Corporate Social Responsibility And Access - Myassignmenthelp.Com

Question: Discuss about Corporate Social Responsibility And Access. Answer: Corporate Social Responsibility states that every business has a responsibility towards the society whether it is environmental, social or even towards its stakeholders including employees, suppliers, shareholders and community at large (Suliman, Al-Khatib, Thomas, 2016). Corporate social responsibility states that every business has responsibility to contribute towards the social well being of the society at large. Nowadays most of the company are compulsorily required to follow and fulfil their social responsibility towards the society in which it operates (Cheng, Ioannou, Serafeim, 2014). The company which is selected for this assignment is Altech Chemical Ltd which has its headquarters in Australia and it is also listed in the Australian stock exchange (Altechchemicals.com, 2018). The corporate responsibilities of a business organisation are given in points below: The main responsibility of any business organisation is to contribute to the needs of the society which may be generation of employment and income generation for the society as well as development of the business. Some of the business takes responsibility of environmental issues of the society such as planting of more trees, management and use of society resources in an effective manner. Most of the chemical and oil companies are responsible for waste management. In other words such types of companies are responsible to dispose off the waste created by them in a safe manner. Most of the time such wastes are hazardous in nature and therefore these waste must be dealt with in a safe manner. A business can engage in charitable work in order to show the society that the company is following its corporate responsibility toward the society. The charitable work of the business can be donations to public organisations, schools and charitable institutions. Altech Chemical ltd has to follow its corporate social responsibility as every business in Australia has to strictly follow corporate social responsibility. The corporate social responsibility of Altech Chemical ltd is the management of waste which the company generates in production of alumina (Altechchemicals.com, 2018). The hazardous and bio degradeable are dumped in a pit where there is no chance of leakage to the ground water or else it will lead to ground water population. The company is also engaged in exploration activities which naturally disrupt an area and its surroundings. However the company has license for exploration activity from the government of Australia. The responsibility of the Altech Chemical ltd is to ensure that the company develops the area where the company had conducted exploration activities (Altechchemicals.com, 2018). The company will be recovering the area and planting trees and levelling the ground soil. Most of the companies in Australia need to follow corporate social responsibilities as it is mandatory in most of the countries. It is the responsibility of the business to ensure that they are contributing to the needs of the society. (Bu?i?nien?, Kazlauskait?, 2012). Basically the society gives the power to such business to operate and in return the society expects that the needs of the society are given priority. However most of the businesses do not consider such responsibilities as important. They just incur such expenses in order to show the public that the company is incurring some expenses in Corporate Social Responsibilities (CSR). Such companies consider this CSR expenses as unnecessary expenses (Brammer, Jackson, Matten, 2012). However some of the companies follow such policies properly. Altech Chemical Company has shown exploration and development expenses in the balance sheet at $571904 for the period ending on 30 June 2016. The figure of exploration and development ex pense consist of restoration costs which the company incurs on the sites of exploration by the company (Altechchemicals.com, 2018). As per Milton Friedman, the one and only responsibility of a business is to use the resources available to the organisation in order to increase the profits of the organisation while facing competition and without using any deception or fraudulent means. Most of the corporate businesses agree with this view that the primary concern of the business is to earn profits and maximise the wealth of its shareholders. However due to strict norms introduced by most of the countries corporate organisations nowadays have to follow corporate social responsibilities. Some of the businesses have incorporated CSR strategies in their policies to ensure that the corporate responsibilities of the business are taken care of and the accountability for the same is accepted by the business. CSR strategies not only demonstrate to the society that the business care for them but also follow sustainable development. In order to understand how CSR strategies can bring about sustainable development, the first t hing that is needed to be understood is the concept of sustainable development. Sustainable development can be described as the development which looks after the needs of present generations without jeopardizing the ability of future generations to meet their own needs (Holden, Linnerud, Banister, 2017). The concept of sustainable development is important as it is the only way to save the natural resources for the future generations. CSR strategies consist of activities like environmental restorations, charity works, development of schools and hospitals and waste management. Corporate houses have responsibilities to ensure that the corporate social responsibilities of the business are efficiently managed and implemented. If business follow their corporate social responsibilities in efficient manner there is a genuine chance that the society can stay on the path of sustainable development (Barkemeyer et al., 2014).For this purpose the company holds various exploration licences from the Australian government and the company is also responsible for the rehabilitation of the area which was under mining or exploration. The exploration and development costs as shown in the balance sheet of Altech Chemicals ltd signifies that the companys exploration expenses are capitalised as it is directly associated with the production activity of the business (Altechchemicals.com, 2018). The exploration and development cost as shown in the balance sheet of the company which includes restoration cost of the area where the exploration activity took place. Thus the company undertakes activities which are related to the restoration of the environment and safe dumping of the waste which is generated in the process of production of alumina. Looking after the environment from where such businesses draw natural resources is definitely steps which the business takes towards sustainable development. Profit maximisation refers to concept where the business is focused on earning as profit as it can for the business. The business primary focus is when the business strategy is profit maximisation is to earn as much profit as possible for the business (Cao et al., 2013). In such a case the company uses all kind of strategies which will allow the business to earn as much profit as possible. A business normally earns more profits in order to satisfy the owners or shareholders of the business. In other words a business earns profit out of which a part of the profit is distributed among the shareholders. As the business earns more profits the business can distribute more profits as dividends to its shareholders. With passing time business and the world realised that the business are not just responsible to the shareholders but all the stakeholders of the business (Seuring, Gold, 2013). Stakeholders are individuals who are directly or indirectly affected by the activities of the companie s and hence the companies should be accountable to them as well. The stakeholders include employees, credits, banks, investors and anyone who is affected by the activities of the business (Lawrence, Weber, 2014). Nowadays most of the companies recognises that the company is accountable to all the stakeholders. In recent times the profit maximisation concept has been replaced by wealth maximisation concept and profit solely is not considered as a factor of performance of the business (Wilson, Plumley, Ramchandani, 2013). The business considers other performance indicators such cash flows in the business, companys reputation in the market, stock prices of the company in the market (Cho, Lee, Pfeiffer, 2013). Positive cash flow shows that the company has well established liquidity structure and positive cash flows show that the business is developing. The companys reputation in the market is also considered to be an indicator of the performance of the company. If the company is perf orming well then the reputation of the company will be good. The company will then have loyalty in the shareholder market. Results also show that a company which is performing well are always awarded with high share prices. Altech Chemical Companys financial statement shows that the company is not performing well as the company has incurred a net loss of $ 1233076 (Altechchemicals.com, 2018). The companys cash flow statement shows that the company has negative cash flow from operating activities in 2016 (Altechchemicals.com, 2018). This shows that the company is having difficulty in the operations. Reference Altech Chemicals Limited - High Purity Alumina Producer. (2018).Altechchemicals.com. Retrieved 11 January 2018 Barkemeyer, R., Holt, D., Preuss, L., Tsang, S. (2014). What happened to the developmentin sustainable development? Business guidelines two decades after Brundtland.sustainable development,22(1), 15-32. Brammer, S., Jackson, G., Matten, D. (2012). Corporate social responsibility and institutional theory: New perspectives on private governance.Socio-economic review,10(1), 3-28. Bu?i?nien?, I., Kazlauskait?, R. (2012). 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