Environment management help on: BHP Billiton
BHP Billiton:BHP Billiton refers to an organization which operates globally & provides a continuous growth in terms of finance, operations & strategies. This organization majorly takes into consideration, the various ethical as well as standards which has helped the enterprise to achieve a certain levels of integrity as well as respect for others (BHP Billiton, 2005).
Though, BHP Billiton is committed towards the attainment of sustainability but do not take into consideration the external failure cost. Though BHB Billiton takes into consideration fair decision making & construct an open relationship with its stakeholders. But at the same time it tries to reject the external failure costs (BHP Billiton, 2007).BHP Billiton does not shares information as well as opinions which would help to maintain the information & practice hassle free operations. Share as well as exchange information which would help the people involved within the organization to take up fair decisions. Employees, customers, and shareholders along with the stakeholders shall be involved within the same. This would help to reduce the number of failures which might take place within the enterprise (Roberts, 2011).It must be regarded at BHP Billiton that, errors as well as omissions would lead to a decrease within the entire decision making process of Billiton. Too many omissions & errors would lead to a decrease in the reputation & credibility of the same. The main reason for not including BHP Billiton has been discussed in this portion of the write up. BHP Billiton shall take into consideration that, higher the rate of external failure cost means higher the rate of failure in the times to come (Roberts, 2011).
For example, if BHP Billiton incurs a loss of approximately $10,000 due to unwanted delay within the delivery of goods or service delivery this would lead to an approximately higher amount of loss once the product or service is delivered (BHP Billiton, 2007). It must be noted that, 10% – 25% (Roberts, 2011) of the sales revenues along with high levels of dissatisfaction & loss of reputation would be encountered by the same. All this would amount to more than the loss i.e. $10,000 (BHP Billiton, 2007). This would have a never ending effect over the customers & he/she might rethink whether to buy a particular commodity or take up a service from BHP Billiton or not.Therefore, BHP Billiton shall take into consideration proper engagement of the employees, stakeholders & shareholders in order to minimize the levels of deficiencies which might lead to a problem in the future years to come. Such type of costs will include the opportunities which are lost & lead to a decrease in the revenues attained from the levels of sales (BHP Billiton, 2011). Hence, BHP Billiton shall take into consideration the external failure cost. For this, BHB Billiton shall also take into consideration fair decision making & construct an open relationship with its stakeholders (BHP Billiton, 2007).
Toyota:Toyota refers to a Japanese MNC which majorly takes into consideration manufacturing vehicles such as Cars, SUV’s, Motor transport, etc. Toyota refers to one of the largest MNC under the automobile industry in Japan. Toyota is the market leaders in the manufacturing of ATVs, engines, cars & heavy vehicles used at the time of constructing hotels, hospitals, malls, etc. Toyota does not report to one of the most important cost i.e. environmental prevention cost. Environmental prevention cost has been referred to as one of the most critical tool which would help in the overall management of the different types of prevention costs (Toyota, 2012).
Toyota industries have been considered to be as one of the leading organizations which give due regards to the enhancement the effectiveness as well as the effectiveness of the organization. Toyota has been referred to as an organization which strives in the enhancement of the overall environmental accounting system. This system takes into consideration the different forms of conservation as well as prevention cost which would help the enterprise as a whole as well as impact the business activities in a positive manner (Toyota, 2005).Toyota industries have been considered to have high levels of costs attached along with the entire process in making of the vehicle. The cost which has been incurred with the introduction of the planning process has been termed to be less volatile with the organic compounds emission within the Vehicle Division as well as the textile machinery division (Toyota, 2005). One of the major reasons for not disclosing the environmental prevention cost refers to the development of the electric air conditioners as well as the development of the large sized trucks which contributes towards the exhaust gas emissions (Toyota, 2012).Toyota does not take into consideration the environmental prevention costs which would directly lead to the economic benefits such as reduction of the costs. With an increase in the social demand, Toyota is unable to anticipate the increase in the overall demand which is not directly linked with the profits earned (Toyota, 2005). Under such circumstances, a continuous as well as an effective implementation of the environmental accounting shall be done which would serve as a tool for taking up various managerial decisions by using the standard calculations as well as specifying the contributions for the environmental activities i.e. fair provisions for the products, etc. Reductions in the overall environmental costs such as cost of consumption, waste water consumptions, environmental unit cost, etc. In order to make the entire process smooth as well as volatile, Toyota shall stress upon the environmental prevention cost which would help to contribute towards the overall environmental activities (Toyota, 2012).
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