Legitimacy Theory and Triple Bottom Line - Assignment Example

Question one; legitimacy theory Introduction Legitimacy is a wide hypothesis that the actions of a company are attractive, appropriate within some socially developed system of values and certainty. Legitimacy theory therefore plays a key role in explaining the attitude of a company in executing and developing intended societal as well as ecological disclosure of information. Social assumptions of the company’s actions are accounted in accordance with the anticipation of the society. legitimacy theory depict a role of justifying the attitude of the firm in implementing as well as developing voluntary social and ecological disclosures of the information so as to comply with the social obligation that permit the recognition of their goals as well as the existence in an agitated environment (Frank-Martin Belz 2009). The social belief of the firm’s activities is accounted in compliance with the anticipation of the societal. In this state when a firm’s activities don’t appreciate social and ethical norms, the firm is sternly authorized by societal. The annual report of BAT Company depicts the compliance of legitimacy theory in that it can be observed. Harm reduction At the centre of the BAT strategy is the vision of satisfying the clients in tobacco. The company is committed to research and development as well as the promotion of a wide range of innovative tobacco product to provide adult consumers an option of less risky options to standard cigarettes. This may eventually advantage the public health while as well as encouraging the future development. Community networks The company is committed to building and strengthening farmer’s network by creating the support as well as chances that farmers require to able to share ultimate practices and turn to be more self-effective and flexible. The company works closely with farmers to reduce the impact of tobacco (Grünewälder 2009). The company asset farmers to upheld nature by afforestation plans that create a sustainable source of wood used in tobacco curing process. As a result, 95% of the wood the farmers employs for curring does rarely come from the natural forest. Exploitive child labor is specifically significant factor for whichever company with an agricultural supply chain. The company’s social accountability in tobacco manufacture in the relation which entire leaf suppliers are appraised has a unique concern on child labor (Jesse Dillard 2008). The company is working closely with the government to enhance access to education as well as social services for the children. Good environmental control is important in making sure that the company as well as the society upheld access to the natural resource. Employing a mix of performance control as well as risk appraisal check constantly as well minimize the direct environmental effect as well as create the approach. The company is committed to minimizing waste on the environment as well as constant control and minimizes the direct environmental impact and creation of approach of making the operation more effective. The company is committed to reducing the energy usage as well as carbon emission. The company strives to ensure that there is ideal process towards long-term goals in order to cut the carbon dioxide emission by half by the year 2030 (Fernando 2011). Reference list Philip Kotler, ‎Nancy Lee. Corporate Social Responsibility: Doing the Most Good. 2011. Ramon Mullerat, ‎Daniel Brennan. Corporate Social Responsibility: The Corporate Governance. 2011. Savitz, Andrew. The Triple Bottom Line: How Today's Best-Run Companies. 2012. Stefan Schaltegger, ‎Martin Bennett, ‎Roger Burritt. Sustainability Accounting and Reporting - Page 548. 2006. Stefan Schaltegger, Martin Bennett, Roger Burritt. Sustainability Accounting and Reporting. Melbourne: Springer Science & Business Media, 2006. Question two; triple Bottom Line Sustainability This is a report that discloses organization report concerning the ecological, social, and economic as well as governance performance. A sustainability report is not merely general information from gathered data but rather it is an approach to internalize and enhance the business performance to sustainable progression in a manner that might be revealed to internal and external stakeholders. A company can enhance its sustainability performance by appraising, reviewing as well as reporting on it. It aids the company to portray a positive effect on the society, the economy as well as future. The major drivers for the best of sustainability reporting are the guidelines of the global reporting initiative guidelines, the award schemes. This principle enables the company to appraise their sustainability performance as well as disclose their outcome in the same manner to the financial reporting guidelines. Sustainability entails considering the long-term impact of ministry and manufacture (M. B. Stefan Schaltegger 2006). The economic sustainability entails creating a long-term system of doing business while making certain the system depict the small effect on the environment. Corporate sustainability centers on ecological as well as the social effect of the business operation. The main importance of sustainability to business operation is that better business practices are chosen by investors. Some of them observe the company’s noteworthy and thus enhancing sustainability measure encourage potential investors who will then boost the business operation in terms of capital injected by way of equity finance. Stakeholders as well as observe the life cycle assessment of the company which appraises the long term environmental safeguards as well as concluded on investing in a company on the basis of that extent of the compliance with sustainability guidelines, the productivity of the company, improved long term public engagement (Savitz 2012). These factors are included in the sustainability report and they matter most in term of business performance and thus, sustainability compliance is significant for any business operation and success. Triple bottom line approach ensures that a company should ensure that it covers and disclose the following three vital sustainability compliance; the environment, the society as well as the financial in its annual report. The British American tobacco limited approach towards sustainability issues is included in the business process as well as managerial duties the way other functions are being administered in the company. British American tobacco limited uphold to recognize the fruitful sustainability connected argument as well as opportunities and also mobilize resources within the business to deal with them and aid in upholding the business status in an aggressive business environment.. Approach to sustainability British American tobacco limited should strongly get committed to becoming a sustainable venture and centers on a vision of sustainability leadership within the tobacco industry. The company growth makes the business to focus more on maintaining their sustainability policy (Ramon Mullerat 2011). Each business ought to be registered with the corporation act so as to operate as registered entity according to Australian Accounting standard board and to disclose their comprehensive financial report inclusive of the detailed sustainability report. This is because; it provides a simple understanding of the business situation and its performance as well as compliance with corporate social responsibility. The triple bottom line to be adopted by the company is categorized into three distinct class; the employees, the society and environment and the financials. This are explained in detail as follows. A. Engaging employees on environmental, health and safety The business should completely act in accordance with environmental corporate responsibilities. the issue affecting the corporation is the reduction in carbon emission and use of wood for curring, this affect the surroundings and as a result, strict measures need to be reviewed and put into practice in order to reduce the consequences of environmental contamination by way of air pollution (Grünewälder 2009) . The company provides ideal assurance to the citizen living around that, the safety of their environment is going to be secured and that children playing with a skate around will enjoy the environment fully. The company must engage employees by way of a range of communication channels. British American tobacco limited must organize an internal assessment of corporate ecological and safety communication which might lead to the cautious complete rejoinder to the criticism so as to advance environmental social responsibility. British American tobacco limited at present take on staff by way of direct staff communication as well as annual staff engagement review, employee road shows, internal meeting and the internal training program and development in an effort to ensuring that the sustainability report created is all inclusive and comprehensive and in compliance with the GRI principle. Water management and quality The accessibility, excellence and preservation of natural resources are significant for the success of assets developers and executives and are more and more significant to client and occupant. The company must aspire to supply development that reduce water consumption and contribute optimistically to catchments that operate in (‎. L. Samuel O. Idowu 2011). The company as a result must actively control water effectiveness on expansion projects checking water consumption throughout both the manufacturing process and developments. To reduce carbon emission, the company ensures that the production cycle is reviewed each year so as to ensure that the waste emission is reduced drastically. This is because the effect of carbon emission in recent as impacted the ozone layer an increased the global warming. The packaging material is meant to be eco-friendly in that it should be disposable while at the same ensure that it doesn’t harm the living environment. As a result, the company frequently checks the impact of its disposable material in order to certain of their effectiveness in complying the sustainability standards B. The society British American tobacco limited should participate in the broader community association program. The business sponsorship program as well as the participation with a direct representative from communicates living around the company (Ramon Mullerat 2011). The neighbors around British American tobacco limited are the direct recipient of green and secure environment and as a result, the corporation strives to make certain that social responsibility is very important and key in its sustainability report. Improving the lives of people living around is one of the key issues British American tobacco limited is dedicated to adopting. The company is centered on minimizing carbon emission as well as participating in charitable activities to advance the life of people living around. This is attained by participating in a communal activity such as community green environment consciousness as well providing most important education and civic edification to the society. In this regards, the community will have been engage in the sustainability by the corporation because both parties will be aware of the green environment and measures to undertake in order to preserve the environment (Philip Kotler 2011). It can therefore be concluded that British American tobacco limited will be adhering to the GRI standard in view of the fact that, its annual report as sustainability report in which is wide-ranging and broad. This conformity with then need of the social responsibility is compulsory for every registered business in Australia and consequently it is required that there must be full disclosure of the report conformity in which case it can be observed in there virgin sustainability report. 3. Engaging our stakeholders The company appreciates that it has numerous shareholders. The business growth and diversification command the consideration of the board of shareholder since it is significant. (Marc Fleurbaey 2013) The business ability to communicate with its shareholders and stakeholders and establishing the materiality of the company effect is significant to business success. Shareholders participation and communication is important since, their engagement with British American tobacco limited will aid in appraising the important issue as well as shape the criticism with the interest of the community. The participation is a sign of company engagement and centre towards community issues as well as changes that thus create trust between the stakeholders and the community. The company intends to ensure that its citizen does have access to health food and also ensuring that they actively participate in living practices. The company’s key objective is to; To contribute to the constructive substantial and intellectual healthiness and welfare of its inhabitants and clients of all ages. To make available transportation and plans which encourage healthy, secure and vigorous standard of living. To smooth the progress of commencement of public spaces through successful programming and the provision of support in instituting wellbeing, relaxation and hobby chances for the entire life phases. To uphold a strong focal point on right of entry to natural surroundings in all development C. Financial perspective Under this strategic objective of the company, the company will focus on the following objective 1. Cost reduction To minimize the cost to the business, the company is committed to ensure that only relevant cost is incurred (Kiyoteru Tsutsui 2015). This is made possible by following the flexible budget employed by the company so as to avoid the unnecessary cost to the company. 2. Precautionary cost Every company is susceptible to business risk. To cater for the future of unknown, the company as set aside funds as preventive cost so as to cater for the effect of unknown such as the effect of inflation that might affect business operation. 3. Community enhancement The company may set some funds to cater for community enhancement since, the company main sustainability compliance is to ensure that the community enhancement is improved by way of providing education and training as well as participating in community development programs that will ensure that the community life is upgraded and thus maximization on the improved association between the company and the community. 4. Sales of friendly product The company strive to ensure that product safety is of paramount importance since, the success of the company depend on customer loyalty as well as the quality of the product provided to the customers (Jesse Dillard 2008). This is made possible by ensuring that the product expiry date is clearly and trustfully provided as well as making sure that the product is good for human consumption. The nature of the product after uses ought to be disposable and thus being environment friendly in order to ensure that the environment is not polluted How BAT limited can involve other parties in improving the sustainability report The staff BAT Company can involve its staff members in improving the sustainability by making the staff members clearly understand the company’s mission statement as far as corporate social responsibility is a concern. Workers of the company will clearly understand what is expected of them in so far as environmental safeguards are a concern. British American tobacco limited Company can involve its staff members in improving the sustainability by making the staff members clearly understand the company’s mission statement as far as corporate social responsibility is a concern. Workers of the company will clearly understand what is expected of them in so far as environmental safeguards are a concern. The neighbors The neighbors around British American tobacco limited are the direct beneficiary of green and secure environment and as a result, the company will strive to ensure that social responsibility is vital and key in its sustainability report (Grünewälder 2009). This is achieved by participating in a communal activity such as community green environment awareness as well providing primary education and civic education to the community. By doing so, the community will have been included in the sustainability by the company since, both parties will be aware of the green environment and measures to undertake in order to preserve the environment. The supplier The company makes clear the quality of the product to be supplied that both meets the desired standards as well as the ones who are environmentally friendly. The supplier should ensure that the packaging material does not have an effect on the environment and are easily disposable or can be easily be recycled if they fall under such category (Frank-Martin Belz 2009). Making the supplier aware of the ecological concern of their waste product will lead to the production of the eco-friendly product and consequently will aid the company in improving its sustainability report. The impacts of the indicators The indicators serve to guarantee that the corporation adheres to the requirement of the sustainability requirement. The net advantage is that it aids in ensuring that the going consumption of the company is effective and thus the company can as well as outstand the fierce competition from both the local and global competitors. this is made possible only ensuring that the product they produce is of highest quality that meets customers demand and expectation and that as well as comply with the standards of the environment safety in terms of disposable packaging material. The impact is that the company will capitalize on the objectives and thus the safety of the society is guaranteed by company need for frequent review of their product cycle and the safety standards in terms of packaging material and the recycling plant that will guarantee less carbon emission and toxic waste to the river (Fernando 2011). The safety of employees at the place of work is eminent since workers motivation in terms of safety and safe working environment will encourage them to work which consequently each as the production capacity. Reference list Fernando, A. C. Corporate Ethics, Governance, and Social Responsibility:. 2011. Frank-Martin Belz, ‎Ken Peattie. Sustainability Marketing: A Global Perspective - Page 96. 2009. Grünewälder, Arend. Integrating Environmental Sustainability Into the ... - Page 26. 2009. Jesse Dillard, ‎Veronica Dujon, ‎Mary C. King. Understanding the Social Dimension of Sustainability . 2008. Kiyoteru Tsutsui, ‎Alwyn Lim. Corporate Social Responsibility in a Globalizing World. 2015. Marc Fleurbaey, ‎Didier Blanchet - 2013. Beyond GDP: Measuring Welfare and Assessing Sustainability. 2013. Philip Kotler, ‎Nancy Lee. Corporate Social Responsibility: Doing the Most Good. 2011. Ramon Mullerat, ‎Daniel Brennan. Corporate Social Responsibility: The Corporate Governance. 2011. Samuel O. Idowu, ‎Celine Louche. Theory and Practice of Corporate Social Responsibility -. 2011. Samuel O. Idowu, ‎Walter Leal Filho. Global Practices of Corporate Social Responsibility. 2008. Savitz, Andrew. The Triple Bottom Line: How Today's Best-Run Companies. 2012. Stefan Schaltegger, ‎Martin Bennett, ‎Roger Burritt. Sustainability Accounting and Reporting - Page 548. 2006. Stefan Schaltegger, Martin Bennett, Roger Burritt. Sustainability Accounting and Reporting. Melbourne: Springer Science & Business Media, 2006. Read More