The economic valuation principles highlights the bottom line of any energy efficient or cost saving measure that will determine whether to proceed with a specific implementation (Anon n. d. ). The company ensures that in all cases when necessary they prevent, minimise, mitigate and remediate potential harmful effects of the Group’s operations on the environment (Rio Tinto 2010). The company has been very much proactive with the program of Greenhouse Challenge and since 2001 they even voluntarily submitted its annual greenhouse gas emissions inventory.
Since Rio Tinto Alcan Gove’s operations as a whole expends a lot of energy they continuously identify energy efficiency improvement projects prior to the of the Energy Efficiency Opportunities Act (Australian Government Dept of resources, energy and Tourism 2009). According to the company on their Sustainable development review, their focus on providing sound governance and high standards of conduct in which they felt that this would give a competitive advantage over the industry.
They are an active member of the International Council on Mining and Metals (ICMM) for the purpose of providing leadership on scientific and policy matters, consistent communication with all stakeholders and promote applying the sustainable development principles to promote best practice performance standards (Rio Tinto 2010). Just recently an example of this activity was displayed.
When the company plans to invest $340 million in a molybdenum facility, in which has the capability of processing a lower-grade molybdenum concentrate to be processed more efficiently than through conventional roasters, basically this facility is much more safer and reliable to use for its employees and produces a more high quality product that even its by-products can be utilized which will be also beneficial for Rio Tinto (Utah Pulse 2010). 2- What will be the impact on the consumer of the product or service
The impact based on these strategies and policies employed internally by Alcan Gove will actually benefit all consumers for its products and services. By being cautious regarding safety and mitigating risks for environment, Rio Tinto displays its integrity by building this foundation of compliance with relevant local laws and regulations and international standards. Consumers tend to choose a company that offers a good quality product that also has done measures to ensure that overall business operations reduces or better yet prevent risks to safety and damaging effects on the environment.
3-How might consumer behaviour affects the business’s profitability in general terms Consumer behavior definitely has great effects on any overall business profitability. People’s needs and expectations drive demand, and based on statistics on industries especially for developing economies the growth rate in terms of this market can be related to potential significant sales for Alcan Gove (United Nations 2005).
Another thing that may impact demand is the perception of Alcan Gove’s consistent measures to ensure safety for its employees and reduction on environmental impacts, this will create a reflection on how concerned the company is on its surroundings which translates better to the behavior of overall consumers to purchase from them. 4-How could the business respond to these changes to minimise their impact and maximise the benefit to stakeholders
The company should maintain their strategy on sustainable development, and guarantee that their operations and products as well will be continuously used and developed appropriately throughout their lifecycle. Another strategy that can be employed is on reduction of environmental footprint of their operations, which includes making sure that balancing the impact of overall operations with enhanced environmental outcomes, economic development and overall efficiency of operations.
For various types of stakeholders, instant and
[Online] Available from < http://www. riotinto. com/ourapproach/17194_environmental_stewardship. asp> [27 May 2010] Australian Government Dept of resources, Energy and Tourism (2009). Alcan Gove Pty Limited, Energy Efficiency Opportunities Public Report 2009. [PDF] United Nations (2005). World Population Prospects. [PDF] Utah Pulse. (2010). Rio Tinto to invest $340m in molybdenum facility. [Online] Available from <http://metalsplace. com/news/articles/33646/rio-tinto-to-invest-340m-in-molybdenum- facility/> >. [27 May 2010]