Accounting

Accounting

Question a) Discuss similarities and differences in disclosure of social responsibility. In the last few decades the main goal of the companies was to make a profit. However, today the situation is changing. Today companies have not only commercial responsibilities such as running a business successfully, generating profits and satisfying shareholders needs but also social responsibilities such as protecting the environment and looking after employees. Social responsibility can be defined as “a company that does not pollute the environment, does not produce unsafe products and provides a healthy and safe workplace, therefore, be classified as social responsible” (Henderson, Peirson 2002, p.30.1). There are three companies such as Australia and New Zealand Banking Group Ltd (ANZ), Westpac Banking Corporation and National Australia has been chosen for discussion of how corporation disclose social responsibilities. All these companies are in banking industry. The internet source was used for gathering such information which can be found on www.library.cqu.au/faculty/business/companyinfo.htm . Also examples of disclosures can be found in appendix 1.Comparing annual reports of these three companies there are some similarities and differences in disclosure of social responsibilities. Companies using inventory approach, which is most prevalent approach to reporting a company’s social and environmental activities (Henderson ET al.2002, p.928). The similarities are all three companies have disclosed environment information and achievements such as energy, waste and paper. Firstly consider ANZ, the aim of the company is to achieve long-term shareholder value by focusing on the market’s potential for sustainability products and services. Moreover in June 2002, ANZ established Wind Power Investment Trust to develop wind farms in New South Wales, South Australia and Victoria. Also ANZ have expanded Environmental Management Program through ANZ Green Office initiative including joining the Federal Government’s Greenhouse Challenge. The main objectives of the Green Office of ANZ are energy, waste and water. ANZ has joined Property Council of Australia/Sustainable Energy Authority of Victoria’s Energy Smart Leaders Program to reduce energy consumption and Greenhouse emissions. Also ANZ Company participated in a Best Practice Waste Management Trial to ensure recovering and recycling of all used office paper.