Strategic Management Accounting Report: Telstra's Sustainability

This report provides a comprehensive analysis of Telstra's strategic management accounting practices, focusing on its sustainability strategy. It examines how Telstra integrates sustainability into its operations, highlighting the role of technological disruption, such as 5G and AI, in redefining the future of work. The report explores key stakeholder engagement, including customers, employees, and government entities, and assesses Telstra's commitment to ethical behavior and accountability. It identifies the company's strengths in promoting a strong, value-based culture and addressing environmental impacts through various initiatives. The report also discusses areas for improvement, such as enhancing customer experience, creating an inclusive workforce, and fostering innovation. The analysis covers strategic changes, including infrastructure development, product innovation, and customer experience improvements. The report aims to provide insights into Telstra's approach to achieving long-term performance and sustainability.

STRATEGIC MANAGEMENT
ACCOUNTING

INTRODUCTION
Strategic management accounting mainly focuses on internal as well external factors of
the company. Thus, this defined as formulation and implementation of the major goals initiatives
taken by companies top management (Shahzadi, Khan and Haq, 2018). Its an internal accounting
function that used to allocate business cost to goods or services and prepare reports for internal
management decision.
The present report is based on business activities Telstra, Australia's leading
telecommunication and technology company. Thus, this world leading networks mainly covers
99.5% of Australian population and has diverse range of customers including consumers, small
business, large enterprise and government organizations. Hence, this Australian
telecommunication company builds and operates telecommunication network, market voice and
internet access etc.
However, report will lay emphasize on activities as that at which level sustainability
strategy integrated into company, to explain key stakeholder of company, to comment on weak
and strong areas of the company.
MAIN BODY
1.
Technological disruption termed out as to bring change in which firm can operate their
business activities effectively. Hence, it can be stated that Telstra product and services plays the
crucial role in daily lives of millions of people and technology such as ultrafast 5G mobile,
artificial intelligence and internet of things that aids to redefine the future of work. This
enterprise has undertakes the sustainability strategy that aids to have Sustainability strategy is
one crucial aspect that aids to achive success and mainly focused on the issues that are material
to businesses (Laela, Rossieta and Ismal, 2018). Therefore, it relates to the areas in which there
is expertise to make meaningful contribution and figurte out the opportunities to use innovative,
tech based solutions to deal with major societal challenges. In order to maintain the sustainability
in the enterprise, this enterprise undertakes the use of tool as Net promoter score system that
enables to measure out the customer experience and respond to the feedback. Telstra using these
technologies to assist suppliers and customers etc.

At the quoted enterprise, the focus over sustainability strategy aids to thrive people in
digital world. However, quoted enterprise is committed to excellence in corporate governance,
ethical behaviour and accountability in which they are undertaking their business activities.
( Alamri, 2018). However, it aids to gain long term performance and sustainability to the to the
enterprise that enables to protect and enhance the interest of stakeholders and shareholders. In
this present era, the digital technology disrupting the use of traditional operating that assist the
society to respond to major issues in agile and scalable mode (Thorlakson, Zegher and Lambin,
2018 Initiative, 2019). Thus, one of the main aim is to interconnecting the whole system of
entity. This entity mainly consider over to adapt to technological changes and opportunity it
brings. Therefore, firm has majorly focus over adopting the right culture that aids to undertake
better organizational transformation. Telstra mainly focus over the millions of diverse customers
who represents their unique perspectives. It is entity that is also looking over to manage safety,
supporting the mental health and well-being to the people and this all things aids to create better
and effective working environment (González, del Mar Alonso-Almeida and Dominguez, 2018).
By putting core focus over to bring development in the commodities the entity can perform their
business activities in well and effective manner. With help of managing the global health,, safety
and well-being aids to conduct the business practices effectively and efficiently (Tost, Hitch,
Chandurkar and Feiel, 2018).
Therefore, the sustainability strategy mainly reflects the most material topics and SDG
priority to make meaningful impact in opportunity with the use of high advanced tools,
technology based solutions aids to adderess the major societal challenges and opportunities
(Reimsbach, Hahn and Gürtürk, 2018). This is defined as plan of action that represetnts the
holistic approach to the sustainability and relates with the informed and integrated to core
business activities. Thus, strategy includes the three pillars as are-
 Responsible businesses- Telstra know as sustainable, globally trusted companies that
people want to work for it.
 Digital future- It fosters effective communication, strong culture that aids to empower to
thrive in digital world.
 Environmental solutions- This entity uses high technology that aids to address
environmental challenges and assist to suppliers, customers and community at the same
time.

Sustainability governance- The board of the quoted enterprise is responsible for overseeing,
monitoring the effectiveness of sustainability strategy and policies. Thus, Boards also receives
updates on Telstra sustainability progress twice in a year. Henceforth, sustainability approach is
supported by number of Telstra group policies that is inclusive of the group code of conduct,
human rights diversity, environment and disability service policies (Hussain, Rigoni and Orij,
2018).
2.
Stakeholder engagement defined as one of key foundation of approach to sustainability. It
is the enterprise that continually get engage with stakeholders groups to ensure about the
understanding of expectations and respond to their varied interest and concerns. Stakeholder
engagement assists to focused on developing meaningful relationship with help of regular
engagement (Corporate Social Responsibility, 2019). It mainly aids in to keep abreast about the
evolving of social and environment expectations to use stakeholder insights to develop targeted
commodities, services and programs to offer better customer assistance. Stakeholder engagement
can be in many of forms that is inclusive of face to face interactions, market research and
surveys. This aims to build stakeholder trust with help of being transparent, responsible and
accountable. Thus, key stakeholder to the company defined in below contexted manner as are-
 Customers- They can be as residential consumers, small to medium enterprise, large
companies and organization as well government. They will retain for longer period if
firm adopts the strategy that aids to provide them better and effective product facilities.
However, the expectation of the Customer tends to grow continually and diversify in line
with technological advances, rapid changes in IT systems, data access and privacy
regulation that all are creating a more challenging market. Additionally, the entity needs
to continue to invest today to handle the demands of the future.
 Community- It mainly engages to the communities that inclusive of non-profit
organization, individuals local to operation, program partners and community groups.
 Employee- The workforce of the Tesla is large and diverse as they have nearly 29,800
employees who are located in over the 20 countries. Employee loyalty aids to enhance
the working of enterprise and gain competitive advancement.
 Government- This is entity that mainly engages with government ministers and staff at
the local, state and fedral level in Australia and at international level.

 Industry- Telstra timely interact with sector peers, ICT and telecommunication specific
associations.
 Media- This entity regularly get engaged with many of representative from print, video,
TV, social and media at the all local, national and international level.
 Suppliers- Telstra has more than 5000 suppliers from 44 countries.
 Regulators- They work regularly with the industry regulators in all the markets.
3.
Telstra is enterprise that mainly commuted to values, mindset and behaviourally in the
time of significant organizational and societal changes. Henceforth, they conduct their business
activities responsibly and also takes initiatives to strive to maintain strong and value based
culture. In order to maintain the sustainability, this enterprise directly conducts the feedback
from their customer in order to identify about the service experience. Additionally, quoted
enterprise is highly committed in maintaining ethics, values and governance to act responsible,
transparent and accountable about the business functions (Thorlakson, Zegher and Lambin,
2018). To promote the fair and responsible culture, it is crucial to follow the code of conduct,
governance policies, mandatory compliance training facilities and reward to employees assist to
demonstrate the values.
The quoted enterprise highly focus on ensuring the right culture to deliver right
capabilities to meet the constantly evolving needs of customers. By building effective culture an
enterprise can underpinned by the strong commitment to values (Initiative, 2019). The one of the
core aspect of Telstra is that this enterprise has taken various initiatives to address significant
development challenges. It mainly helps to people to thrive in digital world and this firm is
continually looking towards to grow and diversify the technological changes and to adopt the
rapid changes in the IT system.
Therefore, people must understand about how to identify, assess and manage risk in our
business. Telsrtra Board's is also aware of material risks and what factor needs to consider to
monitor and mitigate them. These all the core factor that assist to conduct business practices
effectively. This firm is taking various initiatives towards to enhance technological innovation
that highly relay on connectivity, the role of telecommunication that aids to maintain the high
quality, reliable practices and provide secure telecommunication network (Alamri, 2018).
Additionally, Telstra will deliver the benefits for all stakeholders as customers, shareholders and

employees etc. Thus, technological innovation is highly relying on the connectivity, role of
telecommunication infrastructure is becoming more crucial as these aids to have more flexibility
and transparency in the management.
4.
To manage and maintain the environment impacts the firm is taking various initiative to
help out customers and communities. In order to facilitate the low-carbon growth, to reduce the
emissions, to get betterment in community resilience to changing climates (Laela, Rossieta and
Ismal, 2018). They have invested about $4.7 million in improving the energy efficiency to assist
in their carbon emission through the use of cloud technology. This is firm that is promoting the
insights of stakeholders to develop targeted products, services and forums to go through the
company that manage the relationship with the stakeholders group.
Telstra is currently facing the issues with their supply chain. To make this effective the
quoted enterprise trying to follow the supplier conducts to assist the customers, community and
environment. In case, if the suppliers are not willing to improve their performance the firm may
withdraw the contract or can switch to alternate suppliers (Shahzadi, Khan and Haq, 2018 ). This
entity is committed to managing our environmental impacts and to help out the customers and
communities to do the same. They primarily focus over the responsibility to facilitate low-carbon
growth, to minimize emissions, and to improve resilience over community to a bsuiness
changing climate. In order to make this effective, the firm has invested $4.7 million to improve
the energy efficiency and to develope a cloud calculator tool that can assist customers to reduce
their carbon emissions with the use of cloud technology.
Additionally, firm is also taking initiatives to improve product responsibility with help of
collecting feedback from customers and take steps towards to improvise the commodities to meet
out the expectations. Thus, sustainability of entity can get effective if firm is not possible to offer
the effective services to customers. Therefore, the three strategic that requires getting changed
are as-
 Improve customers experience- By assisting customers experience, quoted enterprise
can maintain high competitive advantages to build the sustainability performance
effective and efficient. Additionally, entity must look over to meet the needs of customer
with disability.

 Create fully inclusive workforce- By hiring skilled and effective workforce entity can
produce better commodities and this can aid to gain customer satisfaction.
 Innovate for the future- To improve the sustainable performance, the organization
needs to work towards to bring innovation in the products and services.
Thus, auditors has recommended improving compliance system, process and practices. It
is critically significant that customer can relay on to manage the vital service. However, Telstra
set the new strategy to improve customer experience and simplify structure and cut cost that
defined in below contexted manner as are-
 To create the innovative owned infrastructure business unit, to drive the performance
more effective and efficiently.
 To bring innovation in the product specification so that entity can gather the attraction of
the customers.
 To undertake the facility of radical transformation that assist to customer about plans and
pricing to deliver the effective experience to customers.
5.
a. Define the readability of company sustainability through document.
In the present era of the interconnected world, digital technologies is disrupting
traditional operating models and helping to society respond to major issue in more agile and
scalable way. Therefore, large telecommunication and technology company plays effective role
in helping customers and society to adapt to technological change and opportunity. Thus,
sustainability report of the Tesltra was effective as this has provided the reliable information
about the sustainable performance of the company (González, del Mar Alonso-Almeida and
Dominguez, 2018).
Thus, report has use the effective and logical structure that has helped in understanding
the core concept and effectiveness of sustainability in the performance of the enterprise.
However, this report has covered mainly the four aspects as are sustainability at Telstra,
Responsible business, Digital futures and environmental solutions (Tost, Hitch, Chandurkar and
Feiel, 2018). The main aim of sustainability report of quoted enterprise is to imp[rove the
transparency of business activities. It enables company to measure the impact of their activities
on the environment, society and on the economy. Additionally, this enables the stakeholders to
understand the organization true value, tangible and intangible assets.

b. Adoption of GRI principles.
In order to ensure about the practices to respond about the issues, risk and opportunity
have the greatest impact in business, stakeholder and society. Henceforth, enterprise is looking
over to use of international independent standard's organization that assist the businesses,
governments and other enterprise to understand and communicate the impact on issues such as
climate change human rights and corruption.
Thus, GRI reporting structure has been adopted to review about the broad range of
primary and secondary resources inclusive of direct stakeholder engagement and feedback.
Additionally, GRI standards aids to identify about the Telstra value chain, direct operation,
consumer and communities and product end of life. Thus, quoted enterprise has used the GRI
principles as it provides the holistic framework that aids to address about the broad performance
of company on the basis of social, environmental and economic.
CONCLUSION
From the above aforementioned report it can be concluded that strategic management
accounting put the major focuses not only on internal factors but also on external factors of the
enterprise. Henceforth, it is inclusive of industry wide financials, averages and upcoming trend.
The present report has covered the business activities of Telstra, It is Australian global
telecommunication company.
Furthermore, report has laid emphasized on activities as to draw suitable highlight about
the sustainable practices of quoted firm. Furthermore, assignment has covered about the
sustainable strategy in relation to strong and weak sustainable performance of the company.
Lastly, report has identified about the adoption of GRP principles to draw effective conclusion
about the sustainable practices.

REFERENCES
Book & Journal
Shahzadi, S., Khan, R. and Haq, A.U., 2018. Impact of external and internal factors on
management accounting practices: a study of Pakistan. Asian Journal of Accounting
Research. 3(2). pp.211-223.
Laela, S.F., Rossieta, H., Wijanto, S.H. and Ismal, R., 2018. Management accounting-strategy
coalignment in Islamic banking. International Journal of Islamic and Middle Eastern
Finance and Management. 11(4). pp.667-694.
Alamri, A.M., 2018. Strategic Management Accounting and the Dimensions of Competitive
Advantage: Testing the Associations in Saudi Industrial Sector. International Journal of
Academic Research in Accounting, Finance and Management Sciences. 8(2). pp.48-64.
Thorlakson, T., de Zegher, J.F. and Lambin, E.F., 2018. Companies’ contribution to
sustainability through global supply chains. Proceedings of the National Academy of
Sciences .115(9). pp.2072-2077.
Initiative, G.R., 2019. Sustainability report. Disponvel em [http://www. globalreporting. org].
Acessado em. 17. pp.01-09.
González, M., del Mar Alonso-Almeida, M. and Dominguez, D., 2018. Mapping global
sustainability report scoring: a detailed analysis of Europe and Asia. Quality & Quantity.
52(3). pp.1041-1055.
Tost, M., Hitch, M., Chandurkar, V. and Feiel, S., 2018. The state of environmental
sustainability considerations in mining. Journal of cleaner production. 182. pp.969-977.
Reimsbach, D., Hahn, R. and Gürtürk, A., 2018. Integrated reporting and assurance of
sustainability information: An experimental study on professional investors’ information
processing. European Accounting Review. 27(3). pp.559-581.
Hussain, N., Rigoni, U. and Orij, R.P., 2018. Corporate governance and sustainability
performance: Analysis of triple bottom line performance. Journal of Business Ethics.
149(2). pp.411-432.
Online
Corporate Social Responsibility. 2019. [Online] Available
through:<https://www.telstra.com.au/content/dam/tcom/about-us/investors/pdf%20C/ar-
other-information.pdf>.