The Companies in the Mining Industry in Australia - Term Paper Example

Save this file under a name unique to you. Preferably start the file name with your family name and first name and the relevant year and study period. Highlight and delete this message. [ENTER THE TITLE OF THE REPORT] [Enter the date of submission] prepared by [Enter your name] Executive Summary In this report, there is the analysis of several factors revolving around corporate social responsibility reporting by the various players in the mining industry. With this therefore, there is the creation of understanding of the recent trends on the general sustainability of the firms. An analysis on the various reports that are produced by the firms is also given. Some of the recent trends in the market that have been pointed out include the changing oil prices and the recent trends in the financial standards reporting and sustainability reporting. All this is in a bid to understand the concept of corporate social responsibility reporting techniques that are employed by the various players in the mining industry. The motivations behind the provision and reporting of the sustainability reports have also been pointed out. The main motivation as pointed out is the creation of a degree of trust among the various stakeholders of the company. Contents Introduction The report below seeks to offer a redress on the issue around the corporate social responsibilities reporting techniques in Australia. The main areas of focus are the mining companies in Australia. The analysis of the companies will develop an understanding on the issues around the various sustainability techniques in play in the industry and their impacts on the economy, the environment and the society at large. Some of the limitations in the understanding of the concept are the complicated mining industry factors. These are the complexities around the understanding of the nature of the mining industries and the matters that revolve around either of them. In this report, there is an analysis of the various mining companies in Australia. There is also an analysis of the reports that are prepared by the various companies. The impacts that the operations and the various reporting standards have on the stakeholders are also analyzed. The various reasons and motivations behind the disclosure of the sustainability reports of the company to the people and the users of the financial statements are also pointed out in the report. The impact of other moves such as the gains or profits made by a company arising from the sacking of employees are also analyzed and the effect that this has on the various companies and the stakeholders, in this report also, there is the analysis of the effects of the oil prices on the performance of the companies. In this, there is an analysis of both the positive and the negative effects of the oil price changes over the recent past. Question a (max 400 words) There are several mining companies in Australia. Some of the major players in the industry include the following; i. GVK ii. BOUGAINVILLE COPPER LIMITED iii. CUESTA COAL iv. BHP BILLITON v. BECHTEL vi. ADANI MINING vii. FORTESCUE METALS GROUP viii. GLOUCESTER COAL The above listed companies are the major players in the Australian mining industry. This is based on their returns and incomes made in a financial year. This is also based on the resource endowment of each of the listed company. The number of employees is also a determinant of the size of a given company. Despite all being in the mining industry, some deal with coal, copper and other forms of mineral in their undertakings. In the following of the requirements of the GRI, there are several requirements that the companies should follow strictly. This is in the preparation of their financial statements. There are statements that are required of them by law to be prepared. The use of the statements is both internally in the business and externally to the users of the financial statements. Some of the external users of the financial statements include the actual and prospective investors of the company, the government tax bodies, the customers, the financial institutions, the competitors, auditors and student bodies among other users. Some of the requirements therefore that should be prepared by the companies include; i. Financial reports ii. Directors report iii. Auditors report iv. Preliminary final report v. Annual report which includes the remuneration report and a corporate governance report vi. Half yearly report vii. Quarterly report In the preparation of the financial reports, there are some formats and information that they should all contain. The requirements therefore provide a guideline as to the degree of reliance that is placed on the financial reports. Based on the analysis of the financial reports of the mining companies in Australia, there are some results that they show as to the nature and content in relation to the format suggested by the general reporting initiative. Some of the requirements in the reporting include that the financial statements and other reports that are submitted by the company to the external users should by all means be audited and contain an audit report. This is to increase the general confidence levels in their accuracy and reliance that can be placed on them. The reports that are submitted by the companies are therefore in line with the statutory requirements placed on them. The reporting standards that are required have been followed strictly. Through this, compliance by the companies is evident. Question b (max 400 words) According to the Global reporting initiative, the organizations are required to provide the impacts that they have made in the society in the undertaking of their duties. This is through an analysis of the impacts that they have made to the economy, the environment and the society at large. In the reports of Adani Mining Company, it did not leave out its report on the sustainability that it has had continuously on the environment, the economy and the society. According to Adani, it intends to uphold a good environment around its workplace. In respect to this, before it embarks on any project, a sustainability report is undertaken on the suitability of the project and the effects that it has on the environment and other actors. In the reporting on the terminal expansion project, Adani factored in some of the effects that the project will have on the environment. In the analysis, it pointed out some of the issues affecting the environment both directly and indirectly. It also pointed out the impacts of the development on the vessels that were travelling between through the Great Barrier Reef to and from terminal 0. In respect to the analysis, measures that were put in place to eliminate and reduce the effects were also pointed out. This is therefore for the better of the environment and the society at large. Economically, the expansion of the terminal would result to the employment of more staff. In the case of Bechtel Mining Company, it has placed massive attention on the sustainability and corporate social responsibility in its operations. In its annual reports, it has continuously stressed the relevance that it has placed on the maintenance of the environment. This has been through such things as the reduction in the emissions that it releases to the environment. This is one of the several measures that it has put in place which are also included and quoted in its reports. This is because it also believes that through the creation of a pollution free environment, the livelihoods of the people will be improved. This has the economic effect of reducing the effects of global warming. This has also aided in the reduction in the efforts and costs that are incurred by the government in the conservation measures. The funds saved can aid in economic development through other developments such as in infrastructure, education and health. This is therefore for the better of the economy and society at large. Question c (max 400 words) There are many reasons behind the move by companies to disclose the social and environmental reporting. The first reason which acts as a motivator is that through a clear framework of corporate social responsibility, a company will attract actual and potential investors to the activities. This is because some investors focus on checking whether organizations operate in a manner whereby their operations reflect the values that are acceptable by the societies they operate in. the second motivation behind the move to disclose the social and environmental reporting is that it creates and develops a degree of acceptance by the community and society which they operate in. through support from the community, the companies re able to operate in an efficient manner. This is because the people of the community act in all manners to see to it that the operations of the company are successful. Another reason behind the disclosure of the environmental and social reports of companies is that it is a requirement by the statutes that the companies should disclose the results. Through this, they report in order to abide to the statutes and the rules that have been set. In a bid to gain the trust of the people, companies go ahead to report on the moves and measures that they have set in place to the management of the environment. Through this, the people will be sure that the company is undertaking operations in a manner that reflects to the better of the society that it operates in. the operations of the company should also be in line with the goals of economic development that have been set by a given country. Through acquiring the trust of the people in the locations that they are located, the companies will be able to operate in a manner that will be beneficial to both parties. This is therefore a two way situation. This is where the people in the society benefit from the developments and measures in place by the company. The company also benefits through support from the local communities and the society at large. Companies are therefore motivated by several factors in the disclosure of the social environmental reporting. This is due to the benefits that accrue from seeing to it that there is adequate reporting of the sustainability and other factors that they have undertaken in the environment, economy and the societal development. Good performance results to a better rating by the company among the people which further acts to the better of the company. Question d (max 400 words) It is a requirement that companies should report their financial outcomes regardless of the impact or the results that have caused them. The job losses that are experienced in the course of operations are also shown and the reasons behind the losses are also shown. The two companies are also profitable in their operations. This is due to the frameworks that they have put in place and the strategies that they use in their operations. In financial reporting, it is a limitation by mentioning increases in the profit levels due to negative circumstances such as job losses. This is because the stakeholders will partake that the company is benefiting at the expense of the others in this case the employees. This impacts negatively on the performance of the company also. This is because it diminishes the morale of the employees left in the company. This is because they will see as is the company is gaining from their dismissal. On the side of the stakeholders, it will create a bad picture in them also. This is because their investment will be perceived as one which benefits from the retrenchment of the employees. The task of explaining to the public about the reasons for the job losses will also be a difficult task. The retrenchments that are in place in the company should therefore be properly explained to the concerned parties. This will aid in the creation of understanding among the people of the society. This can also have the effect of resulting to the loss of trust on the company by the people of the public. It can result to the downfall of the company in that a company that does not have the support of the people in the location which it operates is deemed to fail in the long run. Question e Sustainability is the process through which a company undertakes its activities in a manner that the society, the economy and the environment at large benefit at large. This is through the seeing to it that there is the conservation of the ecosystem by all means. Sustainable operations of a company are the minimization of the effects that the emissions have on the environment. This can be done through creation of adequate controls but in an efficient and cost effective manner. Reduction in the oil prices have impacted on the operations of the company. The first impact is the reduction in the levels of revenues that are derived from the sale of the crude oil. Reduction in the revenues has translated to reduction in the profit margins that are made by the companies. The reduction in the oil prices has also impacted some companies positively. This is through a reduction in the expenses that are incurred in the fueling of the machines and engines. Oil prices account to a large portion of the expenses that are incurred in the running of companies. The fall in the global oil prices has therefore resulted to a drop in the expenditure which further translates to an increase in the profitability. It is also on its part a two way situation where some parties benefit while others fail in their undertakings. The companies have therefore been sustained in all the three aspects. These are financially, socially and environmentally. This has been in a bid to sustain themselves from the effects of the changes in the oil prices which has been inconsistent over the past years. Conclusion In conclusion, social responsibility is a matter that has been practiced by the companies in the mining industry in Australia. This is through the putting in place of measures that are beneficial to both the society, the economy and the environment in which they operate in. this is for the better good of the country at large. They have also put in place adequate reporting of their operations as is required of them by the regulatory bodies. The mining sector has however been faced by some challenges mostly so, the changing oil prices. This has impacted to them both positively and negatively. The companies have in respect to this tried to undertake their operations in an efficient and sustainable manner to seek a redress to the issues affecting them. In this report, there is an analysis of the performance of the company and the moves it takes on the stakeholders. This is through such things as making profits after retrenchment of the employees and the impact that this has on the company. The report therefore aids in the creation of insight corporate social responsibility reporting by the mining company. 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