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Accounting for Sustainable Management 9 Sustainability Reporting Contents

   

Added on  2020-04-13

13 Pages3970 Words149 Views
Running head: ACCOUNTING FOR SUSTAINABLE MANAGEMENTSUSTAINABILITYREPORTING

Accounting for Sustainable Management 1ContentsIntroduction...........................................................................................................................................2Requirements for Sustainability Reporting............................................................................................2Why the report should be provided....................................................................................................2Stakeholder Theory........................................................................................................................3Ethical Branch of Stakeholder Theory...........................................................................................3The Accountability Model.............................................................................................................4Whom the reports should be addressed..............................................................................................4Identification of stakeholders.........................................................................................................4WML’s stakeholders......................................................................................................................5What to report....................................................................................................................................5Engagement of Stakeholders.........................................................................................................5The information to be reported......................................................................................................6How to report........................................................................................................................................7GRI- An Introduction....................................................................................................................7G4 Guidelines................................................................................................................................7General Standard Disclosures........................................................................................................8Specific Standard Disclosures........................................................................................................8Future Implications to WML...............................................................................................................10Conclusion...........................................................................................................................................10References...........................................................................................................................................11

Accounting for Sustainable Management 2IntroductionA report published by an organization or company which provide the information about its economic, social and environmental performance is known as sustainability report. It also shows the values of organization and exhibits the connection between its strategies and objective of contributing to a sustainable economy. It becomes very important for the organizations to provide a sustainability report as it indicates the merits and demerits of their activities on the society, economy and environment (Ey.com, 2017).Wave Master Ltd (WML) is an Australian company, established by Mr Bobster, the managing director in 2001. It is listed on Australian Securities Exchange (ASX). It deals in producing wetsuits and surfboards made up of using environment friendly materials. Surfboards are made from growing bamboo and recycled water bottles. It outsources the wetsuits production to Hasan Fashions operating in Bangladesh. Currently, WML Ltd. wants to outsource its production of surfboards to china as it has the better quality of bamboos and the production cost will also be lower. This report includes the reasons for filing a sustainability report and what aspects the report should cover. It also states the implications of outsourcing the surfboard production to China. A theory is also discussed which will direct the recommendations provided for a sustainability report. Requirements for Sustainability ReportingWhy the report should be providedSustainability reporting is the key step in achieving a sustainable global economy. The report will provide sustainable information to the government in order to measure the impact of the company’s operations on economy. The external stakeholders are directly benefited from the reporting as it clearly indicates the positive and negative impact of the day to day activities ofthe WML, on the overall economy. Therefore, WML should provide sustainability report as itwill show its contribution to the environment and society. Ethical branch of stakeholder theory is explained to answer question.

Accounting for Sustainable Management 3Stakeholder TheoryAn organization management and business morals theory that states the moral values which are to be applied in managing the organization. It aims at proper communication with the stakeholders, efficient management of stakeholders. The theory also states that the company should adhere to various problems related to stakeholders’ rights and their powers (Freeman et al. 2010).Stakeholders are defined as the group of people who has an interest in the company and are affected by its activities. They can be internal and external. Internal stakeholders are generally investors, employees who are directly interested in the organization. External stakeholders are those people who are indirectly affected by the operations of a business. These are suppliers, creditors and the society in which the company operates. Ethical Branch of Stakeholder TheoryThis gives a normative perspective that all the stakeholders carry an equal right and should befairly treated. This is why issues related to their powers are not directly relevant. Moreover, the branch also states that the organisation has some social responsibilities that mean it should manage its business for the benefits of all stakeholders. On a whole, it is the duty of the management to coordinate the interest of stakeholders and it should be capable enough to deal with the conflicts arising between the interests (Tilt, 2009).From the above theory, it is very clear that the stakeholders have equal right and with this they also have a right to access all the information related to the day to day activities of the company and their effects on the society, environment and economy. Therefore it is expected from WML to provide sustainability report to its stakeholders as by creating a transparent report on the sustainable activities performed, the company manages to generate a positive interest of investors and stakeholders as the report provides all the information regarding howthe business is conduct and how company address to the social, environmental and governance issues. Sustainability reporting also benefits the company internally as it can determine the areas or the operations which are required to be improved. So it becomes very essential for WML to provide sustainability report to its external stakeholders (Bradford, Earp and Williams, 2014).The above theory cannot stand alone for reporting as it focuses in a specific group that is stakeholders. The reports prepared on the basis of this theory majorly reflects the impact on stakeholders regardless the activities which impacted the survival of the company. WML can

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