Question

Question 4 Using theoretical insights, critically evaluate the role of sustainability reporting in improving corporate accountability to a diverse group of stakeholders. Can independent verification of social and environmental disclosures allay some concerns regarding the credibility of sustainability reports? (50 marks)

Answer 1

• Sustainability reporting which is quite common these days has benefit has Transparancy . This is in connect with economic issues.
• Sustainability information includes both Financial and Non financial . Financial information is expressed in terms of Money, Non financial information can be qualitative or quantitative.
• Non financial information can be complicated to handle since there is no accounting principles they follow .
• Sustainability reporting is future oriented and intangible
• some Internal benefits of sustainability reporting:

a)Better information

b)Improves performance

c) Improves employee morale.

• External benefits :

a) Improves communication among stakeholders.

b) Creates a positive image

c) Improves transparency

d) Improves accountability

e) Good governance.

Concerns regarding reports:

1. Since this reporting is voluntary there is no penalty for Non compliance

2.There is no desire for compliance

3. Lack of research for support