Running head: BHP COMPANY 1

Corporate Governance Compliance Assessment

Name

Institutional Affiliation
BHP COMPANY 2

Corporate Governance Compliance Assessment

Part#1: BHP Billiton Company CSR Policy

BHP defines the set CSR code and policy in the UK as the fundamental requirement

among its set core values and management strategies. It is important to note that the Company is

in such a way that its focus mostly in ensuring that its operations adhere to a total zero tolerance

to activities such as child labor (Bice, 2014). The company guarantees that those that it

employees are majorly adults who have attained the age of eighteen years and above.

Additionally, the BHP does not tolerate any form of forced labor.

BHP Billiton is a multinational company formed in the year 2001 following the merger

that took place between BHP and the Billiton mining Corporation. Since its formation, the

Company has been dedicated to offering services and products in adherence to the set corporate

standards (Bice, 2014). The Company currently has its branches in approximately 25countries

providing employment opportunities to a higher number of population. The Company has a

strategy that it uses to ensure that it strictly adhere to the set CSR. It provides that it upholds the

corporate social responsibility to every individual including the surrounding society.

Additionally, the activities within the Billiton Corporation seek to ensure that they are in

line with the set standards. The organizational core values should be in respect to the UK

corporate governance. The employees within the Billiton Corporation are in such a way that they

are always observant to the rules and regulation that affects the entire operations. Additionally,

the CSR within the Billiton tends to uphold the welfare of the community and the set government
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policies and regulations.

It is important to note that the increasing level of organizational and global concern on

the effectiveness of the CSR is a call for every corporation. The companies across the globe

should operate in such a way that they uphold the set rules and regulations. In many ways, the

firms should ensure that the community benefits the most and their activities in any way should

not interfere with the fundamental peace of the societies or communities from within.

Part#2: Reviewing the Compliance of the Company

Justifying the Rational of the Choice

The BHP structural system is in such a way that it seeks to enhance and uphold its set

corporate obligation. The organizational policies as discussed above are much concerned in

ensuring that the public and the community benefits the most (The UK Corporate Governance

Code, 2016). Additionally, in relation to the government set values, the firm ensures that it

upholds and accord maximum respect to the government set policies and strategies. Similarly,

the kind of services that the workers receive is in such a way that the organizational structure is

more efficient from the top management to the lower level. It is through the better structure and

organization that the firm has managed to make the several fundamental achievements within its

operations.

The Company Approach to Ensuring Effective Leadership

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Board characteristics Approach Implications

Did the Company comply with

the code? Explain/Provide

Evidence
Separated roles of The Company policies and The implication includes

CEO/Chairman strategies comply with the set efficiency in the operation and

code in many ways. The fact corporation with proper

that it sought to protect the coordination of activities.

environment and the protected Additionally, the ability to

areas is a clear indication that it comply with the government

complies with the code (The rules and regulations will

UK Corporate Governance enhance a smooth operation

Code, 2016). The company with minimal disruptions.

CEO also ensure that the

management process is in such

a way that it is free from

corruption and discrimination.

The Firm Ability to Comply with the Board Effectiveness

Formation of Workers Association

It is a fundamental agreement by the board to accord the employee a chance of forming

an organization in relation with the organizational CSR. It is a notable point the company's CSR

is the fact that it gives a chance for the members to form an association. Labor associations, for
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instance, are fundamental rights to the employees. Workers union in most cases tends to play

fundamental role infighting and ensuring that members get better services in relation to the

nature and kind of job that they do. The BPH in anyway is keen to ensure that the associations

are effective and are at liberty to discuss the member's welfare and social issue without any form

of interruptions whatsoever form its board members (The UK Corporate Governance Code,

2016). The other fundamental role that the company fosters on is the protection of the heritage

and protected areas. The Company ensures that it helps in upholding the general nature including

the heritage sites. Additionally, it is keen to ensure that such areas remain clean from any form of

pollution from its activities.

Corruption Free Organization

Corruption and bribery is also a serious criminal offense within the BHP Corporation.

The Board ensures that the organization is free from any form of bribery or corruption. The law

is very strict, and any individual found to be violating the set standards of the moral virtues will

have no otherwise but to face the law. The rule and regulations are so clear within the BHP.

Besides, the firm ensures that it is able to comply with the laws and the set standards of the

government (The UK Corporate Governance Code, 2016). The laws include the ability to pay

taxes appropriately and ensuring that their operations are totally in line with the set government

regulations. Besides, the board ensures that the issue of gender is a matter of great concern. Both

men and women are able to receive fair service and opportunities within the firm.

The implication of the Below Board Characteristics

Board Approach Implications

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characteristics Did the Company comply

with the code? Explain/Provide

Evidence
Gender BHP ensures that it The implication is to

diversification enhance gender diversification in ensure that service delivery is

(percentage of female to its ability to offer employment more effective

male) opportunities. The ratio of men to

women who works within the

firm is relatively equal.

Skills and Board The organization through Through training, the firm

knowledge and its management is keen to is going to have qualified

enhance skills and knowledge personnel whose value will be of

(Skills, Current
development through training and great importance
and previous board
seminars
experiences)

Independence The management ensures Through independence, nobody or

that other lower staffs are able to position has a right to manipulate
(Number of
make decisions whose the decisions by the lower organs
Independent board
consequences will be of the including the decisions by the
members to executives)
general organizational good (Bice, human resource management.

2014). The independent board

include the top executive and

senior most officials

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The extent of the Company to Report the Numerations and the Impotence of the Key

Characteristics

Remuneration Approach Implications

characteristics
Did the Company comply with

the code? Explain/Provide

Evidence
Structure of The organization seeks to ensure The key implication for the

Remuneration that the employees get their timely payment is to ensure that

(Components of Pay/ salary and any other arrears. The the organization prevents any

Clawback/ Long-term payment is timely and more form of possible conflicts or

targets) effective. strike that the unpaid workers

are likely to undertake (Bice,

2014). Besides, it will enhance a

smooth flow of works.

Structure of the The compensation committee is The compensation board, when

compensation in such a way that it ensures that it is free from interference and

committee (nb of the process of compensation is influence from anybody, will

independent board effective enough and more enhance the smooth and

members) transparent (de Villiers, & progressive compensation

Alexander, 2014). process where every member of

the organization feels satisfied

(Epstein, 2018).
The Organizational Relations with the Shareholders
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CSR characteristics Approach Implications

Did the Company comply with

the code? Explain/Provide

Evidence
AGM reporting (nb of It is true that the Company did The implication for effective

meetings/ disclosure of comply with the set codes. The corporation between the

voting) management ensures that it management and the

gives frequent updates on the organizational shareholders is

happenings and the frequent that the firm will able to

proceeding of the firm. discharge its functions as

Additionally, the complaints required with minimal

from the shareholders are disruptions from the

minimal. shareholder.

Communications with The communication procedure Effective communication is

shareholders (what tools is effective and more efficient. essential for a smooth process

are used) The organization uses several of the organization.

means to enhance Additionally, when the

communication from one members are able to get an

department to the next. For update on the proceedings and

instance, the management the affairs of the firm, it

ensures that it use mailing and shows that the company will

memo to send and communicate run more smoothly as

key issues to other members of required towards achieving its

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the firm. goals and objectives.

The Ability of the Firm to Comply with the Set Code of the UK

Faire Treatments

The BHP ensures that its operations are in line with the set code of the UK standards and

ethics in several ways. The employees globally have a sole right to ensure that they work in on a

free environment in relation to the set terms and conditions as it was in the employment

agreement (Mayes, Pini, & McDonald, 2013).Besides, the kind of treatment that the employees

receive is human. The management ensures that they accord total respect to every member of the

staff. Besides, members have a chance to seek permission and are able to get their leave if they

follow the rightful channel.

Wages and Salaries

In terms of the living wages, BHP ensures that the employees receive a fair payment in

relation to the kind and the nature of the work that a person is doing. The wages are fair enough

is sustainable to the members (Epstein, 2018). There are rare cases of workers strike given that

the payment is always good without salary delays. The other point to note in relation to the BPH

Company CSR is the health safety and the environment. It is important to note that the

management is in such a way that it ensures that the working environment is clean and free from

any possible health risks (Epstein, 2018). Hygiene is an issue of maximum concern to every

member of the staff. The management ensures that every member is able to receive treatment

through the insurance cover that the firm provides.

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Discrimination

The company is also keen to ensure that it does not tolerate any cases of discrimination

from its members. It seeks to offer employment opportunities to everyone who is qualified and

ready to do a better job and has the fundamental skills in the job description. The Corporation

ensures that the community benefits the most before any person. Additionally, the companies in

most cases have taken fundamental steps to ensure that it takes part in the environmental

cleaning and preservation. It is a companies believes it is a responsibility to ensure that it

preserves the environment. Additionally, it has to ensure that the environment is clean enough to

facilitate its major process and activities in a manner that is friendlier.

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References

Bice, S. (2014). What gives you a social license? An exploration of the social license to operate

in the Australian mining industry. Resources, 3(1), 62-80.

De Villiers, C., & Alexander, D. (2014). The institutionalization of corporate social responsibility

reporting. The British Accounting Review, 46(2), 198-212.

Epstein, M. J. (2018). Making sustainability work: Best practices in managing and measuring

corporate social, environmental and economic impacts. Routledge.

Mayes, R., Pini, B., & McDonald, P. (2013). Corporate social responsibility and the parameters

of dialogue with vulnerable others. Organization, 20(6), 840-859.

The UK Corporate Governance Code, (2016). The UK Corporate Governance Code