BAE Business Report on

CSR Limited
Student Name: Ly Hoang Thanh (Rai)
Student Number: 33242
Teachers' Names: Ei!abeth "iiams and #nea Hurde
$ourse Name: %#E &'
(ue (ate: 23th )anuary* 2+&4
"ord $ount: &2,-
TABLE OF CONTENTS
E.ecuti/e Summary &
& 0ntroduction 2
2 $SR imited com1any and Ethica in/estment 3
22& En/ironmenta ethics 4
222 $SR imited and en/ironment issues '
223 3ro4itabiity anaysis o4 $SR imited '
32 Recommendation -
Re4erences
Executive summary
This document is 1roduced 4or cient interested in ethica in/esting in $SR
Limited2 "e 1ro/ide them an o/er/ie5 o4 a business 1er4ormance and ad/ice in terms
o4 ethica in/esting2 0t demonstrates the ethica issues and the 4inancia situation o4 a
eading buiding 1roducts com1any in #ustraia and Ne5 6eaand2 # iterature search
and an anaysis data method are used to e/auate the ethica business o4 $SR imited
com1any that in/o/es the 1oution o4 3arramatta ri/er and re/enue* gro5th rate and
saes2 #4ter the e/iroment issues * $SR imited has changed the 1oicy 5hich cosiders
in sustainabe gro5 and cares much about e/ironmenta ethics2 Ho5e/er* 5ith the
do5n5ard trend in 1ro4it in recent years* es1eciay oss 7&4' #8( miions in 2+&3*
this re1ort recommnend that $SR com1any is not a good o1tion 4or in/estors2
1
Introduction
The 1ur1ose o4 this document is to e/auate $SR imited com1any 5hether
they concern in ethica issues* s1eci4iay in e/ironmenta issues* in business and
1ro4itabiity situation2 0t shoud be considered that the re1ort imits its research to ony
t5o as1ects o4 $RS 5hich are en/ironment issues and the 1ro4itabiity history a4ter this
1ro1em2
Ethica in/esting or ethica business are the essentia criterias that the in/estors
consider care4uy no5adays in modern business so* a critia e/auation be4ore
im1ement is e.tremey neccessary2 Ethica in/esting aso can be caed socia
res1onsibiy in/esting 5hich 9 has been broady identi4ied as the in/estment decisions
that are based on e/ironmenta* socia and go/ermance standards9 (:ung* H;* La5*
S# < =au* ) 2+&+* 124)2 #s an in/estor* a1art 4rom strict anaysis o4 4inancia
1er4ormance* they shoud concern conse>uences o4 in/estments* both?side e44ects on
society and e/ironment (:ung* La5 < =au 2+&+* 124)2
$SR Limited is an #ustraian 1ubic com1any that mainy generates re/enue
4rom manu4acturing and su11ying buiding 1roducts and auminium2 The
head>uartered o4 com1any is ocated in Sydney and em1oys more than 3*',+
em1oyees across its o1erations in #ustraia* Ne5 6eaand and #sia2 $SR is isted on
the #ustraian Securities E.change* under the code $SR2 "ith the ran@ is number
22A out o4 the to1 2+++ com1anies in #ustraia* the maBority o4 income o4 the
com1any is generated 4rom the Non?Cetaic Cinera 3roduct Canu4acturing in
#ustraia industry2
32
2
#4ter 1ro/iding the some reasons 4or ethica in/esting* this re1ort 5i 5eigh
$RS imitd base on t5o as1ect: ethica issues and 1ro4itabiity situation2 :inay* #
suggestion 5i be made to the cient 5ho interesting in ethica criteria consider
in/esting in2
2. CSR imited company and Et!ica investment
2." Environmenta et!ics
En/ironmenta ethics are one o4 t5o main as1ects concerned 4or e/auating
$SR imited in this re1ort2 #ccording to Deer (2+&+* 123)* en/ironmenta ethics
in/o/es the im1act o4 both human beha/ior and natura nonhuman 4eatures on
ecoogica systems2 Harris (2+&2) aso meantions about en/ironmenta Bustice that by
generating the bene4it o4 1eo1e* 1er4omance o4 industry resuts in 1outing in/iroment2

2.2 CSR imited and environment issues
0n 2++,* $SR %uiding 3roducts caused a s1i in Ne5 South "aes o4 3*2'+
itres o4 a ha!ardous chemica 4rom tan@* causing serious 1oution to the 3arramatta
Ri/er* a44ecting the 5ater5ay 4or 22' @m2 $SR 5as ordered to 1ay more than 743+*+++
in 1enaties2 (Raynods* 2+&&)
Cartin $oe* $SR s1o@esman* aso admits that The Land and En/ironment
$ourt o4 Ne5 South "aes Budged $SR %uiding 3roducts Limited ($SR) a 5hoy
o5ned subsidiary o4 $SR Limited guity o4 an o44ence against the 3rotection o4 the
En/ironment E1erations #ct &AAF* s1eci4icay* it is res1onsibe 4or the 1oution o4 the
3arramatta Ri/er bet5een the Rydamere :erry "har4 and the $ameia Rai %ridge at
$ameia ($SR Ne5s Reeases 2++,* 1aras &)2
%ecause o4 the s1i o4 bet5een the 2*2'+ to 3*2'+ itres o4 ;E32 on Saturday*
the chemica eements o4 5aters 5as changed in a ocaised area in 3arramatta Ri/er
(#ustL00 2++,)2 8nder the conditions o4 the tides and en/ironment in the Ri/er at that
time* the s1it ;E32 1ossiby had caused to seriousy damage on 91arts o4 the inter?
tida mangro/e s5am1* 4or e.am1e the crabs in the sediment hoes* during the initia
stage o4 the s1i9 (#ustL00 2++,)2 This ad/ersey a44ected sediment?d5eing organisms
in the mangro/e by 1hysicay tra11ing andGor smothering them (#ustL00 2++,)2 Since
the direct e.1osure 5ith hydrocarbon so/ent com1onent o4 ;E32* it 5as di44icut 4or
the reco/ering o4 a44ected organisms (#ustL00 2++,)2 H"hite guey materiaI is the term
usesd to desbribe the e4t residues o4 ;E32 4oating on 5ater and hanging i@e Hthic@
s1ider 5ebI on mangro/e root system (#ustL00 2++,)2 0n addition* a 1art o4 chemica
com1onents may been aso disso/ed into the 5ater coumn2 0n concusion* there 5as
actua harm occasioned to the ri/erside mangro/es and ecosystem o4 in/ertebrates*
des1ite o4 no signs o4 dead or dying mangro/es or biota (#ustL00 2++,)2 0t is aso
agreed that it is i@ey* e/en /ery i@ey* that the substantia short term en/ironmenta
harm occurred (#ustL00 2++,)2
Ho5e/er* a4ter the great damage o4 this incident* $SR imited concerns about
restructure its 1oicies and gro5 sustainaby2 0n 2+&3* $SR beongs to1 2+ inno/ati/e
com1anies in #ustraia by 1resenting the , star energy e44icient house2 0t means that
$SR House sa/es F+ 1er cent o4 consumed energy more than the norma house o4
simiar si!e (%R" 2+&3* 1aras 3)2 0n additon* $SR aso introduce the aunch o4 the
3
433
Edmonds Edyssey Jentiator 5hich is one o4 seections o4 ;ood (esign #5ards2
Edyssey is the inteigent system 5hich 1ro/ides the coo and heathy housing
atmos1here by using high 4o5 hybrid and automatica contro system (;ood (esign
#5ards n2d2) 2$SR aso estabished Energy Soutions to 1ro/ide assessments and
e>ui1ment 4or sa/ing energy in the residentia area and then e.tend this 1rogram to
busines ((S(%0 2+&3 1aras &?,)2 Coreo/er* to 1enetrate the soar hot 5ater mar@et*
the com1any has e.tended its scae o4 users in o44ering in soar 3J ((S(%0 2+&3
1aras &?,)2 #n interna target aso 5as set to reduce 2+K o4 com1any unit energy
consum1tion by 2+2+ and then* energy sa/ed 5as changed into ;reenhouse ;as
Sa/ings ((S(%0 2+&3 1aras &?,)
2.# $ro%ita&iity anaysis o% CSR imite
2009 2010 2011 2012 2013
-400
-300
-200
-100
0
100
200
300
400
500
600
NPAT
NPAT $ AUD
Million
#da1t 4rom: 0%0S 5ord 2+&3* IBIS Company Report CSR Limited* /ie5 &3
)anuary 2+&4* Lhtt1:GG5552ibis5ord2com2auGenter1riseGhome2as1.M
5
The diagram sho5s the 1ro4it o4 $RS Limited com1any during the ast 4i/e year2
En the ine chart* the .?a.is re1resents the years and the y?a.is indicates the net 1ro4it
a4ter ta. o4 $SR com1any each year2 0n genera* a4ter the dramaticay increasing in
the 4irst ha4 1eriod* there 5as a do5n trend o4 1ro4it in recent years2 0n 2++A* 5ith the
oss o4 com1any stayed at 32+7 #8( miions* the 1ro4it increase signigicanty and end
at the oss o4 &&+7 #8( miions in 2+&+2 The u15ard trend 1robay resu0ts 4rom the
re/ison a4ter 4inancia goba crisis in 2++,2 0n 2+&&* the com1any started to get 1ro4it
and it continuey increased unti reach the 1ea@ o4 '++7 #8( miions in the end o4
year2 Ho5e/er* the 4igure decrese remar@abey to F-7 #8( miions in 2+&22 0t maybe
that $SR s1ent a great amount o4 money in in/esting and restructure the com1any
and so* it a44ected the ca1ita o4 4inancia situation2 The trend continued do5n
signi4icanty and got oss o4 &4'7 #8( miions in 2+&32
#. Recommendation
0n terms o4 ethica issues* $SR has totay acted res1onsiby in incident o4
1oution 3arramatta ri/er2 Coreo/er* $SR tend to concentrate in gro5ing sustainaby
5hich concern about en/ironment by a series o4 acti/ities recenty2 Ho5e/er* 5ith
do5n5ard o4 1ro4it in recent years* e/en oss &4' 7 #8( miions in 2+&3* it is
undoubted that $SR 1robaby con4ront 5ith a 1oor 4inancia 1er4ormant and not good
earnings gro5th2 0n concusion* it is recommended that $SR Limited is not a good
com1any 4or in/esting2
67
Re%erences
#ustraasian ega 0n4ormation 0nstitute 2++,* Environment Protection Authority v
CSR Building Products Limited, NS"LE$ 224* NS"* /ie5ed &3 )anuary
2+&4* #ustL00 (atabases
$SR Ne5s Reeases 2++,* Prosecution of CSR Building Products Limited for
pollution of waters, /ie5ed &3 )anuary 2+&4 Lhtt1:GG5552csr2com2auG
0n/estor?$entre?and?Ne5sGNe5sReeasesG3agesGne5sNreease+,&++A
2as1.M
(e1artment o4 State (e/eo1ment* %usiness and 0nno/ation 2+&3* Sumission y
CSR Limited to the ESI Review Issues Paper, Jictoria* /ie5ed &3 )anuary 2+&4
Lhtt1:GG5552energyandresources2/ic2go/2auGenergyGaboutGegisation?and?
reguationGenergy?sa/er?incenti/e?scheme?managementGrisGsubmissionsG/eet?
submission?csr?imitedM
:ung* H;* La5* S# < =au* ) 2+&+* Socially responsile investment in a gloal
evironment, , /ie5ed &3 )anuary 2+&4 Lhtt1:GGboo@s2googe2com2auG boo@s
OidPr!uLSDhE4E$<1gP3#4<d>PethicaQin/esting<hP/i<saPR<eiPN3
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K2+in/esting<4P4aseOM
0%0S 5ord 2+&3* IBIS Company Report CSR Limited* /ie5 &3 )anuary 2+&4*
Lhtt1:GG5552ibis5ord2com2auGenter1riseGhome2as1.M
Harris* : 2+&2* !lola environmental issues* 2rd edn*/ie5ed &3 )anuary 2+&4
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!"+$<1rintsecP4rontco/er<hP/iT/Pone1age<><4P4aseM
Deer* (R 2+&+* Environmental Ethics" the ig #uestion,/ie5ed &3 )anuary 2+&4
Lhtt1:GGboo@s2googe2com2auGboo@sOidP=DSm>:4rT'E$<1rintsecP4rontc
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%g</edP+$$sS-#E5##T/Pone1age<>Pen/ironmentaK2+ethics<4P4a seM
Reynods* $ ,Pulish and evironmental health law, /ie5ed &3 )anuary 2+&4
Lhtt1:GGboo@s2googe2com2auGboo@sOidPC@n"t,0+d@C$<1gP3#2&4<1g
P3#2&4<d>PcsrQ1outeQ1arramattaQri/er<sourcePb<otsP6b3rAE/sE6
<sigP")$)gFuJE6)N$;CEEF8&SSb,F44<hP/i<saPR<eiPss3;8uN
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