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Australian organisations must adopt sustainability reporting in the 21st century - Essay Example

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According to the United Nations World Commission on Environment and Development in 1987 sustainability is defined as a way of meeting the requirements of the present without compromising the capacity of future generations to meet their own needs (Unerman, Bebbington and…
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Australian organisations must adopt sustainability reporting in the 21st century
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Australian organisations must adopt sustainability reporting in the 21st century

Download file to see previous pages... Sustainability reporting in Australia is voluntary, meaning that the organizations are not bound by law to report it in their financial statements. So, the purpose of this essay is to emphasize on the fact that Australian companies should adapt sustainability reporting in the present century and to establish why and how the organizations should meet the requirements of sustainability reporting and how will it be profitable to them.
Sustainability reporting involves the display of a company’s economic, social and environmental performance and its impacts through the company’s annual reports. There are various reasons as to why a company should report its performance. Sustainability reporting helps in establishing a stronger trust relationship with the stakeholders. The stakeholders view the company as being honest about their actions and performance, thus it strengthens the image of an organization as being sincere and considerate towards the environment it operates in. The key towards establishing strong relations is not to report the good part only but the discrepancies as well; it leads the stakeholders like employees to trust their employers and execute hard work to enhance the performance of the company (Blackburn, 2007). Such actions give the sense of legitimate reporting of corporate activities. This ensures acceptance by the key stakeholders of the company especially towards the management decisions and activities that may be sometimes seen as of compromising nature (Schaltegger, Bennett and Burritt, 2006). By incorporating sustainability reporting into the strategic designing of an organization, a company can link all its operations to achieve those goals that are expected of it. Various operational benefits can also be derived through implementing sustainability reporting. The various costs that are incurred because of the irresponsible use of materials ...Download file to see next pagesRead More
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