Cost and management accounting is discussed in this assignment. Cost and management in the accounting part deals with the managerial improvement of the BHP Billiton organization. Since the environment is getting affected due to mining, the members of the Australian Accounting Profession take the initiative on the social environment. The promotional activities can also be checked to improve the standings on the capital market. The aim of the organization is to show the corporate social responsibilities towards sustainable development. Managerial accounting standards should be implemented in order to detect the future of the organization by previous financial statements, data, records, reports.
BHP Billiton was founded in 1885 near the towns of broken hills in New South Wales. This organization was formed in 2001 through the Broken Hill Proprietary Company (BHP) and Anglo-Dutch Billiton. It is one of the biggest companies in Australia by revenue and market capitalization. The organization was involved in one of the Bento Rodrigues dam collapses in 2015 (BHP, 2019). It was one of the most vanquish environmental disasters which occurred in the state of Minas Gerais located in Brazil. The main mission and vision of the organization are to show social responsibilities while exploring the mining sites. This organization deals with mining, minerals, and petroleum.
The organization stands to be the world's highest mining organization as compared to market operation and revenue. Since natural resources are depleting these resources should be used judiciously towards the development of the people. For any organization in order to maintain the goodwill of the company, the financial statements are to be checked. The financial management members decide the plan of the organization. The main objective of corporate social responsibility is to show social responsibility during the process of digging minerals. In 2015, when this fatal environmental disaster occurred, this organization also had considerable losses in the capitalization market (Garrett, 2013). Some of the assets in the organization were taken over due to the loss suffered in the organization. It started to grow, and the organization had its locations of mining in different countries. Natural resources should be used to sustain the life of the people staying in that country. Since natural resources are on the verge of being depleted, it can be used judiciously for the betterment of the country.
The main sustainability issues include climate changes, energy issues, food production, global equity, inequality, biodiversity, changing demographics, water scarcity, etc. these issues are as complex as vast. However, the chosen company has to focus on those issues. For example, as the company is dealing with mining, therefore they should be focused on the energy issues in sustainability. Other than that, it should be mentioned that the company must be involved in such activities those would be fruitful for the company.
The company has already focused on their social activities. Thus, they have arranged a survey among the senior managers of the company. However, they have adopted some practices. For example, the company has started working on some social issues. Even, they are promoting against global warming as well.
Other than that, BHP has also started an initiative of Charter that defines the sustainability approaches of the company. Thus, the company has started taking step into the health and safety measures so that they can develop the community.
Stances and initiatives of the Australian accounting profession on managing corporate social responsibility
BHP Billiton is an Australian based mining organization, which is the largest in the market capitalization and revenue. The mining area can be checked thoroughly so that the habitat of the species does not get disturbed (Meira et al., 2016). Managerial accounting standards can be implemented in order to detect future planning and implementing advanced technologies in order to improve growth. There are various initiatives of the Australian accounting profession on corporate social responsibility. BHP Billiton helps in the development of international NGO’S and other mining companies to solve social activities. The main objective of the organization is to improve community development and improve the outcomes of the mining companies. The main initiative of the Australian accounting profession on corporate social responsibility is to support charitable institutions.
The organization takes the initiative of donations and sponsorships, which is mainly focused on the improvement of the lifestyle of poor people. These donations help in the improvement of education, health, culture, economic development leadership, community improvement. The accounting profession for corporate social responsibility helps in the economic development of the enterprise, which operates in the local communities. It enables the small medium enterprise to operate within the economy through the combination of financial statements and mentorship (Saenz, 2019). The Australian accounting profession can keep a regular check on the various statements in order to avoid fraudulent activities of the organization. Since mining is one of the reasons of devastations and exhaustion of the valuable natural resources, accounting professional can keep a check.
The initiative is mentioned since the mining companies do include a public opinion as a whole. Natural resource industries are mainly influenced by the environmental and social performance of the area. The sectors mainly focus on the risk management and social responsibility of the mining organization. This organization's reports reveal the development of the company's strategy, which deals with environmental issues. The initiatives taken by the Australian accounting profession is important for the mining organizations since the public are the ones who suffer the most due to the digging of minerals.
Various types of development strategies are implemented due to the mining of minerals and minerals. Since mining organizations results in social disruption and dislocation had effects on the livelihoods, the organization should look into these. It detects safety purpose and quality management systems. The company can keep a check on the social responsibility for the benefits of the growth in the market (Foerster et al., 2017). The mining activities are important for the global economy. The places which are rich in minerals, petroleum are made can have safety measures for the organization. In this organization, initiative is taken by the accounting professionals since social development is important for the betterment of the organization.
Advanced managerial accounting like activity-based costing can be implemented in the organization. The managerial accounting standards can be implemented in order to detect future planning and implementing advanced technologies in order to improve growth. If the environment up-gradation is not checked before perceiving the minerals, the environmental disasters may take place, which will be harmful to the people as well as for the organization. The accountant profession of the company should keep a regular check on the internal management of the organizations in order to prevent other fraudulent activities and errors.
Internal management plays a vital role in the development of the accounting systems and interpretations of the financial statements (Swan, 2016). Revenue and market capitalization can be improved through the installation of new accounting systems, management activities and advanced technologies. In order to escape the defaults of the organization, the improved accounting standards are implemented. In order to conclude with the stances and initiatives of the Australian accounting profession on corporate social responsibility are implemented to help the NGO's in their education and various kind of lifestyle purposes. These can be checked in order to help the nature as well as the people residing in the area.
BHP Billiton organization is the highest companies in the market capitalization and by revenue based on Australia. Since the natural resources are depleting accounting, profession plays an important role in the organization. Accounting professionals detect the cost of the project, complexity in the government influenced by tax and other regulations. Technological advice is another important factor through which the accounting professions study. Accumulation of data and interpretation of the factors, which contributes to the growth of the company, is done by the accounting professionals.
Installation of new accounting systems, management activities, and the production process should be upgraded. Accounting professionals help the organizational members by providing them with the sales report, statistics, budget planning, cost control etc. Managerial accounting standards are also important for future investment. The goodwill of the organization depends upon the role of the accounting members. The shareholders of the organization invest in the BHP Billiton organization since this organization is one of the highest-ranked mining companies in Australia. Australian Accounting professions should keep a regular check on the internal management of the organizations in order to prevent other fraudulent activities and errors. Innovative ideas should be implemented by the accounting professions in order to increase the growth in the competitive market. The sustainability of the BHP Billiton is to help the poor people with better education, lifestyle, and health by managing better availability of resources (bhp.com, 2019).
Accounting professionals of the organization also keep a check on environmental degradation. The company takes various other measures in order to save nature from another harmful environment (Pottenger & Leigh, 2016). The company made commitments to position walls from major lakes, streams, and rivers, to lower the local waterways operations. For example, the waterways in Australia hold fresh water, various nurturing grasses, and banksia trees. This kind of swamp provides habitat for various kinds of endangered species like a ground parrot, different kinds of frogs, and other species. Long wall coal mines are removed which leads to drying up of swamps, which have led many endangered species extinct (Cubby, 2010).
The mining area should be thoroughly checked by the accounting professionals in order to not to harm the habitat of the species. The mining activities should take place outside the country area so that it does not create air pollution, which will be harmful to the people staying in that area. The professionals can also check the other activities in order to save the environment and endangered or extinct species living in those areas. Accounting professionals check the future investment of the organization in order to improve the goodwill and growth of the organization. Planning and organizing should be done in such a way that both the plan as well as the development of the environment is implemented. The main objective of the organization is to provide support to the various NGOs by helping them in the donations.
BHP Billiton is one of the largest organizations in Australia by the capital market and revenue market. Accounting profession should keep a regular check on the financial statements of the company. Financial managers can avoid fraudulent activities and financial errors of the organizations (Boiral, Heras‐Saizarbitoria & Testa, 2017). The data, reports, statements, documents of the organization helps the organizational members to plan. The accounting professionals can have a detailed report on the area where the area of the mining takes place. The accounting professionals keep a check on the environmental pollution so that the habitat of the species does not affect. The advanced managerial standards can be implemented into the organization for the growth of the company.
BHP Billiton organizational members do a thorough report into the place where the mining takes place. It sees that no habitat of the species endangered or extinct is destroyed including the habitat of the people living in that area (O'Dwyer & Unerman, 2016). The organizations check the sustainability of economic development since the up-gradation of the organization. For example, BHP Billiton has faced a collision of one the Bento Rodrigues dam in 2015. The organization had suffered a massive loss in that year, 2015 dam collision, which led to the takeover of assets. This collision led to environmental degradation, which destroyed the large habitat of endangered species, destruction of ecosystems (Hopper, Lassou & Soobaroyen, 2017). Various kinds of gases started to emit, which proved to be harmful to the people and for the other species. The main mission of the accounting professionals is to see to the situations where the environment does not get much affected due to mining.
BHP Billiton is one of the largest American based organizations, which deals in mining and petroleum. The accounting professionals can maintain data and reports for the future benefits of the organization (Vlachos et al., 2017). Through the research, it has been proved that corporate social responsibility has a good reputation. Customer social responsibility is the most critical responsibility in the globalized economy in mining. CSR activities are included, such as the improvement of reducing environmental degradation, risk management, to manage the sustainable issue. Increase in ecological degradation is important, so the managers of the organization take adequate measures for the development of the organization (Boussebaa, 2015). Risk management is another important activity, which is followed by customer social responsibility. The policies, which are not followed by BHP Billiton in the CSR, are:
Safety of the laborers: Customer social responsibility supplies various types of equipment for mining so that the laborer does not have any fatal injury while working. If the safety of labourers is not maintained, the laborers will not be accepting the proposals of mining.
Child labor: Child labour is a type of criminal activities, and no organization should employ any children for mining. If any organization employs children, the organization goodwill not are improved, which in turn lead to the failure of the business.
The main objective of the Customer Social Responsibility in BHP Billiton is to show social responsibility during the process of digging. The environment should also be preserved for the future generation of the country. The managerial accounting professionals who help in the decision making of the organization for the future also check the environmental stability in that area. The CSR is mainly concerned with the NGO's for donations, which helps then in lifestyle, health facilities, better education, providing medicines. The manager takes the permissions of the people staying in the mining area for the use of natural resources. The internal members of the organizations can keep a check on the customer social responsibility since if the CSR does not function the goodwill of the organization will be harmed (Guthrie & Parker 2017). Some of the assets in the organization were taken over by the organization after it had a major dam collapse in 2015. Natural resources should be used to sustain the life of the people staying in that country since natural resources are on the verge of being depleted and can be used judiciously for the betterment of the country (Soh & Martino 2015). Since mining is one of the major reasons for the devastations and exhaustion of the valuable resources, managerial accounting professionals and accounting professionals can keep a check.
In order to conclude, it can be said that the customer social responsibility is very important for the organizations, which are engaged in mining and petroleum. In this organization, the initiative is taken by accounting professionals since social development is important for the betterment of the company. It is a process of the scanning of the environment and the management issues. BHP Billiton studies the evidence of social responsibilities and explores the social responsibility for the betterment of the people living in the sites of mining.
From the above study, it can be concluded that cost and management in the accounting part deal with the managerial improvement of the BHP Billiton. BHP Billiton is one of the biggest companies in Australia by revenue and market capitalization. Since sustainable development is important for the country, permission is taken from the people living in that area for the betterment of the people. Since natural resources are on the verge of depletion, it can be used for the betterment of the country and compatriots. It can be concluded that various kinds of initiatives and stances are taken by the corporate profession for social development. The future planning of the organization can check into the mining area so that the people living there and the habitat of the other endangered species do not get affected. The initiatives include the donations for the betterment of the people in that area. In this part, it can be stated that these donations help in education, lifestyle, and health facilities for the poor people who will be affected. The organizations should also keep a check on the habitat of endangered or extinct species in the mining area.
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