Environmental Reporting and its Role in Australian Society - Research Proposal Example

 “Land belongs to the people who lived on it and are dead, the few living on it today and a countless host yet unborn” (Lobley and Winter, 2012 p295). This was the basis of a popular ruling in a West African court case where the natives refused to give out their traditional land to the British Crown in the days of colonialism. The statement comes with some significant pointers. First of all, these natives believed that land was a resource which was enjoyed on a generational basis. Secondly, they believed that every generation had a duty of holding on to land and transferring it to the next generation. Thirdly, they believed that land and other natural resources had to be transferred to the next generation without issues or any cogent matters. Based on this, they took affirmative action to stand against the vesting of their lands into the British Crown. In recent times, many environmental activists have arisen and requested for affirmative action to be taken to preserve the natural environment. This has led to the formation of global organisations meant These requirements are steeped in the need to use natural resources in a way and manner that would enhance it and prevent it from being abused or destroyed. This has led to a growing trend in the proliferation of environmental laws. Global environmental law involves a set of national, international and transnational environmental regulation systems to protect the environment and manage natural resources (Kotze, 2013 p286). These laws are adopted and recognized by sovereign nations like Australia and these laws bind individuals, organisations and corporate entities operating in the country (Kotze, 2013 p286). Internationalisation is the best way of protecting the environment and climate because these resources transcend national boundaries and an international framework compels specific nations to adopt laws that would help them to manage these resources within their own scope (Yang and Percival, 2009 p646). Hence, the Australian government runs a lot of laws that must be adhered to on an extraterritorial level, in other words, Australian entities that operate outside Australia need to adhere to Australian environmental standards in their foreign operations (Schwabach, 2011 p61). Corporate entities are bound by the laws of the nation that relate to the protection of the environment and they must adhere to it once it is approved by the authority of the nation (Sands, 2003 p73). Corporate entities are primarily formed by shareholders who pool their resources to create an entity that must bring them optimum returns, in economic terms. It is therefore logical that the adherence to these regulations relating to environmental protection is likely to limit the scope of their operations and this can lead to loss of profits and opportunities to maximise returns. However, the Greens and Democrats in Australian political landscape insist on Australian corporations adhering to high environmental laws and standards even if they are overseas (Schwabach, 2011). This shows clearly that Australian entities are at a competitive disadvantage, especially in relation to their fellow competitors from other countries who are not required to adhere to such rigid standards. Research Problem In line with these key and fundamental debates, what is the role and position of environmental reporting in the Australian society? How should they be made to adhere to these environmental laws and principles? Should they be allowed to give voluntary information about their environmental activities or should they be forced to disclose information according to certain basic and standard rules and formats? And what happens to the free market position that is cherished by the founding fathers of the Australian Commonwealth? Should it continue or should there be some adjustments since environmental preservation is mainly a concern for future generations and obviously, these unborn persons cannot be adequately represented in a free market. So how do the mandatory and voluntary perspectives merge to create some kind of system to define the environmental reporting landscape? Aims and Objectives This paper examines the position of regulated environmental reporting on the Australian society. The paper views the contrasting positions taken about the need to either regulate or leave environmental matters without regulating it. In attaining this end, the research will address the following objectives: 1. A critical definition of environmental reporting and its position in the corporate world. 2. The evaluation of the free market concept and the pro-regulatory view of running states and its application to environmental regulation. 3. Assessment of key concepts in the debate relating to regulation of environmental reporting: motivation, consistency, control and crime prevention. 4. An inquiry into practical matters and political trends that shape environmental reporting requirements in Australia. Research Methodology The research is focused on Australia. It is being conducted through data compiled from authoritative secondary sources. This include academic journals compiled through primary research works and books written by recognised scholars in academia and in industry as well as Australian government reports and official bulletins. The information gathered from these secondary sources are used as a basis for a critical literature review that allows inputs to be given by the writer. This provides conclusive analysis and findings that form the crux of the conclusions made in this paper. Environmental Reporting Environmental reporting is defined as “the disclosures that include the impact company activities have on the physical or natural environment in which they operate” (Wilmhurst and Frost, 2000 p16). This means that environmental reporting involves the disclosure of the impact of a given company's activities. In other words, it involves the presentation of data and information that relates to how an organisation's activities have affected the natural or physical environment. This shows how much they have used resources and other residual outputs that they have given out in their operations. This gives an insight into how much they have influenced the natural environment. Thus, environmental reporting can be seen as a systematic way and manner of presenting information about how a firm's activities affect the environment through the use of scientifically accepted methods and standards (Karim and Rutledge, 2004). This shows that consistency and comparability are important this is because information needs to be meaningful and in order to do this, there must be some generally accepted framework for the disclosures. Berthelot et al define environmental reporting as “information relating to a firm's past, present and future environmental management activities and performance” (2003). This definition integrates timing into the concept of environmental reporting. This is because it shows that environmental reporting relates to a given timeframe. Stated differently, it can be said that environmental reporting is an attempt to capture the environmental impact of a given organisation at a stated time interval of say 1 or 5 years. There are many views that were given in terms of the growing trends in environmental reporting. One such view is that more and more stakeholders are being affected by the activities of corporate entities (Jones, 2007). Due to this, there is the need for corporate entities to provide information about the impact of their activities on the natural environment (Jones, 2007). This is because of a growing trend in environmental awareness and the need for the society to salvage its natural resources for present and future generations. Impact disclosures scientific methods: comparability and consistency Time oriented and stakeholder views Contrasting Views of the Free Market and Regulatory Regimes in Environmental Matters Needs for Regulation in Environmental Reporting Practical Factors in Application Conclusion References Alrazi, B., DeVilliers, C. and Van Staden, C. (2011) “The Comprehensiveness of Environmental Reporting by Global Electric Utilities: The Type of Infrastructure and Reporting Media” Journal of Environmental Management and Development Vol 2(1) pp62 – 89 Attorney General's Department (2010) Australia's Future Tax System: Report to the Treasurer Canberra: CanPrint Communities Property. Berthelot, S., Lormier, D. and Magnan, M. (2003) “Environmental Disclosure Research: Review and Synthesis” Journal of Accounting Literature Vol 12 pp 1 – 44 Brickwell, S. (2010) Environmental Crime in Australia Canberra: Australian Institute of Criminology Chapman, Report (2006) Parliamentary Joint committee on Corporations and Financial Services: Corporate Responsibility: Managing Risks and Creating Value [Online] Available at: http://www.aph.gov.au/binaries/senate/committee/corporations_ctte/sharehold/report/report.pdf Clark, C. E. (2000) “Differences Between Public Relations and Social and Corporate Reporting: An Analysis” Public Relations Review, 26(3) pp363 – 80 Cowan, S. and Gadenne, D. (2005) “Australian Corporate Environmental Reporting: A Comparative Analysis of Disclosure Practices Across Voluntary and Mandatory Disclosure Systems” Journal of Accounting and Organisational Change Vol 1 (2) pp165 – 179 Danastas, L. and Gadenne, D. (2006) “Social and Environmental NGOs as Users of Corporate Social Disclosure” Journal of Environmental Assessment Policy and Management Vol 8 (1) pp 85 – 102 Deegan, C. and Rankin, M. (1996) “Do Australian Companies Report Environmental News Objectively? An Analysis of Environmental Disclosures by Firms Prosecuted Successfully by Environmental Protection Authority” Accounting, Auditing and Accountability Journal Vol 9 (2) pp50 – 67 Friedman, J. (1993) “Politics or Scholarship?” Critical Review Vol 6(2 – 3) pp429 – 45 Goodwin, F. W. and Bartlett, J. L. (2008) Public Relations and Corporate Social Responsibility Working Paper. Gustavson, R. (2009) “Australia: Practices and Experiences” Global Practices of Corporate Social Responsibility London: Springer Jones, K. (2007) Study on Environmental Reporting by Companies [Working Paper] Sunderland: Center for Environmental Informatics, University of Sunderland. Karim, K. E. and Rutledge, R. W. (2004) Environmental Disclosure Practices and Financial Performance Santa Barbera: ABC-CLIO Kotze, L. J. (2013) Global Environmental Governance Surrey: Edward Elgar Lobley, M. and Winter, M. (2012) What is Land For? “The Food, Fuel and Climate Change Debate” New York: Earthscan. Patridge, E. (2004) “With Ability and Justice for Some” Enhanced Philosophy Mason, OH: Cengage Sands, P. (2003) Principles of International Environmental Law Cambridge: Cambridge University Press. Saudagaran, S. M. (2009) International Accounting: A User Perspective Amsterdam: CCH Publishing Schwanbach, A. (2011) International Environmental Disputes: A Reference Handbook Santa Barbera: ABC-CLIO Wilmhurst, T. D. and Frost, G. R. (2000) “Corporate Environmental Reporting: A Test of Legitimacy Theory” Accounting, Auditing and Accountability Journal Vol 13 (1) pp10 – 26 Yang, T. And Percival, R. V. (2009) “The Emergence of Global Environmental Law” Ecological Law Quarterly 36 pp615 – 664 Due Date: FRIDAY 18st December 2012 BEFORE 11.59pm Marks: 40 Marks The assignment is based on the application of materials covered in the unit. You will also need to do some extended personal research and self-directed learning in order to complete the assignment. The assignment may be completed either INDIVIDUALLY or in a group of TWO. If completed as an individual assignment, the length is 3,000 words. If completed as a group assignment, the length is 4,500 words. Assignment task: There has been an increasing level of legislation that has been introduced by the Australian Government, particularly in relation to the environment and climate change (for example, The National Pollutant Inventory (NPI) the National Greenhouse Energy Reporting act (NGER) and the Carbon Tax). Evaluate the potential effects of the introduction of the environmental legislation using the free-market and pro-regulatory approach to regulation and provide a conclusion as to whether you support or oppose the introduction of such regulation. Please notice that you must write in accounting side effect whether you believe that the introduction of environmental Legislation is justified or not. You will need to provide justifying evidence based on different stakeholder groups (i.e. perspectives of Society, Corporations and Government). Your arguments MUST be substantially supported by academic literature. You are required, and must, read and incorporate academic journal articles and other relevant materials to justify your viewpoint. Further Instructions: CONTRACT CHEATING (OUTSOURCING TO OTHERS TO DO YOUR ASSIGNMENT) OR ANY SIMILAR FORM OF COPYING, NOT REFERECING OR CHEATING IS PLAGIARISM. IT WILL BE DEALT IN THE MOST SEVERE MANNER. THERE ARE PROCESSES AND PROCEDURES IN PLACE TO DETECT THIS. THE UNIT CHAIR RETAINS THE RIGHT TO REQUEST FOR A PRESENTATION OF THE WORK AND A FURTHE ORAL QUESTIONING OF THE ASSIGNMENT, WHERE HE/SHE FEEL IT IS REQUIRED. YOU WILL ONLY BE REQUIRED TO SUBMIT AN ELECTRONIC COPY. ASSIGNMENTS WILL BE MARKED ONLINE AND FEEDBACK WILL BE PROVIDED THROUGH YOUR CLOUDDEAKIN MAA310 HOME PAGE. GROUPS MUST ONLY SUBMIT ONE SOFTCOPY ON DSO WITHIN THE GROUP SUBMISSION DROP BOX. YOU MUST CLEARLY NOTE ALL MEMBERS OF THE GROUP ON THE FIRST PAGE OF THE ASSIGNMENT. ASSIGNMENTS SUBMITTED LATE WITHOUT APPROVAL FROM THE UNIT CHAIR WILL NOT BE MARKED. THEY WILL BE HELD AND ONLY BE TAKEN INTO CONSIDERATION WHEN DETERMINING THE FINAL MARK. THE MAXIMIMUM ALLOWABLE MARK FOR LATE ASSIGNMENTS IS 20/40 (50% OF THE MARK YOU SCORE). Read More