Stakeholder Theory

Provide a discussion of the extent of sustainability disclosures that occurred (a) over the two years and (b) the size and profitability of the company selected. Explain any correlations.

CSR Limited, Australia, reduced its carbon emissions by 2.6% in 2019 as opposed to a 1% increase in 2018.This helped exceed the 2020 target and onto the 2030 target. CSR Ltd also reduced 0.1% of waste send to landfill in 2018, when the waste sent to landfill in 2017 was reduced by 11%. This showed an improvement of total 14% over the last five years. CSR Community Support Program received $158,369 from CSR in 2019 and $108,670 in 2018.BHP provides support to local economic growth by providing opportunities to local suppliers in the communities they operate. It also engages largely in social investments with US$93.5 million in 2019 and US$77.05 in 2018. The Greenhouse Gas emissions were 1% more than the 2017 baseline in 2018 but 3% below in 2019. Evolution mining spent A$92.3 million towards local community organizations in 2019 and A$80 million in 2018. They generated 54% employment in 2019 and 52% in 2018. RT Exports limited characterizes relationship with employees by fairness and that with community by good citizenship.
The size of the company is determined by the number of employees and the balance sheet total and the profitability can be calculated using the profit margin ratio. CSR is a large sized company with 2900+ employees and balance sheet total of $1,231.1 million. Profitability of CSR limited is calculated to be 161.13%. BHP is a large organization as classified from 28,986 employees and a balance sheet total of US$46,000 million. Profitability of BHP is 58%. Evolution mining ltd is also a large company with 1,342 employees and A$2,406.4 million. Profitability of evolution mining is 111.6%. RT Exports Ltd has about 3 employees and a balance sheet total of Rs. 248.97 million which makes it a small sized enterprise. The company is making a loss.

The correlation identified here is that the large companies with high profitability are also contributing effectively towards sustainability.

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