Question

Simple Hospitality Ltd is Australia’s preferred hospitality goods manufacturer. The company manufactures and distributes bin liners, plastic bags, catering equipment, chemical and cleaning supplies, coffee supplies, food packaging, motel and washroom ameneties.

Assume you are the chief financial officer of Simple Hospitality Ltd. The chief executive officer is concerned about this company’s impact on the environment and its unsustainablepractices. You have been asked to make a recommendation on the nature and extent of social and environmental reporting, if any, that the company should undertake.

Required:                                                                   

Structure your answer keeping an introduction , discussion and a proper conclusion . Provide necessary references following the university guidelines. In your discussion, provide explanations focusing on the following points:

• Identify any four UNsustainablepractices that may be relevant to this organization. In responding you may consult the Sustainable Development Goals as referenced by theUnited Nations. [https://www.un.org/sustainabledevelopment/sustainable-development-goals/] .
• Identify any four costs related to social and environmental reporting
• Identify any three benefits related to social and environmental reporting
• Identify various stakeholders of such reporting

Suggest the form it should take and how, and to whom, the report should be disseminated.

Answer 1

Simple Hospitality Ltd

Recommendation on the social and environmental reporting requirement

Introduction:

Simple Hospitality Ltd is Australia’s preferred hospitality goods manufacturer. It caters to the hospitality sector and has product portfolio which includes likes of bin liners, plastic bags, catering equipment etc. The ideal business mantra for us is “More with less”. To maintain the goodwill and contribute to the society at large, it is our social responsibility to generate minimum waste & maximum recycling to follow our business scruples.

Discussion:

The unsustainable practices that are inseparable from the organisation considering the nature of its business are:

1. Decent work & economic growth: Production of plastic bags involves creation & safe disposal of hazardous waste. This is taken care to ensure the work environment is safe and we work towards betterment of economy.
2. Un-sustainable cities & communities: The business rule is aligned to having a sustainable city & community by contributing more to the society and not exploiting the resources thereby endangering the future generations of the privileges.
3. Irresponsible production & consumption: Considering the nature of business of Simple Hospitality Limited, it becomes a pre-requisite that the upstream (production), downstream (Production to sales), and post sales services are duly taken care.
4. Life below water & life on land: The company is engaged in production of plastic bags which if not disposed off by producers or consumers safely, would adversely affect the life on land & water if consumed by animals, birds, fishes etc.

Now, let us discuss some of the costs of social & environment reporting which we at Simple Hospitality take care of:

1. Loss of customers: Any product exploiting the social/environment is strongly detested by society. People would dislike/boycott our products which would entail in loss of business and customers
2. Loss of goodwill: People who contribute towards the environment and to the society is cherished by all and vice versa. We ensure that we adhere to all the norms of safe production & consumption practices
3. Rehabilitation cost: Any business that is making profits has certain responsibilities towards the society and environment. In our case, since the unsustainable practices adopted deteriorate the environment, we need to allocate certain budget towards rehabilitation of the society as well.
4. Employee turnover: Transparency may lead to more employee turnover in the organisation because of loss of job security.

However, these costs can be taken care of if the reporting related to such environment deteriorating practices are adequately reported and disclosed to the stakeholder. This means that there are several benefits related to social and environment reporting:

1. Builds trust towards the society and stakeholders: Any organisation that is transparent builds trust towards its stakeholder.
2. Builds Goodwill: The goodwill is the greatest asset for an organisation which helps to make profits in short run as well as long run period for any business.
3. Long term growth and sustainability of the organisation: Building trust towards stakeholders generates long term growth and sustainability of the business.
4. Helps in easy hiring of new staff: Any person who is seeking job asks for job security. Such security is obtained by working in an organisation who understands its social responsibility and adheres to all rules of the society and works towards its benefits.

Various stakeholders of a business like ours who are concerned with our social and environmental reporting are our shareholders, customers, suppliers, government, concerned NGO, Department of Safety, Department of Health, Pollution department and the society at large.

Conclusion:

Thus, it is our social responsibility to report all issues and concerns related to society and environment. Moreover, there are more benefits related to reporting than costs involved. The business may be hampered in short run but true and correct disclosure will always be beneficial in the long run.