Social risk: the impact on the Australian cattle industryBY RACHEL ALEMBAKIS | FRIDAY, 22 JUL 2011 7:06AMThe Australian cattle industry has been whiplashed by the effects of a five-week-long suspension of live export of cattle to Indonesia. The suspension was prompted by the public outcry after broadcaster ABC showed instances of animal cruelty at Indonesian abattoirs as part of a segment by its current affairs show Four Corners. While the government's suspension was sudden and unexpected, the concerns about animal welfare captured in the Four Corners segment had been raised by stakeholders previously. The experience of the cattle industry serve as a stark example that companies and investors must be aware of the social component to ESG analysis for risk and return, because failing to appreciate the impact of social risk may result in unexpected and unwanted financial impacts. Related News |
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