Thursday, 24 September 2015

BHP Billiton's transparency document: Lessons for Indian corporates

BHP Billiton is one of the largest mining companies in the world and it has published an "Economic contribution and payments to governments Report 2015" that transparently lays down all the payments it has made to governments around the world.
8Mining has been one of the least transparent businesses in the world and the multinational's publication is the step in the right direction.
8In 2015, the multinational paid $ 7.3 billion globally in taxes, royalties and other payments to governments.
8The data is drilled down the project wise payments so that local communities have a clear understanding about the revenue gained by their governments from the extraction of natural resources and how this is allocated in their country’s economic and social development.
8When companies provide transparent information about revenue, the potential for corruption is reduced. Countries that transparently and effectively allocate natural resource wealth for the benefit of their communities have the potential to attract greater, more responsible and longer-term business investment.
8It is imperative that businesses, governments and civil society work in partnership to support transparency.
8Corruption directly impedes development, denying millions of people around the world their rights to the education and training necessary to earn a livelihood, to basic health services and to the essential infrastructure to improve their lives.
8Large Indian companies can take some cues on how the data is laid down and the the disclosures that BHP Billiton has made.
8Regulators can also lean from the process.

For more details visit indianpetroplus.com

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