...Financial Performance and sustainability efforts Name Institutional Affiliation Financial Performance and sustainability efforts Business are usually in business to make profits. The management takes a lot of time to evaluate the market and also the potential of the firm. The goals and objectives of most businesses are aimed at maximizing the profits they are currently getting. Some of the ways that have been used in the maximization of profits are increasing the products prices, getting cheaper labour and raw materials, and purchasing better machines for the organization. Increasing the prices of the products sometimes results in success but in most times it leads to low sales as the customers go for the substitutes which are much cheaper and affordable. Having cheap labour and raw materials is not always possible. As much as the business would like to improve its financial performance, measures taken should have a positive effect on the people and the environment. Profits are obtained from the subtracting the total input from the total sales. The sustainability of the business highly depends on the profits being made. The financial performance is not only important to the firm, but also to the shareholders and the investors. When a business has high returns, the shareholders get a higher share, and it also attracts the investors. Most business concentrates more in increasing the profits and just ignore their social responsibilities. A business that engages...
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... 2 2. Motivating factors for companies to publish sustainability reports 2 3. Key features of effective sustainability reports 3 3.1 General standard disclosures 3 3.2 Specific standard disclosures 3 3.3 Sector specific disclosures 4 4. The evaluation of Westpac’s sustainability report 4 4.1 General standard disclosures 4 4.2 Specific standard disclosures 5 4.3 Sector specific disclosures 5 5. Conclusion 5 6. Reference 6 Executive Summary This article is going to explain the reason for companies to present their sustainability behaviors and highlight the key feature of an effective sustainability report. Sustainability reports refer to disclose companies’ social and environmental performance. It is essential for the financial service industry to convey their sustainability profile and integrate this to their financial report. This article also makes an evaluation about Westpac’s sustainability report. Westpac’s sustainable reporting has used the table and bar chart to illustrate their sustainability performance accurate and transparent. Therefore, this report has a good quality. 1. Introduction...
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...The Way Ahead For Sustainability Reporting Written by: Josiah Chia U1010011K Seminar Group 3 Team 1 Name of Instructor: Patricia Tan In recent years, the subject of sustainability reporting is becoming an increasingly contentious topic all around the world, with companies beginning to see the value of adhering to this new and holistic facet of reporting corporate performance. Why is sustainability reporting assuming greater significance in today’s society? To what extent will these developments impact investors and other stakeholders? To fully understand the implications of sustainability reporting on reinventing the way companies disclose their performance, let us first explore its definition as well as its significance. Sustainability Reporting: Definition and Significance In essence, sustainability reporting entails “the publication of environmental, social and governance (ESG) information in a comprehensive and strategic manner that reflects the activities and outcomes across these three dimensions of a company’s performance” (SGX Sustainability Reporting Guide, 2011). It seeks to improve the information content of financial reporting by supplementing that with non-financial information disclosed by the company. With the encouraged extension of companies’ reporting through disclosure of its ESG information, it is hoped that this will provide a more comprehensive and balanced view of a company’s performance. Sustainability reporting assumes greater significance...
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...the sustainable development guiding framework for corporations, i.e. Model of Sustainable Development. Visser (2010) proposed the concept of CSR 2.0, highlighting five dimensions (C)reativity, (S)calability, (R)esponsiveness, (2) glo-cality and 0) or circularity as the five targets for future CSR activities. Unilever’s CSR efforts in 2012 are analysed using the above models and short conclusions are drawn about the effectiveness and overall accountability and transparency achieved by the company. Model of Sustainable Development Theoretical Background Many executives are realising that an enterprise’s environmental and societal impacts influence business long term viability as much as financial performance (Lawler and Worley, 2012). This trend is clearly presented in a recent study by the United Nations (2013) since 96% of surveyed CEOS believe that sustainability is crucial to future success of their companies and they have certain plans to ensure sustainability. Owing to the importance of sustainability in contemporary business, it is of utmost important for firms to understand the meaning of and to develop strategic plan in managing sustainability. The World Commission on Environment and Development (WCED, 1987) defined sustainable development as “Development which meets the needs of the present without compromising the ability of future generations to meet their own needs”. The definition raises criticism of Carroll’s pyramid...
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...Sustainability Reporting Sustainability means different things to different people; therefore, a universal definition of sustainability is elusive. The most often quoted definition is from the Brundtland Commission (1987), which states that sustainable development is “Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” Sustainability is, therefore, more of a journey than a destination wherein ideals, values and measurement metrics are in a constant state of evolution. The quest for sustainable development started with environmental concerns, and climate change has now become one of the biggest developmental challenges. As the Brundtland Commission had discovered...
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...ACC 310 Fall 2013 – Case #1 Due Date – October 22, 2013, 1:30 pm An introduction to the Global Reporting Initiative (GRI) and sustainability reporting The Sustainability Initiative at NC State was started through the endowed gift of Lonnie Poole. As part of the Initiative we are examining sustainability issues throughout the curriculum. For accountants one of the most important issues of sustainability is reporting information to stakeholders. Just as we are learning about financial reporting in Intermediate Financial Accounting we also want to learn about sustainability reporting. The purpose of this case is to make you aware of sustainability reporting and sustainability reports. On the moodle site I have assigned each student a company that has prepared a report based on the GRI Sustainability Reporting Framework and filed it with GRI. Each student should obtain the company’s report from the GRI webpage (globalreporting.org) or from the company’s corporate webpage. Sustainability reporting is not required Even though more and more companies are providing sustainability reports there is no requirement to report or any required standards like GAAP. The Global Reporting Initiative (GRI) currently provides a framework, with over 3,500 companies filing under the GRI framework. However, given that there is no enforcement of reporting companies may select different levels of reporting and different indicators to report on as well. This results in varied reporting...
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...of new products our customers want and value Finance our plan and improve our balance sheet Work together effectively as one team Building on this plan, ONE Ford encourages focus, teamwork and a single global approach, aligning employee efforts toward a common definition of success. It emphasizes the importance of working together as one team to achieve automotive leadership, which is measured by the satisfaction of our customers, employees and essential business partners, such as our dealers, investors, suppliers, unions/councils and the communities in which we operate. We have defined a set of behaviors that are expected of all employees to support the ONE Ford plan. The goal of ONE Ford is to create an exciting and viable company delivering profitable growth for all. We are focused on building: Great Products, a full family of vehicles – small, medium and large; cars, utilities and trucks – with best-in-class quality, fuel efficiency, safety and smart design Strong Business, based on a balanced portfolio of products and global presence; and Better World, accomplished through our sustainability strategy Our aim is to have profitable growth across geographies and product types (see graphics below). As detailed in the Financial Health section, during 2012 Ford continued its turnaround, fueled by disciplined adherence to the ONE Ford plan. Driven by strong results from Ford North America, we reported total Company full-year, pre-tax profit of $8 billion – our third...
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...distribution in the range of 6% - 65% in different continents (Business Segments & Brands, 2012). Thomas Cook Group Plc has eleven mainstream brands and eleven independent brands. The main objective of the company is to maximize the shareholders’ value by providing travel services to its customers. Since its inception, the focus of the company has been on maximizing shareholders’ value, becoming the leading financial service provider in terms of travel-related activities, achieve growth and increase value through mergers and acquisitions, and be the top independent travel provider (Group Strategy, 2012) The paper focuses on both financial and non financial performance of Thomas Cook in last few years and the budgetary controls implemented by the company. A brief analysis of the company’s performance in these aspects is provided below. 2. Financial Analysis The financial analysis of Thomas Cook Group Plc was performed using the annual accounts for 2011 (September 30, 2011) due to non-availability of the latest annual accounts (September 30, 2012). The analysis of the financial statements of the company shows that Thomas Cook reported a net loss of £518 million for the year 2011. The company generated sales revenue of £9,809 million while incurring costs of £7,711 million, resulting in gross...
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...SUSTAINABILITY REPORT: QANTAS AIRWAYS LTD By Student’s Name Course Name Professor Name City, Location Project Name Date of Submission Table of Contents 1. Introduction……………………………………………………………………………...…..3 2. Financial……………………………………………………………………………..………4 3. Social Responsibility…………………………………………………………………..……..6 4. Environmental Responsibility……………………………………………………….………7 5. Conclusion………………………………………..………………………………… ………8 6. References List……………………………………………………………………………..9 Sustainability Report: Qantas Airways Ltd Introduction The paper seeks to provide a corporate social responsibility report on Qantas to understand the impacts of financial operations of the company on the environmental and social responsibility initiatives of the company. Qantas Airways ltd identifies a flag carrier airline located in Australia and it is recognized to be the largest airline in terms of fleet size, international flights and international destinations. After KLM and Aviance, Qantas is the third oldest airline across the world as it was founded in the late 1920. Today, the airline is headquartered in Sydney within its main airport being Sydney Airport. The company owns 65 percent of the Australian domestic market and ferries 14.9 per cent of all passengers travelling from and in Australia. Some of its subsidiaries include Jetconnect and Qantaslink...
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...Best practices in sustainability: Ford, Starbucks and more While the vast majority of US companies are asleep at the wheel when it comes to tackling climate change, these corporations are best in class, according to a new report. Ceres highlighted 18 US corporations as best in class for their sustainability efforts. While the vast majority of US companies are asleep at the wheel when it comes to facing up to multiple sustainability challenges, a select group is waking up to the need for urgent action. In a new report, Ceres, a non-profit focused on sustainable business, lambasted the lack of progress across American corporations in general – but also highlighted some companies that deserve praise. Critics would rightly say that there is not a single major corporation that is doing enough to adequately confront issues such as climate change and resource scarcity. But Ceres says a small but growing number of companies rank in the "top tiers" of performance across multiple disciplines, ranging from supply chain management to carbon emissions reductions. Its latest research shows that "companies with strong accountability systems - board oversight, clear policies on human rights and environmental management, active stakeholder engagement and disclosure - in many cases also have strong results on greenhouse gas emissions, use of renewable energy, strong work with suppliers, as well as driving sustainability into product and services". In order to encourage other businesses...
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...new framework for implementing corporate sustainability Key points: ▪ Sustainability performance is the effect of corporate activity on the social, environmental, and economic fabric of society. ▪ A balance between economic progress, social responsibility, and environmental protection, sometimes referred to as the triple bottom line, can lead to competitive advantage. ▪ The evaluation of social, economic, and environmental impacts of organizational actions is necessary to make effective operational and capital investment decisions that positively impact organizational objectives and satisfy the objectives of multiple stakeholders. ▪ The financial payoff of a proactive sustainability strategy can be substantial. ▪ To become a leader in sustainability, one needs to articulate what sustainability is, develop processes to promote sustainability throughout the corporation, measure performance on sustainability, and ultimately link this measurement to corporate financial performance. ▪ Corporate citizenship is an important driver for building trust, attracting and retaining employees, and obtaining a “license to operate” within a community. ▪ Corporate citizenship is much more than charitable donations and public relations—it’s the way the company integrates sustainability principles with everyday business operations and policies and then translates all of this into bottom-line results. ▪ For sustainability to be long lasting and useful, it must...
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...new framework for implementing corporate sustainability Key points: ▪ Sustainability performance is the effect of corporate activity on the social, environmental, and economic fabric of society. ▪ A balance between economic progress, social responsibility, and environmental protection, sometimes referred to as the triple bottom line, can lead to competitive advantage. ▪ The evaluation of social, economic, and environmental impacts of organizational actions is necessary to make effective operational and capital investment decisions that positively impact organizational objectives and satisfy the objectives of multiple stakeholders. ▪ The financial payoff of a proactive sustainability strategy can be substantial. ▪ To become a leader in sustainability, one needs to articulate what sustainability is, develop processes to promote sustainability throughout the corporation, measure performance on sustainability, and ultimately link this measurement to corporate financial performance. ▪ Corporate citizenship is an important driver for building trust, attracting and retaining employees, and obtaining a “license to operate” within a community. ▪ Corporate citizenship is much more than charitable donations and public relations—it’s the way the company integrates sustainability principles with everyday business operations and policies and then translates all of this into bottom-line results. ▪ For sustainability to be long lasting and useful, it must...
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...Implementing a Sustainability Balanced Scorecard „Dashboard‟ Approach to Assess Organisational Legitimacy. Kevin Huang, University of Wollongong, Wollongong, New South Wale Matthew Pepper, University of Wollongong, Wollongong, New South Wale Graham Bowrey, University of Wollongong, Wollongong, New South Wales gbowrey@uow.edu.au Abstract Purpose: The purpose of this paper is to identify and determine the contributing factors which influence the contents of a firm‟s sustainability reporting through combined social and environmental accounting and management perspectives. Design/methodology/approach: This paper analyzes the disclosed sustainability indicators of a major Australian financial institution, Westpac, through the application of the research method content analysis. The theoretical framework will be shaped by the consideration of legitimacy theory and the Balanced Scorecard approach. Findings: The results indicate that the four perspectives of a traditional Balanced Scorecard are related to the main sources of influential inputs to Westpac‟s sustainability reporting – existing frameworks, stakeholder engagement mechanism, employee involvement and traditional shareholders‟ financial information needs. It also reinforced the argument that the focus of organisational legitimacy is a key resource of organisation survival. Originality/value: This research contributes to the literature on social and environmental disclosures including the research of Do, Tilt and Tilling...
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...Among all stakeholders, recognition is focusing increasingly on the need for sustainable corporate practices, given pressing economic, social, and environmental problems on a global scale. By conducting business in ways that promote ecological health and human welfare, corporations increase value over the long term for consumers, shareholders and others for both current and future generations. Business students need to be familiar with, and committed to, principles and practices of corporate sustainability. This short essay outlines several sources in the literature on corporate sustainability provided by the following organizations: International Organization for Standardization (ISO); Price Waterhouse Coopers (PWC); Federal Reserve Bank of St. Louis; International Federation of Accountants (IFAC); Ernst & Young; and Association of Certified Public Accountants (AICPA). An annotated bibliography follows the discussion, highlighting articles of interest in corporate sustainability literature. Finally, figures provided in an appendix illustrate key concepts from the discussion. ISO 26000:2010 International Organization for Standardization * Headquartered in Geneva, Switzerland. A global consortium of experts in multiple aspects of quality-related standardization representing industry, nonprofits, government, healthcare, and academia. * Formulated by technical committees, standards are released after extensive review and a minimum 75% favorable vote by...
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...Introduction This paper addresses the corporate social responsibility (CSR) of Host Europe. Host Europe, like other organizations, recognizes the importance of corporate sustainability. They realize that they must address the issues of digital divide and green IT and they have made some advances in addressing this; however, they need to continue advancing their program and create a plan for greater improvements and expand their CSR program as well. It is important for Host Europe to advance their level of sustainability; however, it also presents a challenge for them as the CSR models, methodologies and priorities must be specific to their industry. The purpose of this paper is to provide insight to the resources that will assist Host Europe in creating and implementing a more comprehensive CSR program. This paper addresses the meaning of CSR and the obligation that Host Europe has to their employees, stakeholders, customers, environment and community in the way that they conduct business. An overview of a complete CSR engagement will be addressed, identifying opportunities for Host Europe to continue to advance their program. It will examine the opportunities that they have to be proactive and provide programs to address their economic, legal, ethical and social responsibilities. Host Europe has realized the necessity of addressing their needs by dedicating resources to the development of a broaden program, now they will explore how they can be proactive and not reactive...
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