Westpac and Jerry Pty Ltd: Accounting & Financial Management Report

This report comprises two main parts. Part A examines the environmental and social impacts of the Westpac Group, discussing its sustainability efforts, comparison with the Commonwealth Bank of Australia, and compliance with GRI Reporting Standards. It evaluates Westpac's approach to environmental and social dimensions, including its Sustainability Risk Management Framework and social impact framework. Part B focuses on a strategic initiative for Jerry Pty Ltd., analyzing associated costs, and measuring the success of the initiative using a balanced scorecard across financial, customer, internal business processes, and learning and growth perspectives. The report includes a break-even analysis and discusses the initiative's overall impact on the organization. The analysis covers costs associated with new product lines, including self-cleaning dishwashers, high-speed washing machines, and crease-free clothes dryers.

Running head: ACCOUNTING AND FINANCIAL MANAGEMENT
ACCOUNTING AND FINANCIAL MANAGEMENT
Name of the Student
Name of the University
Author Note

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Table of Contents
Part A:........................................................................................................................................2
Introduction................................................................................................................................2
Overview of the Environmental and Social impacts..................................................................2
Comparison of the quality and depth of environmental and social performance......................4
Discussion on complying with the GRI Reporting Standards...................................................5
Evaluation with the GRI Reporting Standards of Westpac group and Commonwealth Bank of
Australia.....................................................................................................................................6
Conclusion..................................................................................................................................7
Part B:.........................................................................................................................................8
Introduction................................................................................................................................8
Association of the costs..............................................................................................................8
Evaluation of the Success of the initiative.................................................................................9
Financial.................................................................................................................................9
Customer................................................................................................................................9
Internal business processes....................................................................................................9
Learning and growth............................................................................................................10
Break-even analysis.................................................................................................................10
Impact of the strategic initiative...............................................................................................11
Conclusion................................................................................................................................11

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Part A:
Introduction
In this report, the environmental and the social impacts of the Westpac Group is being
discussed. The information is being provided by using the decision making tool for the
stakeholders. The Global Reporting Initiative (GRI) is discussed with the help of the
sustainability report of the Westpac group. Both the positive and negative impacts on the
environmental and the social impacts are stated in the report. The challenges which the
organization are facing is being discussed with compliance with the Global Reporting
Standards in reference to the sustainability report of the Westpac Group.
As Westpac is the Australia’s first bank, it does have a vision to become one of the
world’s great company which provide services to the consumers. The service leadership
mainly focuses on the customer satisfaction and the experience. The GRI’s G4 reporting
framework has been adopted which includes the Financial Services Sector Disclosures. In the
later part, the GRI’s Reporting Standards of the Westpac are compared with the other
organizations where all the benefits which the investors, shareholders and the stake holders of
the firm getting is being discussed.
Overview of the Environmental and Social impacts
As Westpac group is one of the largest company, the environmental policy of the
company states that a framework is being created for the better understanding and managing
the impacts of the direct and indirect environmental issues. The policy also includes the
company’s risk and opportunities and the support is being provided for a broader leadership

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role (Jain & Islam, 2016). All the group operations are being covered under this policy. The
company’s vision is also being impacted by the social framework, there are three focus areas
which is used to advance the nation through change:
 If there is any need for help, then the service will be provided there on.
 There should be a greater prosperity and an investment in the economic well-being.
 There is more enabling of the inclusive banking and there is building of a financial
capability.
The environmental impacts which are committed for managing, these can be done through
following activities:
 The organization try to invest in the energy efficient technologies, which will help the
company in producing in the cost effective way and it can explore the opportunities to
use the materials that can be recycled.
 The organization should monitor the uses of the energy which is done by the
greenhouse gas emissions, paper consumption and the water usage.
 The impacts on the biodiversity is considered in the investment and the lending
activities.
The negative social and the environmental impacts which is mainly concerned about the
supply chain. It can be seen from the annual report that there were no changes done to the
locations of the supplier (Nejad et al., 2016). The supply chain management should be
changed so that the categorization of the suppliers should be done, and the risk should be
identified so that the environment should not be impacted.

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Comparison of the quality and depth of environmental and social
performance
In this part of the report, the comparison of the quality and the depth of the
environmental and social performance of the information is being provided. The firm which
have been taken here for the comparison to the Westpac Group is the Commonwealth Bank.
In case of the Westpac Group, the approach through which it manages the
environmental and social dimensions are the Sustainability Risk Management Framework
(Salvioni, Franzoni & Gennari, 2018). The company focuses on the environmental impacts
through supply chain management. It manages the risks which is associated with the lending
and the investment. The employees understand the environmental considerations and they
give the importance as ensured. As Westpac is one of the leader in the financial sector, they
also have a responsibility upon the society as they provide services. They also try to work
with the community partners to get a solution for the social challenges which the organization
may have faced in the long-term.
In comparison to the Westpac Group, the Commonwealth Bank of Australia provides
the same services as Westpac Group, but the approach of the environmental and social
performance which can be different are discussed here. Commonwealth Bank of Australia is
also one of the world leading financial institutions, it provides the banking and the
management services (Aroney, 2015). As the bank provides services in every sector, there
have to be a strong approach to the Environmental and Social performance. Here, all the
shareholders’ value the considerations of the economic and the social responsibility. The
approach through which the organization focuses on is by doing a good business practice and
considering the key developments by the Sustainable Developments Goals (Carley &
Christie, 2017). To strengthen the operations, the institution has kept a good bond with the

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customers and suppliers. The impacts which is being considered is done through the unique
capabilities and the resources will have a positive contribution beyond the core of the
business. The Environmental and the social Framework mainly emphasizes on the
Customers, Government and industry bodies, Community, Suppliers, Investors and
Organizations related to NGOs (Briguglio, 2018).
Thus, it can be seen that Commonwealth Bank of Australia uses many initiatives and
processes through which the organization maintains its economic and social performance
(Brown, 2018). It measures the reporting through Sustainability report, assessed emissions
reporting and through Reconciliation Action Plan. Thus, it can be seen that through this the
organization recognizes all the matters of the environmental and social, it delivers the value
to all the stake holders. In the Westpac Group, the Social Impact Framework is being applied
for the social and environmental impact. It helps the organization by following the
sustainability strategy (Weber & Feltmate, 2016). Thus, it is seen that there was no major
difference in the comparison of the implementation of environmental and social performance.
The organizations follow many strategies through which their progress in the performance.
Discussion on complying with the GRI Reporting Standards
Westpac Group has to engage with many internal and internal stakeholders. There the
analysis has been done with the industry trends, regulatory and non-regulatory requirements
of the materiality process with the Global Reporting Initiative (Lewellyn & Logsdon, 2017).
The impact of the risks on the business and the shareholders are being taken care of with the
management approaches. The approach which is recommended by the GRI for the material
topics includes the Identity, Prioritise and Validate. Through this the evaluation has been
done with the engagement of the internal and the external shareholders. Under the service
leadership, as per the GRI the customer satisfaction and customer vulnerability is to

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contribute to impact outside the operations. The financial capability has to contribute the
impact with both the operations, i.e. inside and outside. Under the Governance, conduct and
trust, there is changing regulatory landscape, financial and economic performance which will
can contribute within the own operations and also with the outside, conduct and culture is
impacted with the own operations. Thus, it can be seen the challenges which the Westpac
Group is facing with the compliance of the GRI Reporting Standards is that some of the
impacts are done within the organization and some of them can be done outside of it.
Evaluation with the GRI Reporting Standards of Westpac group and
Commonwealth Bank of Australia
GRI reporting standards is used to promote the sustainability of the organization.
Through the adoption of the GRI framework, from the report it can be seen that the
sustainability increases (Vigneau, Humphreys & Moon, 2015). Most of the Australian Banks
are adopting the GRI report, it helps in promoting the right decisions. The elements that GRI
standards in defining the report is that:
 Stakeholders Inclusiveness: The stakeholder’s connection with the organization
should be maintained properly. The organization shall have a good engagement, so
that the dealings between them can be done properly. It is seen from the report that
both Westpac and Commonwealth Bank focus on the stakeholders so that the
organization gets benefitted.
 Sustainability concept: In this concept, the main focus is that the services that is
provided to the consumer shall be sustainable. The performance of the organizations
should be maintained and should be checked through the consumers, i.e. with the
customer satisfaction.

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 Completeness: The material issues of the organization is being taken care of the
management. The impacts of the organization, within and outside should be covered
in the report. It is seen at the time of the complying of the GRI standards the
organizations will take care of all the impacts.
 Materiality: The materiality assessment is undertaken by the organization. This is
done by following the GRI standards. The Westpac group follows the materiality
concept through this it is taken by the Sustainable Development Goals.
Conclusion
This study focuses mainly on the impacts of environmental and social of the Westpac
Group. Through the research it is found that the Westpac has a great social framework and
the environmental policy which they follow are helps the organization in various ways. The
negative impact which the Westpac Group has found that is about the supply chain
management. Thus, the organization has to focus on the supplier categorization. In the
comparison of the quality and depth of the environmental and social performance, the
Commonwealth Bank of Australia is taken. The approach which is performed by Westpac
Group is through the Sustainability Risk Management Framework. In case of the
Commonwealth Bank, the Sustainable Development Goal approach is taken for the
environmental and social performance. In the later part of this report, the challenges which
will happen with the GRI reporting standards has been discussed of the Westpac Group. The
evaluation of the GRI reporting standards of Westpac and the Commonwealth Bank is done
with the elaboration of the GRI standards.

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Part B:
Introduction
In this report, a strategic initiative has been developed for Jerry Pty ltd. for a new
range of products. A short internal document has been prepared which will analyze the
strategic initiative of the organization. The cost which is associated with the ongoing
operation is being discussed with the categories of fixed, variable etc. To measure the success
of the initiative a scorecard has been prepared with the perspective of finance, consumer,
internal business process, learning and growth. The break-even analysis is done for a better
understanding of the new initiative. Lastly, the impact of the organization is being discussed
after taking the initiative.
Association of the costs
In the case of the Jerry Pty ltd., the major costs which the ongoing operation for the
strategic initiative is done on the basis of three products i.e. Self-cleaning dish, High Speed
Washing Machine and Crease free clothes dryer. As per the data provided in this case, it is
seen that under the fixed costs head there are rent, depreciation, marketing and others. The
variable cost is given specifically. The major costs which is associated with the ongoing
operation is the materials and labor costs (Kansal, Tyagi & Kumar, 2017). As Jerry Pty Ltd is
a manufacturing company the materials and labor are considered as the major costs, because
of the high production process.

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Evaluation of the Success of the initiative
In this balance scorecard of the Jerry Pty Ltd., all the perspective is being discussed.
The perspectives are financial, customer, Internal business processes and learning and
growth.
Financial
As Jerry Pty Ltd is a company which manufactures household appliances, it is seen
that for an organization the main objectives are to make revenue and profit. The financial
measure which a company can use to gain maximum profit margins is by using cost savings
techniques (Balakrishnan, 2019). The manufacturing process should be cost effective, so that
the company can earn maximum profit from that process.
Customer
The organizations performance is mainly related to the customer satisfaction and the
market. The main objective of the organization is to fulfill the customer satisfaction (Hill &
Alexander, 2017). The non-financial measure which the organization can take is by growing
market share and by creating a brand awareness. Through this the customer’s perspective can
be fulfilled.
Internal business processes
In an organization, the business perspective should be to have a greater performance.
The main objective the organization can do is that through the improvement of the internal
process. The non-financial measure which can be taken here is through quality optimization
and by capacity utilization (Vanwersch et al.,2016). That means the quality can be optimized
by reducing the manufacturing waste and the capacity can be utilized by using technology to
boost efficiency.

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Learning and growth
In this perspective, it is considered as the valuable drivers of the performance. In this
perspective, it can be divided into three components:
 Organizational Capital: Through this the management can improve the culture,
knowledge of the employee, team work.
 Human Capital: The knowledge and the skills of the employee can be improved
through this (Fitzsimons, 2017). The management can also implement scoring system
for the performance of the employees, to know about the performance.
 Information Capital: The infrastructure for information technology should be perfect
so that the networks and databases work efficiently.
Break-even analysis
Break-even analysis is used to evaluate the performance of the organization in relation
to the cost incurred for the production process. It is the supply-side of the business which is
entitled to the business analysis of the company. It is also helpful in the context of the cost
structure which is the better aspect of better analyzed business plan where the considering
numbering of units are being referred in order to the cost structure (Kampf, Majerčák &
Švagr, 2016). Covering the cost and making the profit scenario analysis managed by the
company is complemented in order to see the business idea pursuing by the business houses
that how much worthy is it comparing to the context of pricing and promotional strategy
associated with the cost control basis signified on the basis of production.
Break-even point is generally calculated in the context of deterring in the process of
calculating the condition where revenue is received equally in what the total cost is mainly
associated with production of the goods and services (McGee, 2015).

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Impact of the strategic initiative
The break-even sales for the three products is calculated on the basis of the document
which is provided. To achieve the break-even analysis Jerry Pty Limited has to sell 917 units
for Self Cleaning Dishwasher, 792 units for High Speed Washing Machine and 1009 units for
Crease Free Clothes dryer. The forecast profit before paying tax is $ 17,85,714. The targeted
sales volume for the Self Cleaning Dishwasher is 2660 units, for High Speed Washing
Machine is 2297 units and for Crease Free Clothes dryer is 2926 units. Therefore, it is seen
that the strategies which is used in the organization will impact the sales mix, selling price,
variable or fixed costs positively.
Conclusion
Form the report it can be concluded that, the strategic initiative which the Jerry Pty
Limited has taken are described through a balanced scorecard. The costs are classified into
the variable and non-variable costs. In the scorecard, financial, customer, internal business
process and learning and growth is being discussed with their perspective. In the later part,
the break-even analysis is shown with the products that have to be produced more. The
targeted sales volume for the Crease Free Clothes dryer is highest than the other two.

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