2. A bit about me
• Was living in green, leafy Paddington
• Frog pond
• Solar panels
• Natural cooling experiments in house.
3. A coal company?!?
• Rape and pillage the earth
• Profits at any cost
• Promote greenhouse gases
• Destroy the Great Barrier Reef.
4. QCoal
• Exploration and mining company
• 100% privately owned Queensland company
• Broad mix: 40 staff, more than 50% female, 6
different nationalities
• Want 20 million tonnes by 2020 (BHP = 50mtpa)
• 300 coal shiploads exported.
13. Collinsville example
• 14 apprentices
• University scholarships
• Ambulance service
• Road upgrades
• Skate park
• Basketball court
• Swimming pool
• Leisure centre
• School supplies.
14. We can’t do it!
• Shareholders expect a return!
• It’s not fair!
• Productivity is shot!
• We already pay so much!!
15. But it must be done….
• Industry benefits from society
• Social responsibility has proven to be successful.
16. Why do people hate big
businesses?
• Huge pay for CEOs
17. Why do people hate big
businesses?
• Don’t care about society
18. Why do people hate big
businesses?
• Often foreign owned
19. Why do people hate big
businesses?
• Price increases even when huge profits.
20. What about the small
businesses?
• Typically not monstrous profits
• Highly engaged with community
• Employ locals from community
• Locally owned.
22. Good news story
• Local Industry Participation Plans
• Maximise employment growth
• Maximise business growth
• Provide agencies and GOCs access to capable local
industry
• Support regional development
• Develop long-term international competitiveness
• etc.
23. Queensland Resources
Council
• Local Industry Participation Code of Practice
• Provide full, fair and reasonable opportunity to
capable local industry to compete for the
supply of goods and services in significant
projects.
24. Why was this done?
• Resource industry wants local suppliers
• Local industry spread burden across region
• Politically palatable to buy locally.
25. Bad news story
• How CSG has developed into an issue…
Aggrieved land holders
+ Outraged environmentalists
+ A scary story
= General Widespread Discontent.
27. Points to ponder
• Was QGC driven to exploit for profit or to further
the greater good?
• Are they giving with the left hand and taking with
the right?
• How did QGC get permission that others couldn’t?
• What can QGC do?.
28. Balancing the ledger
• It’s not always the company’s fault
• Sometimes reality is distorted by media
• Sometimes emotion overtakes facts.
29. Second case study:
Coral Creek, Collinsville
http://www.abc.net.au/7.30/content/2014/s399459
6.htm
30. Coral Creek, Collinsville
• Scientist not admitted to court; not licenced
• Garry’s not a farmer – lives on 30 hectares
• Owned land only since the 1960’s
• Doesn’t have a water licence for Coral Creek
• Didn’t even film on the creek
• Approved by former Labor government
• Didn’t explain the approval process.
31. Summary
• Social responsibility is a cornerstone to
modern companies
• It’s not always done well
• Is it better than legislation?.
Editor's Notes
NEXT: A bit about me
SAY:
What you will learn tonight:
-A little bit about me
- Background on coal
- Reality of social responsibility
- We’ll explore a good news story
- A bad news story
- How perceptions shape opinion
- Where does that leave Corporate Social Responsibility
- What’s next?
At Griffith 17 years ago
Graduated, had business career
Amazing how many networks you make over a few years of work
SLIDE
NEXT: A coal company?!?!?
SAY:
Was leading a happy life
Running family software company
Continue my own crusade to save the world one light bulb at a time
SLIDE x 4
NEXT: QCoal
SAY:
Fortunately for me, in life, it’s not what you know…
Man I knew asked me for a meeting
He knew I networked a bit… asked if I wanted a job
First reactions
Going to show tonight that there are two sides to every story
People might all believe they’re doing the right thing
SLIDES x 3
Had a chat
NEXT: Coal Industry (low coal prices)
Slides x 5
SAY:
Steep learning curve!
Had to learn:
- Grades of coal
- Uses of coal
- What is coking coal
- Where does coal go?
NEXT: Coal Industry – High Australian dollar
SLIDES speak to each
Say:
Supply and demand for exports are what drives coal prices
QLD has record shipments and terrible pricing
NEXT: Coal Industry – Royalty increases
SLIDES speak to each
Say:
- How does the exchange rate effect exports?
Can the industry control its destiny?
NEXT: Coal Industry – High Labour costs
SLIDES speak to each
Say:
Govt needs more revenue
Coal royalties are an easy target
Will it be in the Strong Choices campaign?
NEXT: Coal Industry – Global uncertainty
SLIDES speak to each
Say:
In the boom, people could earn a million dollars quickly
Now, there’s compensation for living away but no extremes
NEXT: Coal Industry – mine closures
SLIDES speak to each
Say:
Not bearish, not bullish
What’s happening?
Chinese steel prices
NEXT: What does this mean?
SLIDES speak to each
Say:
Layoffs – 12,000 last year
BHP, for example, has realised “coal at any cost” won’t work
NEXT: Outcomes
SAY:
Xstrata losses
Peabody losses
Rio Tinto restructures
BMA closures
More reductions and losses to come
Have you guessed?
SLIDE x 1
Coal, in Qld, is in trouble!!
NEXT: Collinsville example
SAY:
What does this mean:
for companies?
More redundancies and constrictions
- For Queensland?
Less coal revenue, must seek alternates or cut costs
Most importantly, for local communities?
Loss of amenity
SLIDE x 1
NEXT: We can’t do it
SAY:
Talk about Collinsville’s history, location, demographic
What has mining done for Collinsville?
The small town has received:
SLIDES x 9
Now with all that, and considering the problems the mining companies have, what might they say?
NEXT: But it must be done!
SAY:
Mining companies are typically large, public companies
Why do they say they can’t do it?
SLIDES x 4
So, what’s the outcome??
SLIDE
NEXT: Why do people hate big business? CEO pay
SAY:
Is social responsibility a right, responsibility or duty of a corporation?
Or can it be excused?
SLIDES x 2
NEXT: Why do people hate big business? (don’t care about society)
SAY:
Australians don’t like unfairness
SLIDE
NEXT: Why do people hate big business? Foreign ownership
SAY:
Rape and pillage the environment
They don’t care!
SLIDE
NEXT: Why do people hate big business? Price increases even when huge profits
What’s wrong with foreign owned?
SLIDE
NEXT: What about small business
SAY:
PART 2 and that starts with some audience participation
First question for the audience:
Why are large companies thought of as the devil?
SLIDES x 4
Anything more? Important note – they have so much impact on our daily lives!
SLIDE
NEXT: Social responsibility
SAY:
Why are small businesses thought of differently?
Are they more personal?
Do we care more about things when we are emotionally connected?
OF COURSE!
Audience question number 2: What are some factors about small businesses that we, as society, like?
Probably fair to say that most large businesses would like to be perceived with the goodwill we have for small businesses, because it makes them look better!
SLIDES x 4
NEXT: Good news story
SAY:
How do companies participate in society as responsible entities?
So, what makes companies responsible?
Caring for environment?
Caring for workers?
Caring for community?
SLIDES x 2
NEXT: QRC
SLIDE x 1
SAY:
History of LIPP (policy to legislation)
What is the LIPP all about?
SLIDES
Andrew Fraser’s mandate to change the way LIPP’s would be used
Huge onus on companies.
The template alone was 22 pages
to complete a LIP Plan might have taken 3 months
Obviously not sustainable or worthwhile
NEXT: Why was this done?
SLIDE x 1
SAY:
History of the Local Industry Participation Code
Process of forming the code
Terms of reference
Now voluntary
Question for the audience: Out of interest – What is local?
SLIDE x 1
Introduced in March 2013
Developed a guide
Had to make it as easy as possible so all companies would use it
Had to get ownership and buyin from the industry
So successful might be rolled out across different industries
NEXT: Bad news story
SAY:
Was it a PR exercise?
I think it was:
SLIDES x 3
So there’s a GOOD story or industry being responsible to society.
What happens when it goes wrong?
NEXT: Why was this done?
SLIDE x 1
SAY: CSG intro
- banned in NSW
- cheap source of gas in QLD for export and domestic supply
- massive investment (tens of billions of dollars)
- some people say it kept Australia out of recession, but that’s another argument
SLIDES x 4
NEXT: Points to ponder
SAY:
You’re about to watch a segment from 4 Corners
Journalist has his own slant
Keep an open mind and watch the whole thing
For this segment there are 2 key, emotional points to note:
SLIDES
NEXT: Summary
SLIDE
SAY:
- Why are they wanting to extract gas?
SLIDE
SAY:
- They build roads, put in new fences, give lots to the local community
- Story didn’t show the land holders who like having CSG wells
SLIDE
SAY:
Are companies favoured over land holders?
Is the government not being socially responsible?
SLIDE
SAY:
- They are in a real pickle.
- All CSG companies have a task ahead of them
- Can the industry ever be seen as a golden child? Look at oil in the United Arab Emirates!
NEXT: Second case study: Coral Creek
SLIDE
SAY:
- What happens when the company tries hard to satisfy the majority?
SLIDE
SAY:
- Certain journalists have certain persuasions. Sometimes it’s just their beliefs and lack of exposure –
- Journalists are only human
SLIDE
SAY:
The truth can be the casualty
People have to ask the right questions
NEXT: Correcting the errors
SLIDE
* Social responsibility relies a lot on REPUTATION
NEXT: Summary
SLIDE
Talk to slides
Point is – if you saw that show without the surrounding evidence you might judge QCoal as a poor corporate citizen
SLIDE
SAY:
- A SR company supports local communities and the state in general
SLIDE
SAY:
Maybe they need to build it into their original business plans
SLIDE
SAY:
- If they WANT to do it, it’s more likely to be done well.
