WELCOME

CORPORATE REPORTING & SOCIAL RESPONSIBILITY: A STUDY OF SUSTAINABILITY REPORTING

Prof. Ranjan K. Bal Utkal University 4/24/2020 1

CUSTOMER IS THE KING.

DELIGHT OUR CUSTOMERS.

 Who are the customers of Accountants ?

 Challenge before the Accountant: To delight your customers 4/24/2020 2

VISION STATEMENT OF

M.A. Gr.

JOHNSON

&

JOHNSON

 Delight our customer  Develop alternative measurement system  Keep it simple  Utilise 20% time on accounting & 80% time on analysis  4/24/2020 Be the best 3

POST ENRON ERA

 Trust-Transparency gap  Information provided Vs. Information needs of Stakeholders.

Osama Bin Laden wanted to become an accountant !!

4/24/2020 4

CORPORATE REPORTING



Trust-me Culture



Tell-me Culture



Show-me Culture

4/24/2020 5

MYTHS REGARDING

CSR

 A drain on profit -Contradicts the main objective  A charitable work  Don't contribute to the best interest of the corporation 4/24/2020 6

CSR

 A

business process

: Decision making-Sensitive about the effects on society 

Stakeholders

: Society & Community  Wealth creators Vs.

Wealth distributors

 Mutual beneficial

partnership

 An

investment

4/24/2020 by the Corporation 7

CSR ACTIVITIES BY SOME ORGANISTIONS



Bank of India

: To adopt 101 villages 

NABARD

: Develop rural non-firm sector 

HPCL

: Rasoi Ghar, Hamara Pump, Leadership lectures 

ICICI Bank

: Partnering with NGOs, Capacity building 

BPCL

: Infrastructure Development, Healthcare 4/24/2020 8

CSR Activities: Indian Cos.

  52% supported health 50% supported education  30% supported environment  27% supported rural development  36% have Dept. for CSR  58% Top Mgt. involved in CSR 4/24/2020 9

SUSTAINABLE DEVELOPMENT

 Meets the needs of present generation  Without compromising the ability of

future generations

 Minimum

environmental impact

 Maximum

value addition

customers for 4/24/2020 10

Research Findings:

KPMG study: On “Measuring Performance of the Organizations of the Future” FINDING: “Over-reliance on summary financial performance measures (Viz. ROI) was hindering an organization’s abilities to create future economic value .”

4/24/2020 11

RESEARCH FINDINGS

 McKinsey & Co: 400 Firms “The environmental challenge is one of the central issues of the 21 st century.”  World Economic Forum: 650 Executives “Environment is the most important challenge affecting business.” 4/24/2020 12

4/24/2020

Social Economic Triple Bottom Line Environmental

13

TBL or Sustainability Reporting

 Framework for measuring business performance  Single bottom line to Triple bottom line  Shareholder-oriented accounting to Stakeholder-oriented accounting 

3 Ps: Profit, Planet & People

4/24/2020 TBLR is complementary to Financial Reporting.

14

SOCIAL BOTTOM LINE

 Organisation’s impact on society  Public health & Community Dev.

 Skill & Education  Social justice & Human Rights  Trust, Integrity & Teamwork  Labour practices  Product Responsibility 4/24/2020 15

ENVIRONMENTAL BOTTOM LINE



Efficient use of natural resources



Efficient environmental mgt.



Renewable natural capital

4/24/2020 16

ECONOMIC BOTTOM LINE

 Economic profitability  Employment generation  Market creation  Financial capital & Physical capital 4/24/2020 17

WHY TBLR?

 Growth of Environmentalism  Growth of Social Consideration 

Brand value & reputation

 Risk reduction  Relationship with Communities  Exploiting market opportunities 

Attracting & Retaining HR

Cost Reduction 18

KPMG SURVEY on SUSTAINABILITY REPORTING or TBLR: Benefits

 Reduce operating

costs

efficiencies & improve  Develop

innovative products

for access to new markets & services  Improve

reputation

& brand value  Recruit & retain excellent

people

 Gain better access to investor

capital

 Enhance the public

value

of the company  Reduce liabilities through integrated

risk management

4/24/2020 19

SUSTAINABLE ENTERPRISE

 Makes resource-efficient products  Minimum environmental impact  Maximum value to customers  Long-term shareholder-added value 

Adding value to society.

4/24/2020 20

FOUR TRENDS

 Escalation  Integration  Standardization  Globalization 4/24/2020 21

INITIATIVES

 GRI (Global Reporting Initiatives) ( www.globalreporting.org

)  A4S (Accounting for Sustainability Project) ( www.accountingforsustainability.org

)  IIRC (International Integrated Reporting Committee) ( www.theiirc.org

) 4/24/2020 22

IMPLICATION FOR FINANCIAL MANAGERS  In the areas of investor relations/PR  Telling a Co’s financial story = Telling the Co’s sustainability story 4/24/2020 23

Corporate sustainability :Challenges

 Balance between

long-run

&

short-run

needs of the firm & its stakeholders  Management & maintenance of

economic, natural, social

capital  Incorporating social & environmental dimensions into

decision making

process  Create

“win-win”

situation: create shareholders wealth by becoming social & environment friendly 4/24/2020 24

CHANGE

Change

is the only constant in to day’s world.

“A company can not

survive

without change.”

K.V.Kamath

4/24/2020 25

“

Earth

provides enough to satisfy everyone’s

needs

, but not everyman’s

greed

.”

-

GANDHIJI

4/24/2020 26

DISTINCT or EXTINCT

“ ACT NOW or GET READY TO BE A PART OF HISTORY.”

4/24/2020

THANK YOU

27