Importance of Social and Environmental Reporting for Sustainable Development

This article discusses the importance of social and environmental reporting for sustainable development. It covers the benefits and costs of sustainability reporting, including corporate social responsibility (CSR) cost, sustainability reporting cost, and triple bottom line (TBL) cost. The article also explains the different forms of sustainability reporting and the stakeholders who benefit from it. References are provided for further reading.

Part I- Introduction
The contemporary organization has grown focus on sustainability reporting framework
previously neglected. The corporate social and environmental reporting has a relative impact on
the business environment and therefore, it has become a management concern. The aim of
sustainability reporting is to gauge the management performance in regard to competitive
strategy as well as the external impact of the business to the surrounding society. Sustainable
reporting approach is a reciprocation of sustainable development goals intended to achieve a
sustainable future for all.
Note, the reporting entities voluntarily publish sustainability information in order to create
awareness for both shareholders and stakeholders regarding business health.
In reference to our case of Simple Hospitality Ltd, the possible unsustainable practices include
environmental degradation caused by use of plastic bags, chemical and cleaning supplies
production, pollution caused by extensive use of chemicals and plastic bags, climatic change due
to excessive chemical release on the air affecting ozone layer and also interfering with
inhabitants due to destruction of their peace.
Part II - Discussion
The following costs are related to social and environmental reporting;
Corporate/Management cost- This is the cost associated with the running of the business
including research and development cost. The cost may also include environmental auditing and
certification, as the requirement for social and environmental reporting.
Corporate Social Responsibility (CSR) Cost- It's a business approach that commits to sustainable
development while improving the wellbeing to all the stakeholders. CSR is the corporate
initiative to give back to society. It may involve non-financial societal activities and financial
activities. Generally, organizations engage in CSR program mainly to create a reputation,
enhance corporate image and transparency. It is important that the cost associated with CSR to
be published in financial reporting.
Sustainability reporting cost- Sustainability can be described as a balancing act, aiming to keep
in harmony all business and environmental activities both in current and future meet human
needs. The sustainability matters can adversely affect the company's performance, and there is a
need for disclosure among stakeholders. For the recent, companies are increasingly recognizing
the need for sustainability reporting and the cost associated with it should be clearly reported.
Triple Bottom Line (TBL) cost- The sustainability framework is centered on performance,
economic, social and environmental. It argues that information disclosure should not be only
based on performance but also on financial information. Therefore, the cost associated with
monitoring and reporting on TBL should be recognized.

Social and environmental reporting has some benefits;
Create competitive advantages. Through social and environmental reporting, the business may
gain an advantage in terms of differentiating their product, services, and brands. By reporting, it
convinces the stakeholders on the safety and guarantee of the company's' product or services.
Helps to reinforce organizational image- Reporting on sustainability issues create a good
perception to stakeholders on the safety of the business. This also helps to enhance corporate
reputation leading to the increased business value. Also, help in retaining and attracting talented
staff.
Create Transparency and Moral Concerns. Reporting on social and environmental issues
demonstrate organizational willingness to manage the environment and to contributes to society.
This helps to create a good relationship hence showing transparency.
Following stakeholders benefits from such reporting;
Employees and Society at large-Evaluate how the company influence the environment and its
ability to employ and retain existing employees
Government- To evaluate the social and environmental impact on the society and contribution in
the economy
Shareholders-To gauge agency relationship and benefit is drawn from such reporting
Financier- To evaluate extent unto how they can finance organization
Sustainability reporting should take the below form;
It should contain both financial and non-financial report prepared based on comply and explain
basis. It should include an overview of organizational objectives and strategic goals. Also, it
should have a list of sustainability activities and the company’s status report at the moment.
Sustainable reporting can be disclosed in the Annual Report, Corporate Governance Section,
Director's report, Social report, Sustainability report, Company Brochures and in health and
safety report among others. The targeted parties for the disclosure include government,
shareholders, employees and general society at large.
Part III- Conclusion
Although the concept requires a lot of expertise, time and money, it should not be looked down.
Contemporary organizations should adopt the culture of regular reporting and work towards
being environmentally and socially responsible.

References
Idowu, S. O., and Towler, B.A.,2004.A comparative study of the contents of corporate social
responsibility reports of UK companies.Management of Environmental Quality: An International
Journal,15(4) pp.420-437.
Kaya, I., 2016. The Mandatory Social and Environmental Reporting: Evidence from France,
Procedia-Social and Behavioral Sciences, Elsevier, 229, pp. 2016-23.
Sprinkle, Geoffrey B. &Maines, Laureen A., 2010.The benefits and costs of corporate social
responsibility.Business Horizons, Elsevier, 53(5), pp. 445-453, September.
Thorne, L., Mahoney, L.S., and Manetti, G, 2014. Motivations for issuing standalone CSR
reports a survey of Canadian firms. Accounting, Auditing & Accountability Journal, 27(4),
pp.686-714.