Yanyan Fan :16431392
Yang Zhang :16548131
To: financial director
From: Yanyan Fan & Yang Zhang
Subject: Sustainability disclosure of the company
I am glad to write this report for you to use as ground to decide Orica’s future practices in disclosing sustainability information relates to our company’s operation.
As the world’s largest provider of commercial explosives, blasting systems and blast based services, we care about people and the environment. We acknowledge our environmental, social and community obligations which contribute us to conduct our business in a sustainable manner. Orica’s commitment to Safety, Health and the Environment (SH&E) is well recognised and our underlying progress in improving our SH&E performance is good in many areas.
We will illustrate sustainability information of Orica last year based on system-oriented theories as following:
Under stakeholder theory, which considers the importance for an organisation`s survival of satisfying the demands of its various stakeholders. Fortunately, we know who our stakeholders are, understanding their concerns and responding to them in an appropriate manner. With our Group Safety, Health and Environment (SH&E) Standard and policy, we identifying our key stakeholders as being: employees and contractors; Our customers; Our shareholders and investors; The community and Governments. At Orica, sustainability means the capacity to deliver value to our stakeholders in the following key areas: Governance, Safety, Health and Environment (SH&E), Product Stewardship, People & Community, and Engagement & Communication.
The more critical the stakeholder-controlled resources are to the continued viability and success of the organisation, the greater the expectation that stakeholder demands will be addressed. As Roberts (1992,p.598) states that: a major role of corporate management is to assess the importance of meeting stakeholder demands in order to achieve the strategic objectives of the firm.
Therefore, in our company, for employee, while there are no formal mechanisms to provide recommendations to the Orica Board we do provide forums where they can be heard. Besides, we do provide career and development opportunities, performance management and senior leadership. However, in relation to the safe working conditions,the incident at Kooragang Island and the traffic accident fatality , seven people lost their lives in distribution incidents associated with Orica products, which seriously breach stakeholders` intrinsic rights. We should learn from the incident and continuously improve the management of these risks.
For customers, We engage to help them succeed by delivering the best solution, seeking better and faster ways to deliver products and services and responding rapidly to opportunities and change. For example, we assisting customers to meet their sustainability objectives with the development of ONYX technology, a novel process to replace virgin oil with purified oil in emulsion explosives.
For shareholders and investors, We engage and respond to our shareholders' sustainability queries at our Annual General Meeting , Company performance and governance, climate change exposure and opportunities are also disclosed in the Dow Jones Sustainability Index (Chemicals sector), FTSE4Good Index and the Carbon Disclosure Project.
For community and government, developing a corporate reputation as being socially responsible through performing and disclosing social responsibility activities is part of a strategy for managing stakeholder relationship.
Within the stakeholder theory, it is a stakeholders`s control over limited resources that are required by an organization that influences whether specific information is provided to that stakeholder, not issues associated with rights to information.