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Business Values Assessment: BHP and Nike

BUGEN 5930

Business, Society and the Planet

Assessment 2 

This task requires you to work both individually and as part of a group to consider the Corporate Social Responsibility performance and stated values of two similar organisations and apply the Giving Voice to Values framework. 

There are two parts to this task:

  • Part A – 25%Business Values Assessment Report 
  • Part B – 20% Application of the GVV framework – scenario development,   script development and online presentation

NOTE all group members must participate in Part A and Part B

Please see below for the details of these Task Requirements.

Part A – Business Values Assessment report

This activity is based on the exercise on page 226 of ‘Business Ethics’ (Crane & Matten, 2010) – a copy of the relevant pages are available on the course Moodle page. 

For this component, you need to work in a group of three to four (3-4) students to consider the values and social performance of two companies. 

You are required to consider and discuss the companies as a group, but must submit your responses to the questions as individuals. 

  1. As a group, select two companies that produce social reports and whose values are identified on their websites or in other company documents (that are publicly available). The two companies selected by your group must be either:
  2. From different industries but in the same country; or
  3. From the same industry but different countries.

By Week 5, your group must provide the names of the companies you have selected to research, and the industry and country within which they operate. 

  • As a group, research each of your companies to determine their company values, their approaches to social responsibility and their reporting of their social performances. 
  • As an individual, you are required to submit responses to the following questions:
    1. Identify and describe the two companies you have researched; their core business activities and the countries and/or industries in which they operate. (15 marks)
    2. What differences are evident between the two companies in terms of the range of issues dealt with in their social reports and the depth of coverage on specific issues? Please note – this question does not ask for a description or summary of the content of each company’s reports. Instead, you need to analyse the types of information, the major themes, the presentation, formatting and tone of each report – and explain the ways in which the reports are similar to each other and the ways in which they are different.  (15 marks)
    3. Discuss which of the Sustainable Development Goals you believe are most relevant to these companies, their industries and the countries in which they operate. Discuss the extent to which these SDGs were addressed, explicitly or implicitly, in the CSR/Sustainability reports of your companies? (15 marks)
    4. Assess the apparent quality of the social accounting approach utilized by each company according to Zadek et al.’s (1997) criteria. (15 marks)
    5. Discuss the extent to which the social reports provided by these companies reflect their stated values. (15 marks)
    6. Briefly reflect on your groups’ discussions of these companies. In what ways did the ideas presented by your group confirm your own conclusions, influence your thinking and/or present another perspective to you? (15 marks)
  • A score (10 marks) will be allocated for presentation, written expression, spelling, grammar, punctuation and referencing.

Word limit: 2000 words

Referencing: You are required to follow the APA style of referencing for this task. There is no set number of references required. It is recommended, however, that you independently seek out resources in addition to those provided by the lecturer. 

Marking Guide

Name 


Responses to questions
%
Grade
Qi - describe the two companies that have been researched. Responses should:
  • clearly identify and describe the two companies being researched
  • clearly describe the industries and countries in which these companies operate
  • Clearly describe any social reporting/performance issues that may be relevant for these companies. 
15%

Qii - What differences are evident between the two companies in terms of the range of social, environmental and economic issues dealt with in their reports and the depth of coverage on specific issues? Responses should:
  • compare the style, content and presentation of the social reports provided by each company
  • critically analyse the strengths and weaknesses of the approaches to social reporting evident in the reports
  • comment on the range of issues covered and the depth of the coverage
15%

Qiii - Discuss which of the Sustainable Development Goals you believe are most relevant to these companies, their industries and the countries in which they operate. Discuss the extent to which these SDGs were addressed, explicitly or implicitly, in the CSR/Sustainability reports of your companies:
  • Demonstrate critical thinking and analysis to identify key SDGs and explain why these are particularly relevant to each company
  • Describe the extent to which these SDGs have been addressed (explicitly or implicitly) and the effectiveness of this reporting
15%

Qiv- Assess the apparent quality of the social accounting approach utilized by each company according to Zadek et al.’s (1997) criteria. Responses should:
  • Provide some brief commentary on the extent to which each of the companies does or does not meet the eight criteria identified by Zadek et al (1997) as the key principles of quality of social reporting, as outlined on P. 216 (Crane & Matten, 2010).
  • Identify which key principles are met (and how they are met) by each company’s social reporting 
  • Identify which principles have not been met
15%

Qv - Discuss the extent to which the social reports reflect the values of your selected companies. Responses should:
  • Identify each company’s values (including their Mission Statement, Values, Business Principles etc.) as stated on their websites, reports or in other company documentation
  • Critically analyse each company’s social reports in terms of  the extent to which their stated values align (or do not align) with their approaches to social responsibility and sustainability (based on the evidence in the reports) 

15%

Qvi - Briefly reflect on your groups’ discussions of these companies. In what ways did the ideas presented by your group confirm your own conclusions or present another perspective to you? Responses should:
  • Reflect on the group discussions about the social reporting of the two companies selected
  • Identify key points of agreement and disagreement with other group members
  • Discuss how the different perspectives provided by group members contributed to your own consideration of the performance of these companies
15%

Presentation (expression, structure, referencing, organisation, word count – not including cover sheet and references etc.)
10%

Total
100%



Part B – Application of GVV Framework


In this group task you will work with the same group members as for Assessment 2 - Part A. This task requires your group to consider an ethical dilemma that emerges at a workplace of your choosing. This workplace may be based on one of the companies analysed in Assessment 2 – Part A, another workplace or company with which you are familiar or a fictional workplace developed by your group. As a group, you are required to:

  1. Write a fictional scenario that describes the emergence an ethical/moral dilemma for stakeholders in a workplace of your choosing;
  2. Develop a script in which the central character in this scenario applies the Giving Voice to Values framework to the give voice to his/her values;
  3. Present your script to the class as a role play.

_________________________________________________________________________

  1. Scenario Development

Develop a fictional scenario that outlines the emergence of an ethical dilemma in a workplace of your choosing. This scenario should be written as a narrative piece of writing, similar in format and style to the GVV/Babson scenarios. Your scenario should describe a possible workplace situation that illustrates the emergence of this dilemma as a values conflict for one or more people. It should introduce the key stakeholders & characters, the key facts and the background information that has led to this issue. 

Please discuss your scenario/workplace/ethical dilemma with your lecturer to ensure it is suitable for this task before you proceed with the development of your script. 

Scenario – 25 marks (800 words) 

Due date – Week 11

PLEASE NOTE: The scenario and script are not the same thing.  The scenario introduces the key people, background and outlines the ethical dilemma.  The scenario ends with the ethical dilemma – that is, the central character identifies the dilemma but is not sure on what to do about it. The script starts with the ethical dilemma, demonstrates how the central character applies the GVV framework to address the ethical dilemma to achieve a more ethical outcome for the stakeholders.

1. Script Development 

Your group is required to develop a script in which the central character in your scenario applies the Giving Voice to Values framework in response to the values conflict or ethical dilemma identified in your scenario. Your script should include evidence that you have addressed the following questions:

  • What is the ethical dilemma/values conflict presented in your scenario?
  • Who are the stakeholders and what is at stake for the key parties (including those who disagree with you)?
  • What are the main arguments you are trying to counter? That is, what are the reasons and rationalizations you need to address?
  • What levers/arguments could you use to counter the reasons and rationalisations, to influence those with whom you disagree?
  • What is your most powerful and persuasive response to the reasons and rationalizations you need to address? To whom should the arguments be made? When and in what context?

Script – 50 marks (1500 words) 

Script Presentation to Class

Your group then needs to present this script to the class as a group role play. The presentation of the script should be clear and enable the audience to engage with the issues. All group members must be meaningfully included. Creativity and expression is encouraged.  

Script Presentation to Class – 25 marks (7-10 min. in length)

The group will discuss and debrief their scenario to clarify and gain class feedback.

Groups are then required to nominate one group member to upload both the group’s Scenario and Script as a Word doc or PDF (with the FedUni Business School – Assignment Coversheet attached) via the relevant Turnitin submission links on the course Moodle page. 

Please ensure that the names and student I.D. numbers of each group member is listed on the Assignment Coversheet.

PLEASE NOTE - IMPORTANT:

It is a requirement of this task that students commit to working collaboratively together to develop the three components of this task, with an equal and even contribution from each group member. If, for whatever reasons, a student is unable to provide the required commitment and/or contribution to their group’s progress and completion of this task, the Lecturer may revise the composition of the group. This action may be taken at the discretion of the Lecturer, but should be taken prior to the presentation of the Role Play and submission of the written components of the task. 


Marking Guide

Group
  
Group members

Criteria

Grade
Development of scenario – 25 marks


  1. Provides the reader with a clear description of the workplace, the main characters and stakeholders, the key facts and background information relevant to the ethical dilemma.

10

  1. Clearly identifies the ethical dilemma and values conflict that has emerged for the central character.

5

  1. Clearly identifies the stakeholders and discusses what is at stake for them. 

5

  1. Written as a narrative (similar in style to the Babson scenarios), which uses clear English expression, spelling and grammar. 

5

Total for Scenario
/25

Script for role play – 50 marks


  1. Clearly identifies and addresses the ethical dilemma/values conflict raised in the scenario.

10

  1. Identifies reasons and rationalizations that might be used to justify the questionable business action/practice/issue at the center of the ethical dilemma.

10

  1. The central character is able to effectively give voice to their values by effectively using GVV ‘levers’ to present powerful and persuasive responses to counter the reasons and rationalizations.

10

  1. Demonstrates the most appropriate and most effective use of GVV’s ‘say what, to whom, when and how’ approach. i.e. speaks to the appropriate stakeholders, using a respectful and considered strategic approach, and provides thoughtful (and helpful) suggestions etc. 

10

  1. Achieves a realistic outcome that demonstrates a nuanced understanding of interpersonal and professional communication and relationships, which avoids false dichotomies, ultimatums, stand-offs and contrived resolutions.

10

Total for Script
/50



Script presentation – 25 marks


  1. Script dialogue was presented as a role play, which went beyond simply reading the script. The script dialogue was delivered in an interesting and engaging way, which challenged the audience to engage thoughtfully with the issues presented. 

10

  1. The delivery of the dialogue between the stakeholders reflected a suitable style and tone for the context of the scenes being presented, with the appropriate use of interpersonal communication, expression and non-verbal communication, to present realistic workplace relationships and communications.

5

  1. All group members were included and provided meaningful contributions to the role play. All performers could be easily seen and heard by the audience and were able to respond effectively to questions from the audience.

5

  1. Effective use of time, props and creativity.

5

Total – Role play presentation
/25

TOTAL – Assessment 2 Part B
/100


Answer

BUSINESS, SOCIETY AND THE PLANET

Part A – Business Values Assessment report

Question 3: 

I) Description of the two companies

Two of the organizations are being selected for the detailed study those belong to two different industries. One brand BHP belongs to the mining industry and the other brand belongs to sports apparel and accessories industry. Both of the chosen organizations belong to two different nations the chosen organization BHP has been originated in Australia, and the other one Nike has been originated in the USA. The learner with the aim of assessing a business values assessment report has chosen both the organizations. The major aim of the learner is to know the culture of this business also how values of two different sector’s businesses are different from each other.

The Australian based organization, BHP’s core business is to provide mining services to the government of Australia. The organization has the core responsibility for taking care of the minerals in the land of Australia. The organization is taking responsibility for researching the availability of the minerals in the land also to procure those minerals for the future generation. As per the financial survey, the organization has net income of about US$6.222 billion and has 65,000 employees. The organization is Australia’s one of the largest mining company and third largest company in the size of revenue. The core activity of the business is mining coal, copper, Iron Ore, Petroleum and Potash (BHP Billiton, 2018).

On the other side, the chosen organization is one of the symbolic brands of sports persons, the organization or the brand Nike is supporting the sporting personalities and delivering the message of healthy life. The core business of this brand is to sale sports apparels, accessories, equipment and other services. The USA based largest sporty brand has its net income is of about US$4.24 billion by the end of 2017. Along with this, the organization has about 74,000 employees in all over the world. The organization is the brand ambassador of Sports event, as the brand is always has been promoted by those people who have interest in body fitness or else are related to any of sports events (About Nike, 2018). 

II) Differences between the two companies regarding social reports and depth of coverage on special issues

For any of organization the most influence job is to make such parental efforts for the betterment of the business in the market. As per the core concept of the organization or business every organization is deciding to present their business values positively in front of their customers or viewers so that they can win the trust of their investors as well as other stakeholders (Caiazza, Shimizu & Yoshikawa, 2017). Problems or the challenges are the part of the organization that imposed the organization to set out a better strategic plan for the betterment of the future market. Hamilton & Webster (2015) stated that the challenges are the part of the organizational plan or goals that can be supposed to but in such cases cannot control. The statement has defined that for an organization the riskiest factors are the uncertain situations or condition that can arise at any time in the market, which comprises the growth rate of the organization in the market.

The organization BHP Billiton Plc has faced the challenge of price sliding of iron ore in the market that has provoked the market strength of the organization BHP. Due to this challenge, the organization has faced a drastic loss in the market. The market growth of BHP has been down by 10% as compared to last year growth (BHP Billiton, 2018). On the other side, the organization Nike was facing the drastic situation in the apparel market because the process for Nike’s appeal is higher than the normal appeals (About Nike, 2018). It is true that the brand has made its name as a special brand for sports personalities and people who are being associated with the sports or body fitness. In both the cases, the organizations have made their way to tackle down their challenges or problems in the market. The BHP Billiton has focused on the prices as wells requirement of other core products so that it can cover up the loss that occurs due to price sliding of Iron ore. On the other hand, the brand Nike has focused on its price sections and has reframed the price structure for its products.

III) Explanation of the differences between different aspects

Sustainability is the part of the organization that helps the organization to grow up in the market also gives a chance or opportunity to survive well in the market. This is the reason the organization or a company is looking for such kind of opportunity in the market to maintain its sustainability in the market. In the case of the chosen organization, their demand or else requirements to maintain its sustainability in the market must be different because of the different nature of the business in the market. For the organization BHP Billiton the sustainability would be like securing the natural resources for the future generation, and so that organization should focus more on the wastage of resources in the environment. On the other hand, to maintain the sustainability the Nike has to reduce the use of trees for making sporting clothes. In the context of these suggestions from the perspective of sustainability or CSR, the organization NIKE has made its way and started to make clothes by polyester. The matter polyester is preparing by melting plastics. On the other hand, the organization BHP Billiton has focused on the concept of three R’s that is Reduce, Reuse and Remove. Thus, it has been noticed that both the chosen organizations has made their way to success also to get way to maintain their sustainability in the market. Hansen et al. (2015) added to the discussion that CSR is the best way to maintain the sustainability of the business in the targeted market. This is the reason every organization are now focusing on the concept of CSR and performing some activities beyond of business objectives in the favor of the nature. The statement has highlighted the value of CSR activities for the organization as well as its importance for maintain the growth cycle of the organization in the targeted market. The discussion has even revealed that either the selected two of the organizations are different in nature, but their common objective is to secure the nature or environment and for that the management is performing activities as how they want to perform.

IV) Explanation of social accounting approach by Zedak et al. (1997)

As discussed in the above section, it has been articulated that the chosen organizations have made their own way to maintain its social accounting approach in the targeted market or else to promote their CSR activities. As per the point of view of organizational growth with the help of CSR activities, both the organizations have well maintained the eight criteria of Zedak et al. (1997).

Criteria
BHP Billiton
Nike
Inclusivity 
The organization has focused on the waste of the natural resources or man-made resources by the human beings, and hence they have launched the program of reuse of waste materials.
The organization has targeted the waste plastics in the market and had tried to make new material by melting the plastic named Polyester for manufacturing clothes; the benefit is it soaks sweat faster than cotton clothes.
Comparability 
The BHP Billiton has focused on the government reports about at which rate the organizations are demanding for the raw materials like aluminium and Iron ore for producing finished goods.
On the hand, the brand Nike has focused on the demand for the kind of products in the market. For example, shoes are the high rated sold product of this brand.
Completeness
The organization has not set al the criteria because future is not certain and the organization was not sure about the future.
As per the nature of the business, the future market of the business is unstable, and hence it was quite difficult for the organization to meet these criteria.
Evolution 
The organization has made an evaluation and has started to promote the ad of saving the earth-saving the resources. 
The organization has made an evaluation and has included Para Olympic players in the promotional activities to spread the complete message of the brand.
Management Policies and Systems
The organization has well focused on the labour cost and worthy production
The organization has focused on the market research to get feedback from the customers
Disclosure
The organization has disclosed the terms regarding health and safety of the employees at the workplace
The organization has disclosed its pricing strategy as per the demand of the commodity in the market
External Verification
The organization has got the certification of ISO 14000 and 9001 for quality assurance
The organization has certified by even ISO 9001 for quality production of clothes and other products
Continuous Improvement
The organization has focused on its mission and vision statement for continuous growth.
The brand has focused on the objectives of the business for continuous improvement.

Table 1: Eight Criteria of Zedak et al. (1997)

(Source: Gray et al., 1997)

V)  Reflection of stated value from the social reports

As discussed in the above section, the social reports have presented positive aspects of both the organizations in the market. It has been seen that the organizations are trying to increase their market share in the form of environmental growth. For that, the organizations are focusing on the CSR activities. The external reports or the social reports have stated that both the organizations are different from each other also their core products and services are different from each other, but their motive was same as well as common. Both the organization has the common goal of securing the resources of nature by reusing the waste in the environment. In the fact of this, the organization BHP Billiton has been focused on the reuse of materials and Nike has introduced new kind of matter for producing sports clothes. The social reports of both the organizations have reflected that for an organization CSR is an important task also if the organization has decided to stay awake in the market then the organization is needed to perform more CSR activities in the market. It will help the organization to get positive support from the government and the public.

VI)  Reflection on group discussion on these companies

It was a nice and fruitful experience for me while working with others in a group. As a group, we got the chance to read about two giant organisations BHP Billiton and Nike. The chosen organisations are world’s giant as well as largest market leader organisation those have a high rate of market share in the global market. We have decided to divide our tasks for collecting relevant data in the context to the chosen two of the brands. The result was positive for us, and we have been able to follow the fact that working in a team can be possible if there is a positive understanding among the team members (Mone & London, 2018). We are four in numbers in the group, and hence we have divided the tasks of data collection as per the requirement of the job. We made a group of two and searched information about the chosen organisations. All the members have stated their personal views regarding the overall presentation about how the information could be gathered at one place. Personally, I have been even going to official websites of the chosen organisation to get relevant data to make the entire study reliable for the reader. Rest of team members has gone through by various online articles and other related journals that has helped us to gather enough data for concluding our study. Before the final submission of the report, we all have gone through by the possible factors of the presentation of the data, and the references so that there should be no fake data would be added in the list of references.



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