions to improve BHP Billiton's approach to CSR, emphasizing the need to balance environmental protection, social responsibility, and profitability. The report concludes with a review of the key findings and recommendations.

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Executive Summary
This report is based on BHP Billiton's activities regarding corporate social responsibilities. BHP
Billiton is in the mining industry and its impacts on the environment and social activities. In this
report, the theoretical framework of corporate social responsibility has been discussed. In this
regard, Carroll's Pyramid and Wartick and Cochrane's Typology have been discussed. Corporate
social responsibility is associated with the corporate social performance of the company. The
analysis of the organisation BHP Billiton's corporate social responsibility has been aligned with
the key stakeholders' expectations. BHP Billiton has been facing the issues of CSR as they emit
greenhouse gases that harm the atmosphere. In addition, communities those are close to the
mining fields of BHP Billiton are in utter danger. Therefore, the organisation needs to take
actions to improve the planet, people and profit.

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Table of Contents
1. Introduction..................................................................................................................................3
2. Overview of BHP Billiton...........................................................................................................3
3. Theoretical understanding of CSR...............................................................................................5
4. Synthesis of theories with company’s CSR activities.................................................................7
5. Possible resolutions.....................................................................................................................9
6. Conclusions................................................................................................................................10
Reference List................................................................................................................................11

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1. Introduction
Corporate Social Responsibility (CSR) is the effort taken by an organisation to improve
the condition of society in their way. As stated by De Villiers and Alexander (2014), CSR efforts
range from environment-friendly policies to donating money for the noble cause. CSR strategies
are taken by an organisation as advertisement technique to improve the public image. CSR
techniques also improve the media coverage and boost the employee engagement. The aim of the
report is to explore CSR activities and governance structure of BHP Billiton including the
theoretical framework of CSR and ethics. In the first section of the report, a short overview of
BHP Billiton is given stating the CSR activities. The theoretical framework of CSR is explained
and synthesis of theories with company performance is also given. This report states about CSR
issues of BHP Billion and its possible resolution.
2. Overview of BHP Billiton
BHP Billiton is an Anglo-Australian multinational company and this organisation
operates in metals, mining and petroleum. BHP Billiton has it headquarter in Melbourne and
London. BHP and Billiton were both separate companies and they merged up in the year 2001.
BHP Billiton is a dual-listed company (ASX: BHP and NYSE: BHP) and it serves worldwide
basis. Key products of BHP Billiton are iron ore, copper, natural gas, coal, petroleum, nickel and
uranium (Bhp.com 2018). In the year 2016, revenue of the BHP Billiton was AU$30 billion and
numbers of employees of BHP Billiton are 65,000.
Company’s CSR activities and Governance structure

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BHP Billiton is one of the 85 companies in the world marketing and extracting fossil
fuels. BHP Billiton is responsible for two-thirds of global greenhouse emissions (Cheng et al.
2014). BHP Billiton is in the mining sector and it is aware of the fact as its cumulative emissions
touched 7,605 MtCO2e and it represents almost 0.52%. BHP Billiton is ranked world's 19th
polluter corporation and BHP estimated that 10% pollution is done because of emission and 90%
is from the products of BHP Billiton (Tai and Chuang 2016).
BHP Billiton does not hire child labours before completing their compulsory education.
BHP Billiton does not recruit the employees below 15 years of age and the suppliers of the
employees need to ensure that the employees are not forced. BHP Billiton provides the benefits
that are related to the standard working benchmark. Most importantly, BHP Billiton ensures that
workplace health and safety must be ensured and the employees can protect themselves from
workplace hazards. BHP Billiton ensures that materials should not be sources from listed World
Heritage sites and this organisation does not deal with corruption, extortion and bribery. BHP
Billiton works to ensure occupational exposure limits that can protect the people and potential
occupational exposures have reduced by 76% compared to 2012 (Saeidi et al. 2015).
In addition, Bio-fuels are sourced from a globally renowned company that must have
standards (Csrhub.com 2018). BHP Billiton is committed to contributing towards society
through advocacy and engagement on important issues to support the target development areas.
BHP Billiton works for community development and it produces education scholarship for
young women. BHP Billiton provides renewable energy powering to the closed mine sites. In FY
2017, social investment and contribution of BHP Billiton were US$80.1 million and 1% of the
tax profit was invested to provide benefit to the community (Bhp.com 2018).

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CSR rating of the company is 59 and it is comparable to the community, environment,
employees and governance (Csrhub.com 2018).
BHP Billiton is committed to providing the highest level of governance and it is striving
to foster for the best culture, rewards and values in exemplary ethical standards, corporate
integrity and personal and respect to the others. Board Membership and Process is comprised of
CEO, and there is a guidance of the management between Board and the CEO. Shareholders
appoint the CEO and Board will always have the majority of Directors (Bhp.com 2018). High
standard governance is critical to provide strategy, maintain social license and create long-term
value. The Board looks into the matter of Board's Sustainability Committee that assists the
governance to monitor sustainability.
3. Theoretical understanding of CSR
Carroll’s Pyramid
Caroll’s Pyramid is based on CSR and its framework helps to understand the
organisations how and why they need to meet the social responsibilities. CSR Pyramid is built on
the concept of profit and then, it comes to the regulations and laws. There are four major sections
in this pyramid.
Economic responsibilities an organisation is about making the organisations profitable
and it is the only way to survive and give an advantage to society in long-term basis.
Legal responsibilities of an organisation are associated to obey laws and other legislation
in order to exist within a market. In addition, as stated by Carroll (2015), the organisations must

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comply with the employment, health and safety and competition laws those are within the
industry.
Ethical responsibilities are associated with acting ethically and morally for the betterment
of society and for the employees. This responsibility of the business goes with narrow needs of
the laws, for instance, treatment of the employees and suppliers.
Philanthropic responsibilities of the organisations are related to the giving back to the
environment and society to provide benefits. This type of responsibility is discretionary;
however, it is important for the organisations. Philanthropic responsibilities are associated with
the staffs' time on the project and charitable donation (Luo et al. 2015).
Carroll’s CSR Pyramid has its strengths as it shows that CSR has more than one element
and it puts strength on profit.
Wartick and Cochrane’s Typology
Corporate Social Responsibility is a determinant fact of corporate social performance as
this typology deals with between disclosure and performance. The firms have responsibilities
beyond the economic gain and these factors are considered as social responsibilities of the
organisation. It is important to discuss firm's social responsiveness towards the society. As stated
by Wartick and Mahon (1994), corporate social performance reflect s mainly interaction among
the elements of social responsibilities and it is the process of social responsiveness, there are
policies that help to develop to address the social issues. Another author Wood acknowledged
the conceptual thinking process of business and society. Performance of the firms talks about
actions and outcomes, not just the integration process. Social responsiveness is a set of process
and it is not a single process. The social responsive process is restrictive in nature and

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organisational policies can address social issues. Formal policies cannot reflect the behaviours of
the employees and employers as they are unwritten in nature. As stated by Pundrich (2017), the
social performance of the business concept has been done based on binary connotation and social
performance is what is needed for social responsibility of the business. Social performance of the
business needs to be evaluated on both positive and negative basis to process the social
responsibility, social responsiveness and programmes and policies.
4. Synthesis of theories with company’s CSR activities
BHP Billiton responsibly manages and enables the reduction in greenhouse gas emissions
to provide a sustainable society. In Australia, it extracts minerals from the areas of Olympic
Dam, Western Australia Iron Ore, New South Wales, New South Wales Energy Coal, BHP
Billiton Mitsui Coal and Nickel West. BHP Billiton provides sustainability as they put emphasis
on health and safety and environment sustainability (Cooper 2017). The stakeholders of the
organisation BHP are business partners, community-based organisations, labour unions,
government and regulators, industry peers and association, media, non-government organisations
and social partners. Globally, BHP Billiton communicates through corporate publications,
general meetings and sustainability reports.
BHP Billiton provides emphasis on human rights and it supports the communities. BHP
Billiton makes a partnership with the host community and it shares the stewardship with the
environment and it supports the local culture to drive the economic development. The
organisation has a social licence in order to operate in the correct way.
BHP Billiton is committed to following the laws and jurisdictions in order to meet the
regulatory requirements. BHP Billiton has its charter and it follows the rules and regulations as

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mentioned in requirements standards. The Code of Practice of the organisation clearly mentions
that minimum performance is required to implement and develop the management system of the
assets. Contractors and employees of the organisations have to follow the health and safety
environment and community (HDEC) requirements and standards and the organisation engage
the suppliers to maintain the workplace health and safety (Gilavas and Mish 2015). BHP Billiton
works in many mining fields, these places are polluted and the people are facing the
environmental issues for this. In such places, BHP Billiton holds interests in firms and joint
ventures. It starts joint venturing to operate companies around the sustainable development to
make the formal governance structure for technical exchanges (Yakovleva 2017).
BHP Billiton works in the mining sector and it deals with the non-renewable resources. It
emits greenhouse gas and therefore, it is solely responsible for making the environment polluted.
BHP Billiton is consistent with positioning statement and it follows mandatory requirements
from the UN's Global Compact and UN's declaration of human rights. In order to manage the
risks, the management monitors the functions and assets to identify the managerial risks and this
process applies to follow Risk-based approach towards the sustainability (Ahi and Searcy 2015).
BHP Billiton has been following the Sustainable Development Goals for the well being of the
organisation in future as it has direct business activities to follow social responsibilities. BHP
Billiton follows the royalties and taxes of the host government and it is creating a new
opportunity for employment.
BHP Billiton has been facing the corporate social issues as it needs to have a mechanism
for compensation associated with mining. BHP Billiton cannot improve the community live and
these costs are associated with housing cost, food and environmental impact. BHP Billiton does
not build up good relations with local communities and not having relation with the community

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makes the project delays for BHP Billiton and it can even lead to mine closure. As stated by
Yakovleva (2017), the mining industry is technically complex industry and BHP Billiton uses a
few techniques to provide benefits to the local community.
BHP creates long-term values for shareholders and it is creating growth strategy to invest
in long and large-scale projects. BHP Billiton is no corporate climatic sceptic and the
organisation has accepted the mainstream concept of climatic change since 1996. In the year
2010, this company embarked publicly to call for carbon pricing in Australia. Now, Australia's
political concept has altered dramatically and new government claims for electoral anti-climate
agenda. In the year 2013, BHP Billiton faced issue regarding the carbon pricing in Australia.
BHP Billion has been reporting on GHG emissions since the year 1996.
5. Possible resolutions
In the year 2015, BHP Billiton experienced dam failure and it is a joint venture of
Samarco. 19 people died after this incident and it is the duty of BHP Billiton to help the
communities (Bhp.com 2018). BHP Billiton should take socio-economic programmes to help the
people by providing financial assistance to improve the communities those are surrounded by
BHP Billiton’s mining fields. Community improvement can be guaranteed through giving
livelihood, resettlement, education, culture, health and livelihood. This policy will help to
provide well-being of human capital, ‘people’ of labour, corporate and other stakeholders’
interests.
BHP Billiton should operate their business practice with integrity and ethics. This
practice will bring values to the employees’ life and it will deliver commitments to the

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stakeholders, host communities and employees. BHP Billiton needs to create anti-creation
compliance and it should run with process, compliance and system.
BHP Billiton should be an environment-friendly organisation through focusing on the pillar
‘planet'. They use products that can reduce the reliance on natural resources. They can use
recycled materials and look at the activities to do the business process in a different way. It will
help to reduce ecological footprint and it also helps to carefully manage the consumption of
energy.
6. Conclusions
It has been observed that BHP Billiton has been focusing to reduce the carbon-dioxide
emission and it has been taking other measures to improve the society and environment. Climate
change is another factor for the organisation and it is practising to support the innovative
investment in low-carbon development. Stakeholders' engagement will be helpful for BHP
Billiton to provide effective and long-term policy framework. The organisation has been facing
the issues of greenhouse gas emission and it is actively participating in delivering the measure to
lower the footprint.

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