**WELCOMECORPORATE REPORTING & SOCIAL RESPONSIBILITY: A STUDY OF SUSTAINABILITY REPORTING Prof. Ranjan K. Bal Utkal University

**CUSTOMER IS THE KING. DELIGHT OUR CUSTOMERS. Who are the customers of Accountants ?

Challenge before the Accountant: To delight your customers

**VISION STATEMENT OF M.A. Gr. JOHNSON & JOHNSONDelight our customerDevelop alternative measurement systemKeep it simpleUtilise 20% time on accounting & 80% time on analysisBe the best

**POST ENRON ERATrust-Transparency gapInformation provided Vs. Information needs of Stakeholders. Osama Bin Laden wanted to become an accountant !!

**CORPORATE REPORTINGTrust-me CultureTell-me CultureShow-me Culture

**MYTHS REGARDING CSRA drain on profit -Contradicts the main objectiveA charitable workDon't contribute to the best interest of the corporation

**CSRA business process: Decision making-Sensitive about the effects on societyStakeholders: Society & CommunityWealth creators Vs. Wealth distributorsMutual beneficial partnershipAn investment by the Corporation

**CSR ACTIVITIES BY SOME ORGANISTIONSBank of India: To adopt 101 villagesNABARD: Develop rural non-firm sectorHPCL: Rasoi Ghar, Hamara Pump, Leadership lecturesICICI Bank: Partnering with NGOs, Capacity buildingBPCL: Infrastructure Development, Healthcare

**CSR Activities: Indian Cos. 52% supported health 50% supported education 30% supported environment 27% supported rural development

36% have Dept. for CSR58% Top Mgt. involved in CSR

**SUSTAINABLE DEVELOPMENTMeets the needs of present generationWithout compromising the ability of future generationsMinimum environmental impactMaximum value addition for customers

**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 organizations abilities to create future economic value.

**RESEARCH FINDINGSMcKinsey & Co: 400 Firms The environmental challenge is one of the central issues of the 21st century.

World Economic Forum: 650 Executives Environment is the most important challenge affecting business.

**SocialEconomicEnvironmentalTriple BottomLine

**TBL or Sustainability ReportingFramework for measuring business performance Single bottom line to Triple bottom lineShareholder-oriented accounting to Stakeholder-oriented accounting3 Ps: Profit, Planet & People TBLR is complementary to Financial Reporting.

**SOCIAL BOTTOM LINE Organisations impact on societyPublic health & Community Dev.Skill & EducationSocial justice & Human RightsTrust, Integrity & TeamworkLabour practicesProduct Responsibility

**ENVIRONMENTAL BOTTOM LINEEfficient use of natural resourcesEfficient environmental mgt.Renewable natural capital

**ECONOMIC BOTTOM LINEEconomic profitabilityEmployment generationMarket creationFinancial capital & Physical capital

**WHY TBLR?Growth of EnvironmentalismGrowth of Social ConsiderationBrand value & reputationRisk reductionRelationship with CommunitiesExploiting market opportunitiesAttracting & Retaining HRCost Reduction

**KPMG SURVEY on SUSTAINABILITY REPORTING or TBLR: BenefitsReduce operating costs & improve efficienciesDevelop innovative products & services for access to new marketsImprove reputation & brand valueRecruit & retain excellent peopleGain better access to investor capitalEnhance the public value of the companyReduce liabilities through integrated risk management

**SUSTAINABLE ENTERPRISE Makes resource-efficient products Minimum environmental impact Maximum value to customers Long-term shareholder-added value Adding value to society.

FOUR TRENDSEscalationIntegrationStandardizationGlobalization**

INITIATIVESGRI (Global Reporting Initiatives) (www.globalreporting.org)A4S (Accounting for Sustainability Project) (www.accountingforsustainability.org)IIRC (International Integrated Reporting Committee) (www.theiirc.org)

**

IMPLICATION FOR FINANCIAL MANAGERS

In the areas of investor relations/PRTelling a Cos financial story = Telling the Cos sustainability story**

**Corporate sustainability :ChallengesBalance between long-run & short-run needs of the firm & its stakeholdersManagement & maintenance of economic, natural, social capitalIncorporating social & environmental dimensions into decision making processCreate win-win situation: create shareholders wealth by becoming social & environment friendly

**CHANGEChange is the only constant in to-days world.A company can not survive without change. K.V.Kamath

**

Earth provides enough to satisfy everyones needs, but not everymans greed. -GANDHIJI

**DISTINCT or EXTINCT

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

THANK YOU