Governance, Sustainability and Ethics Information 2022

Governance, Sustainability and Ethics 1
GOVERNANCE, SUSTAINABILITY AND ETHICS
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Governance, Sustainability and Ethics 2
GOVERNANCE, SUSTAINABILITY AND ETHICS
Introduction
According to various literature, corporations endure important aspect to voluntary
disclose information to multiple stakeholders as captured in their corporate reporting landscape.
In as much as the organizations' primary focus is to make a profit, there arise various dilemmas
as a result of stiff competition among corporations. To this manner, corporate firms have an
obligation to ensure a healthy environment for business operation as well as to the general
community. Such type of situation is composed of various stakeholders whose concerns must be
considered while making decisions. In order to meet such obligations, corporates are conceived
to be having a wide range of responsibilities, both civic and economic. The content of this paper,
therefore, discusses various theories that tend to give reasons for such responsibilities and also
explains the triple bottom line reporting.
QUESTION ONE:
Corporate Theories Explaining Corporation Incentive to Provide Information
Three major theoretical approaches have been developed to explain and assist
corporation to solve various situations and issues that arise externally or liberated from money
competitions (Lozano, Carpenter and Huisingh 2015). Thus, these three theories have been
developed as approaches to help meet corporate responsibilities: stakeholders’ theory, corporate
social responsibility and the triple bottom line.
Triple Bottom Line

Governance, Sustainability and Ethics 3
Triple bottom line is a type of approach in which corporations have a sort of social
responsibility that requires corporate firms to tabulate bottom line results not only for
commercial purposes but also in terms of the effects of the firm’s operation to the social realm
and environment. The corporate, therefore, follows two specifics strategies with regards to the
triple bottom line approach. To begin with, when a corporate firm is making up reports, they
must establish three columns of responsibilities and sustainability report must be reported
independently and separate from each other (Gimenez et al. 2018).
These three columns include social sustainability, economic sustainability,
environmental sustainability and fair trade movement. A corporate firm with relation to triple
bottom line approach has an obligation as a participating citizen to ensure that the community
remains healthy and suitable for both business and livelihood ((Hussain, Rigoni and Orij 2018).
Therefore, according to the triple bottom line as a theoretical framework for corporate ensure
that organization acts accordingly and that every organization takes actions that are well thought
and sustainable. To this reason, the organization must provide a sustainable report relating to the
economic environment, environment, and social real as well as fair trading activity.
Stakeholders’ Theory
The above is a theoretical framework that was first described by Edward Freeman as the
mirror image of corporate accountability. According to this theory, before commencing any
business entity, the concerned parties start by looking at various issues in the world instead of
starting with the business and looking into the world later (Strand and Freeman 2015). The
organization must look deeply and provide a report of their environment, and business
stakeholders must have a voice while making any decisions. To this manner, stakeholders