Analysis of Governance and Sustainability Practices at BHP Billiton

This report provides an in-depth analysis of BHP Billiton's governance and sustainability practices. It explores the strategies for developing ethical engagement and building cooperation with corporate stakeholders, emphasizing the importance of accountability and transparency. The report examines the relationship between environmental and social risks and corporate performance, highlighting key concepts and techniques of sustainability development employed by BHP Billiton. Furthermore, it delves into the design management strategies for sustainability, illustrating how the company integrates various aspects of its business environment, including safety, security, policy, and strategic planning, to achieve long-term success. The report concludes by summarizing the company's commitment to sustainable development and its efforts to maintain a strong position in the market.

Running head: Governance and sustainability
Governance and sustainability

Governance and sustainability
Table of Contents
Introduction.................................................................................................................................................4
Strategies to develop ethical engagement and to build cooperation with corporate stakeholders in BHP
Billiton........................................................................................................................................................4
Accountability and transparency in BHP Billiton........................................................................................5
Relationship between environmental and social risk and corporate performance in BHO Billiton..............5
Key concepts and techniques of sustainability development in BHP Billiton..............................................6
Design management strategies for sustainability in BHP Billiton...............................................................7
Conclusion...................................................................................................................................................7
References...................................................................................................................................................8
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Governance and sustainability
Introduction
The report talks about the sustainability development approaches are followed by the
company. BHP Billiton has been selected for the report. The report presents the key features and
techniques used by the company. The strategies planned by the company are made with the help
of stakeholders and other professionals. The report presents the example of sustainability
development by explaining about the BHP Billiton. BHP Billiton is a leading global resource
mining company. It was founded in 1885 and it has seen many ups and downs in the last past
years. The company is expanding and flourishing its business day by day. The company serves
the products worldwide. The Company is dealing in iron ore, coal, petroleum, copper, natural
gas, nickel & uranium across the world. It is one of the biggest mining companies in
Australia. The report talks about the way followed by the BHP Billiton to make sustainable
development with the help of stakeholders and marketers. The report describes the social and
environmental risk that the company goes through while making decisions to sustain in future.
The report explains the design management criterion that is adopted by company for growth and
success. Everything is planned keeping in mind to achieve a common goal. Overall, the report
majorly focuses on sustainability development. It explains that how the company is maintaining
transparency and accountability in the firm.
Strategies to develop ethical engagement and to build cooperation with corporate
stakeholders in BHP Billiton
The ethical engagement and corporation play a vital role in BHP Billiton. To develop
ethical engagement the company must communicate with the stakeholders. They help in making
decisions at every level. To develop the engagement the company adopts new approach and
strategy. The main aim of the company is to engage deeply in the business activities and
operations with other companies for its growth and success. The Company engages with large
stakeholder to expand their business on a large scale. They follow this strategy in order to meet
the long term goals and objectives (Linnenluecke, Meath, Rekker, Sidhu & Smith, 2015). The
Company engages with the stakeholders in many different ways. The company shares all the
information with stakeholders which is related with business. Further, many activities are
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Governance and sustainability
conducted in the business by the employees. This allows the company to find solutions to major
problems and obstacles. The Company cooperates with those companies who have highly
experienced stakeholders. This develops the relations with the other companies in competition.
They contribute to the society by engaging with the important issues (Mayes, Pini & McDonald,
2013).
Accountability and transparency in BHP Billiton
BHP Billiton Company is flourishing its business since its existence in the market. The
company is aware about the needs, expectations and requirements of its clients. This makes easy
for the company to be accountable to its client’s issues. The company is easily answerable to the
clients. This helps them to satisfy the demands of the clients. The company is making effective
strategy to make their clients happy (Woodside, Camacho & Lai, 2013). The firm maintains
good relations with clients. In this way, the firm can easily resolve the problems. The BHP
Billiton is able to meet the requirements of the clients it develops and build strong relationship
with them. This creates transparency and accountability between the company and clients. The
clients are aware about everything that the firm is doing. They know the strategy that the
company follows to meet growth and success in the market. The main objective of the company
is to sell its products across the world. Through this transparency, the company maintains a
report in which they write the working of the company that what they do, how they do, why they
do in the working. This provides clear information of organization’s functioning. Any member of
the firm can see the report in order to get the idea about the company (Pellegrino & Lodhia,
2012).
Relationship between environmental and social risk and corporate performance in BHO
Billiton
Their contribution to the society is by ensuring the health and safety of the employee.
They are able to meet with this risk by maintaining a report of the employees working in the
firm. It is a challenge for the company to meet the demands of the society. The role of society is
a very important thing for them. It provides them the “license to operate”. So it becomes very
challenging for them to satisfy the demands of the society. The society has the power to make the
company grow as well fall in the market. This creates the issue of societal risk. The Society
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Governance and sustainability
shares the success of the business (Prno & Slocombe, 2012). The strategies planned by the
company to meet the demands of the environment are very effective and impactful. The
company diversifies its resources to make the establishment easy in the future. To ensure that the
decisions made are correct and relevant to the environment it presents it in front of corporate,
contractors, suppliers, employees, etc (Epstein & Buhovac, 2014). They work together to make
the necessary changes to sustain and growth in the future. The change in the trends becomes a
challenge for the company. They have to make changes in their manufacturing process as the
trend changes. They do every possible thing to develop and build in the market and satisfy the
societal needs. They maintain a good relationship with society which helps them in a sustainable
future. They are flourishing and expanding its business in order to meet growth in the future.
This made them use the natural resources effectively and is able to maintain its license to operate
in the market (de Villiers & Alexander, 2014).
Key concepts and techniques of sustainability development in BHP Billiton
The key areas have permitted the growth and success of the business. BHP Billiton
makes the strategy in such a way that it has an impact on its sustainable development. Its growth
depends on the various types of decisions made by the company to achieve the goals (Sun,
Zhang & Chen, 2013). Their concepts relates with the decisions made by the stakeholders and
higher authorities in the firm. The techniques followed by the company shows a path to make
future decisions. This makes the growth of the company strong in the market (Fonseca,
McAllister & Fitzpatrick,2014). The company before implementing the plans for sustainable
development checks and analyzes the different area such as:
Cost efficiencies
They plan the strategy in such a way that it is should be cost effective and will lead to
further gains in the business.
Latent capacity
It ensures the strategies have attractive returns with limited risk factor.
Major projects
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Governance and sustainability
The project made has to be completed in time and must give expected returns after existence
(Erickson, Barrett, Merritt & Dixon, 2016).
Exploration
It explores the risk in the coming future and plan to resolve those risks.
Technology
The company uses advance technology to meet the trends of market. – improves safety, lowers
cost and unlocks resource (Brueckner, Durey, Mayes & Pforr, 2013)
Design management strategies for sustainability in BHP Billiton
Sustainability Development
It is a strategy followed by the company to keep expanding its business in the future also.
They make decisions with the help of stakeholders which allow them to maintain its growth in
the market. They include all the aspects of business environment including safety, security,
policy and strategic planning. They design the product by discussing the opinions of all the
members of the organization (Klettner, Clarke & Boersma, 2014).
Sustainable development for BHP is to ensure that business is running smoothly and
leading towards benefits of the organization. The management follows the instruction of the
authorities. This leads in forming good and effective strategies for the company’s development
(Robins, 2010). The sustainability report of BHP Billiton is presented in two aspects: A full repot
about the web- based details and a report containing the information of the company in a
summary. They have a sustainable development policy which states their objective of being the
company of choice and creating a sustainable area for the employees, stakeholders and other
members working in the organization. The sustainable approach of the company depends on its
commitment, standards and positions. It focuses on the key elements made by the stakeholders of
the company (Steyn & Niemann, 2014).
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Governance and sustainability
Conclusion
The report is based on the governance and sustainability of BHP Billiton. The company
uses the various strategies and approaches to gain the long term success and sustainability. The
company plans according to the demands of the society or environment. They follow various
techniques of functioning which resulted in company’s growth since many years. The report tells
the social and environmental risk that company faces while making decisions for sustain well in
future. The ultimate aim of the company is to achieve the goal and make an image and position
in the market. The company makes its ethical engagement and builds relationship with the
stakeholders by cooperating with them. They follow a proper design management system to
increase its profit and generate good outputs.
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References
Brueckner, M., Durey, A., Mayes, R., & Pforr, C. (2013). The mining boom and Western
Australia’s changing landscape: Towards sustainability or business as usual?. Rural
Society, 22(2), 111-124.
de Villiers, C., & Alexander, D. (2014). The institutionalisation of corporate social responsibility
reporting. The British Accounting Review, 46(2), 198-212.
Epstein, M. J., & Buhovac, A. R. (2014). Making sustainability work: Best practices in
managing and measuring corporate social, environmental, and economic impacts.
Berrett-Koehler Publishers.
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Erickson, T., Barrett, R., Merritt, D., & Dixon, K. (Eds.). (2016). Pilbara seed atlas and field
guide: plant restoration in Australia's arid northwest. CSIRO PUBLISHING.
Fonseca, A., McAllister, M. L., & Fitzpatrick, P. (2014). Sustainability reporting among mining
corporations: a constructive critique of the GRI approach. Journal of Cleaner
Production, 84, 70-83.
Klettner, A., Clarke, T., & Boersma, M. (2014). The governance of corporate sustainability:
Empirical insights into the development, leadership and implementation of responsible
business strategy. Journal of Business Ethics, 122(1), 145-165.
Linnenluecke, M. K., Meath, C., Rekker, S., Sidhu, B. K., & Smith, T. (2015). Divestment from
fossil fuel companies: Confluence between policy and strategic viewpoints. Australian
Journal of Management, 40(3), 478-487.
Lodhia, S., & Martin, N. (2014). Corporate sustainability indicators: an Australian mining case
study. Journal of cleaner production, 84, 107-115.
Mayes, R., Pini, B., & McDonald, P. (2013). Corporate social responsibility and the parameters
of dialogue with vulnerable others. Organization, 20(6), 840-859.
Pellegrino, C., & Lodhia, S. (2012). Climate change accounting and the Australian mining
industry: exploring the links between corporate disclosure and the generation of
legitimacy. Journal of Cleaner Production, 36, 68-82.
Prno, J., & Slocombe, D. S. (2012). Exploring the origins of ‘social license to operate’in the
mining sector: Perspectives from governance and sustainability theories. Resources
Policy, 37(3), 346-357.
Robins, F. (2010). Learning from corporate mistakes. Corporate Communications: An
International Journal, 15(2), 169-180.
Steyn, B., & Niemann, L. (2014). Strategic role of public relations in enterprise strategy,
governance and sustainability—A normative framework. Public Relations Review, 40(2),
171-183.
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Sun, S. L., Zhang, Y., & Chen, Z. (2013). The challenges of Chinese outward investment in
developed countries: The case of CITIC Pacific's Sino Iron Project in
Australia. Thunderbird International Business Review, 55(3), 313-322.
Woodside, A. G., Camacho, A. R., & Lai, W. H. (2013). Guest Editorial: Sense Making,
Dilemmas, and Solutions in Strategic Management. International Journal of Business
and Economics, 12(2), 91-95.
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