Corporate Social Responsibility Analysis Essay


Describe about the Corporate social responsibility.


Corporate social responsibility (CSR) is an approach that helps organizations to maintain sustainable development by delivering ethical, economical and discretionary benefits to all the stakeholders. In this assignment, focus will be on BHP Billiton, as it considered as one of the major CSR practices company of the entire world. Particularly in the present competitive environment, every organization is facing immense challenges from their competitors. As a result, profit margin of the company is getting thinner. It increases the possibility of unethical corporate activities for the drive to achieve competitive advantage in the market. These unethical practices are not only affecting healthy business practices but also hindering the present level of ecological sustainability (Idowu 2013). Especially companies like BHP Billiton that deals with natural resources, ecological sustainability has come up as one of the important factor that the companies have to consider. As a result, it influences several corporate activities of the company. The prime three factors described as follows:

Economical factor:

According to Huang (2013), economical factor dictates the way an organization will conduct its business activity. As the first objective of every organization is to generate revenues, so that it can able to maintain its position in the market and provide fare amount of benefits to all its employees. Hence, it is very important for a company to ensure its revenue level before becoming a good corporate citizen. However, BHP Billiton is among the top companies of the world. It revenue is around AUD $61 billion with having customers present all over the world. However, as employees of the BHP Billiton works in a hazardous environment, it consider the health of the employees before the profit of the company. The company invests a huge portion of its revenue to ensure that all its employees can able to have a good healthy life. The economic activities also the company also includes factors like small business development, providing education to poor people’s so that the future generation can also able to live a healthy life.

Figure 1: Investment expenditure program by BHP Billiton

The above figure highlighted that corporate activities of BHP Billiton is highly influenced by ecological sustainability. As the company not only focusing on its revenue level but also looking to provide an atmosphere, which can help people to lead a healthy life in future as well.

Ethical factor:

As BHP Billiton belongs to mining and exploration industry, it always has to focus on its ethical practices. Otherwise, it can have serious impact on the ecological sustainability of the society. The company also acknowledges that the nature of the business does have the potential to create major impact on the environmental ecosystem. Hence, BHP Billiton CSR activities focuses on the robust identification, control and assessment of the risk of the material at all phases of the businesses. BHP Billiton CSR activity also highly focused on the greenhouse gas emission so that it can able to protect the environment from the adverse factor. BHP Billiton have invested huge amount so that it can able to minimize the rate of climate change.

Figure 2: BHP Billiton action on climate change

The above figure highlighted that BHP Billiton is highly focused to perform its ethical responsibilities so that the society can able to maintain its ecological sustainability. It also announces that corporate strategies of BHP Billiton will formulate in such a way that it could have minimum impact on the environment.

Discretionary factor:

According to Fassin (2015) discretionary responsibilities of CSR refers to the expectation of society that organization be good member of the society. BHP Billiton is highly focused regarding the maintenance of biodiversity and ecosystem for future. It recently launches five rivers conservation project in order to ensure ecological sustainability. The objective of BHP Billiton formulated with an aim of improving the present level of natural resource management. BHP Billiton’s contribution in handling Olympic Dam Asset in South Australia is highly praised throughout the world. In 2011, BHP Billiton investment 37 million on land rehabilitation program to ensure more than 220 hectares able to recover from the overburden seeded (Kolk 2016).

Hence, the above discussion highlighted the fact that the above three factors of CSR has huge impact on the corporate activities in the area of ecological sustainability.


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