Topic1 – Analysis of a Published Academic Paper
Topic 2 –A critical evaluation of organisations’ Sustainability Report
Subject: Organisational Planning and Control
Stella Kwok (41786971)
Wen Kai Dong (42004217)
Margarita Korina (42416884)
Quoc Nguyen (42544483)
Table of Contents
Part 1 - An analysis of a published academic paper3
Implications & Conclusion6
Part 2 – A Critical Evaluation of an Organisations’ Sustainability Report7
Vision & Strategy7
Organisation’s Profile and Management Approach8
Report Content and Quality9
Range of the aspects of performance reported11
Part 1 - An analysis of a published academic paper
We have evaluated a published academic paper – “Corporate sustainability: historical development and reporting practices” (by Andreas Christofi, Petros Christofi and Seleshi Sisaye, 2012). The purpose of the paper was to compare the disclosure requirement between the two widely used sustainability reporting instruments - Dow Jones Sustainability World Indexes (DJSI World) and Global Reporting Initiative G3 Guidelines (GRI-G3 Guidelines). These two instruments are similarities in the content but their disclosure requirement are different and the depths of the complexity of sustainability indicators are vary. The authors suggested that sustainability reporting framework needs undergo further standardization and enforcement of the disclosure indicators to avoid any negative impact on investors and consumers in case of corporate failure or mismanagement in the upcoming future.
There is growing concerns associated with whether organisations have to report their sustainability performance from the early 1990s. Fortunately, there are many corporations are voluntary elect to employ and report their sustainability performance. Nevertheless, there is no indication of any development of formal international recognised legislation to enforce corporations to report its sustainability performance. The authors believed that part of the recent corporate failures were caused by corporate mismanagement mostly a human error and failure moral-hazard system risk control. Hence, the motivation of this academic paper was to recommend that an adequate risk control was necessary to be put in place, and a meaningful and accurate corporate sustainability disclosure to be required. The paper suggests that Financial Accounting Standards Board (FASB) should actively work on a standardised sustainability reporting. Theoretical Concepts
There are theoretical and practical rationales in this research. The theoretical concepts examined in the paper are stakeholder theory and public interest theory. There are many organisations that voluntary report their sustainability performance to the public. There are different reasons for them to adopt this reporting strategy. This may due to an entity is more likely to focus on meeting the expectations with a particular group of stakeholders such as investors, employees, customers, regulators and other specific groups. Usually an organisation has the responsibility to account for the right of their stakeholders such as ‘right to information’. If an organisation fail to meet the expectation of the public and stakeholders, this may result lose their support from the community and the opportunity to run their business locally. Therefore "alignment of company reporting with the expectations of key stakeholders serves to improve the quality of a company’s relationships with such stakeholders and thus protect and enhance the value of the organisation" (G100, 2003). Therefore it is critical for an organisation to address the needs and expectation from their identified stakeholders.
On the other hand, the authors analysed the disclosure indicators between...