Article 3 – Climate revolt rocks Santos as shareholders fire up emissions push

The Oil and Gas Giant Santos has faced an unprecedented pressure by an ethical investor group the Australian Centre for Corporate Responsibility (ACCR) in its annual meeting by pushing two resolutions which were backed by record-breaking support of nearly half of its shareholders on setting emission targets which are aligned with the Paris Accord. The resolution which translates towards strengthening the direct and indirect emission speaks volumes of the importance of climate change for the shareholders. Though the resolutions were opposed by key shareholders ENN Ecological Holdings and Hony Capital, the resolutions were not explicitly placed on the table after an attempt to amend the Constitution to include advisory resolutions but were recognised by the Chairman of Santos, who stated the details of the voting. Santos faces demand to meet its peers, who gradually understand that a diversified approach beyond the sole production of fossil fuels needs to minimise climate risk as well as provide investors with sustainable value.

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Stakeholder Theory Managerial Branch

The central point of stakeholder theory is that the company's success relies on the effective handling of all ties between a company and its stakeholders. The stakeholder theory management branch suggests that the ability of stakeholders to affect the administration is linked to the stakeholder leverage over the organisation's resources. Organizations continue as successful as they are, its efficacy comes from demand control, in particular from the requirements of interest groups, on which the company relies (Ullmann, 1985, p. 2). The organisation of significance distinguishes the members to the degree of which the organisation recognises that the interplay with each party needs to be handled to promote the organisation's interests. Conventional profit-seeking principles do not limit the interests of the company. The more important the organisation's stakeholder, the more effort would be taken to maintain the partnership. Knowledge is an important factor that the company may use in its control (or manipulation) of the stakeholder to obtain support and acceptance or to divert opposition and rejection (Gray, Owen, & Adams, 1996, p. 96). The classic idea presented by (Freeman, 1984, p. 46) is slowly being expanded as the corporations role in the society has outgrown the classic idea of just economic activity by creating wealth and also act socially responsible this has been summarized by Chan (1996, p. 10) on three elements first of which is that organizations have obligations which go beyond producing goods and services for profit; secondly, such obligations would help to address major societal issues, in particular those they contributed to; and finally organizations have a wider audience than just its stockholders.