2.Identify any Regulatory Framework/s affecting the Multinational Company you have Identified Operating in Australia and Discuss why and how it affects the Company
3.Identify any regulatory Framework/s affecting the Multinational Company you have Identified Operating in Australia and Discuss why and how it ffects the Company.
Fortescue metal group is a global leader of iron ore industry. The group is recognized due to its culture and innovation. They are leading the world through their capacity to develop world class infrastructure and mining assets in Pilbara, Western Australia. The company was founded in the year 2003 and developed major iron ore deposits in most of the significant location in the world. They are now producing 165-170 million tons of iron ore annually. They have grown as one of the largest global iron ore. The producer is focused on vision of being the safest and lowest cost profitable company (Fortescue Metals Group Limited - Premium Company Report Australia. 2017).
There operation extends over a span of four mine sites in the Pilbara. The company operates integrated supply chain that includes five berths Herb Elliott Port in Port Hedland and the fastest, heavy haul railway in the world. The company has a long lasting relationship with the customers and the stakeholder. They are consistently providing business solution to China by remarkably contributing towards its economic development. They are more focused about embracing the changes taking place in the environment and significantly contribute towards successful implementation of policies (Fortescue Metals Group Limited. 2017).
The company value relationship with the Stakeholders and should positively manage to gain innumerable objectives. There are creating more opportunities for the aboriginal society. They are taking initiative to strengthen Australian economy. The company has developed a mine of 260 kilometers private railways. The Fortescue metal group railway uses the up-to-date electronically controlled pneumatic brakes in order to manage the rolling stock.
Number of staff in Australia and Globally
It is a public company ranked at number 35 out of the top 2000 Australian companies. As in 2016 the company generated total revenue of $ 9,804,524,000 including the sales and other revenue. The group has a total strength of 3890 employees including in its all subsidiaries located in Australia and abroad. They have currently employed 524 residential employees in the Pilbara. Company has a target to increase the overall capacity of female employees to 20 percent by 2020.
Location of global headquarters
The head-quarter is located in East Perth WA 6004, Australia. The company is dealing in countries like South Africa, China.
2.Regulatory Frameworks affectinng Operations in Australia
Australia has a national statutory framework that ensures fair trading business practice. The overall framework is administered by the Australian Competition commission. The Australian government has regulatory function. The fair-trading practice in Australia ensures that Multinational companies. These laws help in ensuring effective framework in fair and efficient trading practice. They have ensured that the companies work within the given framework. It is important for a company to operate within the regulations as introduced by the local government. The main purpose of the competition law is to ensure that the company is adhering to all the guidelines as issued by the government. On a long run it is important to adhere to all the regulations (Australian business and environment laws. 2017).
The Multinational organizations have to adhere to various Environmental laws in order to ensure safety of local environment. It is important for a company to adhere to local Environmental law especially in case of mining industry. In case of mining and Ore Company there are strict regulations. The Australian Government, State and territory government and various other bodies are working in consistency with the environment protection law. State and territory has established variety of provision depend upon the type of business activity. Protection of environment is the major concern of the Australian law while ensuring safety of environment. On a long run it is evident that the company has to be abiding by the mining and ore industry by ensuring protection of environment. Operating a green business is one of the newest concepts that need to be achieved in order to promote the interest of individual. Regardless of type of industry the government is ensuring environment protection as its major concern. The purpose of the government is to reduce overall carbon footprint (Environmental management. 2017). The purpose is to generate sustainable business by energy saving and making a less expenditure over inputs. The level of input depends upon the amount of desirable benefits allocated to an individual industry (Legislation and compliance. 2017).
The department of mines and Petroleum assesses the proposal for mining and exploration and development activities as per the Mining Act 1978 for the mining activities in the Western Australia. Another act offshore mineral act 2003 regulates the mining activity inside Western Australia (Conacher and Conacher, 2000).
The Mining Rehabilitation Fund Act 2012 and the Mining Rehabilitation Fund Regulation 2013 regulates the legislative framework has helped in attaining desired targets by focusing over to the basic environmental needs. The government has made mandatory to adhere to legislations in order to attain desirable results. On a long run this will ensure high degree of productivity and desired growth into the company. It is important for the industry to understand the importance of environment. Safety of environment is the prime objective of the government in order to attain environmental balance (Gillespie, 2014). The environment protection has become a primary motive for a company as well. In order to attain a desired degree of goals Fortescue Metal Group is taking case of the environmental needs. It is desired that the environment protection is the primary objective of the company to serve. The environment is given special preference in order to reduce the carbon footprint. This is excessively important for the company to adhere to environmental protection guidelines issued by the government. This will help in stimulate efficiency in the organization (Offshore Minerals Act 2003. 2017). It is however important that the company need to meet up with the expectations as guaranteed in their memorandum in order to make sure that the company is efficiently adhering to the rules and regulations. The mining act 1978, the mining regulation 1981 and offshore mineral act 2003 ensure that the mines are well protected against exploitation. Environment is an important factor necessary to be considered while understanding environment related issues (Hobday & McDonald, 2014; Mining Rehabilitation Fund Regulations 2013. 2017).
The Western Australia environment protection act 1968 access a formal environmental impact. The department of industry and resources is responsible to undertake proposal related to environment safety. The DOIR acts as a designated authority to the commonwealth in assessing the proposal adequately. In case if the project has a potential to trigger the matter of national environment than the Commonwealth Department of environment and Heritage will consider the matter accurately (Chichilnisky and Hammond, 2016). State and territory has established variety of provision depend upon the type of business activity. Protection of environment is the major concern of the Australian law while ensuring safety of environment.
The EPBC Act considers the responsibility of the Australian government in managing the environment in each state. This is evident that the environment needs to be given importance in order to manage the environment in an effective manner; this is one of the important aspects that need to be considered while giving preference to the Environment. The Australian law plays significant role in managing the issues related to the environment. It is important that the government also take care of the world heritage. The agencies have an authority to take action against those companies who are under default. The action taken by the Commonwealth government is significant from the point of view of environment safety. The proponents can consider the information as furnished by the Australian government(Mining Rehabilitation Fund Act 2012).
3.Role of the International Treaties on the Multinational Companies workig in Australia
The international treaties play an important role in managing the environment. This is been given importance that the environment is given preference. Australasian government is considering the treaties into the legislation. This has helped the government in creating an efficient implementation of policies. The government body plays a significant role in managing the role of international treaties. The UN Charter has described the role of environmental protection in implementation of treaties. The company has to follow the rules and guidelines as issued by the UN Charter in order to undertake the responsibility of environment(Pflieger,2014).
The environment has become one of the important factors that have been influencing the local legislations. It plays significant role from the point of view of the international treaties. The primary focus of the international treaties is to safeguard the environment against exploitation. The primary role of the environment protection is to provide with an effective framework so that the government consider the role of protecting environment in order to manage the environment. This is evident that the environmental protection has become an important concern in the recent time. The purpose of the UN Charter is to manage the environment in a way to reduce the carbon footprint. The necessity of the environment has gain importance and the government has signed various treaties in order to protect the environment. It is seen that the environment protection has become important concern. In the Kyoto Protocol it was stated that the government in every state has to adhere to the environment protection. This will not only help in decreasing the carbon footprint but also help in creating a positive environmental impact. It is highly necessary that the government. The purpose of the Kyoto Protocol is to keep a check over the carbon footprint emitted by various industries. This is evident that the international treaties have huge impact on Australian legislation. The duty of the protocol is to manage the impact of environment and its impact. Fortescue has imbibed effective model in development of the rules and regulations. This is evident that the organization needs to adhere to the international treaties as well. This will ensure that the organization is adhering to the policies. The producer is focused on vision of being the safest and lowest cost profitable company. The Commonwealth government has ensured that the companies are following the rule and regulation that has helped the company in attaining sustainable objectives. The environment protection international treaties have a long term impact on the company while establishing duties (Chichilnisky and Heal, 2013).
The purpose is to protect the biodiversity and to take cater of the environment on the long run. This has become important in the current scenario that the company needs to take care of the environment so that the damages can be reduced. The producer is focused on vision of being the safest and lowest cost profitable company.
The declaration of the UN Conference on the human environment has made an attempt to consider the global impact on the environment. The purpose is to protect the environment. The Stockholm’s declaration has a policy in regard with the environment (Layzer, 2015).
The Rio declaration on environment and development has a responsibility to protect the environment gains damages. The Rio declaration has an impact on the Australian international environmental policy making.
Hence it is clear that the international treaties play an important role in managing the environment on the long run. The international treaties have a positive impact on the multinational organization in decision making. It is evident that these organizations are able to attain desirable understanding relevant to the structure due to implementation of policies efficiently (Drake, 2014).
Australian business and environment laws. 2017. ONLINE. Available at: Accessed on: 22 April 2017
Chichilnisky, G. and Hammond, P.J., 2016. The Kyoto Protocol and Beyond: Pareto Improvements to Policies that Mitigate Climate Change (No. 287). Competitive Advantage in the Global Economy (CAGE).
Chichilnisky, G. and Heal, G.M., 2013. Environmental markets: Equity and efficiency. Columbia University Press.
Conacher, A. and Conacher, J., 2000. Environmental planning and management in Australia. Oxford University Press.
Drake, F., 2014. Global warming. Routledge.
Environmental management. 2017. ONLINE. Available at: Accessed on: 22 April 2017
Fortescue Metals Group Limited - Premium Company Report Australia. 2017. ONLINE. Available at: Accessed on: 22 April 2017
Fortescue Metals Group Limited. 2017. ONLINE. Available at: Accessed on: 22 April 2017
Gillespie, A. (2014). International environmental law, policy, and ethics. OUP Oxford.
Hobday, A. J., & McDonald, J. 2014. Environmental issues in Australia. Annual Review of Environment and Resources, 39, 1-28.
Layzer, J.A., 2015. The environmental case: Translating values into policy. CQ Press.
Legislation and compliance. 2017. ONLINE. Available at: Accessed on: 22 April 2017
Mining Rehabilitation Fund Act 2012. 2017. ONLINE. Available at: Accessed on: 22 April 2017
Mining Rehabilitation Fund Regulations 2013. 2017. ONLINE. Available at: Accessed on: 22 April 2017
Offshore Minerals Act 2003. 2017. ONLINE. Available at: Accessed on: 22 April 2017Pflieger, G., 2014. Kyoto Protocol and Beyond. In Global Environmental Change (pp. 517-525). Spr