Sustainability Tute Flashcards
What are the consequences of not having a formal accounting standard for reporting Social and environmental activities?
Activities are not going to be included in the transactions reflected in the financial statements.
E.g. pollution is not costed, social cost
How should managers engage with each of their stakeholders?
- Shareholders - email, AR, SR, website
- Customers - email, media, website, source of products, environmental credentials
- Fund investors - email, phone, meetings with fund managers, S info in written
- Community groups - media, company website, community meetings
- Media - media releases, email, phone
- Gov and regulators - direct reporting to show compliance with regulations
Imagine u are a CEO entering a developing country who needs to create a SR, what would you need to consider?
- Environmental impacts
- Transport Methods
- Depletion of resources to the detriment of locals
- Wages and facilities for employees
- Gov regulations
What is the difference between Integrated and CSR reports?
An integrated repot usually combines details of a company’s financial performance with its social, environmental, and governance performance.
Whereas a CSR report is presented separately normally with non/less comparable info on social and environmental performance info.
What are global factors that may affect the quantity, quality and format of your SR?
- mandatory SR format requirements
- Lack of global consensus
- Differing legislation
- International orgs such as UN
- Global Reporting Initiative (GRI)
- Global economic events such as GFC
- Consumer SR appetite
What are Australian factors that may affect the quantity, quality and format of your SR?
- Australian legislation and regulations
- Level of enforcement of the legislation
- Recent changes in gov
- Public good and free rider problem
- level of consumer demand for SR
- limited mandatory reporting = decrease
- no generally accepted reporting
- gov grants and tax incentives
- level of gov fines for non-compliance
- high gdp per capita in Australia may encourage increase - as items are more expensive - therefore more focus on SR
