To: Finance Director
Subject: Short report of review on sustainability disclosure
There is a growing trend among companies to disclose and report their social and environmental impacts not only concerned with the financial performance of a company but its impact on society and environment. Thus, sustainability becomes an important issue. Sustainability is the capacity to endure and is the long-term maintenance of responsibility, which included environmental, economic, and social dimensions. It is mandatory for a company to disclose its sustainability information. In addition , the sustainability disclosure is based on a theory called "system-oriented theory", which includes three aspects:stakeholder theory, legitimacy theory and
…show more content…
Managerial branch seeks to explain and predict how an organization will react to the demands of various stakeholder groups. Management will respond to the information demands of stakeholders perceived as being powerful. The greater the importance of the stakeholders, the greater will be the expectation that the management will take action to manage the relationship with stakeholders. AGL shareholders were paid dividends totaling 60.0 cents per share for the full financial year 2011, and increase of 1.0 cent per share, or 1.7%, on the financial year 2010. [pic]
Legitimacy Theory
Legitimacy theory posits that organizations seek to ensure that they operate within the bounds and norms of their respective societies; that is they attempt to ensure that their activities are perceived by outside parties to be 'legitimate'. This theory relies on the notion that there is a 'social contract' between an organization and the society in which it operates. AGL is Australia's leading renewable energy company and is Australia's largest private owner, operator and developer of renewable generation assets. It is taking action towards creating a sustainable energy future for our investors, communities and customers. AGL's goal is to invest in cleaner energy forms to reduce the greenhouse gas intensity of energy across the supply chain and achieve excellently environmental management
When talking about sustainability numerous people associate it with just protecting the environment. Sustainability is far more than going green, but it is a principle that many companies have adopted and have worked persistently to improve over the last several years. Sustainability is defined as the ability to continue a behavior indeterminately, but it also includes improving human life overall. Sustainable development is broken down into three pillars: economic, social, and environmental (Harich & Bangerter, 2014). Economics is the study of how people use resources, which correlates to the goal of sustainable development by using resources to their full potential (Laszlo, C., & Zhexembayeva, N., 2011, p. 60). Economic sustainable development allows companies to give their customers what they want without overusing mutual resources. Social development combines the social world with the physical realm to provide a good quality of life (Benoit, 2010, p. 7). Social sustainability focuses on the well-being of people and their communities. Environmental development, the most recognizable, includes protecting the environment by reducing pollution, recycling, switching of electronic devices when not in use, etc. All three of these pillars make up what is known as sustainable development. In this paper, I researched a company and their involvement in sustainability and how it applies to the
Business sustainability has been concerned with the ensuring that organizations can implement various strategies that would contribute to the long term success of the business. Organizations that could act in a sustainable manner do not only create businesses that will live and survive for a long period of time, it will also maintain the well-being of the people and the planet as well. Leading companies are pretty much aware that their successful performance regarding sustainability is one of the key factors in their success. Investors are also interested to companies that promote sustainability with a focus on long term profitability as well as competitive advantage.
Sustainability from a strategic business perspective is the potential for the long-term well-being of the natural environment, including all biological entities, as mutually beneficial interactions among nature and individuals, organizations, and business strategies. (O.C Ferrell, Fraedrich, Ferrell, 2015). Business sustainably is often defined as managing the triple bottom line – a process by which companies manage their financial, social and environmental risks, obligations and opportunities. These three impacts are sometimes referred to as profits, people and planet. (Business sustainability definition from financial times lexicon, no date). This essay will discuss the idea of sustainability being an important element within a businesses and its core strategies and the importance of it within different businesses. Secondly, this study will look at how different stakeholders are affected and influenced by sustainability as this could be seen as a catalyst to improving the environment as a whole and. Then this study will look at how businesses not focusing
It provides the stakeholders’ of a particular organization with information regarding their business activities such as its “impacts on the economic” factors of society, “environment” and “social community” (Carlon 2016). Companies often choose to supply their stakeholders with a sustainability report as its main purpose is to “improve internal processes, engage stakeholders and persuade investors” (Wikipedia 2016) which will in turn build the company’s overall success. This means that it could result in more efficient operations, attract and obtain potential employees, expand the size of its current target market and appeal to prospective investors.
positioning sustainability as a compliance-related or riskoriented activity, as many companies do, to an opportunity
Sustainability implies that the organization is managing in economic, ecological and socially competent ways. All organizations range on a continuum of their sustainability level with some being more sustainable than others. Generally, as Dunphy, Griffiths and Benn (2003) point out, the more sustainable an organization is, the more it helps the surrounding environment, be
This research paper was written with the purpose of providing some answers as to why sustainability reporting in the United States should be mandated by regulators. The paper briefly describes the GRI standards and guidelines, the benefits of sustainability reporting, some relative advantages limitations in adopting sustainability reporting, as well as provides a few examples of companies that have successfully adopted
The legitimacy issues concerned Orica are contamination of sites, assessment and management of risks and recording any protective or remediation measures in product stewardship.
The first category the authors define is environmental sustainability as “an organizations commitment to the long-term quality of our environment” (Collier and Evens, 2015). With a growing need for
Sustainability reporting has become increasingly prevalent in organizations of all types and sizes. A company or organization’s sustainability report is a published report that details the economic, environmental and social impacts that are a direct result of their daily activities. These reports also depict the organization’s
Business sustainability has been concerned with the ensuring that organizations can implement various strategies that would contribute to the long term success of the business. Organizations that could act in a sustainable manner do not only create businesses that will live and survive for a long period of time, it will also maintain the well-being of the people and the planet as well. Leading companies are pretty much aware that their successful performance regarding sustainability is one of the key factors in their success. Investors are also interested to companies that promote sustainability with a focus on long term profitability as well as competitive advantage.
* Businesses, corporations, stakeholders around the world have become aware of the needs and benefits of social responsibilities in order to contribute to a green and sustainable environment. Sustainable business is not only providing products and services that the customer wants but by not harming the environment at the same time.
Communicating sustainability efforts may signal general firm quality and help lower the firm’s cost of equity, particularly in competitive markets.
LEGITIMACY is a generalized perception that the actions of an organization are desirable, proper or appropriate within some socially constructed system of norms, values, beliefs and definitions (Mitchell et al., 1997). Within the salience model, legitimacy is divided into three types: individual, organizational and societal legitimacy. Individual: depends on perceived professionalism, status and level of experience. It is the ability to build trust and develop a good relationship with management. Organizational: is the level of credibility the organization enjoys in the market. Societal: is the level of support the community express for the subject of
Sustainability when we try to understand in the context of corporate is recognizing that the corporation’s long