Commlaw 2502 Legal Aspects Of Assessment Answer


  • The industry the company operates in
  • Number of staff in Australia
  • Number of staff globally
  • Location of global headquarters
2. Identify any regulatory framework/s affecting the multinational company you have identified operating in Australia and discuss why and how it affects the company. For example, multinational corporations, like local companies, are subject to 30 per cent corporate tax.
3. Identify any treaties, conventions or agreements that have impacted on the products or services that multinational company provides in Australia. How does it impact the goods/services?
Answers

1. On 13th August 1985, the Broken Hill Propriety Company Limited was formed, and this company comes into existence after the merger of two companies that was BHP and Billiton. (BHPBilliton, n.d.).

  • Industry in which company operates- this company conducts its operations in metal and mining industry, and as per experts this industry is the largest industry in the world which involves 700 companies in the process of exploration of minerals. Companies like BHP Billiton and Rio Tinto are the biggest diversified resources companies in the world in this industry. Successful future of this industry was represented by these companies for leaders and junior miners. Metal and mining industry depends on equity markets for capital and funds related to various projects (ASX, n.d.).
  • Number of staff in Australia- in Australia Company employed 26827 employees in 2016, and employees of subsidiary companies which are directly under the control of BHP Billiton are also included in this number (IBIS, 2016).
  • Numbers of staff globally- almost 80368 employees are employed by BHP Billiton at global level, and the main of company is to create environment for talented people so that they can achieve their target (Forbes, 2016). As per the policy of the company harmonious workplace delivers more productivity, and company also believes that factors like high motivation level and diversified workforce contributes more in success.
  • Location of Global Headquarters of company-in Melbourne of Australia, headquarter of BHP Billiton is situated, and the original headquarter of BHP was situated few blocks away at 121 Collins Street West in 1885 (BHP, n.d.).

2. There is important act for companies related to environment that is Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act). This is the national environment law of Australia which states that person committed an offence if they done any action which adversely affects the matter protected by Act, unless person gets the approval of the Australian environment minister. Matters protected by act are the matters related to national environmental protection and also of Commonwealth land. Following eight matters are protected by the EPBC Act are properties related to world heritage, places of national heritage, wetlands of international importance stated under Ramsar Convention, species of migratory nature which are protected under international agreements, and actions related to nuclear power which also includes uranium mines.

This Act also applicable on those actions which affect the environment on Commonwealth land, it also affects the actions taken by government of Australia and government agencies of Australia which directly affect the environment (department of Environment and Energy, n.d.).

How does this Act work- This Act stated that if any person planning to take any action which significantly affects the environment then it is necessary that person take approval related to their project from the minister of environmental protection in Australia. In case approval required from minister fall under EPBC Act then minister provided approval only after assessing the effect of project through transparent process conducted by the Department of the Environment on the water, Heritage and the Arts, or a state, territory or other Australian Government process accredited by the Australian environment minister. For granting the protection to the environment of Australia, Local government play important role and this Act does not impose any responsibilities on employees and contractors of local government.

This Act directly affects the working of BHP Billiton because company operates in mining industry and it is necessary for company to access the affect of its projects on environment, and before commencing any projects, company must take approval of the minister of environment protection.

3. RAMSAR Convention- Convention ratified by Australia is known as Ramsar convention, and this agreement is considered as intergovernmental treaty which provides the framework related to national action as well as corporation provided by international organizations for the purpose of conserving the wise use of wetlands and their resources (Ramsar, n.d.).

BASEL Convention- BASEL convention states the matter related to transboundary movements of hazardous wastes and their disposals, and it is an international treaty, and the main aim of this treaty is to reduce the movements of hazardous waste between the nations especially for the purpose of preventing the transfer of waste from developed to less developed nations. However, tis treaty does not include the transfer of radioactive waste. This treaty mainly aims to reduce the amount of toxicity of wastes generated.  

These conventions do not directly affect the products and services provided by the company but in indirect way it affects the products and services.

BHP Billiton is engaged in mining industry and exploration and extraction of minerals can cause number of damages to the environment. Therefore, it is necessary that mining companies comply with the obligations related to environment protection stated in this ACT. From following ways companies can protect the environment such as by complying with the obligations at sites and must take approval before conducting any project (Environmental management in Mining, n.d.).

In 1994, meeting was conducted at the International Association of Impact Assessment (IAIA), and this meeting was attended by representatives from the World Bank, the United Nations Environment Programme (UNEP) and other agencies at international level. In this meeting, it was asked by Australia for taking the lead for the purpose of showing examples in best practices related to environment by mining industry (Garner, n.d.).

These treaties and international meetings directly affect the products and services of BHP Billiton because as per the obligations it is necessary that company take permission before conducting any project related to mining. Such treaties imposed some duties on company towards environment such as before initiating operations company is liable to pay amount in the form of security deposit to the department which directly affects the cost of project. Many other effects are there which not only increase the obligations of company but also affect the cost of the projects. But benefits of these treaties are more as compared to obligations such as it increase the effectiveness and reputation of company. It also safeguards the environment and help the company to fulfill their social responsibility. 

References:

ASX. Metals & Mining Sector Profile. Available at: https://www.asx.com.au/documents/products/asx-metals-and-mining-sector-profile.PDF. Accessed on 14th April 2017.

BhpBilliton. Our history. Available at: https://www.bhpbilliton.com/our-approach/our-history. Accessed on 14th April 2017.

IBIS. BHP Billiton Limited - Premium Company Report Australia. Available at: https://www.ibisworld.com.au/australian-company-research-reports/mining/bhp-billiton-limited-company.html. Accessed on 14th April 2017.

Forbes, (2016). #455 BHP Billiton. Available at: https://www.forbes.com/companies/bhp-billiton/. Accessed on 14th April 2017.

BHPBilliton, (2013). BHP Billiton Opens New Global Head Office. Available at: https://www.bhpbilliton.com/media-and-insights/news-releases/2013/11/bhp-billiton-opens-new-global-head-office. Accessed on 14th April 2017.

Deparrtment of the Environment ad energy. Local government and Australian environment law. Available at: https://www.environment.gov.au/resource/local-government-and-australian-environment-law. Accessed on 14th April 2017.

Ramsar. ABOUT RAMSAR. Available at: https://www.ramsar.org/. Accessed on 14th April 2017.

Environmental management in mining. Overview of best practice in environment management in mining. Avaialble at: https://www.google.co.in/url?sa=t&rct=j&q=&edata-src=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUKEwjYtpyss63TAhUVUI8KHa5mC6IQFgghMAA&url=http%3A%2F%2Fwww.apho.org.uk%2Fresource%2Fview.aspx%3FRID%3D93778&usg=AFQjCNH5ibJ8aNh2Rj94W0BviWBuEMQ6yQ. Accessed on 14th April 2017.

Garner, L. E. International treaties governing mineral exploration. Environmental and engineering geology, volume 3


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