CRSE108 - BHP Billiton's CSR: Corporate Responsibility and Ethics

This report provides a detailed analysis of BHP Billiton's corporate social responsibility (CSR) activities, examining the company's initiatives in areas such as education, health, and economic growth. It evaluates the effectiveness of these CSR activities in relation to the company's corporate and operating models, highlighting BHP Billiton's commitment to investing 1% of its profits in community betterment. The report also assesses the company's sustainability efforts, including its focus on reducing greenhouse gas emissions, promoting energy-efficient practices, and implementing watershed management programs. Key findings emphasize the importance of sustainability and ethical sourcing, recommending further emphasis on philanthropy and sustainable resource use. The report concludes by highlighting the company's strong stakeholder partnerships and its commitment to respecting human rights and promoting diversity within its workforce. The report also mentions the company's efforts to align its activities with the National Development Plan and to develop eco-friendly business programs. The analysis uses secondary data from BHP Billiton's annual reports and other sources.

RUNNING HEAD: CSR activities of BHP Billiton
1
Name of the student-
Topic- CSR activities of BHP Billiton
University Name-

CSR activities of BHP Billiton 2
Executive summary
This report is accompanied with the details and analysis of corporate social
responsibilities of BHP Billiton Company. The report summarizes the corporate social
responsibiliti1es taken up by the BHP Billiton in context with the corporate and operating
models of the organisation. BHP Billiton embeds in its vision and mission statement many
social activities along with their significance.

CSR activities of BHP Billiton 3
Table of Contents
Executive summary...............................................................................................................................2
Introduction...........................................................................................................................................2
Objective...............................................................................................................................................2
Corporate Social Responsibility by BHP Billiton Company.....................................................................2
Methodology.........................................................................................................................................3
Analysis of CSR activities of BHP Billiton business.................................................................................3
Finding...................................................................................................................................................5
Recommendation..................................................................................................................................6
Conclusion.............................................................................................................................................8
References.............................................................................................................................................9

CSR activities of BHP Billiton 4
Introduction
In the industry of petroleum, BHP Billiton is the major growing organisation which is
headquartered in Melbourne, Australia since 2001 which was formed with the merger of two
companies. In the year 2015, the company was named as the biggest mining company in the
world. The company started to focus and started initiating in corporate social responsibility
activities to sustain its success in the industry.
Objective
 Analysing the contribution made by BHP Billiton Company for its corporate
social responsibilities.
 Evaluating the CSR activities of BHP Billiton Company.
 Assessment of CSR activities and sustainability of the company,
Corporate Social Responsibility by BHP Billiton
Company-
Corporate Social Responsibility is a voluntary initiative taken up by the organisation
for the betterment of the society in which it operates. The organisation indulges in activities
which contribute the society and the environment on a macro level. The need for these
responsibilities is increasing over time and has even become a legal compliance for most of
the companies.

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Methodology
In this report, secondary sources of data have been taken into consideration. The
annual report of company, website information and other documents have been used to
prepare this report. After evaluating the annual report of BHP Billiton Company, it is
observed that the major sectors in which the organisation emphases in its Corporate Social
Responsibilities activities are education, health, economic growth and several charities to
accomplish its objectives. A corporate social responsibility policy is formed for its proper
implementation and is communicated on its website.
Analysis of CSR activities of BHP Billiton business
BHP Billiton business has made contribution towards the improvement of the society
by undertaking following initiatives in different fields. The vision and mission statement of
BHP Billiton business is to manufactures and sells superior quality goods and services. The
business policy focuses on providing 1% investment of the profit for the betterment of the
community. In addition to this, the investment of BHP Billiton business was US$80.1 million
in the latest 2017. The economic growth of company has made positive impact on the
economic growth domestic product rate and increased national income. The initiatives taken
up by the company can be measured in relation to sales and revenue generations. In rural
areas, company has focused on to civilize and enhance the skills of people living in rural
areas by imparting training in educational institutions. The company has tied up partnership
with many Chinese universities for providing educational opportunities (Bekaert and
Hodrick, 2017). For providing scholarships, 10$ in the Australian Indigenous Education
Foundation (AIEF) in the year 2014 is contributed by the company. Company has also
undertaken a plan named as ‘Swim and Survive’ is introduced for the wellbeing of the
children in the society. BHP Billiton Company also contributes towards providing a comfort
and safety environment. It has reduced the emission of greenhouse gases for the betterment of
the society and reduction of hazardous gas emission went down to 6% from 2014. Another
undertaken activity by the BHP Billiton Company is related to usage of energy efficient
products are increased therefore polluting the environment less and reducing global warming
(Devinney, 2009).

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The main initiative of company is related to developing watershed in its all the
operations and working places with a view to control the water wastage. However, the waster
sheds of company should be increased by 22% per annum in numbers if it is intended to
maintain sustainable future it is analysed that BHP Billiton plc has focused on providing best
quality of good and services through its established mines chains to increase the sustainability
of its brand image on domestic and international level. Now in the end, it could be inferred
that company should focus on reducing the employee’s turnover and increase the quality of
products and services for the better satisfaction of clients. Nonetheless, corporate social
responsibilities program of company is strong as compared to its other rival in market.
Therefore, it is easy to say that company has effective sustainability reporting and increased
its overall efficiency in determined approach (Tai and Chuang, 2014).
 Installing supply chain and watershed management process
 The direct operations set by BHP Billiton Company have been the major steps for saving
water use with the farming and manufacturing. BHP Billiton Company has set framing for
the future water footprint index, water balance and managing chemical detox to increase the
overall efficiency of its water usage in its farming activities. In addition to this, BHP Billiton
Company has also set new norms and policies for reducing the water wastage in its
headquarters and other departments (Lins, Servaes and Tamayo, 2017).
It is analysed that BHP Billiton Company has focused on providing best quality of
good and services through its established mines selling departments. BHP Billiton Company
has environmental challenges which include energy supply sustainability in its business,
increased associated cost, renewable energy opportunities and water scarcity program. This
all the factors are considered by BHP Billiton Company in its reporting frameworks to
strengthen its sustainability program in determined approach. BHP Billiton Company has also
included Environmental challenges in its sustainability reporting include energy supply
stability and costs, as well as the need to grow renewable energy opportunities, water scarcity
for the effective business functioning. The main initiative of BHP Billiton Company is
related to undertake the social economic welfare with the strategic alliance of The National
development plan to make effective use of resources in society and environment at large.
The BHP Billiton Company has focused to develop eco-friendly business program which
increases the overall efficiency of its business and strengthen the economic and social factors.
It has also planted several strategic programs to make effective use of resources (Garriga and
Melé, 2014).

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Finding
The managerial team of the organisation is carrying out the corporate social
responsibility policies and plans efficiently and effectively. But for more enhancement the
following recommendations can be made-
1) Emphasize more on sustainability
2) Sustainable use of natural resources
3) To focus more on philanthropy and donations for orphans and other charities (Hilson, 2012).
CSR activities of BHP Billiton Company also focus on the sustainability. This
sustainability reporting of company is focused on strengthen the company working to respond
more effective and efficiently. Ideally, sustainability reporting of BHP Billiton Company is
integrated into a single integrated report that communicates all the factors of business
performance. This sustainability reporting of BHP Billiton Company focuses on
communicating all the impacts and issues to society, environment and people which arise due
to the business functioning of organization (Present description of company (Brigham and
Ehrhardt, 2013).
The value chain of BHP Billiton Company focused on selling mining and other
substance from its established mines in market. Nonetheless, in order to save the tree and
other wastages, company has given options to its clients to take paper less bill and opt for the
E-bill. This will make the company more technologies oriented and resulted to advanced
working in this ramified economy. It has increased the overall efficiency of working and
increased the overall outcome of the business.
The main focus of company is to understand the needs and view of range of
stakeholders such as employees, clients, government and suppliers. Nonetheless, in order to
increase the effectiveness of communication program of company, it installed cyber
computing enterprises resources planning in its business. It is further observed that from the
sustainable point of view, the matters that were identified as most prominent matter by the
stakeholders were identified as ethical sourcing, animal welfare water packaging and local
sourcing. Company has also identified other issues in its corporate social reporting
frameworks such as constructive and co-operative transparency, mutual respect for all the
stakeholders, working towards regular and structured engagements. The management of

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BHP Billiton Company believed that strong stakeholder’s partnership is the key to building a
more sustainable business and future (Kundakchyan and Zulfakarova, 2014).
The supply chain activities of company also consider pollution impact on the society
and environment. Company has planned to use Eco-friendly cars in its transportation
activities. This will help in reducing the carbon emission and will increase the environmental
effectiveness and its corporate social reporting frameworks (Salib, et al. 2015).
In addition to this, BHP Billiton plc has committed to respecting the human rights
which includes ensuring that all the employees are motivated and respected for their integrity
and dignity (Jenkins, 2014). The transformation journey of BHP Billiton plc focuses on
developing sustainable corporate governance program and aligning the interest of the
stakeholders with the company’s development. All the mining chains established by BHP
Billiton plc around the globe are more technologies oriented and promote handling clients in
best efficient manner. This program has implemented following programs such employment
equity, managing diversity, implementing safety program in organization. In addition to this,
in order to increase the effectiveness of employees working, BHP Billiton plc has arranged
skill development and talent management program which could make existing employees
more employable (Kapelus, 012).
Recommendation
It will also align all of its outcomes with the organization future and stakeholders
development in determined approach. BHP Billiton Company has issued employees stock
options scheme to align the interest of the employees with the organization It will help in
attracting more clients in market. The main advantage of company is related to installing
advanced cyber computing system and restructured business for the better satisfaction of
clients. The social development strategy of BHP Billiton Company is not only aligned to the
core business but also focus on development priorities of clients for which company offers its
products development. This will help in motivating employees and suppliers to deliver best
result for the betterment of organization on sustainable basis (Cheng, Ioannou and Serafeim,
G., 2014).
The BHP Billiton Company aimed to reduce all potential impacts as a business and
improve positive outcomes for the environment. However, there are several social,

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environmental and economic issues have been faced by management of company while
implementing its global supply chain. The main aim of corporate social activities is to reduce
the usage of scarcity of resources and increase the overall efficiency of the business (Garrett,
Hoitash and Prawitt, 2014).
 It should also hire expert’s members to make improvement in its business.
 Company should also improve the overall effectiveness of working by increasing the overall
efficiency of organization.
There should be proper equilibrium between amounts of investment by the company and
benefit to the society and environment at large (Lins, Servaes and Tamayo, 2017).
This ethical sourcing is the main phase for strengthen corporate social responsibilities
activities of the business. It is observed that company needs to also arrange proper training
and development program for its employees.
Energy and climate change
BHP Billiton Company witnessed record breaking investment in its energy and
climate changes which support less fossil fuel intensive sources of energy. Management of
company in its sustainable business program planned to reduce the energy consumption,
carbon emission and waste to landfill with a view to mitigate the negative impacts of climate
change across the supply chain management of company. The main aim of all of these supply
chains of company is related to increasing the business efficiency and reducing the negative
impact of business at large (BHP Billiton Company 2017).

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Conclusion
The management of BHP Billiton plc has invested more than $ 25 million in its
research and development department which focus on changing the business structure and
arranging proper skill development program for its employees (BHP Billiton Company,
2017). Nonetheless, sustainable program of BHP Billiton plc has also focused on delivering
customize services for its clients. Now in the end, it could be inferred that the effective CSR
activities of BHP Billiton business is strong and provide several benefits for the betterment of
the society and economic at large.

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References
Bekaert, G. and Hodrick, R., 2017. International financial management. Cambridge
University Press.
BHP Billiton Company, 2017, annual report, Retrieved on 29th November, 2017 from
https://www.bhp.com/-/media/documents/investors/annual-reports/2017/
bhpannualreport2017.pdf
Brigham, E.F. and Ehrhardt, M.C., 2013. Financial management: Theory & practice.
Cengage Learning.
Cheng, B., Ioannou, I. and Serafeim, G., 2014. Corporate social responsibility and access to
finance. Strategic Management Journal, 35(1), pp.1-23.
Devinney, T.M., 2009. Is the socially responsible corporation a myth? The good, the bad, and
the ugly of corporate social responsibility. The Academy of Management Perspectives, 23(2),
pp.44-56.
Garrett, J., Hoitash, R. and Prawitt, D.F., 2014. Trust and financial reporting quality. Journal
of Accounting Research, 52(5), pp.1087-1125.
Garriga, E. and Melé, D., 2014. Corporate social responsibility theories: Mapping the
territory. Journal of business ethics, 53(1-2), pp.51-71.
Hilson, G., 2012. Corporate Social Responsibility in the extractive industries: Experiences
from developing countries. Resources Policy, 37(2), pp.131-137.
Jenkins, H., 2014. Corporate social responsibility and the mining industry: conflicts and
constructs. Corporate Social Responsibility and Environmental Management, 11(1), pp.23-
34.
Kapelus, P., 2012. Mining, corporate social responsibility and the" community": The case of
Rio Tinto, Richards Bay Minerals and the Mbonambi. Journal of Business Ethics, 39(3),
pp.275-296.
Lins, K.V., Servaes, H. and Tamayo, A., 2017. Social capital, trust, and firm performance:
The value of corporate social responsibility during the financial crisis. The Journal of
Finance, 72(4), pp.1785-1824.
Salib, J., Sun, D., Wu, J., Wen, X. and Huang, C.C., 2015. Corporate Social Responsibility.
Tai, F.M. and Chuang, S.H., 2014. Corporate social responsibility. Ibusiness, 6(03), p.117.