HRPD 703 - Management Accounting: Kruger Products Non-Financial Report

This report examines how Kruger Products LP, a Canadian company, reports non-financial information, focusing on Environmental, Social, and Governance (ESG) disclosures. It highlights that Kruger Products LP primarily uses its official website, particularly the SUSTAINABLE DEVELOPMENT section, to disclose non-financial aspects like sustainability, environmental footprint, and corporate responsibility. The company publishes Sustainability Reports (2010-2015) and other non-financial reports covering collaboration, environmental performance, sustainable logistics, and responsible sourcing. The report also notes Kruger Product LP's community commitments and governance policies, emphasizing the use of management accounting tools for developing these non-financial reports, and concludes that Kruger Products LP has a unique approach to disclosing non-financial information through its website and specialized reports rather than its annual report.

Running head: MANAGEMENT ACCOUNTING
Management Accounting
Name of the Student
Name of the University
Author’s Note

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Table of Contents
Introduction................................................................................................................................2
Demonstration of How Kruger Product LP Has Reported Non-Financial Information............2
Conclusion..................................................................................................................................5
References..................................................................................................................................6

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Introduction
In the today’s business world, business organizations have the added responsibility to
report the non-financial information of their business in different reports and other sources
and it is called non-financial reporting. Under the non-financial reporting, the companies are
needed to disclose information of social, environmental and environmental issues. This is
considered as Environmental, Social and Government Information (ESG) (Lokuwaduge &
Heenetigala, 2017). The main aim of this report is to ascertain how one Canadian company
reports non-financial information of their business in different public reports. For this
purpose, Kruger Product LP is taken into consideration.
Demonstration of How Kruger Product LP Has Reported Non-Financial Information
Management Accounting has a specific relation with the non-financial information of
the companies. The vast use of management accounting can be seen by the firms for
emphasising on the aspect of non-financial reporting (Ahmetshina, Vagizova & Kaspina,
2018). One of the most important management accounting tools for the companies is the
Non-financial reports that helps the companies in developing rationale and prudent corporate
strategies. Non-financial reports assists companies in disclosing information about social,
economic and environmental performance. It plays a crucial role in establishing effective
engagement of the companies with their key stakeholders (Maas, Schaltegger & Crutzen,
2016).
Business organizations are responsible for disclosing or providing the non-financial
information of their businesses in different public reports such as annual report, corporate
governance report, sustainability report and others (Tschopp & Huefner, 2015). The same
aspect is also applicable for Kruger Product LP. However, it needs to be mentioned that
different companies follow different procedures for disclosing the non-financial information

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of their business. In case of Kruger Product LP, the company has published their annual
reports and sustainability reports in their official website.
It can be seen from the official website of Kruger Product LP that the latest annual
report of the company is the 2017 Annual Report. In today’s world, most of the companies
have adopted the process of disclosing the non-financial information of their business in their
annual report in an integrated manner. However, the situation is different in case of Kruger
Product LP since the company has only provided the financial information of their business
in their latest annual report (kptissueinc.com, 2019). Most of the inventors prefer to access
the annual reports of the companies for gaining the financial and non-financial information,
but the case is different for Kruger Product LP as there is not any non-financial information
in their annual report.
It can be seen from the official website of Kruger Product LP that the company has
provided the non-financial information of their business through their official website. One of
the sections in their official website of SUSTAINABLE DEVELOPMENT where Kruger
Product LP has disclosed the basic information of three crucial non-financial aspects of their
business; they are Sustainability, Environmental footprint and Corporate Responsibility. It
can be seen under this section that in the year 2010, Kruger Product LP launched their five-
year sustainable development program in order to reduce the negative effects of their
business operations on the environment. At the same time, Kruger Product LP has provided
the information of their sustainability and environmental performance in this section of their
website (kptissueinc.com, 2019).
It needs to be mentioned that Kruger Product LP has used management accounting for
the development of certain non-financial reports to disclose the non-financial information of
their business. First, Kruger Product LP has developed and published the Sustainability

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Report from 2010 to 2015 and the main aim behind the publication of these non-financial
reports is to provide the stakeholders with the information of their performance on different
sustainability issues such as energy consumption, GHG emission, water consumption,
logistics optimization, packaging material and others (kptissueinc.com, 2019). This non-
financial information can be obtained from the sustainability reports of Kruger Product LP.
Apart from these, Kruger Product LP has published five different non-financial reports to
disclose information of five different sustainability areas of their business; these reports are
Collaboration in Times of Uncertainty report, State of Green Report, Sustainable Logistics
and Transport report, Responsible Sourcing report and White Paper report. It can also be seen
that Kruger Product LP provided information about their various commitment towards their
community under SUSTAINABLE DEVELOPMENT section of their website. In this
section they have disclosed information about their support to Breast Cancer Cause, Earth
Day Canada Ronald McDonald House Charities and others (kptissueinc.com, 2019).
Another crucial area of non-financial information is Governance related information.
Under the GOVERNANCE POLICY section of Investor Relation, Kruger Product LP has
provided the detailed non-financial information of their corporate governance initiatives. In
this section, Kruger Product LP has disclosed information about crucial corporate governance
aspects like independence of board, mandates, description of position, codes of ethics, audit
committee, nominating committee and others. Stakeholders of Kruger Product LP need to
know about these aspects. In addition, it can be seen that Kruger Product LP has provided
certain non-financial reports that disclose information about different governance aspects;
thee reports are Board Mandate report, Codes of Ethics report, Audit Committee Charter
report, Nominating and Governance Committee Charter report and various other reports like
voting policy, human resource and compensation committee and others (kptissueinc.com,
2019).

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Conclusion
It can be seen from the above discussion that Kruger Product LP has used the concept
of management accounting for disclosing the non-financial information of their business. For
this purpose, the company has taken the assistance of one management accounting tool that is
Non-financial Reports to report on various non-financial aspects of their business. The above
discussion shows that Kruger Product LP has not used their annual report for disclosing non-
financial business information. Instead of that, they have heavily used their official website
for providing non-financial information. They have disclosed different section in their official
website to report on different non-financial information so that the stakeholders do not face
any issue while accessing them. In addition, Kruger Product LP has published different non-
financial reports for reporting on aspects like sustainability, envirmental issues and corporate
governance. It implies that Kruger Product LP has developed a unique way to disclose their
non-financial information of business.

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References
Ahmetshina, A., Vagizova, V., & Kaspina, R. (2018). The Use of Management Accounting
Information in Non-financial Reporting and Interaction with Stakeholders of Public
Companies. In The Impact of Globalization on International Finance and
Accounting (pp. 433-439). Springer, Cham.
Governance Policy - KP Tissue & Kruger Products L.P. . (2019). Kptissueinc.com. Retrieved
8 April 2019, from http://www.kptissueinc.com/investor-relations/corporate-
governance/governance-policy
Kptissueinc.com. (2019). 2017 Annual Report Retrieved 8 April 2019, from
http://www.kptissueinc.com/gpc/_media/Document/kpt-2017ar-en-final.pdf
Lokuwaduge, C. S. D. S., & Heenetigala, K. (2017). Integrating environmental, social and
governance (ESG) disclosure for a sustainable development: An Australian
study. Business Strategy and the Environment, 26(4), 438-450.
Maas, K., Schaltegger, S., & Crutzen, N. (2016). Integrating corporate sustainability
assessment, management accounting, control, and reporting. Journal of Cleaner
Production, 136, 237-248.
Sustainability - Kruger Products. (2015). Krugerproducts.ca. Retrieved 8 April 2019, from
http://www.krugerproducts.ca/sustainability.php
Sustainable Development & Commitment of KPLP . (2019). Kptissueinc.com. Retrieved 8
April 2019, from http://www.kptissueinc.com/sustainability/sustainable-development
Tschopp, D., & Huefner, R. J. (2015). Comparing the evolution of CSR reporting to that of
financial reporting. Journal of Business Ethics, 127(3), 565-577.