Corporate Social Responsibility (CSR) | Report

Accounting for Managers
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Contents
Introduction......................................................................................................................................3
Financial/Economic performance....................................................................................................3
Environmental Performance............................................................................................................6
Social Performance..........................................................................................................................8
Conclusion.....................................................................................................................................10
References......................................................................................................................................11
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Introduction
The business corporations nowadays are largely emphasizing on developing their
sustainability or Corporate Social Responsibility (CSR) report for providing knowledge to the
stakeholders regarding their economic, social and environmental performances. The business
corporations in order to promote transparency in their operational activities need to timely
disclose both their financial and non-financial performance to the end-users for achieving their
trust and confidence. This is essential for promoting their sustainable growth and development
through promoting the goodwill in the market and thus attracting potential investors. In this
context, the present report aims to analyze and examine the economic/financial, social and
environmental performance of Myer Holdings Limited. The financial/economic performance is
analyzed through examining the profitability of the company though undertaking a comparison
analysis with the previous financial year results. The environmental performance is analyzed
through examining the strategies adopted by the company for protection of environment and
social performance is examined through the measures taken by it for promoting the welfare of its
stakeholders.
Financial/Economic performance
Myer Holdings Limited has about 66 stores across Australia involved in providing wide range of
products to its customers in the fashion, cosmetic and home section. The company is recognized to be
largest department store chain in Australia listed on ASX and have maintained its dominant position in
the market by outperforming its competitors. The company has maintained a good financial position in
the international market as indicated by its financial results of the year 2014. The company has reported
total sales of about $3,143 million at the end of financial year 2014. The sales of the company have
increased by 1.2 per cent in the year 2014 as compared to the previous year indicating the growth of the
company. The significant investment have been made in its key areas including online resources,
diversifying brand portfolio and increasing the store network for strengthening its competitive position in
the global market place. The exclusive brands of the company in the categories of cosmetics, women’s
footwear, handbags and appliances have recorded a sales growth of about 1.7 per cent in the financial
year 2014 in comparison to previous year results to about $638.2 million. However, the company has also
reported a decline in its net profit after tax to about 22.6 per cent in comparison to the previous year due
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to deprecation of Australian dollar and the significant expenditures incurred by it on developing new
products (Myer Holdings Limited: Annual Report, 2014).
The company has also reported an increase of about 3.3 per cent in its CODB (Cash Cost of
Doing Business) due to the significant investment made by the company in achieving its strategic goals
and objectives of business expansion. The company has maintained a strong cash position through out the
year as reflected from its stable balance sheet (Brealey, 2012). The board of Directors of the company has
declared a dividend of 5.5 per cent per share reflecting its strong financial growth contributing to a full
year dividend of about 14.5 per cents. The board has maintained a positive outflow regarding the financial
performance of the year 2015 by deciding a payout ration of 86 per cent through adoption of such a
dividend policy. The company has also adopted effective sustainable strategies and practices for
addressing the environmental, social and economic impacts of its business operations and strategies. The
company has aligned its growth strategies with its sustainable performance for promoting the economic
development (Myer Holdings Limited: Annual Report, 2014). The financial position of Myer Holdings
Limited can be evaluated through comparing the financial results of the past two financial years as
follows:
Myer Holdings Limited:
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