...1 SUSTAINABILITY AND THE ROLE OF MANAGEMENT ACCOUNTING 1 SUSTAINABILITY AND THE ROLE OF MANAGEMENT ACCOUNTING Traci Buxton French Salem International University ABSTRACT: A majority of CEO’s at large international companies consider sustainability efforts to be a high priority development item on corporate agendas, yet less than 30% of companies actively seek new capital investment opportunities in this area (McKinsey, 2010, para. 1). These same executives feel that value from sustainability initiatives is gained through “earned goodwill, improved reputation, cost savings and growth opportunities” (McKinsey, 2010, para. 3). The disconnect between perceived value of sustainability programs and development of these initiatives is partly due to the difficulty of defining measurable parameters to determine progress, quantify results, engage stakeholders and improve corporate profitability. A second issue has been to integrate separate, isolated sustainability efforts into core business practices in order to facilitate long-term change. This effort has resulted in improved customer satisfaction and increased stakeholder engagement. Sustainability in the business realm refers to attainment of business goals that maximize revenue while minimizing the negative impact on society and the environment. In 1981, the UN defined sustainable business development as “policies and procedures that meet the needs of the present without compromising the ability of future generations to...
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...Matt Lemming Accounting 111 12/15/11 Evaluation of Corporate Financial and Sustainability Reporting: Coca-Cola The company that I chose was The Coca-Cola Company. Their last fiscal year ended on December 31st, 2010. “Coca-Cola is the world’s largest nonalcoholic beverage company” (Coca-Cola). They distribute and market more than 500 nonalcoholic brands from soda pop, to juices, to even sports drinks. Coca-Cola is known as the world’s most valuable brand that owns four of the planets top five nonalcoholic beverages including Sprite, Diet Coke, and Fanta. Coca-Cola distributes their products to more than 200 countries and this is made easy by having the world’s largest beverage distribution system. This company believes that its success is from being able to link up with their customers to be able to provide them with many options to meet their specific choices and desires. The overall goal of The Coca-Cola Company is to use their assets in the most efficient way possible so they can become more competitive and grow as a company to generate revenue for their shareholders. The Coca-Cola Company has expanded its horizons in recent years. On October 2, 2010 the company bought out the North American business of Coca-Cola Enterprises Inc., which is one of Coke’s main bottling companies. With this acquisition “The Coca-Cola Company now has more presence in the U.S., Canada, the British Virgin Islands, the U.S. Virgin Islands and the Cayman Islands “(Coca-Cola). Not only this...
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...available at GrowingScience Uncertain Supply Chain Management homepage: www.GrowingScience.com/uscm Sustainable accounting reporting practices of Indian cement industry: An exploratory study Shagufta Khana , Vineet Chouhanb*, Bibhas Chandrac and Shubham Goswamib a Research Scholar, School of Management, Sir Padampat Singhania University, Udaipur-India Assistant Professor, School of Management, Sir Padampat Singhania University, Bhatewar, Udaipur-India, 313601 c Associate Professor, School of Management, Sir Padampat Singhania University, Bhatewar, Udaipur-India, 313601 b CHRONICLE Article history: Received September 10, 2013 Received in revised format 10 December 2013 Accepted February 25 2014 Available online February 27 2014 Keywords: Cement Industry Sustainability Financial Information Environment Accounting Reporting Sustainable Reporting Practices ABSTRACT Cement is the single most important and profitable product in the building material sector. With the economic boom, in India, Indian cement industry is a market of opportunities waiting to be tapped. However, at the same time cement industry is also experiencing a surge in demand. Production of Cement will always release carbon dioxide and change in the climate of the earth that is why despite its profitability, the cement industry faces many challenges regarding environmental concerns and sustainability issues. In order to minimize the impact of all of the above mentioned issues, it is clear that the cement and construction...
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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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...CASE STUDY ON SUSTAINABILITY REPORTING When compiling data for its sustainability reports, Johnson and Johnson does not request direct input from its managerial accounting staff. What should be the role of management accountants in collecting and reporting sustainability data? Could Johnson & Johnson’s sustainability reporting be improved with input from managerial accountants? Why or why not? The role of the managerial accounting staff in sustainability should extend beyond the obvious one of collecting, analyzing and reporting sustainability-related information. Many accountants fill a variety of other positions within organizations, including senior management, in which they exert a more direct influence on strategy and decision making. The managerial accounting staff has a role to play in understanding, demonstrating and achieving the efficiencies that organizations can gain from sustainable business practices. The pursuit of sustainability depends on the generation, analysis, reporting and assurance of robust and accurate information (both financial and non-financial). But it is important that the managerial accountants gain an understanding of the concepts of sustainability and the challenges it poses in achieving long term growth in shareholder value or value for money. The accountanting staff, directly or in a supportive capacity, can help organizations embed sustainability issues into strategic planning and its execution. The accounting staff can also...
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...Accounting, Auditing & Accountability Journal Emerald Article: Sustainability accounting and reporting: fad or trend? Roger L. Burritt, Stefan Schaltegger Article information: To cite this document: Roger L. Burritt, Stefan Schaltegger, (2010),"Sustainability accounting and reporting: fad or trend?", Accounting, Auditing & Accountability Journal, Vol. 23 Iss: 7 pp. 829 - 846 Permanent link to this document: http://dx.doi.org/10.1108/09513571011080144 Downloaded on: 04-11-2012 References: This document contains references to 57 other documents Citations: This document has been cited by 12 other documents To copy this document: permissions@emeraldinsight.com This document has been downloaded 5947 times since 2010. * Access to this document was granted through an Emerald subscription provided by UNIVERSITI MALAYSIA TERENGGANU For Authors: If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service. Information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.com With over forty years' experience, Emerald Group Publishing is a leading independent publisher of global research with impact in business, society, public policy and education. In total, Emerald publishes over 275 journals and more than 130 book series, as well as an extensive range of online products and services...
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...Business Strategy and the Environment Bus. Strat. Env. (2009) Published online in Wiley InterScience (www.interscience.wiley.com) DOI: 10.1002/bse.657 Corporate Social Responsibility and Sustainability Reporting on the Internet J. Emil Morhardt* Roberts Environmental Center, Claremont McKenna College, Claremont, CA, USA ABSTRACT All material related to environmental and social performance on the corporate internet sites of 454 Fortune Global 500 and Fortune 1000 companies in 25 industrial sectors was analyzed using the Pacific Sustainability Index. Maximum scores for individual sectors were 20–75 percent of the total possible, highest in the largest and most environmentally sensitive sectors and ranging generally linearly, as shown by plotting score versus rank, down to nearly zero in every sector. None of the variation in score is explained by corporate revenue in the Asian and European firms in this sample (revenues greater than about $9 billion), but there is a very weak correlation between score and revenue for American firms of this size, and a stronger one when Fortune 1000 companies (all American) with revenues smaller than this are included, suggesting that, as corporate size reaches a certain threshold, sustainability reporting becomes independent of it. Copyright © 2009 John Wiley & Sons, Ltd and ERP Environment. Received 18 November 2008; revised 26 April 2009; accepted 1 June 2009 Keywords: corporate environmental reporting; corporate environmental policy; corporate...
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...BHP Billiton Sustainability Report Case Executive summary This short paper discusses relevant stakeholders that the multinational conglomerate company BHP Billiton encloses in their 2013 Sustainability Report. The components that are briefly touched upon is related to the various stakeholder influences, report and not reported costs (referring to the triple bottom line), but the majority of the paper primarily focuses on the environmental and social factors that BHP Billiton discloses in relation to their sustainability program, because the indicators seem to have the biggest impact on the outward-looking legitimacy of the company. We found that NGOs, local communities and unions highly affect how BHP chooses to report their operations, as these organizations/interest groups have a very close relationship to the firm; both negatively and positively. Furthermore, the paper tries to account for costs not included in BHP’s sustainability report, and it appear that some of these are cost-reporting on corruption, specific environmental issues, anticompetitive behaviour, and transportation. The paper do recognize that BHP is in fact a very active proponent of sustainability reporting, but on the other hand do question to what extent the reporting actually reflect the company’s inner workings, as BHP has been publicly criticised for this before. Question A: Influence of all possible stakeholders of BHP Billiton in terms of environmental and social factors. BHP...
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...The cost of sustainability: the price of social responsibility Gregory A Totty - ORG530 –Business Ethics and Sustainability Colorado State University- Global University Dr. Robert Vega February 24, 2013 Abstract The purpose of the following research is to demonstrate the complex dynamics of costing systems as organizations try to predict those unseen costs that factor so heavily in the success and profitability of a business. The various costing systems are defined with a special emphasis on their ability to accurately predict those costs that are not of the normal operation and production of the company. Recent events in human society have drawn attention to issues that our predecessors could have only dreamed about and would have quickly dismissed. These costing systems are explored as to relevance and the variables are assessed with respect to their impact on the organization as well as the entire industry. Conclusions are made as to the effectiveness of each system with a final argument for relative purpose and application. Finally, qualitative studies reveal new concerns of an unexpected nature that impact the organizations with an infusion from popular social networks that had previously not been considered. The cost of sustainability: the price of social responsibility At the conclusion of the age of manufacturing, citizens of America began to concern themselves with not only the quality of American product...
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...'Club of Economics in Miskolc' TMP Vol. 8., Nr. 2., pp. 23-30. 2012. Green Accounting for Corporate Sustainability BETTINA HÓDI HERNÁDI ASSISTANT LECTURER e-mail: vgtbetti@uni-miskolc.hu SUMMARY Today, corporate sustainability is one of the greatest challenges facing companies. Therefore, this study aims to show how accounting, as the language of business and the source of information, can meet the criteria of sustainability. This article starts out by analysing the different approaches to corporate sustainability, then it proposes the reinterpretation of the most important accounting principle, the ‘going concern’ principle. In the following section it outlines the characteristics of accounting from the point of view of sustainability. Finally, it proposes ways of transforming green accounting, both in name and content, into sustainability accounting. Keywords: corporate sustainability; the ‘going concern’ principle; green accounting (environmental accounting); sustainability accounting Journal of Economic Literature (JEL) code: M41 INTRODUCTION According to the Brundtland Commission (1987, p. 43), “Sustainable development is development that meets the needs of present generations without compromising the similar needs of future generations. The concept interprets sustainable economic, ecological and social development as a unity.” Today’s companies must also comply with the challenges stemming from this approach, and therefore they must also implement economic,...
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...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 and sometimes very incomparable results. However, from an accounting perspective it is important to...
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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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...reproduced in any form without the permission of the paper’s author(s). National Library of Australia. ISSN: 1837-6371 Factors Affecting the GRI Disclosures in the Annual Reports of Australian State Government Departments Abstract Purpose: Growing concern over the environmental impact of climate change and carbon tax has increased demand for public disclosure on how government departments are fulfilling their social and environmental obligations. The purpose of this study is to identify what factors influence Australian State government departments in their reporting of social and environmental information. The Global Reporting Initiative (GRI) Public Sector Supplement (2005) document is used as the globally accepted benchmark for sustainability reporting. Design Methodology: This study is based on a content analysis of fifty major state government departments 2010 annual reports The dependent variable is an aggregate of...
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...about the Corporate Sustainability Reporting. The Sustainability Reporting Framework (G3.1) of Global Reporting Initiative (GRI) and the system oriented theories (Legitimacy Theory, Stakeholder Theory and Institutional Theory) are reviewed in order to explain and support the arguments of the reporting methodology. In addition, the reports of two multinational companies, Apple Inc. and Toyota Motor Corporation are inspected with the theories. It is found that both companies involved in multiple activities in promoting and educating the publics about their operations as well as the ways to protect themselves and the nature. It can be concluded that both companies abide the framework and theories to disclose information to the stakeholders. 1.0 Introduction Corporate Sustainability Reporting is becoming more and more important in research and in practice lately, as the consumers are becoming smarter compare to the eras before. Companies have the responsibility to disclose details in financing and operations in order to gain support and resources from the world at large to survive in the market. There are three important system oriented theories that helps in measuring the degree of importance and explaining the methodology in disclosing informations to all types of stakeholders. Two multinational companies that provides annual report and sustainability report are reviewed to help understanding the reporting method. 2.0 Purpose of Corporate Sustainability Reporting Pursuant...
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...Abstract: Key Words: Corporate Social Responsibility, Lean Accounting, Toyota’s sustainability effort I. Introduction 1. Definition of key terms 1) Corporate Social Responsibility CSR refers to operating a business in a manner that accounts for the social and environmental impact created by the business. CSR means a commitment to developing policies that integrate responsible practices into daily business operations, and to reporting on progress made toward implementing these practices. According to Business for Social Responsibility (BSR), corporate social responsibility is defined as“achieving commercial success in ways that honor ethical values and respect people, communities, and the natural environment.” 2) Lean accounting Lean Accounting is the general term used for the changes required to a company's accounting, control, measurement, and management processes to support lean manufacturing and lean thinking. II. Corporate Social Responsibility The field of corporate social responsibility has grown exponentially in the last decade. More than half of the Fortune 1000 companies issue corporate social responsibility (CSR) reports. A larger number of companies than at any time previous are engaged in a serious effort to define and integrate CSR into all aspects of their businesses. An increasing number of shareholders, analysts, regulators, activists, labor unions, employees, community organizations, and news media are asking companies to be accountable...
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