Climate Change's Impact on Corporate Social Responsibility: A Case Study of Viva Energies Australia
Task: How does climate change affect corporate social responsibility initiatives, using Viva Energies Australia as a case study, and how can businesses navigate these challenges?
Climate change has been one of the most pressing issues widely visible in the current environmental scenario. This issue has been compelling different organizations to take necessary responsibilities towards corrective actions and contribute in mitigating the adverse effects (Bianco, 2020). The prominence of corporate social responsibilities (CSR) has been conceptualized more in the business environment in light of such issues with climate change. The study sheds light on the adverse effects of climate change on the corporate social responsibilities undertaken by Viva Energies, Australia. The study will also develop the concrete concept of climate change action with the usage of appropriate research methodology and relevant data analysis process.
Viva Energies, the Australian based Energy Company, which produces and supplies a range of transport fuels, different types of lubricants and other energy source based products (Vivaenergy.com.au, 2023). The company is more focused towards developing high level of commitments in delivering sustainable practices and environmental stewardship. Currently, the company has implemented various types of CSR initiatives, such as adoption of the alternative energy sources and offsetting carbon emissions.
1.1 Problem Statement
Climate change is one of the most pressing global issues of our times, and it is having a significant impact on businesses and their corporate social responsibility (CSR) activities. Companies are facing increasing pressure from stakeholders to reduce their carbon footprint, mitigate the impact of their operations on the environment, and take action to address climate change (Kong et al., 2021). This presents a unique set of challenges for businesses, as they must balance their obligations to shareholders with their responsibilities to society and the planet. Some of the issues that arise in this context include difficulty in measuring and reporting CSR impacts, uncertainty about the long-term effects of climate change, and the need for sustainable and socially responsible business practices (Khosroshahi, Dimitrov, &Hejazi, 2021). Therefore, this problem statement focuses on investigating the impact of climate change on CSR activities and identifying ways in which Viva Energies can successfully navigate this challenge.
Aim of the Research
The main aim of the research is to examine the effects of the recent climate change issues in implementing the corporate social responsibilities by Viva Energies, Australia.
1.2 Research Objectives
- To identify the most prominent CSR initiatives taken by Viva Energies to mitigate the issues with Climate change
- To evaluate the impact of climate change on the CSR policies and practices initiated by Viva Energies
- To assess the major challenges faced by Viva Energies to mitigate the climate change issues with the initiatives of CSR policies and practices
1.3 Research Questions
• What are the major CSR initiatives undertaken by Viva Energies to address the climate change issues?
• How the adverse effects of climate change create the considerable impact on the implementation of CSR policies and practices by Viva Energies, Australia?
• What are the most prominent challenges faced by the company while initiating the CSR policies and practices against climate change issues?
2. Literature Review
Climate change refers to a long-term shift in global temperature and weather patterns caused by human activity, particularly the emission of greenhouse gases (GHGs) such as carbon dioxide, methane, and nitrous oxide. The increase in GHGs in the atmosphere traps heat from the sun, leading to global warming and many negative impacts on the environment, economy and society (Yoro, &Daramola, 2020).Climate change can have a significant impact on Corporate Social Responsibility (CSR) initiatives. Businesses worldwide must adapt to the changing environmental, social, and economic landscape to ensure the long-term sustainability of their operations, stakeholders, and broader society.
2.1 Climate Change: Probable Reasons and Impact
? Rising temperatures: Global temperatures have already risen by about 1 degree Celsius (1.8 degrees Fahrenheit) above pre-industrial levels (Kirikkaleli, & Adebayo, 2021). This is causing heatwaves, droughts, wildfires, and other extreme weather events that can damage the environment and disrupt ecosystems.
? Ocean acidification: Because oceans absorb carbon dioxide from the atmosphere, their acidity levels are increasing, making it harder for marine organisms to build their shells and skeletons, impairing the ocean’s ability to support complex ecosystems.
? Economic and social impacts: Climate change can have significant economic and social consequences, such as crop failures, water shortages, and displacement of communities.
2.2 Impact of Climate Change
Climate change can have a significant impact on Corporate Social Responsibility (CSR) initiatives. Businesses worldwide must adapt to the changing environmental, social, and economic landscape to ensure the long-term sustainability of their operations, stakeholders, and broader society.Climate change could have negative environmental, social, and economic impacts, leading to greater public concern about the issue (Gambhir, &Tavoni, 2019). Companies that fail to address climate change will risk losing public support and potential customers over time.Many businesses are addressing climate change by adopting environmentally sustainable practices in their operations. This includes reducing greenhouse gas emissions, transitioning to renewable energy, conserving natural resources, and investing in alternative transportation systems.At the same time, companies must also consider the social and economic impacts of climate change.
2.3 Corporate Social Responsibilities
A corporate social responsibility, in today’s world, has become the key to business success. The effect of climate change could include risks of international supply chain disruptions, and the need to consider the protection of staff as well as stakeholders from natural disasters.The development of the clear and responsible practices creates a positive mindset among the business stakeholders. Overall, businesses need to create solutions that address environmental, social, and economic challenges in a way that maintains value for shareholders and stakeholders overall(Hensher, 2023). By adopting socially and environmentally responsible practices and policies, businesses can create long-term sustainable value and contribute to a more resilient future for all. However, the adverse impact of climate change may create hindrance in such cases. The policies and practices associated with the corporate social responsibilities thus focuses more on developing the sustainable future of the business by addressing SDG issues, such as climate change (Khosroshahi, Dimitrov, &Hejazi, 2021). Addressing the SDG issue may create the long term sustainable and secure future for a business organization. Therefore, it is quite necessary to focus on the deliverable and the method of making the product and services more environmental friendly to eradicate the negative effects of climate change.
3. Research Methodology
Research methodology provides a clear insight of conducting any particular research study to obtain the relevant information around the subject area. The research is focusing on analyzing the major impacts that climate change issues can create on corporate social responsibilities undertaken by Viva Energies, Australia.
3.1 Source of Secondary Data
The information will be collected from the various research paper, peer reviewed journals, books, press releases, and different websites. The use of Google Scholar would be most beneficial in such case. It provides the platform to customize the time which can help in gathering most recent information. On the other hand, the company websites and published financial reports are also most useful source of collected data that will be used here.
3.2 Data Collection Method
In order to derive the extensive information on climate change issue, the utilization of the secondary data collection method will be more appropriate for this research study. It provides a wider idea of both the past and current researches. The information gathered from these sources help in enhancing the knowledge around the subject context. Also, it provides the clear picture of other business industries who have been dealing with the climate change issues while enabling their corporate social responsibility policies.
3.3 Data Analysis
The gathered data will be analysed by using the thematic representation. The major concept derived from the collected data will be presented through diverse themes to analyse in a better way. Each of the themes will define the major issues faced due to climate changes and the adverse effects created on CSR policies and practice implementation process by Viva Energies, Australia. Obtaining knowledge from these sources would help in providing the future recommendations to the company by mitigating the identified challenges.
3.4 Gantt Chart
Table 1: Gantt Chart
(Source: Created by Author)
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Hensher, D. (2023). The Greening of the passenger car might not deliver such positive sustainability news–so what do we have to do?. Available at SSRN 4377170.
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Kirikkaleli, D., & Adebayo, T. S. (2021). Do renewable energy consumption and financial development matter for environmental sustainability? New global evidence. Sustainable Development, 29(4), 583-594.
Kong, L., Sial, M. S., Ahmad, N., Sehleanu, M., Li, Z., Zia-Ud-Din, M., &Badulescu, D. (2021).CSR as a potential motivator to shape employees’ view towards nature for a sustainable workplace environment. Sustainability, 13(3), 1499.
Vivaenergy.com.au (2023) Climate change, SUSTAINABILITY Climate change. Available at: https://www.vivaenergy.com.au/sustainability/climate-change.
Yoro, K. O., &Daramola, M. O. (2020). CO2 emission sources, greenhouse gases, and the global warming effect. In Advances in carbon capture (pp. 3-28). Woodhead Publishing.