Sustainable Development Sample Paper.

Majority of corporations around the globe are struggling with new roles, one of them
being able to meet the needs of the current generation without compromising the possibility of
the next generations to meet their needs. Companies are being called upon to take full
responsibility for the manner in which their operations affect societies and the natural
environment. Additionally, they are being asked to employ sustainability principles in the
manner in which they conduct their businesses. Sustainability, refers to a company’s activities,
typically considered voluntary, that tend to demonstrate the inclusion of social environmental
concerns in business undertakings and in interactions with other stakeholders (Whittemore and
Forgey, 2014). Sustainable Development Sample Paper. It is no longer acceptable for a business entity to experience economic prosperity
in isolation from people or agents impacted by its actions. A company must focus its attention on
both increasing its bottom line while being a good citizen at the same time. Sustainable development as well as corporate social responsibility is an area of concern today.  Sustainable Development Sample Paper.This paper
critically evaluates BP Global Limited and Westpac Bank commitments to corporate social
responsibility (CSR) and/or sustainable development as disclosed in annual reports/sustainable
development reports of both companies.

ORDER A CUSTOM-WRITTEN, PLAGIARISM-FREE PAPER HERE
Sustainable Development of BP Global
BP is regarded as one of the world’s leading integrated oil and gas companies based on
aspects such as production, reserves, and market capitalization (BP Annual Report, 2015). BP
strives to be a world-class operator, a responsible corporate citizen and a good employer with a
belief that it has to play a positive role in meeting growing energy demands around the globe.
BP’s group chief executive, Bob Dudley recently said, “A business that aims to be sustainable
has to order its priorities accordingly. It has to make safety its top priority. It has to earn and maintain the support of society. And it has to take action to help safeguard the environment for
future generations. So issues of sustainability are vital for the future of our business.” (BP Plc, 2016).
As indicated above, BP Global is one of the companies around the globe that promote
Corporate Social Responsibility (CSR) or Sustainable Development. After the explosion of the
Deepwater Horizon and the Texas City Refinery explosion that killed and injured many workers,
BP Global faced a lot of criticisms hence the need to better its CSR initiatives (BP Plc, 2016).
Today, BP is operating responsibly. BP works to avoid, reduce and mitigate environmental
impacts in areas where it carries out its operations. The company has lately stated that it
strategically reviews key environmental issues such as air quality, greenhouse gas emissions,
water use and other sensitive areas in the environment (BP Plc Sustainability Case Study, 2010).
The need to protect the environment has made BP to manage its emissions through
energy efficiency, reductions in flaring, methane management and design of new projects. In
addition, the company is better equipped on oil spill preparedness and response as it regularly
conducts oil spill exercises, incorporating learning for oil preparedness, and use of technology
among others. Moreover, BP recognizes the importance of managing fresh water use and water
discharges in its operations (BP Annual Report, 2015).
On social grounds, BP acknowledge that its operations can bring about major changes to
communities and societies, hence impacting people’s health, culture, livelihoods, and wellbeing.
For this reason, BP works closely with communities throughout the life cycle of its operations
and projects while developing plans to manage any related impacts that may occur. All these
activities have bared fruits for BP Global. Scholars such as Van de Velde, Vermeir and Corten (2005) believe that social and environmental performance goes hand in hand with financial
performance of companies and at BP, the same is true.
Links between social and environmental performance to financial performance of BP
Global
A broad range of corporate stakeholders such as consumers, shareholders, potential
investors, creditors, regulators, employees and the general public have regarded social and
environmental performance as being important on firm’s financial performance (Lopez et al.,
2007; Cottrell, 2003). For instance, from an investment point of view, shareholder values are
affected when companies pay billions of dollars in fines, clean-up fees, and court costs aimed at
keeping corporate officers out of jail among others. Social and environmental performances of
companies are bound to reduce risks, minimize wastage, improve relations with regulators,
generate brand equity and lower the cost of capital (Whittemore and Forgey, 2014).
Environmental performance of BP has impacted its financial performance in some ways.
For instance, in 1997, BP took a stand on climate change following the scientific evidence
behind IPCC forecasts while acknowledging the importance of reducing greenhouse emissions.

ORDER A CUSTOM-WRITTEN, PLAGIARISM-FREE PAPER HERE
BP immediately imposed a firm stand on greenhouse gas emissions and recently, BP claimed
that such a move has not only cost nothing but has in fact increased its net income by over $600
million. BP has proactively avoided conflicts with the society over environmental issues which
would have cost them a lot. By reducing pollution to the environment, BP made enormous
profits. In some cases, costs that were saved by ending pollution turned out to be opportunity
costs. For instance, BP was flaring natural gases which accounts showed it as a cost but in the
real sense, they were revenues foregone since this gas could be collected and sold (BP Annual
Report, 2015).Apart from environmental performance, scholars have argued that there are close links
between the social conduct on firms on its financial performance. When corporate and social
interests are not aligned, a firm’s financial performance may be affected in a negative manner.
Conflicts between corporations and the society may in the long run affect the financial
performance of such corporations. At BP Global, social performance of the company is highly
practiced through community engagements, listening and responding to community grievances,
and providing direct employment to locals among others (BP Annual Report, 2015).
As evident, social and environmental performance of companies are to some extent
linked to financial performance. At BP, taking the interests of the locals and the workforce in
addition to protecting the environment has seen the firm increased its profit margins in the recent
years. In other words, Corporate Social Responsibility (CSR) or sustainable development is
greatly linked to profitability.
Corporate Social Responsibility (CSR) and/or Sustainable Development of Westpac Bank
As indicated earlier, the interest in CSR or sustainable development is continuing to
increase worldwide with different companies employing different approaches into achieving
them.  Sustainable Development Sample Paper.Apart from the energy sector such as BP Global, the banking sector is also undertaking or
implementing voluntary initiatives aimed at reducing its negative impacts on the society and the
environment at large. Of the world’s 250 largest companies, 93% do publish corporate
sustainability reports (GreenBiz, 2013). One of them is Westpac Bank which recently released its
annual report on sustainability issues. Westpac sustainability performance attracted external
recognition to the extent of being ranked as the world’s most sustainable bank the 2015 Dow
Jones Sustainability Index Report (Lopez et al., 2007). Westpac Bank is one of the most profitable companies with recent performance summary
showing that in 2015 alone, the firm cash earnings stood at $7,820 million which represents a 3%
increase from the previous year. Its statutory net profits increased by 6% from 2015 to more than
$8,012 million. Such impressive figures have not been realized by luck. Sustainable Development Sample Paper. Westpac Bank approach to sustainability has seen the group realize such impressive returns. In practice, the Westpac
Bank focuses on anticipating and responding to the most pressing issues that they believe will
have a material impact on its employees, customers, shareholders and the community in which it
operates (Westpac Group Annual Report, 2015).
Westpac sustainability principles include the involvement of all stakeholders in
developing its strategy. In other words, the company practices inclusivity by collaborating with
key stakeholders. Secondly, Westpac evaluates all issues identified for purposes of determining
the impact they may have on its stakeholders and its operations. Finally, Westpac ensures
responsiveness in its operations by making sure that its decisions, actions and performance as
well as communication with stakeholders are timely and responsive to some of the issues that
have been identified (Westpac Group Annual Report, 2015). At Westpac for instance,
environmental and social concerns are highly emphasized. For instance, Westpac Bank has
shown concern for the environment by reducing paper consumption from 5,762 tonnes in 2013 to
4, 857 tonnes in 2015. According to Westpac Group Annual Report (2015), on social grounds or
performance, Westpac Bank offers financial assistance to students.  Sustainable Development Sample Paper.In 2010, for instance,
Westpac sponsored 42, 109 students with such figures increasing up to 60, 342 by 2015.
Westpac is an Australian based institution that has embraced social concerns including
recruiting Aboriginal and Torres Strait Islander people and increasing leadership among women.
The company has gone ahead and invested in clean tech and environmental services sector by lending more than $6.1 billion for such an exercise.  Sustainable Development Sample Paper.In addition, the bank has met all direct
environmental footprint targets in addition to being committed to a number of initiatives such as
CDP Road to Paris program among others (Australia Banking, 2015). Sustainable Development Sample Paper.
Relations between social and environmental performance and financial performance of
Westpac Bank
As mentioned earlier in the report, a growing body of evidence suggests that there is a
positive relationship between improved environmental and social corporate performance and
financial performance (Khanifar et al., 2012). It is argued that environmental concerns are one of
the most pressing issues for business entities today. Several leading banks such as Westpac have
been at the forefront in initiating the United Nations Environmental Programme for Financial
Initiatives (UNEPFI) whose chief mandate is to advocate for environmental initiatives of banks. Sustainable Development Sample Paper.
Even though banks are not environmental pollutants as such, some of their activities can at times
destroy the environment. Westpac has embraced environmental initiatives by reducing its own
waste. Recycling bins can be found in all its branches hence enabling the customers to recycle
their bank statements. Additionally, Westpac uses paperless or online eStatements to serve more
than 280,000 customers. Westpac estimates that such mechanisms have had impacts on its
financial returns. Initially, Westpac was using nearly 60 tonnes of paper or around 740 trees per
year. Sustainable Development Sample Paper. By embracing the aforementioned policies, Westpac seems to have reduced its expenses
while increasing its profitability margins (Westpac Banking, 2015).
Being socially responsible means taking steps that make a positive contribution to the
community. According to a report by Australia Banking (2015), Westpac has in the past and
even today made social or community involvement part of its organizational culture. Westpac's involvement in community initiatives is made up of a number of different elements. Employee
participation, through its volunteering program, is crucial to the program. The causes and events
that are supported are widespread. Social performance of Westpac has impacted its financial
performance in a significant manner. Westpac has formed partnerships with majority of other
firms in Australia to undertake social responsibilities that end up benefiting a lot of people. By so
doing the firm has been able to market itself in a very competitive market hence boosting or
increasing its profitability margins. Sustainable Development Sample Paper.

Conclusion

It is argued that sustainability and corporate social responsibility are more than just buzz
words uttered by most people. In the real sense, they describe the ever increasing important
movement that connects businesses with the larger society. Companies are judged by their
actions. Sustainable Development Sample Paper. Respect for the broader community and the environment is a step that all business
entities must follow in playing their part while showing concern for the common good. Business
entities that fail to implement such measures risk losing the respect of their stakeholders and
ultimately, their profits will suffer. Caring or keeping the stakeholders interest at heart in
addition to showing concerns for the environment is not only good for the society and the natural
world at large, but also good for businesses. BP’s Global Limited and Westpac’s sustainability
philosophies in addition to its initiatives have enhanced their prosperity and those of the broader
community making everybody a winner. Sustainable Development Sample Paper.

ORDER A CUSTOM-WRITTEN, PLAGIARISM-FREE PAPER HERE

References

AUSTRALIA BANKING. (2015). Acquisdata Industry SnapShots: Australia Banking, (3442),
1-81.
BP Annual Report (2015). BP Annual Report and Form 20-F, St James’s Square
London SW1Y 4PD UK, 1-266.
BP Plc. (2016). BP Plc MarketLine Company Profile, 1-49.
BP Plc Sustainability Case Study (2010). How is BP responding to the challenges of
sustainability? BP Plc Sustainability Case Study, 1-70.
Cottrell, S. P. (2003). Influence of sociodemographics and environmental attitude on general
responsible environmental behavior among recreational boaters, Environment and
Behaviour, 33, pp. 347-375.
GreenBiz (2013). Survey reveals a surge in corporate sustainability reporting. Sustainable
Business. Retrieved from: http://www.greenbiz.com/blog/2013/12/11/survey-reveals-
surge-corporate-sustainability-reporting (Accessed 7th of September 2016). Sustainable Development Sample Paper.
Khanifar, H., Nazari, K., Emami, M., & Soltani, H. A. (2012). Impacts corporate social
responsibility activities on company financial performance. Interdisciplinary journal of
contemporary research in business, 3 (9), 583-592.
López, M., Garcia, A., & Rodriguez, L. (2007). Sustainable Development and Corporate
Performance: A Study Based on the Dow Jones Sustainability Index. Journal of
Business Ethics, 75(3), 285-300.
Van de Velde, E., Vermeir, W., & Corten, F. (2005). Corporate social responsibility and
financial performance. Corporate Governance: The international journal of business in
society, 5(3), 129–138. Westpac Banking, C. (2015). Westpac Banking Corporation Releases Its 2015 Annual Review
and Sustainability Report, and 2015 Annual Report. Business Wire (English).
Whittemore, A. H., & Forgey, F. A. (2014). Where Is What Called Sustainability? A Survey of
Policies Ostensibly and Explicitly Linked to Sustainability in the United States.
Planning Practice & Research, 29(4), 405-425. Sustainable Development Sample Paper.