Contemporary Issues in Accounting

Running head: CONTEMPORARY ISSUES IN ACCOUNTING
Contemporary issues in accounting
Name of the student
Name of the university
Authors note

CONTEMPORARY ISSUES IN ACCOUNTING
1
Executive summary
This study project discusses about the CSR activity in two parts. In the first part the corporate
social responsibilities, a contrast have been made relating to the other theories. Further the
legitimacy theory and the institutional theory related to the CSR activity of the company.
Further in the second part the history, governance and the overall company financial
performance have been discussed in this context.

CONTEMPORARY ISSUES IN ACCOUNTING
2
Table of Contents
Introduction....................................................................................................................4
Discussion..................................................................................................................4
Part A: THEORITICAL KNOELEDGE....................................................................4
Importance of CSR to the firm’s financial activity....................................................4
Contrasting the sustainability reporting with other relevant accounting standards. . .5
Theories related to the sustainability accounting.......................................................7
Institutional theory.....................................................................................................7
Legitimacy theory......................................................................................................8
Part B: Application of theoretical knowledge to explain reporting practices............9
History........................................................................................................................9
Ownership..................................................................................................................9
Governance..............................................................................................................10
GRI reporting standards...........................................................................................11
Sustainability report of pendal group.......................................................................12
Environmental, governmental and other social factors............................................13
Considering the risks and opportunities...................................................................13
Human capital..........................................................................................................13
Active managers and shareholders...........................................................................13
Sustainability reporting scoring index accounting...................................................14
Conclusion....................................................................................................................15

CONTEMPORARY ISSUES IN ACCOUNTING
3
References....................................................................................................................16
Appendices...................................................................................................................19

CONTEMPORARY ISSUES IN ACCOUNTING
4
Introduction
The above study assignment discusses about the reason why corporate social
responsibility had gained advantage to the firms. The corporate social responsibility is a
current topic to deal with and almost all the business entities goes for this issues. Furthermore
the CSR activity have also pointed out towards effectively implementing the business.
Further the business sustainability have also been addressed by comparing the sustainability
theory with the other relevant theories. Apart from that the study topic have also conferred
about the relevant accounting theories which are also related to addressing the sustainability
accounting. Such theories are institutional theory and the legitimacy theory. Lastly the second
part of this topic discusses about the implementation of CSR activity of pedal group limited
and how the same have affected the company governance and the share price
Discussion
Part A: THEORITICAL KNOELEDGE
Importance of CSR to the firm’s financial activity
The corporate social responsibility is considered as an effective business strategy. All
the small and big industries effectively imply the CSR strategy. However the CSR strategy
lacks from the point of view of familiar and non- familiar industries (Kawaguti et al., 2014).
The main focus of the CSR practises are limited to the difference between the familiar and
non- familiar business activities. However the CSR activities are basically related to the
aspects like reputation, fame and identity of the industry and how much they are associated in
dealing with the problems of society. Firstly the familiar firms are only concerned about the
protecting the self- interest as well as doing some good things for the society also. Moreover
the corporate social responsibility is also restricted to the environmental, social, ethical,
corporate and human resource aspects (Hu et al., 2014). Thus these aspects are highly related

CONTEMPORARY ISSUES IN ACCOUNTING
5
towards making an effective business decision for the betterment of the company.
Furthermore the company’s annual and social report also provides importance in generating
the business operations. In the current decades the financial crisis had effectively generated
the importance of preparing the accounting report for the company. Therefore the company
investors will easily get the view on which way the company is heading towards. Thus the
investors trust will increase. On the other hand the sustainability report helps the entity to
imply effective risk management technique. But on the contrary it can be said that the CSR
activity is not also that much beneficial for the company since it does not provide the benefits
all the time to business. Moreover it can be said that the CSR responsibilities are helpful in
enhancing the corporate business roles and responsibility overall and it had created an
immense impact to the affectivity of the business (Chilamakuri et al.,2014). Since the CSR
activities are investigated from different open source, therefore these activities helps the
company engage on good profit making for the business and thus by generating effective
outputs. Hence any firm could create the CSR value activities only by creating sustainability
towards managing the CSR activity. This can also be said that since the CSR activity is
related to economics, therefore it could create certain attention to the reputation of the
corporate firm (Cai et al., 2015).
Contrasting the sustainability reporting with other relevant accounting standards
The business environment is heavily affective towards the societies and the
environment lived by us. Thus the process is heavily defined by the economic, social and
global perspectives. Therefore it can be said that as far as CSR is concerned it is very much
dynamic in nature. Moreover the environmental demand and the moral stability is totally
dependent on the expectations from the company shareholders who possess the basic
experience at the time of company restructuring. However the corporate restructuring is
relied over the corporate performance. The CSR practises create a certain value to the