Report On Advance Accounting Theory Standard Of The Rio Tinto

This report examines the new world of sustainability reporting, and the complex web of stakeholders. It focuses particularly on the demands for new kinds of transparency which serve the interests of the environment and society.

Firms have responsibilities to society at large by not harming the environment (polluting the air or water); producing safe products and providing a safe work environment for it’s employees and the surrounding residents.

BHP Billiton Limited was founded in the year 2001 as a merger between Australian Broken Hill Proprietary Company and the Anglo-Dutch Billiton Plc. BHP Billiton is a dual listed company and well known as the leading global resources and the largest mining company in the world measured from its revenue. The headquarters is in Melbourne, Australia and a major management office in London, UK. They have more than 100,000 employees and contractors across the 25 nations. BHP Billiton is the major producers of commodities namely energy coal, aluminum, iron ore, minerals, copper, manganese, uranium, nickel, and mining in oil, gas, and diamond. They have more than 100 mining and

According to the relevant analysis, a couple of recommendations been derived in relevance to legitimize corporate social and environmental disclosures via social contract and natural rights. Each government plays a vital role around the globe in producing effective elements on policies and regulation to promote an eco-friendly environment and efficient way of using resources.

This report looks at Rio Tinto’s company approach to CSR making special emphasis in the environmental, legal, social leadership and health and safety fields. In each one of the particular

The Dow Chemical Company has been around since 1950 and currently boasts approximately 53,000 employees. They, like Monsanto, are proudly committed to sustainability by “going beyond our current capabilities and the reach of our products and solutions” and they pursue game-changing collaborations to advance social and environmental progress (Dow.com.) Their goal to boost agricultural productivity while preserving the environment sounds perfectly responsible but it is what they are not telling an unsuspecting public about their solutions that may be a problem in the long-run (Dow.com.)

I must commend them on their efforts to improve social conditions at all levels of the organization and broadly in the community. Although, the reporting and communication elements are stable, the information at times is to superficial to meaningful assess the companies impact on earth systems. There is no way to validate the impacts, successes or identify if Patagonia is achieving their mission statement. I heisted to be so critical of a company the is continuing to be a leader of sustainable development, within a competitive industry driven by consumerism but based on their available reports and data, they are not accounting for the environment effectively. A key challenge for Patagonia to focus on would be developing goals based on their six commitments that are linked to specific ecosystem goods and service, then develop a data collection protocol that can be used to validate if they are achieving the goals and ensure they are realizing the opportunities they have creating by spending to support the

Rio Tinto is one the leading mining groups in the world whose main focus is to find, mine and process the Earth’s mineral resources for different benefits both domestic and international. It is in its true essence a mining and metals’ company. It has its operations in more than 40 countries expanding across 6 continents and has an employee base of around 66000 in 2014. (RIO TINTO, 2014) Its strongest representation is in the North American and Australian territory though it also has its bases spread over in Asia, Europe, South America and Africa. It has its main headquarters in the United Kingdom and the Rio Tinto group is comprised of two companies: Rio Tinto plc − a London and New York Stock Exchange listed company − and Rio Tinto Limited, which is listed on the Australian Securities Exchange. Rio Tinto claims that because of their global presence and with their expertise in technology and marketing it enables them to supply a quality and right product at the right time. (RIO TINTO, 2014)

Contrary to the results obtained from the two statements on transparency presented in 10.5.5.1 and 10.5.5.2 above, the majority of the stakeholders have a neutral opinion on this statement, (median = 3.00) (table 7.5). Although it may be understood that the oil and gas contracts may contain commercially sensitive information, information on core aspects of local content should be released to the stakeholders (NGRI, Publish What You Pay, Global Witness, & others, 2012). Where such information is confidential, there should be an explanation of that fact (Lahn, 2007). For example, there are no full and detailed information or facts and figures on the level of local value-added achieved. Stakeholders were only presented with summaries that the

The employees are also exposed to build and maintain strong partnerships via value chain. This will aid the workforce to maximize value from assets and to explore new opportunity. This is listed down under the strategy focus of 4P’s (portfolio, performance, people and partners). (Performance with purpose, 2017). The appointment of two executives on the management team had boosted the performance of employees and partnership capabilities. This had been done under the leadership of Chief Executive J-S Jacques. Moreover, cost reduction and also improvisation on effectiveness done by Hugo Bague, Rio Tinto Executive Committee member so that company can increase the capacity on financial

3. BHP needed a change in strategic direction, so that it becomes aware of a broader conceptualisation of its corporate identity as being a 'mining (company) in relation to environmentally and socially complex interactions with land and people.' "Dallas". Part of

The mission of this team is to impact and support our company’s triple bottom line (economic, environmental, social) performance by helping to raise employees’ awareness of sustainability issues, influencing continuous improvement towards the company’s goals and execution around sustainable business practices. Below is description

However "report or explain" approach (GRI 2011) shall make the things easier for reporting especially for multinational such as BP and Statoil. For some companies collecting the data can be expensive process and although information technology is growing and spreading fast the best of it may not be available to all organizations. In this regard BP and Statoil are well positioned with access to advance technology and this is not the case for such enormous organizations. Another disadvantage is Sustainability reporting can be beyond access on funding, for example supply chain assessments can be burdensome to conduct, as frequently with thousands of suppliers it requires to have the advanced ERP* system, which may cost millions to set up (Parr and Shanks 2000). Again BP and Statoil have all required resources to afford the latest and best technology for the reasons beyond but including the needs to meet sustainability essentials. Some companies also consider that disclosing information can cost them if competitors are not aligned with GRI guidelines and can benefit from standardized approach if not used by contenders. This may be applicable to small organizations but for large players on the market disclosure of sustainability performance shall bring positive results delivering more benefits to stakeholders by being conscious on creating value for the

The problem that exists in Pakistan under the current system is the lack of environmental information that could create a drive towards improvement. There exists the classic principal-agent problem with regulators needing good data about firm’s pollution levels, but the firms do not have a medium or drive of providing such information. This information asymmetry is addressed through introducing instruments such as the TRI or PROPER, which provides a platform for information collection and usage. It will indeed incentivise firms an incentive to improve their public image in the cheapest way available to them (Grafton et al, 2004).

Information and public participation play an important role in the protection of the environment. To that end they have become rights which are protected internationally, continentally and domestically, ensuring that all citizens and organizations are able to play an active role in the management of the environmental at all levels. By enabling public participation, governments are inevitably providing transparency in governance and therefore reinforcing the legislative and institutional safeguards that have been put in place to protect the environment. It is important that some level of transparency is available regarding environmental decisions in order to allow the public be aware of decision-making procedures, as well the