ACC706 Accounting Theory and Issues Report: JB Hi-Fi Analysis, KOI

This report delves into the accounting theory and issues related to JB Hi-Fi, a leading Australian retailer. It examines the company's corporate social responsibility (CSR) initiatives, focusing on the "Helping Hand" program in Australia and New Zealand, which encourages social development and employee contributions. The report analyzes how JB Hi-Fi's CSR activities align with accounting theory, specifically agency theory, and discusses the company's CSR disclosure practices. It highlights the benefits of the Helping Hand program, including increased employee satisfaction, retention, and cost savings. The report also evaluates the company's CSR disclosure in its annual reports and suggests recommendations for improvement. The report concludes by emphasizing the importance of transparent reporting to enhance stakeholder trust and improve the overall CSR performance of JB Hi-Fi.

Hello Everyone,
Our topic of the report is the Accounting Theory and Issues in relation to the JB Hi-Fi.
Initially, the report is discussing about all the main points that are being argued like
corporate social responsibility issue within JB Hi-Fi Company and the related accounting
theory that can be rationalized with the argument. Besides this, the paper has discussed about
the CSR Disclosure of the company and the future recommendations for the company.
The second part of the report is providing the background of JB Hi-Fi and the concept of
corporate social Responsibility.
As per the analysis, JB Hi-Fi is one of the leading retailers of Australia that is involved in the
selling of consumer goods. The organization is awarded for being the major contributor in the
development of society. Besides this, the concept of corporate social responsibility is
developed as the self-regulating business model of that support a business to be socially
answerable, towards its stakeholders. With the help of CSR program, business can offer
major benefits to the society along with boosting its own brand. This reflects that CSR is not
just beneficial for the society it also offer benefits to the businesses.
The third part of the report has provided detailed description of the corporate social
responsibility activities adopted by JB Hi-Fi and the way it is contributing towards the
development of the society.
From the analysis of the company’s annual report and news article it has been identified that
JB Hi-Fi has established a “Helping Hand” program in its New Zealand and Australian units
for encouraging social development and social contribution of just the organization but also
the employees. As per this program, the employees as well as employer raise funds for the
society that is transferred through the community partners. In fact, according to the recent

news article of Probono Australia, the company is received the award for establishing one of
the best social program that is not just benefitting the society but also the organization.
Besides this, the news article has raised the point that with the help of this program, the
company is able to increase the satisfaction level of the employees and successfully retaining
them. The report highlights that around 91% of the company’s employees feels proud to be
part of this organization. Further, this program of Helping Hands has majorly saved $8
million on the yearly basis of JB Hi-Fi by enhancing the employee engagement and retention
at high level which has decreased the direct cost related with the training and recruitment that
is invested by the business. According to Sarah Davies the CEO of Philanthropy Australia,
this pro-social behaviour concept (that is volunteering and giving) provides profit to the
donor by the increasing emotional and physical wellbeing. It has also been highlighted that
employers that get engage with the employees profoundly and with drive with the society,
seek benefits related to the employee engagement that is retention as well as satisfaction.
In the fourth section of the report, the corporate social responsibility concept of the company
is rationalized with the use of accounting theory that is agency theory.
The concept of Agency theory majorly performs the role in defining and resolving the issues
between the relationship of Principal and Agent. As per this concept, the Principal are the
shareholders and agent is company. The shareholders of the company are the one who
provide resources to the agent that is JB Hi-Fi which is accountable to make best utilization
of those resources. Considering the CSR Activity of the company, the JB Hi-Fi is not just
investing in gaining the higher returns for the shareholders but also raising fund for the
development of the society such that the shareholders feel proud and also the employees.
In the end, the report has discussed about the CSR Disclosure of JB Hi-Fi

The analysis of the company’s report, it has been identified that the company disclose its
contribution to the society to its investors and other corporate governance reports. However,
the company lacks in disclosing the terms and conditions related to the allotment of shares to
the employees and its contribution in monetary terms to the society through “Helping Hands”
program. Therefore, same has been recommended to the company to follow in order to
increase the reliability of its disclosure report.