Importance of Social and Environmental Reporting for Sustainable Development

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.