Impact of Sustainability Report on the Operating Model of a Company

DISSERTATION

TABLE OF CONTENTS
CHAPTER1: INTRODUCTION.....................................................................................................1
1.1 Overview of study............................................................................................................1
1.2 Aim and objectives...........................................................................................................1
1.3 Research Questions..........................................................................................................2
1.4 Rationale of study.............................................................................................................2
1.5 Significance......................................................................................................................3
1.6 Dissertation structure........................................................................................................3
CHAPTER 2: LITERATURE REVIEW.........................................................................................5
2.1 Introduction......................................................................................................................5
2.2 The concept of sustainability report.................................................................................5
2.3 Impact of sustainability report on the financial aspect of the company...........................6
2.4 Role of sustainability report on the operating model of the company.............................8
2.5 Effect of sustainability report on the reputation of the company.....................................8
2.6 Different legal standards considered by the company for monitoring sustainability.....10
CHAPTER: 3 RESERACH METHODOLOGIES........................................................................12
3.1 Introduction....................................................................................................................12
3.2 Research philosophy.......................................................................................................12
3.3 Research design..............................................................................................................13
3.4 Research approaches......................................................................................................13
3.5 Research strategy............................................................................................................14
3.6 Data collection methods.................................................................................................14
3.7 Sampling.........................................................................................................................15
3.8 Data analysis...................................................................................................................16
3.9 Ethical consideration......................................................................................................17
3.10 Research limitation.......................................................................................................17
CHAPTER 4: DATA ANALYSIS................................................................................................19
4,1 Introduction....................................................................................................................19
4.2 Discussion.......................................................................................................................19
Impact of sustainability practices on financial performance................................................19

Impact of sustainable business practices on market reputation............................................22
Impact of sustainable business practices on operating model..............................................23
CHAPTER 5: CONCLUSION AND RECOMMENDATION.....................................................25
5.1 Conclusion......................................................................................................................25
5.2 Recommendation............................................................................................................26
REFERENCES..............................................................................................................................28

CHAPTER1: INTRODUCTION
Title: What is the function and importance of sustainability report to companies?
1.1 Overview of study
Corporate Social Responsibility is a concept through which companies are able to
incorporate social and environmental interest, in order to manage their business functionality. It
supports in understanding various profitable and non-profitable efforts of the organisation. With
the help of this process company ensure satisfying their responsibility towards all the
stakeholders such as customers, investors and communities. Through applying this approach
establishments are able to fulfil their environmental, economic and social responsibilities,
following triple bottom line (TBL) (Adams and et.al., 2016 ). TBL is an accounting framework,
which includes environment, economic and social factors. This is applied as one of the proven
methods through which firms can maintain their competitiveness without making any
compromise. It helps in analysing key issues effective such as environmental engagement, proper
resource utilization, stakeholder’s engagement, employees and organisation relationship, etc.
The aim of the study is to explore the impact of the sustainability on different
functionality of the companies. In current scenario, all organisations publish CSR reports which
provide details about firm human resource management, environmental integrity, protection of
consumer rights, corporate governance mechanism and others. The present dissertation is based
on the role of CSR activities in order to analyse various factors and examine its impact on firm
financial status, operating model and its market reputation as well (Ball, Grubnic and Birchall,
2014). With the help of these strategies they are able to present their information and supports in
make effective decisions. Along with this plays significant role in converting an opportunity into
advantageous or disadvantageous for the company. Through applying this method, they are able
to discuss various aspects and on the basis of necessary steps can be adopted by the firm. As per
the Global Reporting Initiative (GRI), the sustainability report of the companies is based on
several factors such as social, environmental, economic and governance.
1.2 Aim and objectives
Aim: “To analyse the impact of sustainability report on various functionality of the companies
such as brand value, operational and financial status. “
Objectives:
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 To develop critical understanding on the concept of sustainability report.
 To evaluate the impact of sustainability report on the financial performance of
companies.
 To analyse the impact of corporate sustainability report on the operating model of the
companies
 To determine the effect of sustainability report on company’s market reputation
 To analyse legislation and mandatory standards considered by the company for
monitoring sustainable development.
1.3 Research Questions
Q.1 What is the concept of sustainability report?
Q.2 How sustainability report influence or affects the financial performance of different
companies?
Q.3 How sustainability report helps companies in the development of prominent operating
model?
Q.4 Is sustainability report has impact on the brand image and market share of organization?
Q.5 Which laws and standards are followed by the companies while reporting their CSR?
1.4 Rationale of study
The rationale behind conducting the present study is to assess the extent to CSR or
sustainability reporting has impact on organizational performance in both monetary and non-
monetary terms. It is considered as issue because now there is several numbers of companies
which do not lay high level of emphasis on sustainability reporting. It is the main issue now
because sustainability reporting aspects offer high level of benefits to the business organization
in terms of increasing revenue, brand image and market share. However, due to the lack of
having awareness regarding such aspect some business units do not prepare and disclose their
sustainability reports (Haigh and Hoffman, 2014). Hence, by conducting thematic analysis
through using both primary and secondary data scholar will entail the level to which
sustainability reporting system makes vital contribution in the growth of firm.
1.5 Significance
The present study and its findings are highly significant which in turn provides assistance
to the firms in understanding the aspects of sustainability reporting. Besides this, outcome of
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dissertation will help companies in assessing the extent to which sustainability reporting aid in
the growth and success of firm. Hence, by taking into account such study companies would
become able to take corrective measures for enhancing the reputation and overall performance.
Besides this, results of study will also help other scholars in understanding the concept of CSR
and significance of reporting. In the recent times, several researchers are interested in exploring
the use of sustainability reporting in the context of business organization. Thus, by using the
current study, scholars would become able to develop brief thesis and hypothesis for further
evaluation. By considering the all such aspects, it can be said that present study will offer high
level of benefits to the companies and other scholars.
1.6 Dissertation structure
The present dissertation is consisting of following chapters:
Chapter 1 Introduction: This chapter of the dissertation provide brief details about
overview of the study, aim and objectives, rationale and potential significance as well. It
helps in developing the basis of the study. This supports in building research framework
and explores covered area in the study.
Chapter 2 Literature Review: In this part of the study, critical analysis takes place
based on the aim and objectives. In this process information is gathered with the help of
secondary sources, especially, scholarly journals to gain deep understanding of the issue.
Chapter 3 Research methodologies: Under this section, various tools and
methodologies re selected such as data collection, data analysis, research strategy,
paradigm and ethnicity as well (Lock and Seele, 2015). It is considered as an essential
part of the dissertation which helps to obtain justified results.
Chapter 4 Data analysis: In this part of the study analysis of annual reports of various
companies are considered. With the help of this step comparison can be effectively done
on the basis of financial status, operational models and reputation of the company.
Chapter 5 Conclusion and Recommendations: This is considered as last part of the
dissertation, consisting of evaluation and analysis of annual reports. In the process
evaluation is considered based on the information gathered with the help of annual report
of the company of various years. Along with these recommendations are also included
into this part, in order to resolve various issues effectively.
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CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
Literature review is one of the essential parts of the research. It helps in critically
analysing the issues. In this process secondary information are considered, in order to develop
deep understanding about the topic and gaining knowledge. The present study is based on
determining the importance and functionality of sustainability report. In this process concept of
sustainability report is analysed (Lock and Seele, 2015). Moreover, the investigation will
critically analyse their impact on the processing of financial aspect of the organisation. It
supports in determining their roles for the operating models of the firm is analysed. Along with
this it also supports effect of sustainability report on the reputation of the company. There are
various legal standards also analysed, in order to monitor sustainability of the organisation.
2.2 The concept of sustainability report and related theories or models
Sustainability report is considered as an essential report for any organisation that
describes information based on the environmental, governance, economic and social status of the
company. According to the Marques, da Cruz and Pires (2015), it is an implementation of data
and methods in order to produce results. With the help of this step organisations are able to
maintain balance between internal and external conditions. It helps the firm in connecting
various components and meets their requirement. This is also known as triple bottom line
because through applying this approach, organisations are able to various factors based on
entities like environmental, economic and social. TBL is an accounting framework, which
includes environment, economic and social factors. It helps in improving their performance and
implements sustainability within the organisation. The organisation follows their social
responsibilities values and fulfils their responsibilities with the help of CSR activities. In this
framework and design of the organisation is also considered for determining their effectiveness.
Martínez‐Ferrero, Garcia‐Sanchez and Cuadrado‐Ballesteros (2015), stated that it is a benchmark
process, due to which most of the business groups are considering this feature. It also provides
different aspects such as clarity, balancing, comparability, accuracy, timeliness and reliability.
With the help of that firms are able to analyse quality of their services. As per the view of
Needles Jr and et.al., (2016), it enables the company in making long term developing plans. In
this process both social and economic factors are applied, due to which they are able to maximise
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their growth and profitability. The sustainability report is based on the structuring of the
company, on the basis of that different sets are incorporated.
According to the Rezaee (2017), economical factor is essential for formulating report.
With the help of this step they are able to analyse the financial status of the company such as
profitability, liquidity and asset. Along with this it supports in analysing various risk factors. The
company is analysing growth and demand with the help of these economical facts and figures.
However, it is not able to maintain the development unit of company. Along with this business
group is not able to meet the standards of the society with this only, therefore, other two factors
are also required.
On the contrary side, Searcy and Buslovich (2014) said that environmental factors is most
important because now-a-days, firms are responsible to maintain ecological integrity for the
community. The proper regulation of the resources is essential for the growth of the organisation.
If they are failed to maintain the processing as per the defined structure it will create direct
impact on the production. With the help of this element they are able to implement and regulate
various legislations. Through including this component, they are able to maintain safety and
security of their organisation as well employees.
On the other hand, Siew (2014), stated that various loopholes are also associated such
that it is not able to explain financial status of the company. It does not support the cultural
values of the corporation, due to which it is not enough to generate productive outcomes. As per
the view of Adams and et.al., (2016), social factors of the organisation help in order to maintain
the culture and values. With the help of this step they are formulate standards for different
functions but not able to generate results. Therefore, on the basis of above evaluation it is
critically analysed that all the three elements of the report are equally important. With the help of
these factors they are able to handle different aspect of the company and generate effective
results.
As per the view of Rezaee (2017) CSR includes wide range of role and responsibilities
with which business unit needs to comply. Hence, by making assessment, it has found that each
business organization is required to fulfil all the responsibilities pertaining to the main four
sections such as economic, legal, ethical and philanthropic. On the basis of economical aspects,
business should lay emphasis on offering products or services to the customers at affordable
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