7. Sustainability Flashcards
One definition of sustainability?
The ability to last
Sustainability
UK GOV has placed increased emphasis on importance of “Green” policies for organisations and individuals
Ranges from encouraging recycling by households & businesses to GOVs own committment to reduce Carbon emmissions.
What do these “Green” policies do?
- Protect the environment
- Save energy
- ultimately benefit society as a whole
Just being “Green” does not support sustainability & sustainable development.
Orgs must ensure the responsible long-term management of the resources they use.
In addition to the environmental impact of management decisions, sustainability also involves economic and social issues.
.
Something about the “ “ Report
The Brund t land Report
In 1983 UN set up the:
World Commission on Environment and Development
(WCED)
Aim was to bring together the international community to pursue a common goal to support sustainability by identifying sustainability problems worldwide, raising awareness and suggesting and implementing solutions.
For too many years businesses had been able to operate withou restriction with Profit the only goal.
One consequence was increased environmental damage.
The Brundtland report
“Our common future”
defined sustainable development as?
and identified 3 key components of sustainable dev ?
Development that Meets the needs of the present
without
Compromising the ability of future generations
to meet their own needs.
OBJECTIVES of SUSTAINABLE DEVELOPMENT (The triple bottom line - Profit; Planet; People) 1) Economic growth 2) Environmental protection 3) Social equality
The Brundtland report Part 1
Ecomomic Growth (and sustainability)
Profit
In order for sustainable development to happen the resources to allow it must be available.
Economic growth provides these resources>
1) individual countries:
The growth in the economy of a country should lead to an overall increase in the wealth of that country which then benefits its population as a whole
2) Individual organisations:
Profit generated by organisations will increase the wealth of the owners and employees
The Brundtland report Part 2
Environmental Protection (and sustainability)
Planet
Examples of environmentally friendly policies that contribute to sustainability are:
- Supermarkets rewarding customers for reusing bags
- Recycling paper, metals and certain plastics, cartridges
- Prommoting car share schemes, cycle to work incentives & low emmission company vehicles
- Only trading with suppliers that have certified green policies. (eg toilet paper ensures suppliers plant trees)
- Encourage staff to reduce energy turning off lights etc.
The Brundtland report Part 3
Social Equality (and sustainability)
People
- This objective focuses on the well-being of people.
- Extends beyond ensuring employees happy & well-treated.
An org should consider the social equality of the local community and also society as a whole.
Orgs can promote social responsibility locally and worldwide in a number of ways:
- Make charitable donations which help underprivileged.
- Ony trade with overseas suppliers providing evidence of decent pay and conditions
- Support local initiatives to help out of work people back into work
- Sponsor local sports events that ‘give something back’ to the community
CORPORATE SOCIAL RESPONSIBILITY
What do big orgs do and why
Lots of big orgs publish CSR reports.
These detail how the org takes reponsibility for supporting SUSTAINABLE DEVELOPMENT through its policies & procedures. It also sets and monitors objectives.
There is mountng pressure on orgs to be transparent in the way they operate and a growing number of orgs are choosing to voluntarily report on their CSR.
There is no legal requirement but the realise public and investors are keen to see their attitude to sustainability.
If an org can show progress the public will look more favourably on the org which will enhance its reputation as ethical.
CORPORATE SOCIAL RESPONSIBILITY
CSR initiatives include?
- Reducing CO2 emmissions from premises
- Trade with orgs with track record of good conditions
- Support charitable fundraising activities (matching)
- Make regular donations to charity
- Set recycling targets for the org
- Promote carshare & cycle to work
- Use local suppliers where poss
Responsibility of accountants to uphold sustainability
Accountants have Public Interest Duties to protect society as a whole.
They must consider the Economic; Social and Environmental aspects of their work. i order to support sustainability and sustainable development.
- Ensure long term responsible management of resources used by their org.
- Contributing to the running r their org in a sustainable manner.
- Assess and minimise the risks to the org and to society as a whole of not acting sustainably
In addition to promoting economic/financial aspects when measuring orgs performance (income, expenses, assets, liabilities) accountants should also promote social & environmental aspects
How?
Eg. If asked to provide info about how to reduce costs by buying raw materials from overseas.
He should also reports on whether the production of these materials is done responsibly, with good pay and conditions for the workers who produce it.
Accountants shoul promote sustainable practices…
1) Products & services
2) Customers - supply in sustainable manner, efficient delivery, fail, longterm pricing strategies
3) Employees - Encourage staff development & provide good conditions
4) Workplace - Green policies
5) Supply chain - source ethical supplers
6) Reviw bisiness functions & processes to ensure biz operates in a responsibe way that supports sustainability & sustainable development
Accountants should promote sustainable practices to their clients…
1) Products & services - ensure sustainable materials
2) Customers - supply in sustainable manner, efficient delivery, fail, longterm pricing strategies
3) Employees - Encourage staff development & provide good conditions
4) Workplace - Green policies
5) Supply chain - source ethical suppliers
6) Reviw business functions & processes to ensure biz operates in a responsibe way that supports sustainability & sustainable development
