4. Osborne - Sustainability

Question 2

Sustainability (CH4)

Define Sustainability.

Answer 2

The ability to last.

Question 3

Sustainability (CH4)

How does the Brundtland Report define Sustainable Development?

Answer 3

This report defined sustainable development as: development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Question 4

Sustainability (CH4)

What are the 3 key components of Sustainable Development in the Brundtland Report?
(The Triple Bottom Line)

Answer 4

1. Economic growth: In order for Sustainable Development to happen, the resources to allow it must be available.
However, economic growth should not be pursued at the expense of the other two factors.

2. Environmental Protection: The protection of the environment is key to conserving the world’s resources.

3. Social Equality: This objective of sustainability focuses on the social wellbeing of people.

These are referred to as “The Triple Bottom Line”.

Question 5

Sustainability (CH4)

What is Corporate Social Responsibility (CSR)?

Answer 5

Corporate Social Responsibility (CSR) is a self-regulating business model that helps a company be socially accountable to itself, its stakeholders, and the public.

Question 6

Sustainability (CH4)

Why is Corporate Social Responsibility (CSR) important?

Answer 6

There is mounting pressure on businesses to be transparent in the way in which they operate and a growing number of organisations are choosing to voluntarily report on their CSR.

While there is no legal requirement to produce a CSR report, businesses are realising that the public and investors are keen to see their attitude to sustainability.

Question 7

Sustainability (CH4)

What are the Responsibilities of accountants regarding Sustainability?

Answer 7

• Public interest duty: Professional accountants have public interest duties to protect society as a whole. They must consider the economic, social and environmental aspects of their work in order to support sustainability and sustainable development.
• Promoting an ethics-based culture
• Promoting sustainability
• Consider Reputational risk - An organisation’s affitude to sustainability will have a direct effect on the reputation of the organisation.
• Consider the “triple bottom line”
• Raising Awareness of Sustainability Responsibility