Discuss about the Sustainability Accounting and Accountability.
In essence, sustainability reporting can be considered to be an important part of attainment of maintainable worldwide economy and this essentially has turn out to be a standard practice of businesses of this current era. As such, the way of sustainability recording can enhance overall liability of corporate procedure and therefore can increase trust, enable the procedure of value sharing process based on which a more cohesive community can be developed. Moving further, this study also elucidates accounting standard that can explain directives for sustainability recording and the accounting language that declares the regulations. Additionally, this study also aims to evaluate the case of Wesfarmers and systematically evaluates the sustainability reporting exercise in the corporation.
Influence of standard
Australian Accounting Standards Board (AASB) essentially does not indicate towards the fact there is no specific responsibility that can be associated to maintenance of sustainability. Nevertheless, AASB is also mindful of obligations to reduce undesirable influences. Nevertheless, AASB essentially does not execute and handle any type of discretionary program, nonetheless, “(Information Publication Scheme)” (IPS) suggests to adjust the structure of information that can mainly respond to varied requests for accessibility. Annual report of particularly AASB mentions the fact that sustainability reporting on moneys of public sector sticks to explicit dictates of IPSASB announced by “(Suggested Practice Guideline Reporting on Sustainability in the Long-Term of a particular Entity’s Finances)” during the FY2013. Therefore, announcements on sustainability can be witnessed as a process of delivering important info that can help patrons to evaluate financial, environmental in conjunction with social value of a business concern. In essence, this can be regarded as the triple bottom line process of reporting. In itself, sustainability reporting helps in delivering rough draft of specific values, morals, doctrines of corporation (Drever et al. 2012).
As correctly put forward by Frias?Aceituno et al. (2014) the Code of Ethics for Professional Accountants declared during 2006 and thereafter modified during 2008 was essentially declared by Accounting Professional as well as Ethical Standards Board also referred to as APESB. In essence, this essentially presents different requirements of business concerns to stick to the Global Reporting Initiative (GRI). In addition to this, survey conducted by KPMG indicates that maximum number of businesses necessarily implements GRI and makes use of different regulations for the purpose of sustainability reporting. Schlegelmilch (2016) opines that reporting structure of particularly Global Reporting Initiative (GRI) essentially serves intent as well as purpose of generally accepted structure for basically reporting on social performance, environmental, economic factors of a corporation. Moreover, GRI structure need to be used by different business concerns irrespective of size as well as location (Globalreporting.org 2017).
Sustainability reporting can be reflected as a suggestively developing movement and there are definite leading companies that deliver superior revelations of varied non-financial information. Guidelines on Sustainability reporting” requires detailed elucidation of the report content that yet again can help in warranting quality of provided information. Again, GRI framework also contains different “indicator protocol” indicating performance indicators stated in the directives (Tervonen and Kutvonen 2015). Addition to this, GRI reporting also helps in determining four different factors that need to be disclosed and considered. Particularly, these factors mentioned as per GRI reporting are inevitably inclusiveness of different stakeholders, completeness, materiality as well as suitable context of sustainability. So, reporting framework essentially assimilates economic, social and environmental factors for the purpose of reporting. As rightly indicated by Wagenhofer (2016) consideration of the factor of materiality refers to inclusion of particularly reasonableness as well as estimable impact, risks as well as returns identified by correct investigation by different individuals with noticed proficiency in this specific turf. Moreover, inclusion of identified stakeholders can be regarded as a significant factor of GRI structure. Furthermore, GRI framework also considers sustainability setting that essentially contains detailed comprehension regarding sustainable progress, objective along with reachable information alongside diverse proportions of sustainable development (Bebbington et al. 2014). Consequently, declarations of corporations essentially have the need to properly elucidate the way diverse sustainability topics can be linked to corporation’s plan, risks together with prospects. This too comprises of the completeness factor in which business concerns have the need to consider complete chain of businesses that is both upstream as well as downstream (Globalreporting.org. 2017).
Analysis of the case of Wesfarmers Limited
Essentially from the sustainability report of the firm Wesfarmers Limited, it can be hereby observed that the corporation continues to generate values for different future actions. However, in other words, it can be hereby said that the company Wesfarmers makes commitments towards proactive management of the community along with environmental influence. This can be broadly categorised as under:
People: In this case, the management of Wesfarmers essentially believes in maintenance of relentless focus on delivering safe and secure place of work (Sustainability.wesfarmers.com.au 2017). Moreover, diversity present at Wesfarmers also concentrates on creation of comprehensive work environment by special attention on diversity of gender in addition to inclusion of specific Aboriginal along with people of Torres Strait.
Sourcing: Particularly, process of sourcing engages providers as well as ethical ways of sourcing that has to be considered by the corporation Wesfarmers Limited. Essentially, providers/suppliers also make commitment towards creating strong together with enduring relations with diverse suppliers/providers. Apart from this, ways of ethically sourcing intends to carry out the activity of sourcing in an accountable manner by closely working with different suppliers and enhancing social along with environmental exercises (Sustainability.wesfarmers.com.au 2017).
Community: As per the sustainability report of the firm, Wesfarmers Limited necessarily makes positive contribution towards the entire community by pledging towards deliverance of product safety in an effectual manner.
Environment: According to the sustainability report, it can be hereby mentioned that the management of the firm Wesfarmers Limited attempts to lessen the overall emissions from the operations of the firm. In addition to this, the management also makes attempts to augment the resilience to alterations in the climatic conditions. Besides this, waste management and use of water for lessening the waste for specifically land filling as well as water use to the extent possible (Sustainability.wesfarmers.com.au 2017).
Governance: The management of the corporation Wesfarmers Limited intends to maintain vigorous corporate governance strategies in different aspects of business actions.
The management Wesfarmers Limited pledges to generate value for different investors, societies along with employees employed in the corporation. Essentially, this business concern believes in generation of long-term value and serve the communities in best possible manner. As such, sustainability refers towards proper comprehension as well as management of the ways that can make certain appropriate execution of activities for creation of values in the close future (Sustainability.wesfarmers.com.au 2017). Other than this, this business concern is also certain of minimizing carbon footprint from their operations and providing probable solutions by supporting clients as well as community all together. Again, this act can assist in unceasingly enhancing superior performance level as publicly reported in given yearly sustainability report.
Wesfarmers Limited has improved transparency of different actions in the entire supply process in over and above 3200 workshops in specific audit activity. Again, corporation also focuses on principled sourcing such as maintenance of transparency in the supply chain. Again, this assists in solidification of the associations with different potential suppliers by warranting positivity in functional activities of the firm (Sustainability.wesfarmers.com.au 2017).
Issues that can be recognized in the sustainability reporting of Wesfarmers Limited
The administration of Wesfarmers is dedicated to proactively handle entire community along with influence of the environment. The business concern Wesfarmers Limited necessarily follows ten significant notions that can be linked to diverse sustainability issues and considered material aspects. Nevertheless, evaluation of the sustainability declarations of the business concern replicates the fact that there are however room for enhancement for safety performance in addition to safety initiatives (Sustainability.wesfarmers.com.au 2017). As such, this indicates towards appropriate execution and observing of the “nurse on call” service, implementation of hazard identifying app, inspection of execution and performance of particularly Safety Activity Book and voluntary program such as Injury Care 1300 among many others. Unceasing enhancement of the current work safety activities can assist in lessening of fatigue linked to vehicle accidents. Management of corporation Wesfarmers essentially delivers diverse opportunities to all the workers of Wesfarmers for augmentation of job performance and augmentation of career. In addition to this, the corporation also presently distributes around 59% of the entire wealth for the purpose of pay-out of wages along with salaries together with other perks as well as benefits to all the employees (Sustainability.wesfarmers.com.au 2017). Furthermore, the corporation Wesfarmers Limited also works towards resolving of issues of the relations of the workplace by procedure of maximization of diverse flexibility arrangements to the entire labour force as well as coverage under collective agreements. Sustainability declarations of the company Wesfarmers declares regarding positive influence of the corporation towards community particularly in which corporation operates and manner in which it consistently provides harmless products to different clients that adheres to “Australian Consumer Law” (Jianu et al. 2015).
In conclusion, it can be said that sustainability pronouncements by different companies can create clearness, support market to operate ably, specify complete well-being of entire country and can direct towards overall progression of corporation towards maintainable along with all-encompassing growth rate. This study scrutinises standards of accounting that in turn can help in illustrating different decrees for sustainability pronouncements. Besides this, this report also expounds thoroughly impress of sustainability reporting, overall implication and consequence in conjunction with the important notions of sustainability reporting. Furthermore, this study also proposes helps in scrutinizing the operations of Wesfarmers and analytical assessment of sustainability reporting exercises in the corporation.
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