Financial and Economic Interpretation and Communication Report 2022

Running Head: FINANCIAL AND ECONOMIC INTERPRETATION AND
COMMUNICATION
FINANCIAL AND ECONOMIC INTERPRETATION AND COMMUNICATION
Name of the Student
Name of the University
Author Note

1FINANCIAL AND ECONOMIC INTERPRETATION AND COMMUNICATION
Table of Contents
Answer 1....................................................................................................................................2
Sustainability Reporting.........................................................................................................2
Answer 2....................................................................................................................................2
Relative Business Ethics........................................................................................................2
Answer 3....................................................................................................................................3
Sustainability of Perpetual Economic Growth.......................................................................3
Reference....................................................................................................................................4

2FINANCIAL AND ECONOMIC INTERPRETATION AND COMMUNICATION
Answer 1
Sustainability Reporting
No, sustainability reporting should not be mandatory for all the organization. It is
because of the widespread concern that the mandatory reporting creates the lowest
denominator in the transparency. If the government sets out the number of the indicators of
the key performances that all the companies have to report on, then the companies would
focus on just making tick on the disclosure in comparison to thinking about the issues of their
shareholders. Moreover, other challenge faced by the mandatory reporting is of materiality. It
is quite difficult for defining the set of the issues, which are material for all the companies
across all the sectors (Steyn 2014). When mandatory reporting are being considered, it is
quite challenging for imagining the list of the indicators or the framework, which would be
useful to the stakeholders as well as companies all across the sectors. Moreover, many of the
organizations believe that the mandatory sustainability reporting will be complicated,
expensive and time-consuming. Some companies do not believe in value of the sustainability,
as the profit of short-term is the larger driving force of their ambitions. The organizations
may get worried about the response of the public to them if in case they are not able to
maintain the level of sustainability at par (Ioannou and Serafeim 2017).
Answer 2
Relative Business Ethics
Yes, business ethics can be relative. The theory of relativism of ethics holds that the
morality of ethics is relative to norms of different cultures. Moral relativism is based on the
idea that morality, knowledge as well as truth are not universal but it is relative to the culture
to the culture in which it is raised upon. Whether there is right action or wrong action, it
depends on the society’s moral norms, under which it is operating. It is not necessary that the