Impact of Laws and Ethics on Accounting and Sustainability Reporting

This dissertation explores the impact of laws and ethics on accounting and sustainability reporting. It examines the relationship between law and ethics, and the influence of laws and ethical aspects on sustainability reporting. The study aims to assess the positive and negative effects of laws and ethics on accounting and CSR reporting.

Dissertation

TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION....................................................................................................1
1.1 Background of the study........................................................................................................1
1.2 Research aims and objectives................................................................................................1
1.3 Rationale of the study............................................................................................................2
1.4 Significance of the study.......................................................................................................2
1.5 Dissertation structure.............................................................................................................3
CHAPTER 2: LITERATURE REVIEW.........................................................................................4
Theme 1: Relationship between law and ethics...........................................................................4
Theme 2: Impact of laws and ethics on sustainability reporting.................................................5
CHAPTER 3: RESEARCH METHODOLOGY.............................................................................8
3.1 Research type.........................................................................................................................8
3.2 Research approach.................................................................................................................9
3.3 Research philosophy..............................................................................................................9
3.4 Research design.....................................................................................................................9
3.5 Data collection.......................................................................................................................9
3.6 Data analysis..........................................................................................................................9
3.7 Research limitations...............................................................................................................9
3.8 Ethical considerations............................................................................................................9
3.9 Reliability and validity..........................................................................................................9
CHAPTER 4: DATA ANALYSIS AND FINDINGS...................................................................10
REFERENCES..............................................................................................................................11

CHAPTER 1: INTRODUCTION
Topic: To analyze the impact of laws and ethics on accounting as well as reporting of
corporate social responsibility
1.1 Background of the study
In the present era, with the motive to provide stakeholders with the fair information
pertaining to accounting and sustainability reporting several standards have been introduced.
Financial reporting standards are highly significant which in turn helps in developing
standardization and thereby facilitates comparison. This aspect shows that role of standards in
accounting are highly significant and helps stakeholders in decision making. Hong Kong
financial reporting standards include HKFRS, HKAS and related interpretations (Financial
reporting, 2017). Now, there are several companies in Hong Kong which follow accounting
standards and legislation with the motive to present fair view.
Along with this, now investors and other customers prefer to invest in the company
which performs CSR activities. In addition to this, government is also highly interested in
assessing the extent to which CSR initiatives undertaken by the different types of business
organization. Hence, with the motive to show the ethical responsibilities and attract large number
of people now firm publishes sustainability report at the end of accounting year. Such report
clearly presents the strategies undertaken by the firm for social contribution and environment
sustainability. In this, report will shed light on the impact of laws and ethical aspects on
accounting as well as sustainability reporting.
1.2 Research aims and objectives
In order to conduct study in a highly effectual way it is highly required for the researcher
to set specific aims and objectives by considering the research issue. Hence, research aims and
objectives related to the present study are enumerated below:

Aim: The aim of the present study is to assess the positive and negative influence of laws
and ethics on accounting and CSR or sustainability reporting.
Objectives:
 To identify the laws and ethical aspects related to accounting and reporting of CSR.
 To evaluate the relationship takes place between laws and ethics.
 To assess the impact of law on accounting and sustainability reporting.
 To recommend the ways through which companies can comply with the regulatory
aspects.
1.3 Rationale of the study
The rationale behind conducting present investigation is determining the impact of laws
and ethics on accounting as well as sustainability reporting. In the recent times, it is one of the
main issues now because as per laws and ethics business unit has to give report to the
stakeholders about the initiatives undertaken by them. Now, with the motive to enhance brand
image and market share every company performs CSR activity. Moreover, sustainability report
clearly shows the initiatives undertaken by the firm for the well –being of society. In this regard,
the present report will shed light on the manner in varied laws and ethical aspects have an impact
on accounting & sustainability reporting.
1.4 Significance of the study
In the present era, interest of students and other individuals towards the field of research
increased significantly. Hence, the present study and assessed outcome will provide high level of
assistance to the researchers who are interested in the area of finance. Hence, results of the
present research will give input to the scholars who willing to conduct study on similar topic.
Besides this, investigation outcome will help company in understanding the extent to which laws
and ethics have positive or negative impact on accounting as well as sustainability reporting.
Hence, by considering such study other scholars can find out gap and would become able
develop hypothesis for further research. On the basis of overall aspects or evaluation it can be
said that study related to laws as well as ethics in accounting is highly important in the recent
times.

1.5 Dissertation structure
Chapter 1: Introduction
In the first chapter of dissertation, scholar has depicted background and reasons behind
conducting the present investigation. On the basis of research issue, aims and objectives for the
whole study has been drafted by the researcher. Along with this, investigator has also mentioned
information about the significance of the present study and its outcome for stakeholders.
Chapter 2: Literature review
Second chapter of dissertation contains findings presented by different researcher
regarding laws and its association with ethics and CSR. Hence, in the literature review section
brief thesis has been prepared by the scholar through evaluating books, journals and scholarly
articles.
Chapter 3: Research methodology
Under third chapter, scholar has selected tools and techniques to assess whether laws
have positive or negative impact on the CSR reporting. Hence, by considering the research issue
and objectives type, approach, philosophy, data collection and analysis technique has been
determined. Researcher has followed tools selected in this section during whole study with the
motive to conduct investigation in the best possible way.
Chapter 4: Data analysis and findings
In the 4th chapter, data gathered from various sources have been analyzed by the
researcher through the means of thematic analysis technique. Hence, by preparing several themes
regarding the influence of laws and ethical aspects on accounting & sustainability reporting
solution has been presented by the researcher.
Chapter 5: Conclusion and recommendations
Final chapter of dissertation includes summary of the findings which in turn shows that
objectives of research has been attained to the full extent. Besides this, investigator has also
recommended the ways through which business unit can comply with the legal aspects and
enhance its brand image.

CHAPTER 2: LITERATURE REVIEW
Literature review is the process which in turn lays high level of emphasis on the
evaluation of books, journals and scholarly articles. For analyzing collected data in an
appropriate manner researcher must have proper understanding about the issue which is going to
be investigated. Hence, several articles related to laws and ethical aspects have been evaluated to
ascertain the level to which they affect the aspect of sustainability reporting. This section of
dissertation is highly significant which in turn assists in deriving suitable solution of issue. It
may be served as a brief investigation in which high level of emphasis is laid on the achievement
of goals. Hence, in this chapter, several themes have been framed by the scholar pertaining to
laws and ethics in accounting as per the aims and objectives.
Theme 1: Relationship between law and ethics
As per the views of Gillers (2014) law includes rules and guidelines that can be enforced
by social institutions for governing the behavior. Hence, law contains universally accepted rules
and regulations which are created and introduced by an appropriate authority such as
government. G Thus, law implies for the rules which govern the whole society as well as
actions of the individual members. On the other side, ethics is the philosophical study of morality
which in turn presents the aspects that people ought to do and not. Hence, ethics presents rational
and systematic analysis of conduct that may cause of benefit or harm to other people (Difference
Between Law and Ethics, 2017). Uyar, Gungormus and Kuzey (2017) depicted that laws and
ethics differ from each other to a great extent. Moreover, law is the set of rules and regulations,
whereas ethics account for the set guidelines. Along with this, laws are governed by government
authority, whereas ethics are administered through individual, legal and professional norms. By
considering this it can be presented that laws and ethics are not similar.
However, on the critical note, Serour and Dickens (2017) presented that the main
objectives of both law and ethics is to contribute in the well being of others. The main objectives
of both are to provide members of the society with more benefits. However, Gillers (2014)
criticized that as per law individual is compelled to perform specific activities. In contrast to this,
in the case of ethical aspects business units or other people willingly perform activities for others

welfare. In other words, law has a legal binding, whereas ethics is free from such aspect. In
accordance with such aspect, differences take place between the laws and ethics to some extent.
On the critical note, Greene (2015) said that motives of both law and ethics are highly similar
because the focus is on offering protection to others. Thus, by considering the overall evaluation,
it can be entailed that law and ethics contain both similarities as well as differences.
Theme 2: Impact of laws and ethics on sustainability reporting
As according to Sorensen, Miller and Cabe (2017) sustainability describes with the economical,
environmental, governmental as well as social sustainability at workplace. There will be various
laws and regulation in protection with the organisational sustainability. Professional belongs to
such entities make disclosure of their financial operations which helps them in generating the
favourable amount of stakeholders. In context with the disclosure of CSR and financial
statements there have been various methods or laws which help them in learning the legal
method of facilitating the reports. As per Shawver and Miller (2017) there are various
organisations or companies are developing the executive process to calculate or measure as well
as communicating sustainable reports in the market. Sustainability reports can be provided by the
help of various firms or units such as manufacturing, technical, proprieties and constructive
entities. They facilitate the reporting qualitative information which helps them in generating the
favourable amount of investments.
Fiolleau and Kaplan (2017) stated that, CSR is the responsibility of all industries they
must be well known to the norms and effects of such responsibilities over the operational work
of the firm. There can be disclosure of several financial instruments in front of stakeholders.
They will make their valuable judgement as according to the financial strength of the
organisation. A manufacturing unit needs more amount of funds as to purchase raw material as
well as requirement of the laborious efforts to bring material into end product. Stephenson
(2017) criticized that, disclosure of such reports may not affect the operational functioning of the
organisation. The activities of the entity can be influenced by the performance and the quality of
products delivered by them. There has been gains through the investments made by stakeholders
such as investors or share holders of the business but the real value or income can be generated
by the end users of the products and services.
Uyar, Gungormus and Kuzey (2017) stated that there has been various ethics in the
sustainability of the organisational disclosure of the financial reports. The reports are not only

based over the communicating and comparing the sustainability reports of various industries but
the main aim is to improve the social and environmental quality in the country. Anderson and
Feist (2017) contradicted that these reporting system will help organisational in making the
favourable comparison between various industries and that will help in making the effective
strategies which will improve the financial growth of companies. It will be fruitful for increasing
efficiency of firms as well as encourage them to make fruitful strategies for promoting the brand.
Sorensen, Miller and Cabe (2017) insisted that, it brings effective changes over
organisational functioning such as it provoke competition between industries. In context with
that they improve product quality, implement changes to improve productivity as well as
installation of updated technologies. These can be beneficial for the country to have innovative
changes in technology as well as it will help in promoting education and that will be social
benefits for the nation. There has been advancement in the technical aspect of producing the
goods which will lower down the laborious efforts as well as promote the quality in the
performances. Serour and Dickens (2017) in against of this context said that, there has been
improvement in the technologies and innovative changes took place but it will not about to
improve financial standard of company. For better financial growth in industries there must be
implications of the various rules and ethics by the professional of the organisation. These will
make them work in the proper manners and discipliner in the work will improve the quality of
their performance.
In accordance with Sorensen, Miller and Cabe (2017) there has been utilisation of various
ethics in preparing the organisation's reports which includes human rights, grievance measures,
antitrust and anti- corruption, suppliers, collective bargaining agreements etc. These ethics helps
industries in maintaining operational variations inside the premises as well as the external side of
the business. As per the manufacturing companies there must be focus over the human rights
related with health and security of the employees in the organisation. It may include their salary
breakup as well as their working hours in which they usually perform. As per Shawver and
Miller (2017) Importance must be given to the anti- corruption and better grievance
measurements as it will improve the trust in the mind of stakeholders and they will be able to
make their fruitful decision in investing in the company.
As per the views of Gillers (2014) there must be contract signed between suppliers,
distributors as well as employees of the organisation. It can be beneficial for company to easily

claim against any breach of agreements and also fruitful in the collection of funds. There must be
proper records of the each stakeholders such as workers, suppliers and the mode of payments
must be included all the details which will be beneficial in file a suit against them. As per Greene
(2015) there must be consideration of terms and conditions which will fulfil local requirements
as per standards. There will be enforcement of laws and rule in favour with protecting employees
or

CHAPTER 3: RESEARCH METHODOLOGY
Research methodology may be served as a pathway which will be followed by the
researcher during the whole. It includes wide range of tools and techniques which in turn helps in
doing investigation in a coordinated manner. Approach, philosophy, research type, design, data
collection and analysis tools are the main parts of methodology. For the attainment of research
aim and objectives selection of the appropriate methodology is highly required. Hence, in the
present investigation, to assess or evaluate the impact of laws and ethics on accounting as well as
reporting aspect of sustainability several tools have been selected by the scholar such as:
3.1 Research type
In the field of research, type of the research can be divided into two parts such as
qualitative and quantitative. Hence, selection of suitable research type is the prior requirement
which in turn assists in employing appropriate approach and philosophy that suits to the research
type. In this regard, it is highly required for the scholar to select either or one suitable type out of
two by taking into account the research issue or problem. Thus, qualitative research may be
served as a method of which develops understanding on social science, human etc. Hence,
qualitative research is subjective approach that assists in evaluating the manner in which people
think and feel. By undertaking such type of study researcher can explore and discover ideas used
in ongoing process and develops initial understanding regarding issue. On the other side,
quantitative research is undertaken by the researcher when solution is based on numerical data
set. Unlike qualitative, it is objective approach which in turn provides assistance in examining
cause and effect relationship between the variables.

3.2 Research approach
3.3 Research philosophy
3.4 Research design
3.5 Data collection
For conducting study in an appropriate manner researcher can gather data from both the
sources such as primary and secondary. In this regard, sources of primary data include interview,
observation, focus group, survey etc. Primary data implies for the one that is specifically
gathered by the researcher for meeting the research objectives. Hence, by selecting the suitable
source of primary data collection researcher can gather appropriate information in line with the
research issue or purpose. On the contrary to this, data which has already gathered and analyzed
by other researchers then it is considered as secondary. Books, journals and scholarly articles are
the main secondary sources which in turn help in collecting secondary data set.
In order to assess the impact of laws and ethics on the aspects of accounting secondary
data has been collected by the scholar. For this purpose, books, journals and scholarly articles
related to laws as well as ethics in accounting has been evaluated. Along with this, annual report
of CPL holdings pertaining to the year 2015 and 2016 also has been considered to assess the
extent to which company is following laws and ethics.
3.6 Data analysis
3.7 Research limitations
3.8 Ethical considerations
3.9 Reliability and validity

CHAPTER 4: DATA ANALYSIS AND FINDINGS

REFERENCES
Books and Journals
Anderson, B. R. and Feist, G. J., 2017. Transformative science: a new index and the impact of
non-funding, private funding, and public funding. Social Epistemology. 31(2). pp.130-151.
Fiolleau, K. and Kaplan, S. E., 2017. Recognizing ethical issues: An examination of practicing
industry accountants and accounting students. Journal of Business Ethics. 142(2). pp.259-
276.
Gillers, S., 2014. Regulation of Lawyers: Problems of Law and Ethics. Wolters Kluwer Law &
Business.
Greene, J. D., 2015. Beyond point-and-shoot morality: Why cognitive (neuro) science matters
for ethics. The Law & Ethics of Human Rights. 9(2). pp.141-172.
Serour, G. I. and Dickens, B. M., 2017. Ethical and legal issues arising from complications of
ART. Complications and Outcomes of Assisted Reproduction. p.164.
Shawver, T. J. and Miller, W. F., 2017. Moral intensity revisited: Measuring the benefit of
accounting ethics interventions. Journal of Business Ethics. 141(3). pp.587-603.
Sorensen, D. P., Miller, S. E. and Cabe, K. L., 2017. Developing and measuring the impact of an
accounting ethics course that is based on the moral philosophy of Adam Smith. Journal of
Business Ethics. 140(1). pp.175-191.
Sorensen, D. P., Miller, S. E. and Cabe, K. L., 2017. Developing and measuring the impact of an
accounting ethics course that is based on the moral philosophy of Adam Smith. Journal of
Business Ethics. 140(1). pp.175-191.
Stephenson, S. S., 2017. Reflective Ethical Decision: A model for ethics in accounting
education. The Accounting Educators' Journal. 26.

Uyar, A., Gungormus, A. H. and Kuzey, C., 2017. Impact of the Accounting Information System
on Corporate Governance: Evidence from Turkish Non-Listed Companies. Australasian
Accounting Business & Finance Journal. 11(1). p.9.
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Financial reporting. 2017. [Online]. Available through:
<http://www.hkicpa.org.hk/en/standards-and-regulations/standards/financial-reporting/>.
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Difference Between Law and Ethics. 2017. [Online]. Available through:
<http://www.differencebetween.net/miscellaneous/politics/difference-between-law-and-ethics/>.
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