Contemporary Accounting Theory Report 2022

Running head: CONTEMPORARY ACCOUNTING THEORY
Contemporary Accounting Theory
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Author’s note

CONTEMPORARY ACCOUNTING THEORY1
Table of Contents
Executive Summary...................................................................................................................1
Introduction................................................................................................................................1
Discussion..................................................................................................................................2
PART - A...................................................................................................................................2
Literature review showing the importance of corporate social responsibility for firms
operating with financial objectives............................................................................................2
Comparison of Sustainability reporting with other reporting concepts.....................................3
Two theories that explain the essence of sustainability reporting..............................................4
PART – B...................................................................................................................................5
Introduction of the company with an overview of its history, ownership, governance and
financial performance.................................................................................................................5
Sustainability reporting scoring index according to the Global Reporting Initiative (GRI)
guidelines...................................................................................................................................7
Extent and quality of sustainability reporting of the selected Australian company against
sustainability reporting scoring index........................................................................................8
Social responsibility of the company against the prepared index............................................10
Conclusion................................................................................................................................12
References................................................................................................................................13

CONTEMPORARY ACCOUNTING THEORY2
Executive Summary
The report talks about the different benefits of corporate social responsibility and
sustainability in a theoretical as well as in a practical phenomenon. Considering the
theoretical perspective of the topic, a literature review stating the importance of corporate
social responsibility in achieving the financial objectives of an organisation. The organisation
chosen for this report is Nanosonics Limited which is an ASX listed company. A brief
overview of the company is provided stating its history, ownership, governance as well as
financial performance. The annual report of the company is thoroughly analysed for
determining the extent up to which the company follows sustainability and corporate social
responsibility in meeting its financial objectives. A sustainability reporting scoring index is
prepared according to the guidelines of Global Reporting Initiative (GRI). The social
responsibility that is shown in the annual report of the company, is rated according to the
prepared index and comments are provided accordingly.
Introduction
The primary objective of the report is to analyse and elaborate the growing
importance of sustainability and corporate social responsibility in achieving the financial
performance of a company. A theoretical perspective of corporate social responsibility is
provided through a literature review. A comparative study of the corporate social
responsibility is made with other relevant reporting concepts. Two other theories are then
explained which provides better essence of sustainability reporting. In the second part of the
report, the practical application of corporate social responsibility and sustainability is
examined through an organisation. The organisation that is chosen for this purpose is
Nanosonics Limited. An overview of the organisation is provided focussing on its history,
ownership, governance and financial performance. Further the report deals with a
sustainability reporting scoring index that is being prepared in accordance with the guidelines

CONTEMPORARY ACCOUNTING THEORY3
provided by Global Reporting Initiative (GRI). At the last section the sustainability reporting
of the company is compared with the standard provided by GRI and suitable analysis are
commentaries are provided. For the purpose of elaborating this section, the social
responsibility statement of the company has been used which is extracted from the annual
report of the company.
Discussion
PART - A
Literature review showing the importance of corporate social responsibility for firms
operating with financial objectives
Corporate social responsibility can be defined as a silent obligation of managers to
protect the interests of the groups belonging to the organisation. This obligation is implied
and enforced to the managers. In recent days, corporate social responsibility has been
considered as an important issue in the business operations.
A paper has been chosen to stress upon the importance and relevance of corporate
social responsibility in the business operations of today’s generation. In this context, it has
been observed that the different stakeholders of the company are becoming more aware of the
roles of the corporates in achieving its responsibilities towards the society (Strouhal et al.,
2015). The stakeholders have also demanded the involvements of the companies in the daily
running of the affairs of the society. Due to this reason, the corporates have realised that their
sole objective cannot be profit maximisation or growth (Strouhal et al., 2015). Along with
achieving its financial objectives, the corporates have thought of catering to the needs of its
interest groups and the host communities. In this process they have thought of linking their
financial objectives with their social interests.