Financial and Economic Interpretation and Communication Answer 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

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Table of Contents
Answer 1....................................................................................................................................2
Answer 2....................................................................................................................................2
Answer 3....................................................................................................................................3
Reference....................................................................................................................................4

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Answer 1
Sustainability Reporting
Yes, sustainability reporting should be mandatory for every organizations. It is
because the value of the sustainability reporting ensures the organization to consider the
impacts on the issues of sustainability and it enables them for being transparent to the risks as
well as responsibilities they are facing. The report of the sustainability is the organizational
report, which helps in giving the information about various aspects such as economic,
governance performance, social aspects as well as environmental aspects. It will help the
companies for thinking and defining their visions of long-term as well as raises the awareness
of the sustainable practices in the organizations. Moreover, it leads towards reduction of cost
for the companies on the various aspects of the operations, especially in respect of increasing
the efficiency (Ioannou and Serafeim 2017). Further, sustainability reporting increases the
ability for the companies in order to communicate with the investors in relation to their KPIs
as well as social impacts. It is generally found that the countries that have some form of the
mandatory reporting tends for having higher welfare of employee, improved supervision of
board, greater prioritizing of the issues of environment as well as less frequent cases of the
corruption and bribery across the companies (Amran, Lee and Devi 2014).
Answer 2
Business Ethics
Yes, business ethics is relative. It is based on the theory that the moral ethics is
relative to the one’s culture norms, which states that whether the action is right or whether it
is wrong, it depends upon the moral norms of society, where it is being practiced. The idea of
moral relativism is based on knowledge, morality and truth, which is not universal but there
is relativeness of culture-to-culture, under which it is being raised upon. There may be some

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action, which may be morally right in one country but it may be morally wrong in other
country. It changes from one country to the other and from business to the other. There are
various cultural as well as religious differences and in certain situations, the way of doing
things in some of the situations may be ethically correct but it may be completely unethical in
the other situations. For example, for one country bribery may be okay, while for the other
country it is ethically wrong. One more example of relative business ethics is that violations
of workers basic rights may be ethical for one country but it may not be ethical to the other
country (Barry 2016).
Answer 3
Sustainability of Perpetual Economic Growth
No, perpetual economic growth is not sustainable. It is impossible for having
sustainable economic growth. The growth of economy occurs when there is increase in the
real output over the time. Sustainability of the economic growth refers to the rate of return
that can be maintained without creating the other significant problems of economy especially
for the future generations. Growth period are generally triggered by increase in aggregate
level demand but the sustainability growth means increase of output level. There is tradeoff
between the economic growth today as well as the growth in the future. Moreover, the
sustainable economic growth is the economic development, which attempts for the
satisfaction of the needs of the human but in the manner that sustains the natural resources as
well as the future generations’ environment. The economy functions in ecosystem and the
economy cannot be separated from this. However, if there are limits of the amount of the
resources that can be extracted from Earth as well as the waste that can be polluted, beyond
the processes of the biology of plant and the human societies that depends on them, comes
under the threat. The alternative to the perpetual economic growth is to have the goal of
economic stability apart from the growth of GDP (Gómez-Baggethun and Naredo 2015).

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Reference
Amran, A., Lee, S.P. and Devi, S.S., 2014. The influence of governance structure and
strategic corporate social responsibility toward sustainability reporting quality. Business
Strategy and the Environment, 23(4), pp.217-235.
Barry, N., 2016. Business ethics. Springer.
Gómez-Baggethun, E. and Naredo, J.M., 2015. In search of lost time: the rise and fall of
limits to growth in international sustainability policy. Sustainability Science, 10(3), pp.385-
395.
Ioannou, I. and Serafeim, G., 2017. The consequences of mandatory corporate sustainability
reporting. Harvard Business School research working paper, (11-100).