Voluntary Disclosures in Australian Corporate Sectors - Essay Example

VOLUNTARY DISCLOSURES IN AUSTRALIAN CORPORATE SECTORS d VOLUNTARY DISCLOSURES IN AUSTRALIAN CORPORATE SECTORS This report will shed light on the sustainability and social responsibility practices of two of the companies that are listed in the top 100 Australian stock exchange companies (ASX 100, 2014). The selected companies are Caltex Australia and Newcrest Mining. Their voluntary disclosure of practices and sustainability measures will be compared against the GRI guidelines to evaluate the extent of each company’s transparency and possible gaps in information sharing that may be filled, if any. Since the energy sector is one of the key focuses of such guidelines, the selection of these two companies will also help ascertain the comparability of their operations. Introduction: In today’s world it has become imperative for organizations to disclose information that support and complement their responsible business claims. An organization that fails to voluntarily disclose its sustainability practices is bound to suffer the consequences as in this age, the stakeholders give immense value to the ethical aspects of the business and what measures an organization takes to give back to its people and the community it operates in. a successful business not only indulges in ethical practices that safeguard the rights of the people and protect the environment, but also makes an effort to relate the information regarding the purpose of each such step taken. Feedback is welcomed and acknowledged to increase a business’s worth in the minds of the stakeholders and the consumers. The changing market dynamics in order to increase business transparency has given birth to many concepts like corporate social responsibility, green marketing, employee rights etc. Corporate social responsibility refers to an organizations voluntary actions to give back to the society it operates in. in this way, businesses ensure that every member of their value chain benefits equally from the business as they are the ones who contribute to the end profit (Jamali & Mirshak, 2007). For example, any organizations involved in dairy products ensure that the farmers are incentivized adequately, the cattle are provided with hygienic conditions and the purification centers follow strict quality standards. Businesses also tend to build the rural areas in order to increase the opportunities for the farmers to generate more crop yield, breed more animals etc. by building schools and health centers in the rural areas the farmers are able to provide their children with better education and health and believe that the business they work with cares for their well-being as well. This not only helps in building a good business image but also helps in increasing the motivation level of each member in the value chain or the stakeholders. Another such trend is that of green marketing which refers to the greening of an organization through environment friendly practices or by offering products/services that are safe, natural or recyclable (Ottman & Herbert, 1993). By use of energy conservation practices and recyclable material at the workplace, organizations help build an image that reflects their care for the environment. With the human resource being recognized greatly for its contribution towards the success of any business, the workforce is now called a resource or an asset. In order to retain its assets, increase productivity and help build a favorable image in the job market, it is important that the workforce is offered adequate incentives. Workplace conditions, employees’ rights, rewards-both intrinsic and extrinsic, sufficient leave opportunities etc. promote that the organization cares for the well-being of its members and thus is in the limelight for all the right reasons. By building a favorable image in the job market the organizations are also able to attract the cream of the market, the efficient brains that help them gain sustainable competitive advantage, making it a win win for the workers and the organization. The two companies selected will be studied according to the available information regarding their practices and how they fulfill the GRI guidelines for business transparency and long term sustainability. About Caltex Australia: Caltex, a global energy and fuel brand, is the only oil refinery and marketing company that is listed on the Australian stock exchange. This reflects the business’s scope of operations and market leadership as far as business excellence in refinery, marketing and operations are concerned. The vision attributes of the company as listed on the official company website, specifically mentions care as the primary concern of the business. The operations involves supply through international sources, refining activities to extract petrol, diesel, jet fuel and other by-fuels for energy purposes, logistics through company owned and contractual transportation fleets and marketing of branded fuels like Havoline and Devo. Since fuel extraction, refinery and energy conversion are highly sensitive businesses, Caltex has managed to gain the current global standing due to its exemplary responsible business procedures, quality control and strict concern for the environment. Some of the measures taken by Caltex to ensure responsible operations and business practices are as follows: Climate Change Initiatives: Caltex believes that the current global change due to human activities and excessive emissions dispersed into the atmosphere need to be controlled collaboratively. For this purpose, it collaborates with the Australian government to come up with initiatives and policies that ascertain acceptable levels of emissions in order to minimize the negative impact. Not only does the business follow minimal emissions policy itself but also invests in coming up with solutions like the introduction of light vehicles, use of alternate fuels etc (Caltex.com.au, 2014). Workplace safety measures: Caltex accepts the riskiness of the business and takes adequate steps to ensure that the employees, stakeholders, customers, franchisees and contactors are protected from the possible risks. By drafting and implementing policies that require strict adherence, Caltex is able to maintain the safety aspect of the business. Since one of the core values of the company is care, they conduct regular quality checks and ascertain periodical risks that may hurt the stakeholders or the environment in the long run as well. Risk Management: environment incident response is one of the active operational features that allow the company’s Kurnell Refinery, Banksmeadow Terminal and Newcastle Terminal to run under the Protection of the Environment Legislation Amendment Act 2011 (POELA Act). This helps in dealing with unforeseen incidents that may damage the lives of the people, environmental damage and business loss. By ensuring that a strict procedure is ready to be implemented by the trained staff to tackle possible risks, Caltex ensures risk management in business as well. Social responsibility: Caltex indulges in several social responsibility projects for the well-being of the people and communities’ it operates in. Some examples are contribution and management of The Clontarf Foundation for education, sponsoring speech therapy institutions like Hear and Say Centre, Taralye, Telethon Speech and Hearing, The Cora Barclay Centre, The Shepherd Centre and recruiting volunteers for wildlife conservation projects in Australia. NewCrest Mining Limited: One of the leading gold mining companies in the world, Newcrest mining has spread its operations over a variety of countries and employees up to 16000 people worldwide. Since mining exposes the workers to several risks like encountering harmful gases underground, unforeseen accidents and extensive labor work, Newcrest mining limited ensure that its business is in compliance with the responsible initiative guidelines in the following manner: Community commitment: Newcrest puts the safety of its employees first. For this purpose it ensures that the workers are provided with adequate equipment to protect themselves from possible harm and allow operations only in areas that do not endanger the lives of its employees. Since the host countries offer their resources like energy and water for the mining purpose, Newcrest implements procedures to ensure minimal waste, emissions and energy usage. The company’s focus on transparency and governance has led it to practice Extractive Industries Transparency Initiative (EITI) that clearly lays out the flow of funds to satisfy the host countries regarding the benefit they are also receiving in exchange for the business there. Environment: Newcrest regularly submits it environment sustainability report to the Global reporting Initiatives G3 in order to ascertain business transparency. The company strives not only to adhere to the prescribed guidelines but to set a best practice approach that signifies its commitment to the communities it operates in and the long term sustainability. Land use planning, involvement of local communities in the decision making, site rehabilitation measures after mining and energy conservation are some of the many measures taken by Newcrest to ensure the safety and sustainability of environment, communities and business operations. Safety and health: the company believes that all injurious can be avoided if necessary steps are taken to prevent them. For this purpose they empower their employees to come forward with their ideas regarding the best practice for safety and use their feedback to draft necessary safety rules. One of the key criteria for employment at Caltex Australia is keen personal and collective safety attributes. Apart from that Caltex also promotes off the job and community level safety measures for a sustainable community (http://www.adenergy.com.au/, 2014). Conclusion: Both the organizations in focus explicitly mention their safety, health and social responsibility practices on their websites and make their sustainability reports readily available for the GRI evaluation (Globalreporting.org, 2014). By keeping their guidelines in consideration they also promote organizational transparency that helps in building goodwill and appositive image in the minds of the people including employees, stakeholders, consumers and the community. The GRI guidelines thus serve as a benchmark for operational reporting that ensures that organizations carry out and record their activities and maintain a clear image that leaves no ambiguity in one’s mind about their operational ethics and duty. REFERENECES: Ottman, J., & Herbert, H. (1993). Green marketing. NTC Business Books Illinois--USA. Jamali, D., & Mirshak, R. (2007). Corporate social responsibility (CSR): theory and practice in a developing country context. Journal Of Business Ethics, 72(3), 243--262. http://www.adenergy.com.au/, A. (2014). Safety and health | Newcrest Mining Limited. Newcrest.com.au. Retrieved 19 May 2014, from http://www.newcrest.com.au/sustainability/safety1/ Globalreporting.org,. (2014). Focal Point Australia. Retrieved 19 May 2014, from https://www.globalreporting.org/network/regional-networks/gri-focal-points/focal-point-australia/Pages/default.aspx Caltex.com.au,. (2014). Caltex Australia: climate change. Retrieved 19 May 2014, from http://www.caltex.com.au/CommunityAndEnvironment/Pages/ClimateChange.aspx ASX 100,. (2014). ASX 100 | Share Prices | ASX Top 100 Stocks. Retrieved 19 May 2014, from http://www.asx100.com/ Read More