To: Finance Movie director
Subject: Brief report of review about sustainability disclosure
There is a developing trend between companies to reveal and report their cultural and environmental impacts not merely concerned with the financial performance of a company but its influence on society and environment. Hence, sustainability becomes an important concern. Sustainability may be the capacity to put up with and is the long-term maintenance of responsibility, which included environmental, financial, and interpersonal dimensions. It truly is mandatory to get a company to reveal its durability information. Additionally , the durability disclosure is founded on a theory called " system-oriented theory", which includes three aspects: stakeholder theory, capacity theory and institutional theory. Applying the system-oriented theory for revealing sustainability info will improve the operation and development of firm in the long lasting.
A stakeholder refers to " any group or person that can affect or is impacted by the achievement of the business objective. Clearly the organization runs under supervision of a large sociable system, consisting of shareholders, workers, customers, neighborhoods and different interest groupings. Indicating the provision info that can be useful for the sustainable operation associated with an enterprise is a crucial aim of stakeholder theory, comprising moral and bureaucratic branch.
Within ethical department, that all stakeholders have an appropriate to be provided with information about how the organization has effects on them. The AGL produces sustainability statement annually depending on various views, which includes investors, customers, community, employees and government. From community point of view, AGL says that total community expenditure in financial season 2011 has been valued in over $1575300, comparing to previous season with $1665600. Employees constantly focus on the organization's remuneration and rewards. AGL offers various rewards to...
Sources: вЂў Deegan, C. (2010) Australian Monetary Accounting (6th ed), McGraw-Hill, North Ryde.
вЂў Deegan, C. (2009). Financial accounting theory, 3rded., NSW, Down under: McGraw Slope.