Sustainable Business Planning Essay

Questions:

1.What does Professor Soderstrom?€™s article say about the relative role of regulation and voluntary action in the Development of this reporting?
2.The Committee recommended (in 2006 - Recommendations section, #5) that sustainability reporting in Australia should remain voluntary ?€“ what were the main arguments for this?
3.What does this commentator say about the Potential shortcomings of the GRI?
4.What do you think are the three most distinctive and significant ideas in this (integrated reporting) Emerging Framework?

Answers:

1.According to professor Soderstrom regulation role has significantly impacted the voluntary action of this reporting. The law commissions have passed some legislation that governs the industries on waste release to the environment. These laws have significantly impacted on the industrial disclosure concerning the amount of waste to be released since something measured can be managed. Over the years the Australian law required for all the industries to produce reports relating to waste disposal, and this has had a tremendous effect on the environment since waste disposal reduced to a controllable level. Environmental matters have become a top priority to the societies, and the cooperation has been pressurized to work according to the legislation. In any action, they take reports should be produced to certify if it is by the law. A favorable environment has some positive impact on financial consideration for the cooperation and the future market success.

2.The main arguments why sustainability reporting should remain voluntarily in Australia was based on the fact that, mandatory reporting will create some of the added cost on businesses which will result to amenability mentality. Commonwealth legislation works only on the conservational and health safety problems. However, this does not establish to sustainability commentary framework, since it covers only specific matters. Therefore, on the issue of additional cost on businesses, mandatory reporting will significantly add a layer of compliance cost to many Australian companies, thus affecting its operability. Meeting compliance cost requirements is usually high, and it increases over time thus arguably showing why this reporting should be voluntary. Also, the issue of conformity mentality being adopted by the companies, pose a significant risk to this companies because they go with what the council requires of them at the expense of their best interest. So, this should not be the case because it will be a dangerous move to make.

3.Global Reporting Initiative (GRI), on sustainability reporting, was presented to be an act of revealing, measuring and holding the accountability of the organizational internal and external stakeholders towards goal presentation of maintainable development. Thus, this is a shortcoming because sustainability report is meant to provide a well-adjusted and rational representation of the proper performance of a reporting organization that should include both positive and negative involvement. The broad idea is that financial report should not be the first report being produced but also the environmental performance report which should be part of the sustainability reporting because it has an impact on the future market success.


4.Since the financial reports are separate from the other reports, integrated reporting will bring all these stories into one major report containing all these materials. And the main idea behind this is that a single document will represent all facets of sustainability. Also, it provides a clear and precise picture of how the organization generates value and establishes stewardship now and in the future. Furthermore, integrated reporting will bring information substantial together about a group supremacy, approach and prospects in a way that will show profitable, ecological and social context within which it operates, and this will have improved the sustainable business and its environment.

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