Reasons for and against Global Reporting Initiative

Running Head: FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Name of the Student
Name of the University
Author Note

1FINANCIAL ACCOUNTING
Table of Contents
Introduction...................................................................................................................2
Discussion.....................................................................................................................2
Sustainable Reporting...............................................................................................2
Reasons for and against Global Reporting Initiative Report Preparation.................2
Conclusion....................................................................................................................3
Reflection......................................................................................................................3
Reference & Bibliography.............................................................................................6

2FINANCIAL ACCOUNTING
Introduction
Sustainability reporting is the tool used for increasing accountability and
transparency in the issues. The investment in sustainability continues to grow
popularly, however, lack of the standardization in reporting of sustainability poses
great challenge for the investors, who wishes to maximize social responsibility and
minimize social damages of the investments (Simmons Jr, Crittenden and
Schlegelmilch 2018). The GRI standards are designed for the companies to use it for
reporting their impacts on social, environmental, society and the economy. It is
structured as set of the interrelated standards. Hence, this report aims for discussing
reasons for and against preparation of Global Reporting Initiative report.
Discussion
Sustainable Reporting
Sustainability reporting is key platform for communication of the sustainability
impacts and performances. It is the report regarding social and environmental
performances. It enables the organizations for considering their impacts on wider
range of the sustainability issues, which ultimately helps them for being more
transparent regarding opportunities and risks they faces.
Reasons for and against Global Reporting Initiative Report Preparation
The definition of World Commission of sustainability is conceptually helpful,
but it lacks specificity. “Triple Bottom Line” provides initial point to develop the ways
to identify and develop the actions, which contributes to three sustainability facets
that is environment, economy and social equity. GRI was developed by non-profit
organization based in Boston, Ceres, along with “United Nations Environmental
Programme”. “The Global Reporting Initiative” is international, independent and the
multi-stakeholder non-profit organization, which helps in promoting social,
environmental and economic sustainability. GRI provides the criteria for measuring
behavior of company in each leg of “Triple Bottom Line”. Initially fifty companies has
released guidelines of sustainability reporting that was released by the Ceres.
Afterwards, this number increased rapidly (Hąbek 2014). The system of GRI is
modeled after GAAP that provides the ways for simplifying and unifying the
conflicting methodologies of accounting. Similarly, GRI puts TBL reporting into the
format that helps in promoting influence, comparability, usefulness and accuracy