The paper "Implementation and Planning of Sustainability Reporting" is a perfect example of business coursework. With today’ s competitive business environment, it is very necessary that Australian organizations adopt sustainability reporting in the 21st century. Evidently, sustainability reporting has greatly gathered great support from various companies across the globe. This has further been transferred to their suppliers who are made to adopt sustainable practices within their business operations. Adaption of sustainability reports widely demonstrates the commitment of an organization practising this kind of reporting especially towards corporate responsibility (Geraghty, 2010, p.
145). This essay focuses on understanding why it is very necessary for Australian companies to adopt sustainability reporting in the 21st century. This will entail describing the reason why adopting sustainability reporting is important according to various writers. Further, the essay will analyze the various approaches adopted by organizations in the implementation and planning of sustainability reporting. Finally, to get a clear view of our essay topic, two examples of organizations will be analyzed on how they have adopted sustainability reporting where the essay will compare and contrast the approaches of these two organizations towards sustainability reporting. According to a guide on sustainable reporting by KPMG, sustainability reporting has largely become a mainstream which is greatly driven by potential business value, which is generated through stakeholder reporting as well as communication.
According to the guide sustainability reporting is defined as the practice which involves measuring, disclosing as well as being accountable to both external and internal stakeholders for best organizational performance especially toward goal achievement indicating sustainable development (Hubbard, 2011, p. 824). Within the article, the main reason why organizations engage in sustainability reporting is to ensure a company is able to understand the social, economic and environmental aspect of their various business activities.
Further, it is indicated that sustainability reporting assists in the contribution of long term investment returns as well as financial performance. In addition, the reason for sustainability reporting may further include aligning with stakeholder which includes their capitalization, sustaining value chain, capturing operational efficiencies and finally, pre-empting stakeholder action (Hubbard, 2011, p. 824). According to the Parliament of Australia, sustainability reporting largely involves organizations and companies’ ability to demonstrate the way they carry out corporate responsibility.
This is by way of measuring as well as public reporting their environmental, social and economic practices, impacts and performance. Organizations engage in sustainable reporting for various reasons (Hubbard, 2011, p. 825). These reasons include; to effectively inform both stakeholders and non-stakeholders on the impacts of companies strategies and performances, also, to inform companies shareholders and the business environment on how the company largely deals with both financial and non-financial risks and to largely assists the organizations in identifying various areas that are linked to key risks as well as analyzing the company performance.
According to this report, the main target for organizational sustainability reporting is mainly their employees with 87% which is closely followed by a customer with a 79%. Further, the report indicates that there is a great and strong correlation between sustainability reporting and low probability of organizational distress. This, therefore, implies that it is within the company interest to ensure it engages in sustainability reporting (Gray, 2006, p. 67).
List of References
Adams, C., 2011. Sustainability reporting key to long-term viability. Keeping Good Companies, 63(9), p. 569 – 570.
Geraghty, L., 2010. Sustainability reporting – measure to manage, manage to change. Keeping good companies, 62(3), p. 141 – 145.
Gray, R., 2006. Does sustainability reporting improve corporate behaviour?: Wrong question? Right time?. Accounting & Business Research, Volume 36, p. 65 – 88.
Hubbard, G., 2011. The Quality of Sustainability Reports of Large International Companies: An Analysis. International Journal of Management, 28(3), p. 824 – 848.
Kelly, M., 2011. Do the right thing. Chartered Accountants Journal, 90(3), p. 32 – 34.
Perego, P., 2009. Causes and Consequences of Choosing Different Assurance Providers: An International Study of Sustainability Reporting. International Journal of Management, 26(3), p. 412 – 425.