Question

A range of stakeholders have been identified who managers should consider when determining the entity's sustainability performance and reporting. Required: Determine how managers should engage with any two stakeholders and document what sustainability issues they would be likely to discuss during this engagement process.

2. Greenworks Ltd wants to focus on ‘people, profits, planet’. The board of directors has proposed linking top managers’ pay to broad measures of environmental sustainability, and worker and customer satisfaction. The board proposes that bonuses for management will be linked to targets such as the reduction of greenhouse gas emissions and energy use, the introduction of new environmentally friendly products and improvements in workforce morale.

Advise the board of the two (2) potential positive implications and two (2) potential negative implications of the proposed remuneration policy