Business Value Assessment
Corporate Social Responsibility is an integral part of a business that defines a relationship of an entity with the community. The business entities undertake some initiatives to give back to the community, in the form of economic, environmental, or societal aspects (Crowther & Aras, 2008).
In this report, we have constructed our study on the corporate social responsibility undertaken by two companies, Commonwealth Bank and Amcor
Identification of the Organizations and their Overview
Commonwealth Bank is a pioneer in the banking industry in Australia. The bank proffers in offering diversified financial services, such as,/ premium, retail, business and institutional banking along with share broking, fund management, insurance and investment. The Global presence of bank is in Europe, North America, New Zealand and parts of Asia. On Austrian Securities Exchange the company was listed as one of the largest groups and was also included in the Morgan Stanley Capital Global Index (Commonwealth Bank Overview, 2016).
Amcor is a responsible front runner in the packaging industry. It supplies solutions to various manufacturing units, like,/ health care, personal care, food & beverages, home & tobacco. Global presence is in more than 40 countries, it employees more than 29000 people (Amcor at a Glance, 2016).
Though Commonwealth Bank and Amcor both address the social issues, however, on the contrary, Amcor has been challenged for pollution by Environment Protection Authority Victoria and fined for A$ 10,000 in 2001. In 2004, the company was found engaged in Cartel Practices (Australian Competition and Consumer Commission v Industries Holdings Pty Limited (No 3) [2007] FCA 1617 (2 November 2007). Heidelberg Magistrates’ Court fined Amcor for $80,000 in 2008 for releasing oil into Yarra River from its Alphington Plant (EPA makes Amcor accountable for Yarra spill, 2012).
Key Material Issues Addressed by Commonwealth Bank
Social & Society Aspect
As a part of CSR strategy management’s approach is to treat all people with fairness and respect. Management is also developing a perspective to enhance supply chain outcomes. Bank has developed strategies to respect diversity. Bank also allows its employees to contribute their time and resources for the community. Initiatives like, Teach Children the value of money, where children were taught by school banking and start smart programs are undertaken (Opportunity from Education, 2016).
Economic&Environmental Aspect
Investing in education and giving insights and teachings based on evidences is another initiative; Help prepare the workforce of the future. Either by creating or investing in the products that support innovation in business, the bank has empower people, communities and business (Opportunity from Innovation, 2016). Bank has developed a position to adapt to climate change and to limit it to two degrees by playing active sustainable role. Their Practices aligns with nine Environmental, Social and Governance lending commitments (Opportunity from Good Business Practice, 2016).
Key Material Issues Addressed by Amcor
Social, Economic & Environmental Aspect
Amcor’s initiative, Fresher- preserving without preservatives is to tackle global problem of food wastage. Lighter- where green house gas emission is reduced by 26%, energy consumption by 23% and raw material saving is done by 25%. Safer – an initiative where medicines are delivered safe under difficult conditions to the remotest areas of Sub-Saharan Africa
Analysis of Strengths and Weakness of Aspects Undertaken
Commonwealth Bank has taken diverse initiatives in social account. By Their opportunity from education initiative they plan to make 346000 students participate in school banking with 54% school students’ savings regularly, hence improvising economy marginally. With investment of $16m in education they are helping the youth to prepare for better working opportunities, improvising the employability (Opportunity from Education, 2016). With Opportunity from good business practice they are improvising the number of women entering into the corporate sector (Opportunity from Good Business Practice, 2016). Amcor has also taken numerous initiatives. With the higher strength to serve market at its roots Amcor should capitalize on it. Until now their focus has been only on packaging changes that could be beneficial, but they should also utilize their strength to spread more literacy, generate more employment and create consciousness on Reduce, Reuse and Recycle
Analysis of Style, Content and Presentation Amcor has presented a flamboyant report. Commonwealth Bank has present a rudimentary record where baseline projections and future projections are mentioned (Opportunity Initiative Scorecard, 2016). Presentations by Amcor are visually more appealing. (Amcor, 2016)
Analysis in Approach to Social Responsibility Undertaken by the Companies
Commonwealth Bank is from banking industry, has a Proactive approach; they are mature market players. Along with the help of technical platforms they have broken the barriers of culture and regions (Opportunity from Education, 2016). The CSR banking regulations emphasize banks empower the private sector to be a part of regional development, achieve political stability and gain the trust, loyalty and support of the shareholders along with improving long-term financial performance. Amcor which is from packaging industry has an Accommodating approach. It is a part of Australian Packaging Covenant, and adheres to the regulations laid down (Orora Packaging Australia Pty Ltd, 2016). The difference in approach is because of the dissimilarity in the industry, Amcor is in perfectly competitive market, where they have to maintain their profit along with fulfilling their social responsibility, whereas Commonwealth Bank is also in a perfect competition but due to its long establishment and standing it has been able to generate increased market power. The former has its constrains in undertaking various aspects of CSR because considering its market standing compromising on the profitability would result in less revenue generation and eventually exit from the market. Commonwealth Bank has the capacity to undertake various aspects of CSR.
Zadek et al.’s 1997 Companies being held accountable for social performance and analyzed on certain parameters for their social accounting, auditing and reporting along with undertaking and exhibiting the best practice of CSR. (Introduction, 2002)
Key Principals Met By Commonwealth Bank
Inclusivity- The bank has an open platform where perturbed customers were addressed, and stakeholders’ financial well-being is taken care of (Opportunity from Good business practice, 2016).
Evolution – The bank shows its willingness to adapt to changes and continually learn from its stakeholders to improvise its outcomes (Opportunity from Innovation, 2016).
Management Policies and System- the bank ensures that all the practices and policies are evaluated and controlled (Corporate Governance, 2016).
Disclosure – The bank publishes its annual report and does all mandatory disclosures (Annual Reports, 2016).
External Verification- PricewaterhouseCoopers has been the independent auditor to verify the statements disclosed by the bank. (Independent auditor’s report to the members of Commonwealth bank of Australia, 2016)
Continuous Improvement- Bank has shown the desire to drive positive change and evolve continuously (Driving Positive change, 2016).
Key Principals Met by Amcor
Inclusivity- Amcor believes in making a difference through teamwork. They ceaselessly value inputs from stakeholders on how they can improvise their products. (Lighter- Re-imagining what’s possible, 2016)
Completeness- Amcor has not only shown all the positive aspects but has also mentioned the areas where they would like to improvise in their organization.
Evolution- The desire to change and commit to learning was reflected in the core values of the company. (Innovation, 2016)
Management policies and systems- the social performances are evaluated time and again.
Disclosure – All the reports are generated timely, relevant information was disclosed. (Annual Report, 2015)
External verification- PricewaterhouseCoopers has been the independent auditor to verify the statements published by Amcor. (Auditor’s independence declaration, 2015)
Continuous improvement – they assess the current activities and aspire to improve if they fall behind in any aspect.
Key principals not met By Commonwealth Bank
Comparability & Completeness
Key Principals not Met By Amcor
Comparability
Core Values of Commonwealth Bank
Diversity – Acknowledging the diversity of the people and their ideas.
Flexibility – To let people associated have the work and personal life balance.
Employee benefits – The employees can avail a lot of benefits provided to them ranging from financial services, air fares, and entertainment.
Health, safety and wellbeing – People associated with Amcor are made sure of a good well being.
Leadership development – developing leadership qualities of the people is considered vital.
Community – Giving back to the community since their inception in the year 1912 (Our People, 2016).
Core Value of Amcor
Safety- Taking care of all the entities associated with the company.
Integrity – Honesty and Ethical business practices, the foundation of the relationship is trust.
Teamwork- Believing in making a difference by being together.
Social Responsibility- Community and Environmental needs are being taken care.
Innovation- Desire to find the best way to do a task (Our Core Values, 2016)
Value Alignment Analysis
Commonwealth Bank
The value diversity aligns perfectly with their responsibility (Diversity and inclusion, 2016)
Flexibility and Employee benefits are also values that align. (Adaptable work practices, 2016)
Health, safety, and wellbeing – seminars and support are given which shows that this value also aligns perfectly, and the responsibility is taken seriously (Our people, 2016)
Leadership development along with diversity aligns perfectly (Diversity in leadership, 2016)
Amcor
The mentioned value Safety aligns with their approach. The company aspires to have “No Injury” goal (Workplace, 2016)
The stated value Integrity is taken care of seriously. A positive environment is created to achieve sustainable growth (Economy, 2016)
Teamwork- working to bring a positive change as a team.
Social Responsibility – Giving back to the community is always considered cardinal (Environment, 2016) (Community, 2016)
Innovation- desire to improvise and bring revolution is contemplated (Marketplace, 2016).
References
Adaptable work practices. (2016). Retrieved 3 September, 2016, from https://www.commbank.com.au/about-us/who-we-are/opportunity-initiatives/opportunity-from-good-business-practice/our-approach-to-diversity/adaptable-work-practices.html
Annual report 2015 https://www.amcor.com/CorporateSite/media/Annual-reports/2015-Annual-Report.pdf
Annual Reports. (2016). Retrieved 3 September, 2016, from https://www.commbank.com.au/about-us/shareholders/financial-information/annual-reports.html
Amcor at a Glance. (2016). Retrieved 3 September 2016. From https://www.amcor.com/investor-relations/about-us
Amcor. (2016). Retrieved 3 September, 2016, from https://www.amcor.com/CorporateSite/media/Sustain-Reports/2015-Sustainability-Review.pdf
Auditor’s independence declaration. (2015). Retrieved 3 September, 2016, from https://www.amcor.com/CorporateSite/media/Annual-reports/2015-Annual-Report.pdf
Australian Competition and Consumer Commission v Industries Holdings Pty Limited (No 3) [2007] FCA 1617 (2 November 2007). Retrieved 3 September, 2016, from http://www.austlii.edu.au/cgi-bin/sinodisp/au/cases/cth/FCA/2007/1617.html?query=^visy
Commonwealth Bank Overview. (2016). Retrieved 3 September,2016,from https://www.commbank.com.au/about-us/our-company/overview.html
Community. (2016). Retrieved 3 September, 2016, from https://www.amcor.com/sustainability/our-community#sthash.MdTYR1E5.dpbs
Corporate Governance. (2016). Retrieved 3 September, 2016, from https://www.commbank.com.au/about-us/who-we-are.html?ei=mv_who-we-are
Crowther, D. and Aras, G. 2008. Corporate social responsibility. (Online). Retrieved 3 September, 2016, from https://books.google.co.in/books?id=uZh7isaUfr8C&printsec=frontcover&dq= corporate+social+responsibility+ebook&hl=en&sa=X&ved=0ahUKEwit3onsz_fOAhVIqo8KHVFVCR0
Q6AEIKTAA#v=onepage&q&f=false
Diversity and inclusion. (2016). Retrieved 3 September, 2016, from https://www.commbank.com.au/about-us/who-we-are/opportunity-initiatives/opportunity-from-good-business-practice/our-approach-to-diversity.html
Diversity in leadership. (2016). Retrieved 3 September, 2016, from https://www.commbank.com.au/about-us/who-we-are/opportunity-initiatives/opportunity-from-good-business-practice/our-approach-to-diversity/diversity-in-leadership.html
Driving Positive change. (2016). Retrieved 3 September, 2016, from https://www.commbank.com.au/about-us/who-we-are/opportunity-initiatives/opportunity-initiatives-scorecard.html
Economy. (2016). Retrieved 3 September, 2016, from https://www.amcor.com/sustainability/our-economy#sthash.AmDkLgfc.dpbs
Environment. (2016). Retrieved 3 September, 2016, from https://www.amcor.com/sustainability/
EPA makes Amcor accountable for Yarra spill. (2012). Retrieved 3 September, 2016, from http://www.epa.vic.gov.au/about-us/news-centre/media-releases/media/2012/july/16/epa-makes-amcor-accountable-for-yarra-spill
Innovation. (2016). Retrieved 3 September, 2016, from https://www.amcor.com/about_us/company/being-amcor
Independent auditor’s report to the members of commonwealth bank of Australia. (2016). Retrieved 3 September, 2016, from http://www.republicast.com/publications/cbaar2016/#d=1&p=186&m=1
Marketplace. (2016). Retrieved 3 September, 2016, from https://www.amcor.com/sustainability/our-marketplace#sthash.RKh8Disu.dpbs
Opportunity from Good Business Practice. (2016). Retrieved 3 September, 2016, from https://www.commbank.com.au/about-us/who-we-are/opportunity-initiatives/opportunity-initiatives-scorecard.html
Opportunity from Innovation. (2016). Retrieved 3 September, 2016, from https://www.commbank.com.au/about-us/who-we-are/opportunity-initiatives/opportunity-initiatives-scorecard.html
Opportunity from Education. (2016). Retrieved 3 September, 2016, from https://www.commbank.com.au/about-us/who-we-are/opportunity-initiatives/opportunity-initiatives-scorecard.html
Opportunity Initiative Scorecard. (2016). Retrieved 3 September, 2016, from https://www.commbank.com.au/about-us/who-we-are/opportunity-initiatives/opportunity-initiatives-scorecard.html
Orora Packaging Australia Pty Ltd, (2016). Retrieved 3 September, 2016, from http://www.packagingcovenant.org.au/signatories.php?page=2
Our Core Values. (2016). Retrieved 3 September, 2016, from https://www.amcor.com/about_us/company/being-amcor
Our people. (2016). Retrieved 3 September, 2016, from https://www.commbank.com.au/about-us/our-company/our-people.html
Our people. (2016). Retrieved 3 September, 2016, from https://www.commbank.com.au/about-us/our-company/our-people.html
Packaging innovation for a better tomorrow Sustainability Review 2015. (2016). Retrieved 3 September, 2016, from https://www.amcor.com/CorporateSite/media/Sustain-Reports/2015-Sustainability-Review.pdf
Workplace. (2016). Retrieved 3 September, 2016, from https://www.amcor.com/sustainability/our-workplace#sthash.qpJWgO6j.dpbs
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