ACCT20074 Term 2: Sustainability Reporting and CSR Analysis

This report provides a comprehensive analysis of sustainability reporting, emphasizing its growing importance in the corporate sector. It begins with an executive summary outlining the report's objectives and structure. The introduction establishes the significance of sustainability reporting in today's business environment. Part A offers a literature review on the critical role of corporate social responsibility (CSR) in enhancing financial performance, detailing how CSR impacts competitive advantage, standing, and customer satisfaction. It also contrasts sustainability reporting with other forms of reporting, highlighting its holistic approach covering financial, environmental, and social impacts. The report then explores risk management and operational efficiency, including the stakeholder and legitimacy theories. Part B provides an overview of Sigma Healthcare's sustainability reporting. The conclusion summarizes the key findings and implications of sustainability reporting. The report underscores the benefits of sustainability reporting, including improved risk management, cost savings, informed decision-making, and enhanced stakeholder trust, providing a valuable resource for understanding the practical and theoretical aspects of sustainability reporting.

Running head: SUSTAINABILITY REPORTING
Sustainability Reporting
Name of the Student
Name of the University
Author note

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Sustainability reporting
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Part A.........................................................................................................................................3
Part B........................................................................................................................................11
Conclusion................................................................................................................................17
Reference..................................................................................................................................17

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Sustainability reporting
Executive summary
The aim of the report is to give a brief analysis of the importance of the sustainability
reporting in the modern days corporate sector. The report contains a literature review about
the importance of the corporate social responsibility. Further it explains the areas that are
covered by the sustainability report and what extra benefits it gives in comparison to the other
kind of reports. The report also contains a brief detail about two important theories that
explains the concept of sustainability. The sustainability reporting of sigma healthcare is
provided in details which reflects the steps taken by the organisation to contribute in the
development of the society and also to improve its financial performance.

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Sustainability reporting
Introduction
The sustainability reporting is a concept that become indispensable in the current
business world. With the immergence of various rules and regulations the role of the
organizations also extended to new areas and the company can not only focus on profit
earning but at the similar time it must donate in the development of the society. the
sustainability reporting helps the organizations to give a fair and true view of its contribution
in the development of the society and how it takes initiatives in protecting the interest of the
stakeholders.
Discussion
Part A
Literature review on importance of corporate social responsibility
As per the article there exist a direct association with the corporate social
responsibility and the financial presentation of ant organization. There are several factors that
influence the direct relationship between the corporate social responsibility and the financial
performance. Consequently, this study reflects sustainable competitive advantage, standing
and customer gratification as the three main factors that create the association between the
corporate social responsibility and the performance of the organization. The article finds that
the manufacturing and the consumer product firms reveal that the link between the CSR and
the financial performance of the organization is a fully arbitrated relationship. The positive
effect of corporate social responsibility on the financial presentation as it creates a
competitive benefit, standing and better customer relationship. The concluding observation
that can be observed from this article is that only the standing and modest benefit arbitrate the
association among CSR and the presentation of the organization. By considering all these

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Sustainability reporting
factors it can said that the corporate social responsibility directly influences the financial
assessment of the company by increasing the standing and modest benefit while refining the
level of client gratification. As the corporate social responsibility creates an optimistic
consequence on the financial resuts by enlightening the value of client satisfaction the
concept of corporate social responsibility is gaining popularity among the corporate sector
(Dumay et al 2016).
Sustainability reporting gives a holistic view to corporate social responsibility in
contrast to other reporting.
The sustainability report covers more areas than the other type of sports as such it is
considered as the more holistic than the other kind of reports. The sustainability report is
prepared by the company in which it gives the details of the financial, ecological and
communal influences produced by its normal actions. The governance model and the value of
the organization is mentioned in the sustainable report which helps in the assessment of the
link between the strategy of the firm and its contribution to the society and the sustainable
international economy. The sustainable report thus covers both the economical and social
aspect of the organization and shows how the company maintain a balance between the
responsibility towards the society as well as in the financial performance at the same time
(Pérez‐López Moreno‐Romero & Barkemeyer 2015).
The sustainability report is prepared founded on the valuation of risk and chance of
utilising the data on an extensive diversity of present and upcoming matters. the sustainability
report considers both the current and future events and give a complete details about the
activities which the organisation is going to take in order to protect the interest of the society

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Sustainability reporting
and at the same time ensure how the company will increase its profitability by increasing the
efficiency of the process of production (Saeidi et al 2015).
The value of the sustainability report is that it makes it sure that the company
considers their impact on these sustainable issues, and enables them to give a fair and true
view of the risk and opportunities that the organization faces. The sustainable report is also
very essential for the stakeholders as they can easily identify the non financial risks and
opportunities of the company. The discloser of the transparent approach of the organization is
responsible for the effectual pronouncement creation, and helps to build and maintain trust of
the various stakeholders of the company (Lim & Greenwood 2017).
As per the global reporting initiative sustainability reporting provides the impression
of the organisation’s financial, ecological and social impacts caused by its day to day
activities. The sustainable reporting displays the company’s accountability to a sustainable
global economy and helps the organization to evaluate comprehend and interconnect their
economic, environmental communal and supremacy performance, and on that basis fix
objectives and tackle alteration efficiently (Ceulemans Lozano & Alonso-Almeida 2015).
In the modern days, sustainability reporting has turn out to be a very essential point of
the combined reporting, which considers both the financial and also the non financial
features of the association. The general terms that are related with the sustainable reporting
are the triple bottom line and the corporate social responsibility. Both the concept explains
the financial and the non financial aspects (Amor-Esteban Galindo-Villardón & David 2018).
The sustainable report varies from organization to organization the main purpose of a
sustainable report includes the following

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Sustainability reporting
 Giving information to the stakeholders in excess of the besieged by the combined
report
 Specifics on the origination’s modest standing in the developing sustainability
position.
 A more detailed information about the creativities taken by the organizations relating
to social, human and natural capital.
The value of sustainability report is different from the other integrated reporting. The
sustainability report assist the association by ensuring that the organization contemplate their
influences on the sustainable matters, and allows the organisations to be clear about the
hazards and the chances that comes in front of the companies (Slack Corlett & Morris 2015).
So, in brief the sustainability reporting has the following benefits which the other type of
reports can not provide:
 It is a use full tool for risk management
 It helps in the accumulation of the savings
 It guides in taking decisions
 It helps in building up trusts among the stakeholders
Sustainability reporting as a tool for better risk management
It is claimed that the sustainability reporting and the risk management are
conceptually same. Considering the risk and the sustainability combinedly can be more useful
for the organization as sustainability is a broader term and that includes many aspects and
ensure business flexibility and an occasion to increase the clear and firm. sustainability
shapes the future operating environment of the business its corporate perception and at that
time it also brings flexibility and efficiency (Palma Lourenço & Branco 2018).

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Sustainability reporting
In addition to that the sustainability reporting has turned out to be a major tool in
improved risk management with the current days business environment , in accumulation to
the outdated risk is now in front of more social and environmental risks , that is evident
themselves finished a lengthier term , are largely outside the organizations control and in
many occasions affect the business on many aspects (Epstein 2018).
Sustainability reporting helps in increasing the operational efficiency
Few years ago, it was believed that profits and profits are two different concepts. The
concept has changed in the modern days as the companies has realized that the substantial
cost savings by the environmental sustainability helps in increasing the efficiency of the
organization.
The stakeholders are also encouraging the concept of the sustainability and that helps
in corelating improved financial position withy better ESG (environmental social and
governance factors) presentation. From this indication it can be understood that the concept
of the sustainability is gaining popularity in increasing the financial performance of the
company (Zhou Simnett & Green 2017).
This research provides encouragement to the companies to create value through
sustainability, the companies first look for increasing the return on capital that frequently
means decreasing the functioning costs by an optimal usage of the natural resource
management (Ioannou & Serafeim 2017).
Theories of sustainability reporting
The two main theory that explain the concept of the sustainability reporting are the
legitimate theory and the stakeholder’s theory. (Debnath 2019). The brief details of these
theories are mentioned below:

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Sustainability reporting
Stakeholders theory
The stakeholder’s theory is closely related with the sustainability reporting concept.
The stakeholder’s theory is intermediately associated with the legislative theory. both the
concept is not competent of each other but they appraise the concept of the stakeholders
reporting. The inherent concept of the stakeholder’s theory states that the corporate social
revelations have been ambitious through the requirement for the organization in order to
legalise their actions, and the organization will take actions as per the expectation of the
society. The organization should give emphasis to the stakeholders when implementing their
strategies in order to avoid the risk of getting denied by the society as without the help of the
society no business organization will be able to sustain for long term. The stakeholder theory
states that the sustainable reporting will, help to build an effective communication system
between the organization and the society (Morioka Evans & de Carvalho 2016).
Organizations often fall in the dilemma regarding the understanding what the society
wants for the extended period, this indicates that the corporate sectors get intricated in the
actions that endorse benefits for society and reduces the undesirable effect of their activities.
Moreover, the environmental and social report can not be that significant in many nations as
legitimate may not apparent as being endangered or since the shareholders are not worried
through these matters (Mariani & Vastola 2015).
From the definition it can be realized that there is an association among a company
and every stakeholder it has. The stakeholders are the ones that offers organization a
customary of possessions they want to achieve through their business.
Legitimacy theory

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Sustainability reporting
The legitimate procedure braces the logic of the prevailing social value system. This
theory states that the organizations continuously taking steps to assure that they function
inside the instructions and guidelines of the society. In this regard there is a common
agreement made amid the administrations and persons that are exaggerated by the activities
of the organization. Thus, the conventionality with social traditions highlights the social
legality of organizations, conclusive the public that they are pedestrian of provision and
increasing their endurance viewpoint (Al-Shaer & Zaman 2016).
Legitimatize theory is used more in the research literature on environmental and
social accounting to sustenance the awareness that the social disclosure may be held in the
current level, or upsurge during the course of time, to evade the validity catastrophe.
However it has been observed that according tote legislative theory the tendency of the
organizations’ social disclosure has decreased (Jones Hillier & Comfort 2016).
The legitimate theory further states that the CSR expose is an essential procedure of
announcement that objects to persuade the investors that the group is conference prospects.
Organization reveal the corporate social responsibility information due to the external
pressure. Thereby try to find out compliances with organizations meeting the expectation of
the society otherwise that would suffer loss and that will affect their sustainability in the long
term (Reimsbach Hahn & Gürtürk 2018).
Part B
Overview of the company
Sigma health care is one of the major dispensary networks in Australia since its
inception in 1912 it is continuously serving best quality services to its customers and has
been able to create a healthy relationship with the stakeholders. The company have a 1200

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Sustainability reporting
branded and independent store that are dedicated for rendering services to the customers
(http://investorcentre.sigmahealthcare.com.au/static-files/34621a98-1122-47c9-87a5-
9dfa8cd8697c pg no 1 - 12).
Ownership
The company’s present chairman is brain Jamison and the managing director and
CEO is mark Hooper (http://investorcentre.sigmahealthcare.com.au/static-files/34621a98-
1122-47c9-87a5-9dfa8cd8697c pg no 1 - 12)
.
Governance
The board of directors and the management team of the sigma are accountable for the
formation and implementation of the strategic way and corporate governance system of the
company.
The business aim of sigma is to maximize the return of the stockholders inside the
framework of the adequate risk management. the company is also very cautious about there
responsibility towards the society for which they have taken an appropriate corporate social
responsibility programme also
(http://investorcentre.sigmahealthcare.com.au/static-files/34621a98-1122-47c9-87a5-
9dfa8cd8697c pg no 20-38).
In emerging its corporate governance strategies and structure the company has studied
the ASX corporate governance council philosophies of good corporate governance and better

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Sustainability reporting
practices commendations and has tried to implement these recommendations in all the
material aspects of the organization.
Sigma’s corporate governance framework is charted in its corporate governance
statement is delineated in its corporate governance statement and in its charter cluster
strategies and code of conduct statement (Stubbs & Higgins 2018).
The main ideologies of the sigma healthcare code of conduct are the followings
 Honest and ethical behaviour
 Respect for people and property
 Legal compliances.
The sigma health care also has a environmental management and sustainability policy that
covers the following points
Sigma will adopt policies to circumvent needless ingesting and achieve request (this
comprises the ingesting of the energy and water.
Sigma will consider the acquisition of goods and substructure which can be reprocessed
repaired and recycled and that includes the recycled gratified.
Sigma will endeavour to minimize the environmental impact completed the life
expectancy of goods and services purchased by selecting the option that have inferior
opposing impact over the life of goods and services purchased by choosing options that have
inferior opposing impact associated with any stage of their making use or removal
(Nicolăescu Alpopi & Zaharia 2015).
Sigma will try to foster novelty in sustainable production and facilities during the design
and implementation of the associated procurement plan.

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Sustainability reporting
Sigma is committed to continual improvement in regard to the environment and
sustainable practices and
Sigma will seek fair and ethical tracing techniques and take steps to guarantee that
dealers are conforming with socially accountable practices as well as judicial responsibilities
to employees.
Financial performance
The net profit attributable to the shareholders in the financial year 2019 was down by 33.70%
in comparison to the previous year. The current year profit was $36520000 and in the last
year the profit was $55059000.this indicates that in the current year the company is not
performing efficiently (http://investorcentre.sigmahealthcare.com.au/static-files/34621a98-
1122-47c9-87a5-9dfa8cd8697c pg no 39-75).
.
Sustainability reporting scoring index
GRI Non GRI
N=481 N=91
HUMAN RIGHTS 45.00% 15.00%
Ext stakeholder’s
engagement
35.30% 15.00
Labour relations 55.80 36.70
Codes of conduct 47.50 28.70
Supply chain 46.60 28.20
Integrity assurance 31.00 13.30

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Sustainability reporting
Anti corruption 26.40 10.40
Environment 64.90 51.00
Chairman’s message 54.20 44.00
Governance 28.40 19.20
Philanthropy 67.10 63.30
The global reporting initiative is a global autonomous society that helps corporates
and other organization to comprehend and interconnect their influences on subjects that
effects the environment human rights and corruption. Due to the compression of the
stakeholders and to bring more fairness regarding their environmental, economic and social
influences several organisations publish a sustainability reports which is similarly recognized
as a corporate social responsibility or environmental social and governance report. GRI’s
agenda for sustainability reporting aids the organizations to categorize, collect and describe
this data in a vibrant and equivalent manner (Michelon Pilonato & Ricceri 2015).
This is a basic format of GRI sustainability reporting framework that shows the
structure in which the company should prepare the sustainability report and give the ranking
according to the weightage given in each of the items that are mentioned in the table. The
GRI index gives a detail of all the actions which are occupied by the group to promote the
corporate social responsibility and the role that the organization perform in order to serve the
stakeholders (de Sousa Jabbour et al 2015).
Quality of sustainability reporting of Sigma healthcare

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Sustainability reporting
The company sigma healthcare does not prepare a separate sustainability report but it
mentioned the social contribution that it made, in the annual report. According to the GRI
index the company gives emphasis on the following areas:
Environment issues
The company give importance in reducing pollution in the environment and
implement several initiatives to protect the environment.
Energy efficiency
Sigma has made a concerted effort to become one of the most energy efficient
company in Australia.
Recycling and waste reduction initiatives
The organisation has reserved essential stages in reducing the waste and try to recycle
the waste and thus make optimal usage of resources.
Code of conduct
The company has maintained a strong code of conduct. The company haws
maintained a strict decorum in maintaining the code of conduct and in case any employee fail
to maintain that code of conduct he or she will be held liability for such actions (Boiral et al
2018).
External stakeholders’ relationship
The company has been successful in maintaining a healthy relationship with the
external stakeholders.
Supply chain

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Sustainability reporting
The company has been able to maintain a supply chain management system that
ensure the hurdle free running of the operation of the organization.
Human rights
The company has maintained a strict policy in the protecting the human rights as it is
engaged in the business of healthcare it give highest priority in the protection of the human
rights.
Labour relations
The company has been able to make a good relation with the labours that used to
work in the organization all the facilities has been given to the labours so that they can work
without any pressure and discomfort.
Governance
The company has followed the rules mentioned by the ASX code for corporate governance.
Anti corruption
The company has a whistle blower policy system in the company which always
monitor all the activities of the organization and thus give alarm to the top management
whenever it found any acts that promote bribery or any kind of illegal activities (Clarkson et
al 2018).
Philanthropy
The company used to donate a hefty sum in the improvement of the society and
engaged in many philanthropic activities that will improve the relationship with the
organization.

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Conclusion
From the analysis of this report it can be concluded that the role of sustainability
reporting has gained immense popularity in the modern corporate world. The sustainability
report gives the details about the contribution of the organization in the sustainable growth
that improves the financial performance of the organisation in the extensive run. The sigma
healthcare which is considered as the top healthcare organisation in Australia has maintained
all the requirements to built up a strong relationship with the society in order to improve its
financial condition.

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