ACCT20074 Contemporary Accounting Theory: CSR Reporting Analysis

This research report provides an analysis of the Corporate Social Responsibility (CSR) reporting practices of Navigator Global Investment Limited, an Australian financial services company. The report evaluates the company's compliance with regulatory guidelines and the Global Reporting Initiative (GRI) framework, focusing on universal, economic, environmental, and social standards. It also explores the alignment of the company's CSR disclosures with legitimacy and stakeholder theories. The analysis indicates that Navigator Global Investment Limited adheres to required disclosures in its CSR and annual reports, promoting sustainable development and long-term market survival. The study further highlights the company's commitment to corporate governance, risk management, and ethical practices, ensuring transparency and accountability to its stakeholders.

Major assignment – Research report
Unit code and title ACCT20074 Contemporary Accounting Theory
Assessment mode Research report
Assessment type Individual assessment

EXECUTIVE SUMMARY
Corporate social responsibility is considered as a framework for attaining sustainable
development by considering concern of all stakeholders. The present study is based on the
evaluation of CSR reporting of Australian company named as Navigator Global Investment
Limited by considering GRI framework. The present study shows that the company had
complied with all regulatory guidelines supported by the appropriate disclosure in their CSR
and annual reports. Further compliance of CSR and GRI framework assist companies in
sustainable development for long-term survival in the market.

TABLE OF CONTENTS
Question 1..................................................................................................................................3
Question 2..................................................................................................................................3
Universal standards................................................................................................................3
Economic standards...............................................................................................................3
Environmental Standards.......................................................................................................3
Social standards......................................................................................................................3
Superseded Standards.............................................................................................................3
Question 3..................................................................................................................................3
Question 4..................................................................................................................................3
References..................................................................................................................................4

INTRODUCTION
Corporate social responsibility is defined as a framework for achieving the sustainable
development by contributing the social, economic and environmental benefit to the people,
investor, community, government (Schwartz, 2017). After the major scamps happened in the
world, many countries consider the various rules and regulation for the companies, by which
the activities of the company can be observed. The present study revolves around the
disclosure of the corporate social responsibility of the company, by which the people,
shareholders or the stakeholders of the company can get the information about the financial
performance along with the practices of the company with respect to the social,
environmental and economic aspect of the company. Moreover, this study also evaluates the
legitimacy and the stakeholder theories for observing the reporting of the corporate social
responsibility of the company. Apart from the above description, this study also represents
the compliance of the guidelines by the company as per the norms prescribed by the
government of Australia for the listed company and the standards of the global initiative
reporting.
QUESTION 1
About the company
The present study is based analysis of CSR reporting of the Australian company named as
Navigator Global Investment Limited. The company is mainly engaged in the providing the
various financial services such as management of the portfolio of the client, investment
funds, providing the analysis regarding the management of the investment, give the services
as per the requirement of client and many more facilities to its client all over the world.
Along with its presence in Australia, it also expanded its operations in the country of New
York, London, Hong Kong and many more (Navigator Global Investment Limited, 2018).
The company is the listed in the stock exchange of Australia; therefore it has to follow all the
rules and regulations which are applicable to the listed entity of Australia.
Analysis of the disclosure requirement and practices with respect to the corporate social
responsibility
The government of Australia makes various rules, regulations and guidelines regarding the
disclosure of the corporate social responsibility and governance system of the company.
Further, it is mandatory for the all the listed company of Australia, to comply with the all the

norms and standard which are issued by the government for the disclosure of corporate social
responsibility along with the annual report of the company (Michelon, Pilonato and Ricceri,
2015).
The main motive of the Navigator Global Investment Limited is to enhance the financial
performance of the company along with carrying out the effective governance system and
practices in the organization. This objective helps the company in attracting and gaining the
trust of the investors of the company towards the making investment in the company.
Moreover, Board of the directors of the company is responsible for instituting the
comprehensive structure related with the corporate governance aspect of the company along
with the related procedures and practices in the whole over organization (Ioannou and
Serafeim, 2017).
The company has adopted the listing rule 4.10.3 so that the company can disclose the
corporate governance framework in a separate report rather than along with the annual report.
Subsequently the Australian stock exchange has prescribed the set of the guideline in which
the principles of the good corporate governance has been incorporated along with the
recommendations for the best practices. The company with respect to the corporate social
responsibility disclose about the analyzing the manner of review the performance of the
board of directors and manager along with their roles and responsibility towards the
company, the composition of the board of directors so that they can perform their duty
effectively. Further, the company also discloses about the culture and practices followed in
the organization for the enhancement of the employees. The company also makes a disclosure
about the commitment of following the standards related to the honesty, integrity, ethics in
the organization (de Villiers and Alexander, 2014). The board of directors ensures the code of
conduct practices by the employees of the organization, any irregularity in the practices is
seriously considered by the company. The company also disclosed the circumstances in
which the employees, directors of the company can be traded in the securities-related with the
company. Apart from the above, for protecting the moral principles with respect to the
financial reporting, the company established the audit and risk committee (Epstein, 2018).
The main objective of the audit and risk committee is to ensure the integrity of the financial
reporting by suggesting the board of director about their responsibilities and the risk
management system of the company. This committee consists with the majority of the
independent directors so that no conflict of interest can arise.

Moreover, the company also disclose and provide the access about the manner by which a
company can analyze the material price sensitive information. The company also publishes
all reports related to the meeting of the shareholders, presentation and such other reports
which contain the price sensitive information through the stock exchange (Tricker and
Tricker, 2015). Further, the company also disclose all the information related with the
operations of the business to the shareholders, stakeholders and other persons who have
interest in the company, as the information may lead to influencing their decision. Therefore
the company provide all related information time to time to them.
Company disclose about the strategy and the techniques which are adapted for analyzing,
evaluating, observing and managing the risk of achieving the objective of the company.
Further the audit risk committees of the company by reviewing the policies made by the
board of directors of the company ensure the effective risk management framework of the
company.
In the disclosure, the statement company has also disclosed about the risk related to the
economic and social aspect of the company. With this regards investment, strategy for the
growth and the expansion, security of the financial information and other crucial task, risk
mitigating factors, ethical practices of the company, retaining the experienced employees
(Searcy, Dixon and Neumann, 2016). Moreover, remuneration policies and guidelines for
ascertaining the reasonable remuneration for the board of directors and the managers are also
disclosed by the company.
QUESTION 2
Global Initiative Reporting is the guidelines related to the sustainability report of the
company which enhance the transparency and the responsibility economic, environmental
and the social responsibility of the company (GRI Standards, 2018). This standard provides
the comprehensive framework to the all the organization of the world (Vigneau, Humphreys,
& Moon, (2015). The report based on the Global Initiative reporting guideline informed
about the positive or the negative participation by the organization in the sustainable
development.
The integrated and the interrelated GRI standard, predominantly apply as a part of the
sustainability report of the company, which cover the important aspect (Fernandez-Feijoo,
Romero, & Ruiz, (2014). Moreover formulating the report as per the standard of the GRI
enables the other person to get the information in a proper manner, also can identify the

impact of the information and the manner in which the company deal with the information. A
major category of their standards is enumerated as below:
Universal standard
The universal standard of the GRI consist of the three standards such as Foundation, General
Disclosure and the Management approach. This standard is applicable to all the organization
at the time of preparation of the sustainability report. Navigator Global Investment Limited
Company discloses about the sustainable reporting practices of the organization. The further
company also management approach for managing the significant issues in the organization
and the manner how the board of directors of the company address those issues of the
organization (del Mar Alonso‐Almeida, Llach, & Marimon, (2014).
Economic standard
This standard includes the reporting of the significant information related to the economic
aspect of the company. Further, the economic standard of the GRI consists of the three
standard, named as economic performance, market presence, indirect economic impact,
procurement practices, Anti-corruption, Anti-competitive behaviour (Barkemeyer Preuss, &
Lee, (2015). Navigator Global Investment Limited disclose about the economic performance
of the company and the market presence in the report. However, the company did not
disclose about the procurement policies, Anti-corruption and the Anti-competitive behaviour
in the report.
Environmental standard
This is the very important standard with respect to the sustainability report of the company. In
this standard information related to the activities of the organization which impact the
environment is included. The environmental standard of the GRI consist of the eight standard
such as materials, energy, water and effluent, biodiversity, emission, effluent and waste,
environmental compliance, supplier environmental assessment are included (He, (2018).
Since the Navigator Global Investment Limited, engage in providing the financial services to
the client, therefore the environmental standard will not be applicable to the company.
Moreover, the environmental standard is applicable to the companies which are engaged in
the manufacturing sector, as generally, the activities related to the manufacturing activities
leads to harm the environment through extensive use of the natural resources.

Social standard
The social standard of the GRI requires the disclosing of the material information related to
the social aspect of the company. the social standard of the GRI consist of the nineteen
standards such as employment, occupational health, labour or management relation, and
safety, training and education, diversity and equal opportunity, non-discrimination, freedom
of association and collective bargaining, local communities, security practices, child labour,
forced or compulsory labor, human right assessment, customer health and safety, Rights of
indigenous people, supplier social assessment, public policy, marketing and labeling,
customer privacy and socioeconomic compliances. Navigator Global Investment Limited
disclose about the employment of workers along with gender diversity within the company,
along with the educational assistance provided to the employee. However, the company did
not disclose about the freedom of association and collective bargaining, occupational health
and safety, non-discrimination, child labour, forced labour, security practices, Rights of
indigenous people, local communities, supplier social assessment, human right assessment,
public policy, health and safety of customers. Moreover, the company states in its report
regarding the socioeconomic compliances by the company, company comply with all
principles issues by the government of Australia.
QUESTION 3
Legitimacy and stakeholders theory
The legitimacy and stakeholder’s theory are connected with the disclosure by the
organization with respect to its corporate social responsibility. Since employees, consumers,
people, society, government, suppliers, investors are all the essential part of the organization;
therefore it is very important for the organization to enhance the financial growth of the
company along with their responsibility towards the community (Andriof, Waddock, Husted,
& Rahman, 2017)
Legitimacy theory refers as the operations, and the activities are conducted as per the rules
and regulation of the society. This theory is used extensively by all the organizations. In other
words, it can be said that legitimacy theory is the comprehensive assumption that the
company conducted its business which is necessary, accurate and suitable within the norms,
morals, principles, values designed by the community (Jensen, 2017). This theory through the
disclosure of the information regarding the activities of the organization for social and

environmental aspect explains the achievement of the objective of the organization by
considering the social, environmental and governance aspect.
Stakeholder theory is related with the behaviour of the organization towards the growth of the
individual along with organization growth along with the ethical practices followed in the
organization that reports about the values and principle for managing the activities of the
organization. It is the primary obligation of the board of directors of the company to
maximize the interest of the stakeholders of the company by recognizing their social values
(Thijssens, Bollen and Hassink, 2015).
In the case of the Navigator Global Investment Limited, the company complies with
legitimacy as well as the stakeholder theory in its business. The company in its corporate
governance statement discloses all the activities related to the employees, society, investors,
suppliers etc. The company disclose about the maintaining the work environment by which
the contribution made by the employee for the growth of the performance of the company can
be recognized. This also leads to the motivation among the employee for the better
performance. The company also state about the programs held with the investors by which
the effective communication with investors can be made and also improve the relationship
with the investors (Schaltegger and Hörisch, 2017). Along with this company has established
the corporate governance system in the organization which leads that the all the activities and
operations are as per the acceptable norms, value, morals, principles made by the society.
The board of the directors and the managers of the company develop the structure of the
corporate governance framework and implement the policies and procedures in the
organization, which leads to the best interest to the shareholders as well as the stakeholders of
the company (Cooper, 2017). Further, it also assists in enhancing the value of the
shareholders and creates the confidence among the investors.
On the basis of the above analysis, it has been seen that by the establishment of the corporate
governance framework in the organization, operations and activities of the company are
conducted as per the norm developed by the society. The board of the director and the
manager of the company communicate about the ethical principles which have to be followed
in the organization to all the employees. Further, the board oversees the activities of the
employee, by which board can identify any unethical practice among the employee.
Therefore, from the overall viewpoint, the company follows legitimacy as well as stakeholder
theory in the organization (Hillebrand, Driessen, and Koll, 2015). The company by disclosing

the all significant information in its report ensures the financial growth along with the social,
environmental and the community growth. Further, the operation of the company is guided
towards in such a manner by which the value of the stakeholders can be maximized.
QUESTION 4
On the basis of the above evaluation, it has been concluded that corporate social
responsibility is the broad structure in itself, in which the financial performance of the
company, social, environmental and financial consideration of the organization is included.
Navigator Global Investment limited established the various rules and regulations in the
company so that the operations of the company can be carried out in an effective manner
(Epstein, 2018).
Further, the government of Australia had framed the various guidelines, which is mandatory
applicable for the companies which are listed on the stock exchange of Australia. With this
regards disclosure of the corporate social responsibility, reporting is also mandatory for all
the companies. The government defines certain principles for the companies. Navigator
Global Investment limited, comply with all the principles which are defined by the
government of Australia and also disclose in the corporate governance statement of the
company (Epstein, Buhovac and Yuthas, 2015). Due to the disclosure, the shareholders,
stakeholders, employees, investors, the community can get to know about the knowledge of
the operation of the company. Further, the company is required not to disclose only the
financial information, but also several non-financial significant information, thereby the
company is now able to give its performance regarding the social and economic achievement
also. This also leads to the attraction of the investors towards the company. Navigator Global
Investment limited, along with the above also disclose about its risk management strategy
techniques. Further, the board of the director of the company recognizes their ultimate
responsibility to carrying out the activities of the company by which the value of the
stakeholders enhance (Ortas, Gallego‐Alvarez and Álvarez Etxeberria, 2015).
Apart from the above legitimacy theory explains the performance of the company in
executing and emerging the intentional disclosure regarding the social and environmental
information with the aim of accomplishes their social objective (Haffar and Searcy, 2018).
This theory assists in acknowledgement of the objective and enables for the existence in the
competitive world. Further, the proper reporting by the company also influences the
investment decision of the shareholders by the proper and reliable information. Disclosure of

the corporate governance of the company is the essential element between the society and the
relation of the investors.
Further on the basis of the above descriptive analysis regarding the stakeholder theory, it has
been concluded that the activities of the organization should be managed in such a manner by
which the interest of the stakeholders can be maximized. Navigator Global Investment
Limited established the corporate governance structure in the organization so that the
company manages its operations in an ethical manner and the acceptable norms of the
society.
Moreover, the Global Reporting Initiative issued the various standards for sustainability
report of the organization. The guidelines are framed with the viewpoint of increasing the
reliability and accountability of the organization towards the environmental, social and
economic performance. GRI incorporated the four main standards which include universal,
economic, environmental and the social standards. The information which is required to
disclose according to the GRI standard is primarily connected with the reporting of the
corporate social responsibility of the company. Further, the reporting as per the guidelines
enhances the confidence of the users of the report and also leads to the improvement of the
reputation of the organization. Navigator Global Investment Limited was not complying with
all the standard issues by the GRI in its report; however, the company complies with all the
principles related to the corporate governance framework of Australia.
CONCLUSION
By considering the present study it can be concluded that in the present era, corporate social
responsibility plays a very significant role in the world. For the long run of the business, it is
essential for the company to enhance the financial performance along the social, economic
and environmental aspect related with the company. A company by following the GRI
standard can improve its sustainability report so that investor can get informed about the
activities of the organization impacting the social and environmental condition of the
economy. Proper disclosure policies lead to the providing the quality information to the
public.

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