For the purpose of this paper Wal-Mart’s Global Sustainability Report for 2009 will be used. Social and environmental reporting has to be both a faithful representation of facts and neutral in presentation. Wal-Mart, the world’s biggest retail chain with…
In fact the company calls itself “a leader in sustainability”, one of the most important aspects in determining an organization’s commitment to Corporate Social Responsibility (CSR) and good social and environmental reporting.
Faithful representation is defined as "correspondence or agreement between the accounting measures or descriptions in financial reports and the economic phenomena they purport to represent" (www.goliath.ecnext.com). On the other hand neutrality is defined as “the avoidance of bias in selection and presentation of information and balanced in accounts of performance” (www.plan.aau.dk). Wal-Mart has been questioned by many critics and environmental experts on its CSR policies and initiatives that include its commitment to using only the renewable energy. In fact the critics argue that there are factual errors and inadequacies in these reports published by Wal-Mart. For instance the recent SERs published by the company lack accuracy and the gaps are obviously disturbing in some instances. The degree of faithful representation in Wal-Mart’s SERs needs to be examined against the backdrop of its commitment to sustainability. The concept of environmental sustainability is associated with CSR policies and initiatives of the company. For example Wal-Mart claims to care for its 2.1 million associates, as the employees are called here, on a basis of equanimity and the extended families of these associates are entitled to the same degree of care.
The problems that Wal-Mart is faced with in its SERs can be regarded as those directly related to faithful representation and neutrality in preparing those documents. Thousands of retail stores operating under many domains in many countries are naturally prone to making mistakes in gathering data and representing facts.
Despite Wal-Mart’s efforts to integrate the global operations by using a single platform ...
Cite this document
(“Financial Reporting Assignment - Social and Environmental Reporting Essay”, n.d.)
Retrieved from https://studentshare.net/miscellaneous/385500-financial-reporting-assignment-social-and-environmental-reporting
(Financial Reporting Assignment - Social and Environmental Reporting Essay)
“Financial Reporting Assignment - Social and Environmental Reporting Essay”, n.d. https://studentshare.net/miscellaneous/385500-financial-reporting-assignment-social-and-environmental-reporting.
The paper discusses about different aspects and approaches of the accountability Rolls-Royce group have adopted to deal with its various stakeholders regarding its corporate environmental and social reporting, how the company has incorporated the issues in its long and short term strategy, what steps the company has taken to address environmental and social concerns and how effective their implementation have been.
Here it has been highlighted as to whether the company complied with any revisions or changes in accounting standards like AASB 101; and other accounting standards relating to intangible asset; provisions and contingent items etc. Any change adopted by the company in financial reporting for 2009 over the previous year has also been discussed.
Social and Environmental reporting may be defined as the process of communicating social and environmental effects of the economic activities performed by an organisation to the various stakeholders of the company. Main reasons for social and environmental reporting – Stakeholder Theory SER provides information to the various stakeholders of the company regarding its operations.
The paper attempts to explore why it has become so necessary for public sector organisations to embrace sustainability accounting and reporting to their stakeholders; the difficulties faced by them towards its implementation and how the process of reporting in public sectors has progressed so far in last few years.
External users rely on the information presented by the company since they do not have contact with a company’s day to day operations (Warren, 2012). Following are the users of a company’s financial accounts: Debt holders and bondholders: The creditors of the company use financial accounts to conduct risk analysis of a company.
External Reporting to investors, government authorities and other outside parties on the organisation's finance position, operations and related activities. This information is also used by regulatory bodies like Internal Revenue Service. Sometimes the managers in other organization also use such information in their decision making.
Many companies now include a report of their social accountability in their annual financial statements, while this has become a legal requirement in some countries. Activists are insisting that companies, especially those operating globally act more responsibly and consider the impact of their actions on stakeholders.
It led to the concept of organizations understanding their role in the environment and their responsibility, not just to the shareholders but all the stakeholders that can be affected by their actions. All over the world organizations are trying to realize their
t report their waste emission and energy utilization by following the stipulated legal framework for environmental reporting as well as incorporate various voluntary aspects of environmental reporting. An organization that measures and reports its environmental performance gains
8 Pages(2000 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic Financial Reporting Assignment - Social and Environmental Reporting for FREE!