Sustainability Accounting and Reporting
Added on 2020-05-11
8 Pages2827 Words82 Views
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SUSTAINABILITY AND MANAGEMENTACCOUNTING1
TABLE OF CONTENTSIntroduction......................................................................................................................................3Main Body.......................................................................................................................................3Outline the financial, environmental, social and broader economic issues that the companyneeds to take into account............................................................................................................3Highlight any further information that the company may need to gather before it can resolvethese issues...................................................................................................................................6Conclusion.......................................................................................................................................7References........................................................................................................................................82
INTRODUCTIONSpice Girls is the company that provides the spices all around the Australia, and most ofits products are imported from the small countries like Bermuda and Qumran. In the recent time,the company realized that the cost of production to manufacture the spices is getting high. This report is created in order to understand the various issues that the company is facingin terms of its existing Geelong plant. Different issues related to finance, environment,economic, etc. are discussed that the company needs to undertake before opening a new plant.All the information needed to solve these issues has also been presented.MAIN BODYOutline the financial, environmental, social and broader economic issues that the company needsto take into account`Spice Girl is one of the biggest companies in Australia that supplies the spices to all overthe country, but recently it was decided to open a new plant for preliminary processing of thespices in Bermuda. It is believed that the total cost to set up the plant will only be A$3.6 millionwhich is very less and will per kilogram processing of the spice will be reduced to $0.99 to $0.33(Schaltegger & Csutora, 2012). However, there are several accounting and financials that thecompany will have to undertake in order to set up a plant. One of the biggest financial issues thatcompany will have to take care is the establishment of the new filtration system that will costaround $870000 to purchase, and its maintenance cost will be around $52,500 per annum whichis very high. Although, the company meets all the environmental standards that are set by thegovernment still the management believes that the way in which the company operates still affectthe environment and because of that the company is always in the news (Bebbington, Unerman& O'Dwyer, 2014). The health of the local community, as well as the workers, is getting affectedbecause of the chemical fumes. If the new filtration is installed, it will not only increase thereputation of the company but will also allow them to get a good brand image in the market.However, purchasing this machinery is a very big decision because the cost is too high and isover the budget of the company. Another financial issue that the company will have to take careis the per hour rate of the work which is currently at $4, and that is very low as per the standard.Due to this lower per hour wages, the employees are not happy and are not working as they3
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