How Do Coal Seam Gas Companies Report on Corporate Social Responsibilities Issues in Australia - Research Proposal Example

1.0 Introduction/background This study seeks to investigate the corporate social responsibility (CSR) of the coal seam gas companies within Australia. It is very important for a company to observe corporate social responsibility which is self regulation that is incorporated in a business model (Van Marrewijk 2003). This study is necessary because CSR is important for the coal seam gas companies in Australia. The process of obtaining the gas has many negative effects on the public and the environment. Therefore CSR is necessary if these companies want to coexist in peace with the surroundings without causing damage (Windsor 2001). This study therefore seeks to find out the issues surrounding CSR in the coal seam gas companies of Australia. It is necessary for this study to be done and information about their CSR to be acquired since their lack of CSR is very harmful and dangerous given the nature of the products and processes they deal with. This information can help the public and other stake holders to force these companies to observe CSR or close down if they are unwilling to do that. The study will be carried out by use of both qualitative and quantitative methods of data collection and data analysis. The research is expected to reveal important information about the operation of the companies and their commitment to corporate social responsibility. The legitimacy and stakeholder theoretical perspectives will be used when analyzing the topic. 2.0 Literature review Coal seam gas companies are expected to adhere to their promise to observe corporate social responsibility in Australia. According to Wheeler, Colbert & Freeman, (2003) corporate social responsibility allows businesses to promote public interest in a proactive manner when they encourage the development and growth of the community and on voluntary basis do away with practices that bring harm to the public sphere. CSR seeks to embrace responsibility for the activities of a company and to encourage positive outcome for its undertakings on the environment, the stake holders, consumers, employees, communities and the public sphere (Newell 2005, 553). CSR operates as a mechanism that is built in and self regulating with which a company monitors and confirms that it is complying actively with the ethical standards, the law and international norms. Coal seam gas companies in Australia have made some efforts in adhering to corporate social responsibility. This is expected of them anyway. However total adherence has not been achieved and some of these companies have been found to neglect their role to the society and public sphere. By nature the activities carried out by gas companies are harmful given the products they deal in and the methods they use for obtaining these products from the ground. For example according to the (Coal seam gas well head safety program, preliminary report of July 2010 p. 3), published by the Queensland Government the Queensland Gas company has had accusations leveled against it when the residential estate owners of the Tara area raised concerns over leakage of coal seam gas well heads within the area. Campaigns against the operations of some of these companies have been mounted in order to prevent them from carrying on with business. The reason for this is their neglect of corporate social responsibility in Australia. The effect is the compromise of the health of those around the sites of gas extraction and the destruction of the environment. The industry has been accused of the use of lethal technologies which can cause devastating effects on the environment and on health (Schäfer 2005, p.117). In fact the Queensland government has been reported to investigate a coal seam gas operation in Western Brisbane where cancer causing chemicals were found. However these are controversial accusations since some stakeholders are in support of the technologies used in CSG production. Companies in this industry are doing the best they can to observe corporate social responsibility. An example of such companies is the Queensland Gas Company (QGC) and the Eastern Star Gas Company (Sarre, Doig & Fiedler 2001, p.310). The QGC is committed to corporate social responsibility according to what can be obtained in some of its annual reports. Safety and health procedures and policies are important and are integrated in all the aspects of the company’s business. QGC has a policy of providing excellence in safety and health management in order to benefit every stake holder. There are policies to ensure the health and safety of staff at work (Joyner & Payne 2002 p. 300). QGC has a commitment to ensure that it complies with regulatory requirements in the most appropriate and effective manner. In line with corporate social responsibility QGC is involved with sustaining the communities around it in this case the Miles, Chincilla, Tar, Dalby, Condamine and Kogan towns. The company has a belief that the relationship it has with these communities and the local land owners is bigger than business. In 2007 the company started a tradition of barbecue evenings at Berwyndale South Camp in order to have friendly interactions with their staff, land holders and contractors. QGC also sponsors the communities in the region in the areas of education, sports, health, arts and indigenous events (Zappala & Cronin 2003 p. 59). On the other hand the Eastern star gas company also has its own strategy of CSR. The company has demonstrated its commitment to corporate social responsibility (Sweeney 2006). As displayed in its annual reports it emphasizes its commitment to uphold the welfare of the community and its stakeholders by maintaining their health and safety. Activities that can endanger the health of the public or the company’s staff are avoided. This includes harmful technologies and undertakings in the production of gas. The two companies mentioned in this review of literature have shown in their annual accounts how they show concern for the health and safety of the community and other stake holder. They also sponsor and help to improve the welfare of community members in various ways. The company is reported to have good policies that promote occupational health and safety for the workers in the company. Land holders and the other members of surrounding communities are held in close partnership with the company through various activities and forums through which they interact. However they do not indicate what type of technologies they use and what their impact on the environment and the people is (Blyth 2005 p. 40). The process of gas production has been a controversial issue in some places in Australia with some people claiming that the technologies used are harmful. These companies should clear the air on this in their annual reports. The below research question was chosen because of the importance of corporate social responsibility to the wellbeing of the environment and the public or any other stakeholder in terms of their safety and health (Jarvie 2011). 2.1. Research question What can be done to help coal seam gas companies in Australia to observe corporate social responsibility? 3.0 Methodology 3.1 Research design The research will examine the way the coal seam gas companies in Australia report on corporate social responsibility. The research will be carried out with a combination of both the qualitative and quantitative methods. Descriptive research will be incorporated which will therefore make use observations. Information gathering will be done on the present and existing conditions in the coal seam gas industry. Data collection will be carried out by use of interviews and surveys. Observations and meetings with various stakeholders in the industry will form the basis for primary data collection. In the primary research questionnaire respondents will be randomly selected (Babbie 2010 p. 410). Questionnaires will be utilized in the collection of quantitative data while interviews will provide qualitative understanding of the data that will be collected. Information will also be gathered through secondary ways in which materials published on the topic will be of importance. Sources such as journals, newspapers, books, websites, media reports and other reliable sources will be consulted. The findings of this study will be based partially on quantitative methods as earlier mentioned because this allows for an iterative and flexible approach. Qualitative research will also be used because the study will attempt to find and build the theories to help account for the relationship between variables by qualitative elements of research. Using this method it will be possible to analyze qualitative elements that lack standard measures like behavior, and attitude among others Babbie (2010 p. 413) 3.2 Sampling technique In this study the general population is the coal seam gas companies in Australia. The communities in which the companies exist will also serve as the population for the study. These respondents will be expected to give their view of how their companies view and respond to the demands of corporate social responsibility. Random sampling will be used to select the sample for use in data collection. In this technique the companies where the data is to be collected will be picked at random. 3.3 Data Analysis Quantitative data will be analyzed using the measures of central tendency like mode, median and mean. Qualitative data will be analyzed by critically examining the information to know which of it is worthy to be included in the report and which one is not. 4.0 Expected findings and contribution This research is expected to unearth a lot of information about the state of corporate social responsibility in the seam coal gas companies in Australia. The findings will most likely show the level of compliance that these companies have on CSR and the views they hold on the whole business of observing CSR. Those companies that score lowly on CSR will definitely release information about their low performance. The study will also gather information on the possible ways that can be used to ensure adherence to corporate social responsibility by these companies. The law has been expected to give the guidelines on what should be done to uncooperative companies (Birch 2004 p. 21). However many companies can afford to neglect corporate social responsibility and at the same time escape the law. This calls for better and more diplomatic methods that can be effective in beating these companies into submission. The communities that interact closely with the coal seam gas companies are also expected to provide information on the activities of the companies that they think are affecting their health and safety. They will also provide information on the activities of the companies that they view as showing sensitivity to corporate social responsibility. The information obtained will also shed light on what activities the companies are allowed to carry out and what they cannot do in the spirit of CSR (Orlitzky (2005 p. 39). This study will provide information which will be useful in adding to existing knowledge. The way companies fair on in terms of corporate social responsibility will be examined. This investigation will expose information on the level of compliance that companies have when it comes to CSR Brammer & Pavelin (2005). Knowledge on the methods that are more effective in making companies to be committed to corporate social responsibility will also be availed through this study. It is also expected that this study will provide necessary information on the contribution of the coal seam gas companies to the communities to which they belong. With the findings of this study it will be easy to develop strategies to be used to ensure compliance with corporate social responsibility. Communities may also use the information to know what kind of activities that companies need to propagate and what they need not do (Jenkins 2005 p. 530). 5. Conclusion In conclusion the paper has examined as the main topic the way the seam coal gas companies in Australia handle corporate social responsibility (CSR). CSR is important to the public and the society as a whole. The company should be seen to be promoting CSR because it has a ‘social contract’ with the society to take responsibility for its actions so that they do not interfere with the health of people and the environment. In the review of literature a number of journals were reviewed which deal with the CSG companies and their activities in Australia (Brammer & Pavelin , 2005). It was revealed that some of these companies do well while others neglect CSR. Cases studies of Eastern Star Gas Company and the Queensland gas company were used. These two companies are dedicated to CSR as reflected in their annual reports and the information found in the reviewed journals. They are involved in the promotion of the welfare of their communities by carrying out sponsorships and holding forums where close communication and interactions between the company and community can take place. This promotes harmony, understanding and it shows how concerned the companies are about the community. The research will be done by both qualitative and quantitative techniques. In data collection both interviews and surveys will be used (Blyth 2005 p. 40).Questionnaires will be issued out to help in collecting response. Analysis will be done by measures of central tendency for the quantitative data. Qualitative data will be analyzed by critical examination to determine what should or should not be included in the final report. Finally this paper has an exposition on the findings and contributions that the information obtained through the research will make. Among other things this information will add on the existing pool of knowledge on corporate social responsibility. References Babbie E. 2010, The practice of social research, Cengage Learning Blyth, A 2005, 'Business behaving responsibly', Director, vol. 59, no. 1, p. 30. Brammer, S. & Pavelin, S. 2005, 'Corporate reputation and an insurance motivation for corporate social investment', The Journal of Corporate Citizenship, no. 20, pp. 39- Retrieved from InfoTrac database Birch, D. (2004) ‘Introduction: JCC theme issue: Australasian perspectives on corporate citizenship’. Journal of Corporate Citizenship; Winter Issue 16: 19-22. Coal seam gas well head safety program, preliminary report, July 2010, The Queensland Government Jarvie, O, 2011, ‘Q & A: Coal Seam Gas’, Chemistry in Australia, vol. 78, no. 2, pp. 25-27, viewed 25 October 2011, EBSCO host: Academic Search Complete database. Jenkins, R. (2005). ‘Globalization, Corporate Social Responsibility and poverty’. International Affairs. 81(3): 525-540. Joyner, B.E & Payne, D. 2002, 'Evolution and Implementation: a study of values, business ethics and corporate social responsibility', Journal of Business Ethics, vol. 41, pp. 297-311. Newell, P. (2005). ‘Citizenship, accountability and community: the limits of the CSR agenda’. International Affairs. 81(3): 541-557. Orlitzky, M. 2005, 'Payoffs to social and environmental performance', Journal of Investing, vol. 14, no. 3, p. 48 retrieved from Proquest database. Sweeney, J. 2006, 'How to measure corporate social responsibility', Eureka Street, vol. 16, no. 6 Sarre, R., M. Doig & Fiedler (2001). ‘Reducing the Risk of Corporate Irresponsibility: The Trend to Corporate Social Responsibility’ Accounting Forum 25(3): 300-317. Schäfer, H. (2005). ‘International Corporate Social Responsibility Rating Systems’. Journal of Corporate Citizenship. Issue 20: 107-120. Van Marrewijk, M. 2003, 'Concepts and definitions of CSR and corporate sustainability: Between agency and communion', Journal of Business Ethics, vol. 44, no. 2/3, p. 95. Windsor, D 2001, 'The future of corporate responsibility', International Journal of Organizational Analysis, vol. 9, no. 3, pp. 225-56 Wheeler, D, Colbert, B & Freeman, RE 2003, 'Focusing on value: Reconciling corporate social responsibility, sustainability and a stakeholder approach in a network world', Journal of General Management, vol. 28, no. 3, pp. 1-28. Zappala, G & Cronin, C 2003, 'The contours of corporate community involvement in Australia's top companies', The Journal of Corporate Citizenship, no. 12, pp. 59-. Retrieved from the Infotrack database. Read More