Sustainability Flashcards
What is sustainability ? P81
- ‘the ability to last’
- long term management of resources
- envrionemntal impact of decisions
- economic and social issues
Where did the Bruntland report derive from and what is its purpose ? P81
- 1983 - World Commission on Environment and Development (WCED)
- International community - identify sustainability problams ,raise awareness, implementing solutions
- problem non restrictive business operations = envrionemntal damage
What does the WCED’s (Bruntland Commission) report in 1987 define sustainable development as ? P81
- development that meets needs of the present
- without compromising - future generation ability needs
According to the bruntland report, what are the three key components of sustainable development ? P81
- Economic growth
- environmental protection
- social equality
What are the three elements of sustainable development identified by the Bruntland Committee ? P82
The triple bottom line
- Economic growth
- Environmental protection
- Social equality
- OR
- Profit,planet,people
What is economic growth ? P82
Triple bottom line
- Available resources for sustainable development
- economic growth provides resources
How does economic growth relate to indvidual countries ? P82
- Increase in wealth
- benefits whole population
How does economic growth relate to individuaal organisations ? P82
- Organisational profit = owner and employees wealth
What to remember about achieving triple bottom line ? P82
- Focus on all 3 - not one
- e.g. cost cutting- lower costs counties - production of products and services - economic growth
- hidden social and envrionemtnal costs
- cheap labour and poor working conditions
- use of hydrocarbons
What is envrionemtnal protection in relation to the triple bottom line ? P82
- key to conserving world’s resources - highlight green credentials
- reduce, re-use , recycle
What is the relationship social equality and sustainability ? P83
- social wellbeing of people focus
- beyond emmployee wellbeing - social equality of local community/ society as a whole
- e.g. extreme poverty
What are corporate social responsibility reports ? 83
- large organisations increasingly puslih CSR
- Takes responsbility - sustainability development - policies and procedures
- extent objective is acheived
What are the CSR initiatives that a business may adopt ? P84
- Reducing CO2 emissions
- organisation trade - good staff & working conditions
- charitable fundraising activities
- regular charity donations
- setting recycling targets
- car sharing promotion
- local supplies use
What should a business do when reporting on sustainability? P84
CSR reports
- Right balance - positive and negative information
- negative effect - organisation’s reputation - ‘warts and all’
- too positive = overplaying green credentials
What are the 7 main responsibilities of a finance professional to uphold sustainability ? P84
- Public interests duty
- promoting an ethics - based culture
- promoting sustainability
- reputational risk
- consider triple bottom line
- promoting sustainable practices
- raising awareness of social responsbility
How does the public interests duty of a finance professional uphold sustainability ? P84
- accountants - interests protect society
- their work (economic, social , environmental) - sustainability & sustainable development:
What do public interests duties of an accountant include ? P84
- organisation - ensure responsible long term resources management
- contribution - running of organisation sustainably
- assessing & minimising risk - not acting sustainably - organisation & society
How does the financial professional promoting an ethics- based cultrue support sustainability ? P85
- Operate sustainably & promoting sustainable development = acting ethically
- ethical professional accountants - all aspects working life
- promote an ethical based culture - no unethical / illegal practices
What are 8 examples of unethical / illegal practices that an ethic based culture should discourage ? P85
- Money laundering
- terrorist financing
- fraud
- theft
- bribery
- applicable regulation - non compilance
- bullying
- decision making - long term inconsideration
How does an accountant promote sustainability , and how does this affect decision making ? P85
- within organisation / encourage clients (practice)
- objective decision making all factors
- objective & sustainability important
- NO intiatives selected = meeting CSR objectives
- Intiatives picked -other effects on operations
What are the reputational risks of not acting sustainably ? P86
- Attitude to sustainability - risk to reputation with stakeholders
- stakeholders- investors , employees, customers, suppliers
- sustainable development - positive reputational effect - ethical and sustainably aware reputation
How must accountants consider the triple bottom line ? P86
7 ways financial professionals promote sustainability
- Historically - info for profit and growth - recent years sustainability initiatives
- triple bottom line in performance reports
- sustainable development encourage
How can accountants incorporate the triple bottom line into reporting ? P86
- Cost reduction info - raw materials overseas:
- report on responsbile production overseas , good pay , working conditions
How must accountants promote sustainable practice ? P86
- Products and services
- customers
- employees
- the workplace
- the supply chain
- business functions and processes
How does an accountant promote sustainable practice through product and services ? P86
- sustainably resourced materials
- suppliers- fair and decent working conditions
How does an accountant promote sustainble practices through customers ? P86
- supply sustainable manner
- efficient delivery methods
- fair long-term pricing strategies
How does an accountant promote sustainable practices througgh employees ? P87
- encourgaing qualifications - good working conditions
How do accountants promote sustainable practices through the workplace ? P87
- Green policy implementation - recycling and conservation of enerfy
- success measured
How do accountants promote sustainable practices through the supply chain ? P87
- Encourage organisation/ clients :
- supplies - suppliers - ethical approach 2 sustainability
How do accountants promote sustainable practices through business functions and processes ? P87
- constantly review operations - sustainability & sustainable development support
