To: Finance Director
Subject: Short report of review on sustainability disclosure
There is a growing trend among companies to disclose and report their social and environmental impacts not only concerned with the financial performance of a company but its impact on society and environment. Thus, sustainability becomes an important issue. Sustainability is the capacity to endure and is the long-term maintenance of responsibility, which included environmental, economic, and social dimensions. It is mandatory for a company to disclose its sustainability information. In addition , the sustainability disclosure is based on a theory called "system-oriented theory", which includes three aspects:stakeholder theory, legitimacy theory and institutional theory. Applying the system-oriented theory for disclosing sustainability information will enhance the operation and development of company in the long-term.
A stakeholder refers to "any group or individual who can affect or is affected by the achievement of the firm's objective. Obviously the organization operates under supervision of a large social system, which includes shareholders, employees, customers, communities and various interest groups. Indicating the provision of information that can be useful for the sustainable operation of an enterprise is the crucial aim of stakeholder theory, comprising ethical and managerial branch.
Within ethical branch, that all stakeholders have a right to be provided with information about how the organization is affecting them. The AGL produces sustainability report annually based on various perspectives, which includes shareholders, customers, community, employees and government. From community perspective, AGL claims that total community investment in financial year 2011 has been valued at over $1575300, comparing to previous year with $1665600 . Employees always focus on the organization's remuneration and benefits. AGL offers various benefits to...
References: • Deegan, C. (2010) Australian Financial Accounting (6th ed), McGraw-Hill, North Ryde.
• Deegan, C. (2009). Financial accounting theory, 3rded., NSW, Australia: McGraw Hill.
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