Sustainable Reporting Brings Together Economic †Free Samples

Question: How Sustainable Reporting Brings Together Economic? Answer: Introduction Sustainable reporting brings together economic performance of a business with social responsibility integrated in environmental conservation(Struwig Rensburg, 2016). Its main aim to assist businesses set goals; rate their performances and manage the sustainability of these goals. Sustainable reporting is an important stage towards realizing sustainable global economy. Gone were the days when company boards and executives reports concentrated on the financials of the company. With the emergency of the concern for environmental preservation due to emission of pollutants in the atmosphere by most(Anon., 2017), it is now a requirement for companies to include sustainability report in the annual reports(Struwig Rensburg, 2016). Sustainable reporting strengthens accountability for their effects to the environment thus creating trust. The trust created enables sharing of benefits upon which a more united society is built. Besides, the government benefits in the information relating to sus tainability(Struwig Rensburg, 2016). Sustainability information can be used by the governments to evaluate the effects caused to the economy by businesses thus enabling them to assign issues to the relevant players. International Integrated Reporting Council (IIRC) provides the framework for sustainability reporting(Anon., 2017). IIRC use the integrated system of reporting to provide a guideline to the businesses; mode of sustainable reporting. IR, Integrated reporting, employed by IIRC, to train business enabling them to relate their business operation and value creation(Anon., 2017). This kind of reporting has myriad of benefits to the company and society at large. Discussion Sustainability Reporting and Building Trust In the contemporary business environment, stakeholders are not just concerned about the financial performance of the business. The relationship between the business and the larger society is determined by a number of factors including the social responsibility of the business in the area of environmental conservation(Anon., 2017). Thus it is the mandate of every business which intends to create a mutual relationship with the stake holders to embrace the values of the society; one of them being the sustainability of the environmental conditions. Consequently, honesty about the performance of the business that is not related to the financials assist in the reduction of reputational risks thus creating a dialogue with clients, communities and investors, in the long run, the leadership ability and openness of the business is demonstrated hence building the much needed trust(Anon., 2017). Sustainability Reporting and Improvement of Processes and Systems Sustainability reporting (which employs integrated reporting), brings together economic performance and social responsibility(Ayars, 2011). Performance of a business is directly proportional to the expertise of the management team. Through examination of sustainability report information, internal management can be studied and improved. This added to the internal decision making process, the cost of the business can be cut down by determining and taking note of such issues as material use, energy consumption and waste. What it boils down to is that sustainability reporting creates a platform for the systems and processes of the company to examined thus when a hitch or threat is noticed, which can be detected by sustainable reporting, corrective measures can be put in place to enhance the systems and processes performance(Shipman, 2017). Sustainability Reporting and Progressive vision and Strategy There are three important factors that should be looked into when writing a sustainability report. The first factors is the strength of the business. The advantages of the business over its competitors is analyzed and clearly recorded to be used during decision making process. Secondly, the weakness of the business is analyzed. At this point, areas at which the business is disadvantaged in relation to its competitors is checked(Shipman, 2017). Thereafter, the engagement of the business with stake holders is looked into. Comprehensive analysis of the three factors can lead to a more strong and expansive range of organizational vision and strategies. In brevity, through analysis of these factors, the company can sustainability a fundamental part of the business strategies. Sustainability Reporting and reduction of compliance costs It has become a regulatory requirement in most countries for companies to report on environmental sustainability(Ayars, 2011). A comprehensive report should entail measurement of various variables that are outlined in the integrated reporting guidelines. Thus preparedness of the company to report on the same is key to enable it collect the relevant data needed for analysis and reporting(Shipman, 2017). Determining sustainabilitys level of performance can assist businesses to satisfy the legal formalities effectively, prevent infringement of law which result is heavy penalties and aid in gathering relevant data in an efficient and cost effective manner(Anon., n.d.). Sustainability Reporting and Creation of Competitive advantage The bargaining power of a company depends on various factors. Mostly, a business that is seen as a leader and an innovator in the market by the current and pilot customers. This gives such a company a stronger bargaining power in terms of enthralling investment, venturing into new markets, starting new activities and negotiating contacts(Anon., 2017). Role of International Integrated Reporting Council in Sustainability Reporting IIRC, through Integrated Reporting, strengthens the way businesses think, organize and present the information related to the company. Using Integrated Reporting, a vivid, exact and integrated story that tells how various resources of the organization have been used to create value. Besides, IIRC creates a platform for companies to think widely about their strategies and goals hence enabling worldwide evolution in corporate reporting. Conclusion Inasmuch as there has been allegations that sustainability reporting is a waste of time(Leinaweaver, 2015), the benefits of the sustainability reporting cannot be overemphasized. With the increasing concern for the environmental conservation, there is a need for a global participation in the move to preserve the environment by every industry player. Most importantly, sustainability reporting is two way traffic; it benefits both the company and the society at large. Consequently, sustainability reporting should be embraced. References Anon., 2017. Benefits of Sustainability Reporting. [Online] Available at: https://www.globalreporting.org/resourcelibrary/The-benefits-of-sustainability-reporting.pdf [Accessed 4 May 2017]. Anon., 2017. Global Reporting. [Online] Available at: https://www.globalreporting.org/Pages/default.aspx [Accessed 4 May 2017]. Anon., 2017. Integrated Reporting. [Online] Available at: https://integratedreporting.org/ [Accessed 4 May 2017]. Anon., 2017. Sustainability reporting and integrated reporting. [Online] Available at: https://www.iasplus.com/en/resources/sustainability/sustainability [Accessed 4 May 2017]. Anon., n.d. Value of Sustainability Reporting. [Online] Available at: https://www.ey.com/us/en/services/specialty-services/climate-change-and-sustainability-services/value-of-sustainability-reporting [Accessed 4 May 2017]. Ayars, A., 2011. Why Your Company Should Produce a Sustainability Report. [Online] Available at: https://sustainability.com/our-work/insights/why-your-company-should-produce-a-sustainability-report/ [Accessed 4 May 2017]. Leinaweaver, J., 2015. Is corporate sustainability reporting a great waste of time?. [Online] Available at: https://www.theguardian.com/sustainable-business/2015/jan/06/corporate-sustainability-reporting-waste-time [Accessed 4 May 2017]. Shipman, M., 2017. Study finds current corporate sustainability reporting misses the mark. [Online] Available at: https://phys.org/news/2017-01-current-corporate-sustainability.html [Accessed 4 May 2017]. Struwig, M. Rensburg, H. J. V., 2016. Sustainability reporting: why South African companies need to up their game. [Online] Available at: https://theconversation.com/sustainability-reporting-why-south-african-companies-need-to-up-their-game-58307 [Accessed 4 May 2017]