Question

31. What is the basic idea behind lean thinking? How can lean thinking and a focus on quality improve a company's profitability? 32. What does sustainability mean? 33. What are the three pillars of sustainability and the triple bottom line? 34. In general, how will an integrated report, IR>, differ from traditional financial reporting? 35. What was the main driver for the passage of the Sarbanes-Oxley Act and what was its primary purpose? 36. List a few key features of SOX

Answer 1

Ans 31.

Lean Thinking is a business methodology that aims to provide a new way to think how to optimize human activities in to order to give more benefit to the society while eliminating waste. Its main idea is to provide maximum value to the customer with best sustainable methods.

Lean Thinking and focus on quality improvement helps in increase in profitability by maintaining high standards of product, safety measures, good customer service.

Ans 32

Sustainability is the process of maintaining things as along as it is wanted. It is the wise and optimal use such that the generations to come can also enjoy its benefit. It is a way to ensure that there are minimal wastage. One example is of natural resources.

Ans 33

Three pillars of sustainability is balanced approach to long term social, economic and environmental objectives.

Three pillars of triple bottom line is people, planet and profit.

Ans 34.

While traditional financial reporting values only a few stakeholders, integrated reporting involves more stakeholders. Traditional financial reporting focuses more on the communication of financial matters of the organisation while integrated reporting involves different facets of the organisation.

Ans 35

The driver of the Sarbanes Oxley Act was came in response to financial scandals in the early 2000's involving publicly traded companies.The high profile frauds shook the investor confidence in the credibility and trust worthiness of the financial statement thus resulting in demand for changes in the old regulatory methods.

Its primary purpose is to protect investors by improving the reliability and accuracy of the financial statement, disclosure made according to securities law and stricter protocol for internal control.

Ans 36

Features of SOX

1. CEO and CFO review all financial reports.

2.Financial report does not contain any misrepresentation.

3. CEO and CFO are responsible for internal accounting controls.

4.CEO and CFO must indicate any material changes in internal accounting controls.