Contemporary Accounting Report: Galaxy Resources Analysis

This report provides a comprehensive analysis of Corporate Social Responsibility (CSR) and sustainability accounting, focusing on Galaxy Resources Limited. It begins with an exploration of the increasing importance of CSR for firms, contrasting sustainability reporting with other relevant reporting methods, and identifying key theories such as institutional and legitimacy theories that explain sustainability reporting. The second part of the report applies this theoretical knowledge to the reporting practices of Galaxy Resources, providing an overview of the company's history, ownership, governance, and financial performance. It also examines Galaxy Resources' sustainability reporting in relation to GRI standards and its overall social responsibility efforts. The report concludes with an analysis of the company's share price and business performance, highlighting the significance of CSR in the current business environment.

Running head: CONTEMPORARY ACCOUNTING
Contemporary accounting
Name of the student
Name of the university
Authors note

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Executive summary
The study report has two parts. In the first part the importance of corporate social
responsibility towards the firms have been explained with reference to the contrast of other
theories. Further the institutionary theory and legitimacy theory related to the CSR activity is
also explained in this context. In the second part the history, governance, and financial
performance of galaxy resource limited is provided. Furthermore the sustainability reporting
related to the GRI standards are provided towards the GRI guidelines are also provided here.
However the sustainability reporting standard is maintained in relation to the galaxy resource
limited. Through this statement the corporate social responsibility issue has been highlighted.
Moreover the company share price have been analysed in order to see the current business
performance of the company. This report is supported by a suitable conclusion at the end.

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Table of Contents
Introduction....................................................................................................................3
Discussion......................................................................................................................3
Part A: THEORITICAL KNOWLEDGE......................................................................3
Importance of CSR to the firm’s financial objectives................................................3
Contrasting the sustainability reporting with other relevant reporting......................4
Theories related to the sustainability accounting.......................................................6
Part B: APPLICATION OF THEORETICAL KNOWLEDGE TO EXPLAIN
REPORTING PRACTICE.........................................................................................................7
Overview....................................................................................................................7
History........................................................................................................................7
Company ownership...................................................................................................8
Governance................................................................................................................9
Financial performance................................................................................................9
GRI standards related to the sustainability accounting............................................10
Social responsibility of galaxy resource limited......................................................11
Conclusion....................................................................................................................13
References....................................................................................................................14
Appendices...................................................................................................................17

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Introduction
The study task discusses on why the corporate social responsibility have gathered
utmost importance to the firms in gaining certain financial advantages. The corporate social
responsibility is a hot topic in the current business scenario and almost all the companies
implies CSR activities towards doing the business effectively. On the other hand the overall
sustainability accounting contrasting with the other accounting techniques have been used to
provide an essential view. Furthermore two business theories have also been provided to
incorporate the CSR activity. Furthermore in the second part the sustainability reporting of
the galaxy resource limited is prepared in order to implement effective CSR process within
the organisation.
Discussion
Part A: THEORITICAL KNOWLEDGE
Importance of CSR to the firm’s financial objectives
The corporate social responsibility is an effective business strategy. However it is seen
that basically all the business, be it family or non-family lacks the use of CSR activities. The
study article had described the difference between the familiar and non-corporative
organisations related to the practise of CSR. However it is also viewed that most of these
business are likely to behave ethically to identify the reasons like reputation, image and
identity (Pérez & Rodríguez del Bosque 2014). On the other hand the familiar firms are very
much concerned about protecting their self-interest while the corporate entities are likely
trying to do something for the society also. Furthermore in both the cases the corporate social
responsibility should be defined in integrating the social, environmental, ethical, consumer
and the human stakeholder’s rights and duties are highly concerned with the effective
business decisions. Therefore the companies are related to the CSR achievements. On the

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other hand the integrated annual and social reports are highly implemented towards the
business plans and operations. The financial crisis had integrated the importance of
accounting and reporting interest of the company as a whole. It had also helped the company
investors to gain market trust. Therefore better risk management techniques will be used to
imply sustainability and help to restore belief. Thus it can be said that the CSR disclosure is
not beneficial for the society, but also the same is related to provide benefits to the society as
well as implement some innovative business technologies. This practise is considered as an
important one to follow. The product and capital globalization and cross – border activities of
the big corporate agencies provide corporate calls related to the role of the society (Spence
2016). However since the process is connected to the world economy, therefore the
consumers are providing increased attention to the corporate firms reputation. Hence the CSR
activities are very much effective to enhance the corporate image of the business overall
(Djeli & Etchanchu 2017). Furthermore it can be also said that due to this aspect the
corporate social responsibility have created an immense impact on the firm’s operational
activities. The CSR activities have been investigated from the variety of the open sources.
Therefore the CSR activities of the firm’s which is assumed that the management had
publically held attempts to make good amount of profits for the business, hence the CSR
could be viewed as the firm’s investment towards firms outputs. A firm could create a
sustainable way of CSR activity towards the production process in order to implement the
effective CSR activities and CSR related sources (Coulson-Thomas 2014).
Contrasting the sustainability reporting with other relevant reporting
The responsibilities of the business towards societies and the environment lived by us
are heavily defined by the economic, legal and the other different expectations towards the
societies at a given point of time. Thus the CSR activities are therefore very much dynamic
while shifting the environmental and the social changes, the environmental demand and the

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moral stability of the process is related to the overall expectations from the company
shareholders who probably experience the basic effects of the corporate restructuring as well
as evaluating the overall behaviour of the corporate performance with the expectations. Thus
the organisations had expected the stakeholder’s engagements towards creating the relevant
and material issues relating to the company to drive the stakeholder’s value of the society.
Thus the CSR practising and reporting are related to the organisational performance (Park et
al.,2014) Hence the CSR information is not necessarily materialistic because of the usage of
effective stakeholders are being genuinely engaged because the material analysis has been
placed at the centre of the global reporting technique towards the guidelines related to the
aspect. Therefore the research undertakes a materiality analysis (Soundararaja & Brown
2016). Therefore the industry definition can match the Importance of the stakeholder’s values
in order to understand the pattern found. Furthermore the material misstatement and risk
analysis is based on the factors which can negatively influence the corporate brands by
avoiding the public relations scandals overall. On the other hand the sustainability report can
restore the public image towards the business and provide the transparency to the business.
Hence the process suggests that the companies act are held highly responsible to maximize
their competitive advantage to the process in the way which could be limited by the
organisation. Although their competitive advantage in the way which could be analysed
towards limiting the overall competitive advantage to the business and it ensures a short term
profits, not on a holistic way. Hence the sustainability reporting could be creating the
proactivity would define whether this third approach are also nonspecific. Hence the process
could be effective towards addressing the stakeholder’s identity (Kahreh et al.,2014). On the
other hand it can also be said that the process could implement the value chain strategies and
product differentiation. Thus the process could create certain effective techniques towards
CSR activities. Thus the communities can look to implement the same techniques towards

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investing. Since the process could look to implement the legitimacy restoring technique.
Therefore the CSV process had focused on the social and economic process (Spence 2016).
This technique is characterized by the effective policies and procedures could enhance the
operating procedures towards a competitive positioning area as a whole. On the other hand
the social and economic process will look to increase the ethical standards overall. Therefore
the new techniques can cause negative impacts to the business. This technique Implements a
new way of understanding the customer needs towards the productivity and the external
Influential technique towards the success of the corporates overall. Hence the CSV theories
differs from the CSR activities and how the same technique have been practised overall.
Firstly the re- convincing products and market technique can look to develop certain unmet
challenges which had existed in the market beforehand. Secondly the process could identify
the value chain analysis towards channelling resources of the social activities and lastly the
success of every company could be effectives of the supporting techniques and the
infrastructure around it.
Theories related to the sustainability accounting
In order to define the sustainability accounting there are multiple theories have been
used. However among those theories the institutional theory is very much effective because it
describes the institutional environment. In the year 1960’s and 1970’s after accepting the
importance of institutional environment towards the organisations, the IT gained as an
important role to understand the existing phenomena in the life of the organisations. Hence it
can be said that to develop the sustainability towards the organisations the establishment of
the accounting practise in the organisation (Kahreh et al., 2014). Therefore by studying those
reasons for adopting certain accounting practices rather than the others and such those
practises will tend to answer those questions towards influencing the effectiveness of the
business perspectives. On the other hand the social and other environmental consequences the

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economic activity is producing the empirical studies (Hack et al.,2014). Hence these aspects
will be very much beneficial towards the implementation of traditional financial reporting.
Hence these process can associate with several issues related to the public interest overall.
These techniques do not deal with the social and environmental impact of the organisations.
Hence techniques could pay more attention to the social and environmental impacts. Thus it
requires a broader sustainability (Hoque et al.,2014).
Another theory which is considered in this case to describe the sustainability
accounting is the legitimacy theory. It connects to the contract between the society and
companies, whereby the later adopt socially oriented behaviours to gain the social approval.
Hence the existence of the social between the companies and societies which is very much
fundamental to the legitimization process. Hence these contractual changes could implement
mutual beneficiary changes. On the other hand this techniques could implement social
expectation techniques. Therefore the legitimacy theory could be implying certain explicit
and implicit terms of contract towards the survival of the firms. Therefore the legitimacy
theory could be described in the way that it effects on the survival of the firm. On the other
hand the variable is related to the individual firm which fulfils the gaps of legitimacy theory.
The basic objective is related to the achievement of the company objective. Therefore the
social and environmental aspects will be highly related to the voluntary disclosure of the
firms work (Rasche et al., 2017)

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Part B: APPLICATION OF THEORETICAL KNOWLEDGE TO EXPLAIN
REPORTING PRACTICE
Overview
History
Galaxy resource limited is a lithium mining industry that deals with various projects in
Australia, Canada and Argentina. This company owns and operates the mines in Australia.
However the mines had been operated between the year 2009 to 2012 before being taken care
and maintained properly between the years 2013 to 2016. Thus after the firms overhaul, the
mining industry had been recommenced in March, 2016 with first tantalum production
occurred in May, 2016. On the other hand the mines in Argentina and the James Bay lithium
project in Canada are in the stage of development till now.
However the company had merged with its joint venture firm named MT Caitlin mine,
general Mining Corporation. Furthermore the company had also agreed to sale the northern
package of tenements of the Hombre Mauro which is a south Asian industry for US $280
million on 29th may, 2018. The sale allows the company to maintain the reserve value of
$1.14 million dollar and a new 4.09 million dollar tonnes LCE products in a new project
(Fadun 2014).
Company ownership
In order to describe the ownership of galaxy resource limited, it can be found that
which group is more powerful in handling the business process. When a company grows, the
institutions will increase their ownership value. On the other hand sometimes the ownership
value is often decreased. Galaxy resource limited is not a big name in the market. It has a
proper market capitalization of $AU660m. Hence the investors will find no interest to this

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aspect. Thus by looking at the data it can be said that the institutional investors had been
brought into this company.
The Institutional investors had commonly compared their own terms and returns
related to the followed index. Thus in this case mainly large companies are considered
towards the benchmark index. The institutional investors owns 32 percent share value of the
company. It indicates that there are a certain degree of credibility of the investment
community. However it is the best way to rely on the validation of the institutional investors.
At the time of wrong trading, there are multiple parties may sell the existing stocks first. Thus
the ownership plays an important growth for galaxy limited (Thien 2015).
Governance
The galaxy resource limited is committed to the principles and practises of good
corporate governance as per the ASX corporate governance rules and regulations. It is related
to the Australia securities and investment commission (ASIC).
As per the process, the listed entity will check the requirements listed before
appointing any person to the system, or putting forward the security holders as a chosen
candidate directorship in order to provide an actual position relevant to the decision making
aspect.
Another aspect which is related to the corporate governance is the agreement with the
company director at the time of appointment in the post. Furthermore the gender diversity is
another aspect which the company can look to achieve in this case.

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Financial performance
The financial reports reveal the overall financial performance of the company. It is
seen that the sales had increased to the good margin than that of the year 2017 and 2016. In
the current year the sales have been $0.53 from $0.32 whereas the cash flow had also
increased over the year. Hence it is seen that the net cash inflow and outflow had been
increased to a reasonable value. Therefore due to this change, the overall earnings had also
increased to $51.8.
Apart from this the overall book value had increased to $1.92 and the shareholders
return value is also changed to a reasonable percentage. Thus it reveals that in the current
financial year the overall performance of the company had been far better than the last year
(Fadun 2014).
GRI standards related to the sustainability accounting
The GRI reporting is the most trusted reporting standard policy used for a while.
Hence the GRI sustainability aspect helps the business, government and the other
organisations to grow and impact on the sustainability issues faced by the business. These
activates includes-
Reports of multi- stakeholders
This approach is based on the multi-stake holding aspect which represents the best
combination of the technical expertise. It further diversifies the expertise to address the needs
of the reporters and users. This approach helps to produce those outputs which are acceptable
globally (Windso 2017). All these reporting elements and guidelines related to the reporting
framework will seek an effective approach. The stakeholders Interest are also considered in

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this case. These interests consists of business, labour, civil-society, accounting, investors.
Therefore all these reports are considered as the sustainability reporting aspects.
Endorsement
Most of the corporations properly handle the aspects of sustainability reporting and
merely 72 percent use the techniques like GRI reporting initiative. Hence from the collected
data it is found that the sustainability reporting by use of GRI index standard will continue to
grow in a merry way. Furthermore it will pave the way for the company investor and
regulator who ask for more performing data relating to the sustainability reporting structure.
Thus it is expected that more number of growth in the business of the company will lead to
the increase in the number of reporters and better quality reporting (Masoud 2017).
Reference to government
The main focus of issuing the GRI standard is only to work effectively with the
government, internal organisations and the capital market to meet the agenda. Hence as per
the outcome 35 countries work in that area of sustainability reporting and leads to the most
effectively used standards. On the other hand there are 20 more organisations like UNGC,
OECD and UN working group who are directly associated with this aspect of human rights
and business (Djelic & Etchanchu 2017).
Sustainability reporting scoring index
The complete scoring GRI NON –GRI
N= 244 n = 230
Climate change 58% 43%
Water 5% 7%
Other environment 5% 7%