Corporate governance and social responsibilities

    You have been assigned by your General Manager, Helen Ready, to assess SandFire Resources NL as a potential investment for your employer GreenAs Superannuation Management Fund. SandFire Resources NL is a dynamic mid-tier Australian mining and exploration company which was listed on the Australian Securities Exchange (ASX) in March 2004. The registered office, and headquarter, is located in Perth, Western Australia. Its auditors are Ernst & Young (Perth). Operations predominantly are in Australian copper mining but it has mining interest in Canada, as well as solar electricity generation projects in Australia.   OUR VISION, MISSION & VALUES Vision Sandfire’s vision is to build a sustainable, mid-tier mining company operating in the upper quartile of global performance benchmarks. Mission Sandfire is in the business of producing (mining, sic) base and precious metals safely and profitably from its operations for the benefit of its shareholders and stakeholders. Its focus is on three business elements:  increasing the resource base of the company by discovering new deposits through its exploration programs  securing assets that meet its investment criteria through business development initiatives and developing assets in accordance with a strict economic and technical criteria  managing the productivity of its operations by maximising production and rigorously controlling expenditure at all times. Values Sandfire’s values are designed to guide all who work for us (them, sic) in their dayto-day dealings with each other, competitors, customers and the community:  safety - act safely and with care for the environment  people - attract the best people and reward performance  teamwork - encourage teamwork, respect and integrity  communities - work with communities for mutual benefit  improvement - we value continuous improvement, technical excellences and innovation  profitability - optimise profitability through effective operating practices and cost consciousness.       Requirement for Part A Provide an internal report to Helen so she can combine it with reports about other companies (see Part B) that she will present to the board of directors. 1. In your internal report (under a section named “SandFire Comparison”) assess and compare the 2015 sustainability report to the 2016 sustainability report in relation to the G4 GRI Guidelines. 2. Additionally, comment on your interpretation of Sandfire’s phase of sustainability (within the 6 phases of organisational sustainability illustrated in Figure 7.2 on page 202 of the textbook) based of the information in their “OUR VISION, MISSION & VALUES” provided (on page 1 of this document) and the information in the sustainability report for 2016. 3. You should note in your comments areas of improved sustainability performance for the three aspects; economics, environmental and social (also considering the four (4) sub-categories of the social aspect) between the 2015 and the 2016 report. Try to think which of the guidelines would be most relevant to this business. a. Does the report contain targets? b. How detailed (specified) are these targets? 4. Comment on how “user-friendly” you found the report. a. Was it easy to find the parts of the report relevant to a particular guideline? b. Was the report well referenced? c. Did it give a balanced view (negative as well as positive aspects)? 5. Use the GRI index provided by the company as a starting point – but be critical. a. What have they not covered? b. Have they appropriately identified issues as material?