Contemporary Accounting Theory Report 2022

Running head: CONTEMPORARY ACCOUNTING THEORY
Contemporary accounting theory
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CONTEMPORARY ACCOUNTING THEORY
Executive summary
This report is done to get the knowledge of corporate social responsibility importance on firms
operation, reporting concept of corporate social responsibility and sustainability reporting by
explaining its two theories. Then a company IOOF holding limited is selected to give its history,
ownership, governance and financial performance details. Then sustainability reporting has been
prepared on the selected company and explained its quality on the selected company.

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Table of Contents
Introduction......................................................................................................................................3
Part A...............................................................................................................................................3
Part B...............................................................................................................................................8
Conclusion.....................................................................................................................................14
Reference list.................................................................................................................................15

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Introduction
International Organization for Standardization releases the standards of corporate social
responsibility for the companies. Companies adopt CSR programs to increase the growth of the
business. CSR is mainly applied to the large and successful companies who have more
responsibilities. Businesses that ignores the corporate social responsibility has a bad reputation in
the society which effect the profitability and success of the business. IOOF holding limited CSR
program provides a friendly society to help in provision of sickness and funeral benefit. Whereas
the sustainability reporting of IOOF limited states its everyday activities impact on economic,
social and environment. Sustainability report also presents the organizational values in the global
economy (Horngren et al., 2013)
Part A
I. Corporate social responsibility is a business model that help the company to ensure social
and environmental impact on the business. Companies participate in corporate social
responsibility to know their impact on the society, economic and environment. Company
uses CSR to enhance the society and reducing the negative impact of the business. CSR
allows the organization to do a bit for the environment, society and stakeholders (Hopper
et al., 2015). Especially in firms operating with the financial objective is gaining more
importance of it. So the importance of CSR are as follows:
 Consumer protection – Earlier consumer protection was not necessary but with
the change in lifestyle and modernization increase the unfair trade practice with
the increase in need of consumer protection. In today’s world protection of the

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CONTEMPORARY ACCOUNTING THEORY
consumer is considered to be the most important. In order to maximize profit
businesses uses unfair means like black marketing, fraud to achieve their
objectives or goals. This unfair means affect the consumers most. So the need of
consumer protection arise to protect the consumers from duplicity and misleading.
 Respect for human rights – Respecting human rights without any discrimination is
stated in the labor law binding to all companies. It is the responsibility of the
company to respect the human rights by understanding the international norms of
human rights. Human rights risk consist of occupational safety and health,
product and service, discrimination, communities and society (Malik, 2015).
 Avoiding bribery and corruption – Ethical business practice is a critical aspect of
corporate social responsibility. Bribery and corruption has become the face of
companies. Corruption is increasing at a high rate in the global economy.
Corporate policies with good leadership helps to create the benchmark that can
avoid the rapid growth of corruption.
 Promotes labor standards – Labor standard is important for the development for
human being. It is not a product it work with everyone daily life for dignity, well-
being and development of labor. A proper labor standard helps to avoid lowering
the labor standard, develop employee skills to uplift the business, protect the
employee rights, increase employee retention rate and contribute toward the
success of the business (Mansor, 2015).
 Provide strong financial results – CSR is expanding in a company to provide a
strong financial support. The more the company will understand the reputation
and risk of CSR they will get more opportunities.

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II. A sustainability report is a report which are published by the company to show the effect
of its everyday operation on economic, environment and social. It is a comprehensive
approach followed by the company to maximize the economic, social and environmental
in the long term. This report also consist of strategies and commitments toward the global
economy. Sustainability reporting helps the organization to understand the social,
environmental and economic performance by which it can set goals and other cost
effective techniques. Sustainability report is prepared by following the universal
framework Global Reporting Initiative, OECD guideline for multinational entities, the
United Nation Global compact and the International organization for standardization
(Mikes & Kaplan, 2014).
In today’s complex business environment, understanding and identifying the social,
economic and environmental factors is important. To enable the company in analyzing
this facts corporate responsibility and sustainability is required. This helps to manage the
business risk and opportunities while maintain social and environmental sustainability.
Sustainability reporting can be considered to be the synonymous with corporate social
responsibility. Maintaining trust in the business is the fundamental way to achieve
sustainability. Decisions are made by the business and government that directly impacts
the stakeholders. Decisions are based on available financial information. Sustainability is
responsible for the impact on the organization environment and social surroundings
(Nitzl, 2016). A proper sustainability can impact on lowering the cost, improve external
and internal relation and proper risk management. Both the corporate responsibility and
sustainability provides the management benefits like:
 Identifying the key area of the organization of long term value.