Problem
Issue to be investigated
Corporate social responsibility Background The concept of corporate social responsibility highlights that while companies may be primarily focused on making profits, they also have an effect on, and responsibility to, society. Sustainability reporting is one of the commonly used terms for organisations reporting on social, environmental and financial aspects (others include CSR, ESG, triple bottom line and environmental reporting). Integrated reporting is an initiative designed to improve sustainability reporting and integrate it more closely with financial reporting and governance reporting. Developed under the auspices of integrated reporting, the Global Reporting Initiative (GRI) developed a globally accepted reporting framework which hopes to enhance the quality of sustainability reporting. The GRI Sustainability Reporting Standards are the latest guidelines that companies can adopt when preparing sustainability reports.
Context
You have recently been appointed as a graduate accountant in a company listed on the Australian Securities Exchange Top 300 (ASX300), and are currently reporting to the Chief Financial Officer (CFO). (Note: you will be assigned your specific company and allocated to a group by the beginning of Week 5. Groups are a maximum of 3 students and group members must be from the same allocated tutorial group). The CFO has tasked you to evaluate whether the sustainability report currently prepared by the company impacts the environment or society negatively. Further, you are to assess whether sustainability reporting should be mandatory or voluntary. You are to research the issue and present your findings in a business report. A business report to update the CFO on a range of issues relating to corporate social responsibility must include
Task
• With reference to theories covered in this unit and academic journal articles, and, where relevant, high quality newspaper and professional articles, critically evaluate whether sustainability reporting should be voluntary or mandatory. Why or why not? Further, if you believe it should be mandatory where should the regulation be? Explain. You need to state your position on whether this information should be mandatory or voluntarily provided.