Environmental incidents in a developing country and corporate environmental disclosures : a study of a multinational gas company

Purpose – The purpose of this paper is to examine the environmental disclosure initiatives of Niko Resources Ltd – a Canada-based multinational oil and gas company – following the two major environmental blowouts at a gas field in Bangladesh in 2005. As part of the examination, the authors particularly focus on whether Niko’s disclosure strategy was associated with public concern pertaining to the blowouts.
Design/methodology/approach – The authors reviewed news articles about Niko’s environmental incidents in Bangladesh and Niko’s communication media, including annual reports, press releases and stand-alone social responsibility report over the period 2004-2007, to understand whether news media attention as proxy for public concern has an impact on Niko’s disclosure practices in relation to the affected local community in Bangladesh.
Findings – The findings show that Niko did not provide any non-financial environmental information within its annual reports and press releases as a part of its responsibility to the local community which was affected by the blowouts, but it did produce a stand-alone report to address the issue. However, financial environmental disclosures, such as the environmental contingent liability disclosure, were adequately provided through annual reports to meet the regulatory requirements concerning environmental persecutions. The findings also suggest that Niko’s non-financial disclosure within a stand-alone report was associated with the public pressures as measured by negative media coverage towards the Niko blowouts.
Research limitations/implications – This paper concludes that the motive for Niko’s non-financial environmental disclosure, via a stand-alone report, reflected survival considerations:
the company’s reaction did not suggest any real attempt to hold broader accountability for its activities in a developing country.
Originality/value – This is the first known paper that investigates a multinational company’s disclosure behavior in relation to environmental incidents which occurred in a local community.

Australia and East Timor : elitism, pragmatism and the national interest

For over two decades the issue of East Timor's right to self-determination has been a ‘prickly’ issue in Australian foreign policy. The invasion by Indonesian forces in 1975 was expected, as Australian policy-makers had been well informed of the events leading up to the punitive action being taken. Indeed, prior discussions involving the future of the territory were held between the Australian Prime Minister and the Indonesian President in 1974. In response to the events unfolding in the territory the Australian Labor Government at the time was presented with two policy options for dealing with the issue. The Department of Defence recommended the recognition of an independent East Timor; whereas the Department of Foreign Affairs proposed that Australia disengage itself as far as possible from the issue. The decision had ramifications for future policy considerations especially with changes in government. With the Department of Foreign Affairs option being the prevailing policy what were the essential ingredients that give explanation for the government's choice? It is important to note the existence of the continuity and cyclical nature of attitudes by Labor governments toward Indonesia before and after the invasion. To do so requires an analysis of the influence ‘Doc’ Evatt had in shaping any possible Labor tradition in foreign policy articulation. The support given by Evatt for the decolonisation of the Netherlands East Indies (Indonesia) gave rise to the development of a special relationship-so defined. Evidence of the effect Evatt had on future Labor governments may be found in the opinions of Gough Whitlam. In 1975 when he was Prime Minister, Whitlam felt the East Timor issue was merely the finalisation of Indonesia's decolonisation honouring Evatt's long held anti-colonialist tradition existing in the Australian Labor Party. The early predisposition toward Indonesia's cohesiveness surfaced again in the Hawke and Keating Labor governments of later years. It did not vary a great deal with changes in government The on-going commitment to preserving and strengthening the bilateral relationship meant Indonesia's territorial integrity became the focus of the Australian political elites’ regional foreign policy determinations. The actions taken by policy-makers served to promote the desire for a stable region ahead of independence claims of the East Timorese. From a realist perspective, the security dilemma for Australian policy-makers was how to best promote regional order and stability in the South East Asian region. The desire for regional cohesiveness and stability continues to drive Australian political elites to promote policies that gives a priority to the territorial integrity of regional states. Indonesia, in spite of its diversity, was only ever thought of as a cohesive unitary state and changes to its construct have rarely been countenanced. Australia's political elite justifications for this stance vacillate between strategic and economic considerations, ideological (anti-colonialism) to one of being a pragmatic response to international politics. The political elite argues the projection of power into the region is in Australia’s national interest. The policies from one government to the next necessarily see the national interest as being an apparent fixed feature of foreign policy. The persistent fear of invasion from the north traditionally motivated Australia's political elite to adopt a strategic realist policy that sought to ‘shore up’ the stability, strength and unity of Indonesia. The national interest was deemed to be at risk if support for East Timorese independence was given. The national interest though can involve more than just the security issue, and the political elite when dealing with East Timor assumed that they were acting in the common good. Questions that need to be addressed include determining what is the national interest in this context? What is the effect of a government invoking the national interest in debates over issues in foreign policy? And, who should participate in the debate? In an effort to answer these questions an analysis of how the ex-foreign affairs mandarin Richard Woolcott defines the national interest becomes crucial. Clearly, conflict in East Timor did have implications for the national interest. The invasion of East Timor by Indonesia had the potential to damage the relationship, but equally communist successes in 1975 in Indo-China raised Australia's regional security concerns. During the Cold War, the linking of communism to nationalism was driving the decision-making processes of the Australian policy-makers striving to come to grips with the strategic realities of a changing region. Because of this, did the constraints of world politics dominated by Cold War realities combined with domestic political disruption have anything to do with Australia's response? Certainly, Australia itself was experiencing a constitutional crisis in late 1975. The Senate had blocked supply and the Labor Government did not have the funds to govern. The Governor-General by dismissing the Labor Government finally resolved the impasse. What were the reactions of the two men charged with the responsibility of forming the caretaker government toward Indonesia's military action? And, could the crisis have prevented the Australian government from making a different response to the invasion? Importantly, and in terms of economic security, did the knowledge of oil and gas deposits thought to exist in the Timor Sea influence Australia's foreign policy? The search for oil and gas requires a stable political environment in which to operate. Therefore for exploration to continue in the Timor Sea Australia must have had a preferred political option and thoughts of with whom they preferred to negotiate. What was the extent of each government's cooperation and intervention in the oil and gas industry and could any involvement have influenced the Australian political elites’ attitude toward the prospect of an independent East Timor? Australia's subsequent de jure recognition that East Timor was part of Indonesia paved the way for the Timor Gap (Zone of Cooperation) Treaty signing in 1989. The signing underpinned Australia's acceptance of Indonesian sovereignty over East Timor. The outcome of the analysis of the issues that shaped Australia's foreign policy toward East Timor showed that the political elite became locked into an integration model, which was defended by successive governments. Moreover, they formed an almost reflexive defence of Indonesia both at the domestic and international level.

Carbon dioxide corrosion inhibition : an overview of recent research on new inhibitor development

Since the introduction of inhibitors to the oil and gas industry in the 1940’s, corrosion inhibition has played a key role in carbon dioxide (CO2) corrosion control. Major inhibitor discoveries occurred from the late 1940's to the late 1960's, followed by the refinement of formulations and the development of improved application methods. Over the past two to three decades, although some new derivatives of existing inhibitors such as amide, amine and imidazoline have been reported, there have been few if any discoveries of new CO2 corrosion inhibitors. In recent years, the development of environmentally friendly inhibitors and the inhibition of localised corrosion have become driving forces behind new advances in corrosion inhibitor technology. Recently a rare earth metal organic compound, lanthanum 4-hydroxy cinnamate has been found to be an efficient corrosion inhibitor for mild steel in CO2 containing aqueous media. A resorcinarene acid has been found to provide effective localised corrosion inhibition by promoting a random distribution of insignificant anodic currents. The advent of advanced scanning probe techniques and an electrochemical integrated multi-electrode array have facilitated the discovery of corrosion inhibitors. This paper provides a brief overview of recent progress in this field.

Studying the cathodic disbondment of coatings using electrochemical impedance spectroscopy

The disbondment of protective organic coatings is a widely reported pipeline coating failure mode in the oil and gas industry. Traditional methods of evaluating cathodic disbondment of pipeline coatings are based on visual inspection of pipeline conditions, and laboratory testing of cathodic disbondment resistance (CDR) using standard methods such as ASTM G8. Although some other laboratory-based techniques, such as scanning kelvin probe and scanning acoustic microscopy have been used to study the cathodic disbondment (CD) of coatings, these are often difficult to apply in practical testing. Over the past decade, electrochemical impedance spectroscopy (EIS) has been employed as a potential method for measuring CD. This paper reports preliminary results from an EIS study designed to characterise CD behaviour of epoxy coatings under excessive cathodic protection. EIS data correlated well with the area of disbonded coating. Analysis of EIS data can provide valuable information on the initiation and rates of CD.

Modelling greenhouse gas emissions for Australian residential building construction

International pressure to reduce greenhouse gas emissions has forced many countries to look beyond 'demand side' measures. Several industry sectors are examining indirect requirements for energy and other resources that involve significant greenhouse gas emissions. The operation of buildings is responsible for approximately one quarter of greenhouse gas emissions in Australia. Moreover, he construction process consumes vast quantities of raw materials and complex goods and services each year. Each of the processes required for the provision of these products requires energy, and most of this is fossil fuel based. A national model of greenhouse gas emissions is required for residential building construction, to indicate where emissions reduction strategies should focus. A disaggregated input-output model is developed for the Australian residential building construction sector, and recommendations are made about how this model can be used in the development of policies of emissions mitigation for both the sector and individual residential buildings.

Fish assemblages associated with oil industry structures on the continental shelf of north-western Australia

This study provides the first assessment of fish associations with oil and gas structures located in deep water (85-175 m) on Australia's north-west continental shelf, using rare oil industry video footage obtained from remotely operated vehicles. A diverse range of taxa were observed associating with the structures, including reef-dependent species and transient pelagic species. Ten commercially fished species were observed, the most abundant of which was Lutjanus argentimaculatus, with an estimated biomass for the two deepest structures (Goodwyn and Echo) of 109 kg.

The current status of greenhouse gas reporting by Chinese companies: a test of legitimacy theory

Purpose – The purpose of this paper is to investigate the factors driving greenhouse gas reporting by Chinese companies.
Design/methodology/approach – Content analysis of annual reports and corporate social responsibility (CSR) reports for the year 2010 of the top 100 A-share companies listed on Shanghai Stock Exchange was conducted to investigate the extent of greenhouse gas reporting. Multiple regression analysis was performed to determine the factors driving these companies’ greenhouse gas reporting.
Findings – It was found that most Chinese companies reported neutral and good news. The results also indicate larger companies operating in an industry which has higher level of carbon dioxide emissions tend to have higher levels of greenhouse gas disclosures, consistent with the expectation of legitimacy theory. However, profitability and overseas listing were not significantly related to greenhouse gas reporting. This is consistent with the findings of previous literature. Finally, contrary to expectations, state-owned companies report less greenhouse gas information than private companies.
Originality/value – The paper contributes towards theory development by testing legitimacy theory in the context of greenhouse gas reporting by Chinese companies and contributes to existing literature on greenhouse gas reporting by focussing on the large emerging economy of China. The practical contribution of the paper rests in the area of accounting practice. The results outline the dearth in greenhouse gas reporting by Chinese companies, suggesting there needs to be future development of accounting standards in this area.

Effects of trunk-shaker harvester and ethephon on plant water status, leaf gas exchange, and yield of citrus cultivated under Mediterranean conditions

This work was aimed to study whether the application of ethephon as an abscission agent and mechanical harvest using a trunk shaker have any effect on plant water status, leaf gas exchange, and yield of mandarin and orange trees cultivated under Mediterranean conditions. The experiment was performed from 2008 to 2011 in five commercial orchards where parameters related to the plant water status and leaf gas exchange were measured before the application of ethephon, at harvest time and at different occasions after harvest. In addition, the effects of ethephon dose on yield in the current and subsequent seasons were also evaluated. Results showed that ethephon applications and mechanical harvest did not detrimentally affect plant water status in any of the cultivars studied. Furthermore, either had no effect or had a short temporal decrease effect on leaf gas exchange depending on the cultivar studied although with no consequences for the fruit yield obtained during the current season. Increasing ethephon doses led to fruit yield reductions in the mandarin ‘Orogrande’ trees in subsequent seasons. When trunk-shaker and ethephon applications were combined, however, yields from the late-maturing orange significantly decline in subsequent seasons. Overall, results show that using a trunk shaker is a viable technique to mechanically harvest citrus trees destined to both fresh and industry market and can be considered as an alternative to the traditional manual harvest usually performed under Mediterranean conditions. However, its use cannot be recommended for late-maturing oranges, such as the ‘Navel Lane Late’ in which mature fruit and fruitlets coexist in the tree at the time of harvest.