Discuss about the Sustainability Report for Wesfarmers Limited.
This study deals with analyzing the sustainability reporting in accounting for the Australian listed company named as Wesfarmers Limited (Wesfarmers.com.au, 2017). In this particular assignment, emphasis has been given on the company who are active in committing towards meetings the best interest of stakeholders for long-term. Sustainability reporting reveals important step towards achieving sustainable global economy. Sustainability reporting process will elucidate the entire responsibility of business process as well as their influence on community as a whole. This will help in enhancing trust as well as facilities process for sharing values whereby cohesive society cam is constructed. In other words, sustainable information will be utilized by the government for evaluating the sustainability reporting as well as its contribution in the given organization. This help in managing the issues faced by Wesfarmers Limited. The current segment intends in analyzing the case of Wesfarmers Limited for analytically reviewing the sustainability reporting practices in the given organization (Scott, 2013).
Wesfarmers Limited aims at continuing in creation of value for future activities. Addition to that, the company remains committed towards actively managing with the community and impact on environment (Rankin et al. 2014). Some of the broadly classified values attained by Wesfarmers Limited are as follows:
People- Wesfarmers Limited aims at focusing on rendering safe workplace for their employees working in the particular company. In other words, Wesfarmers Limited majorly focuses on creation of inclusive work environment as attended by gender diversity and Aboriginal Torres Strait Islander people (McLeay and Riccaboni, 2012).
Sourcing- One of the major values of Wesfarmers Limited is sourcing that takes into consideration suppliers and ethical sourcing (Horngren et al., 2015). In other words, suppliers are committed towards building strong and cordial relationships. Therefore, Ethical sourcing majorly strives the way in responsible way as well as improving the social practices (Wesfarmers.com.au, 2017).
Community- Other values of Wesfarmers Limited are serving the community as a whole whereby the company commits in providing product safety to the end consumers (Hopper, Northcott, and Scapens, 2015).
Environment- One of the most important values attained by Wesfarmers Limited in protecting the environment. This can be done by reducing the emissions of business and bringing improvement in the resilience of climate change. Therefore, usage of water and waste reduces waste for landfill (Drever et al. 2014).
Governance- Governance is other values adopted by Wesfarmers Limited that maintains robust corporate governance policies in major aspects of business activities (Drever et al. 2014).
Wesfarmers Limited commits towards creation of value for potential shareholders, employees and communities as a whole. In other words, the company aims at maintaining long-term value creation as well as serving to communities as far as possible (DesJardins and McCall, 2014). This means sustainability is the concept for managing the way for ensuring best possible activities for creation of values in the near future. Wesfarmers Limited aims at reducing own carbon footprint as well as delivering solutions to potential customers. Proper actions are taken by Wesfarmers Limited for continuously improving the performance level and public reports from the annual sustainability report (Hopper, Northcott, and Scapens, 2015).
Wesfarmers Limited brought transparency in their operations especially in the supply chain in more than 3200 factories in given audit program. In other words, the company deals with ethical sourcing practices such as supply chain transparency (Bonner, 2013). Therefore, Wesfarmers Limited makes strategies in reducing the greenhouse gas emissions by 2% for becoming environmentally viable in action (Hopper, Northcott, and Scapens, 2015).
Sustainability reporting will help in bringing together comprehensive evaluation by bringing out the strength and weakness after engaging with stakeholders (Bhimani, 2014). In other words, these reporting practices will turn up the progressing vision as well as organizational strategy. This reveals that sustainable reporting practices will highlight the process for cost reduction policies and compliance by accurate measurement for level of sustainability performance (Hopper, Northcott and Scapens, 2015). This will help in assisting corporations for satisfying regulatory obligations in an efficient manner. Business Corporation will be acquiring competitive advantage by way of attracting greater amount of investment as well as taking necessary actions in new market penetration. Code of ethics for Professional Accountants had been introduced by the year 2006 as well as amended for the year 2008. This is declared at the time of presenting the standard as per the Accounting Professional and Ethical Standards Board. These standards are presented in the Global Reporting Initiative (Beaver, 2013).
Wesfarmers Limited has various sustainability issues that should be minimized as far as possible (Arpan and Radebaugh, 2016). This company faces material sustainability issues. This firm intends in retorting in issues concerning material sustainability by way of delivering strategy in successful ways. This company strives in managing the responsibility towards the safety of employees. The company even requires improving the total recordable injury rate for viewing the negligible facts (Hopper, Northcott, and Scapens, 2015). This company should contribute 1% of pre-tax profits from the national and local economies in the community programs (McLeay and Riccaboni, 2012). The company should make strategies in reducing as well as maintaining greenhouse gas emissions but failed in the last year. The company failed in performing any of the significant environmental events for each year. There are numerous incidents that took place for the company that needs to be minimized as far as possible. Therefore, Wesfarmers Limited should be focusing on bringing welfare of community as well as environment and society as a whole (Anton and Firmin, 2015).
Wesfarmers Limited commits towards actively managing the community as environment as a whole (Hopper, Northcott, and Scapens, 2015). This company follows essential 10 major principles that relates with minimizing the sustainability issues as identified from material aspect from the Group. Wesfarmers Limited believes in providing safe workplace for the employees who work for the organization. This means management intends in addressing the workplace conflicts by creating inclusive workplace environment by putting special attention to gender diversity by including Aboriginal Torres Strait Islander (Wesfarmers.com.au, 2017). On critical analysis, it has been found that there is room for improving safety performance as well as safety initiatives. Wesfarmers Limited properly implements as well as monitor nurse on call service, app used for detecting hazard. This means examining the implementing and checking the level of performance in the Safety Activity Book and Injury care programs (McLeay and Riccaboni, 2012).
Figure: Emissions management in Wesfarmers
(Source: Hopper, Northcott and Scapens, 2015)
Sustainability Report clearly indicates the ways the company strives in decreasing the waste of the company for landfill and use of water (Wesfarmers.com.au, 2017). Addition to that, sustainability reports elucidates in detail regarding maintenance of corporate governance strategies. Detailed evaluation has to be undertaken for revealing the fact that sustainability reports will present the targets of the emissions. This report fails in specifying the gap between target as well as actual figures (McLeay and Riccaboni, 2012).
Conclusion:
At the end of the study, it is concluded that Wesfarmers Limited is highly sustainable in nature. This means the study render an overview of operations regarding accounting concepts of sustainability reporting with special orientation on the declaration of the company. The study clearly mentions on the sustainability reporting as well as value additions for understanding the importance of sustainability as laid down in a accounting standard. The above analysis augment the way sustainability reporting help in bringing out the real issues in business based upon the findings in the case study. Business Corporation aims at using the sustainability reporting practices in a way for adding values for understanding the business functionalities of the firm. This means generation of trust by way of maintaining level of transparency that emphasis upon non-financial performance. This initiates communicating with the stakeholders for reducing the reputational risk. This sustainability reporting will help in enhancing the business process and systems of proper internal management at the time of undertaking business decisions.
Reference List
Anton, H. R., and Firmin, P. A. 2015. Contemporary issues in cost accounting: a discipline in transition. Houghton Mifflin.
Arpan, J. S., and Radebaugh, L. H. 2016. International accounting and multinational enterprises. Warren Gorham & Lamont.
Beaver, W. H. 2013. Financial reporting: an accounting revolution. Prentice Hall.
Bhimani, A. 2014. Contemporary issues in management accounting. Oxford university press.
Bonner, S. E. 2013. Judgment and decision making in accounting. Prentice Hall.
DesJardins, J. R., and McCall, J. J. 2014. Contemporary issues in business ethics. Cengage Learning.
Drever, M., Stanton, P. A., McGowan, S. C., Raar, J., Sofocleous, S., and Ravlic, T. 2014. Contemporary issues in accounting. John Wiley & Sons Australia.
Hopper, T., Northcott, D., and Scapens, R. 2015. Issues in management accounting. Pearson education.
Horngren, C. T., Sundem, G. L., Schatzberg, J. O., and Burgstahler, D. 2013. Introduction to management accounting. Pearson Higher Ed.
McLeay, S., and Riccaboni, A. . 2012. Contemporary issues in accounting regulation. Springer Science & Business Media.
Rankin, M., Rankin, M., Stanton, P. A., McGowan, S. C., Ferlauto, K., and Tilling, M. 2014. Contemporary issues in accounting. Milton, Australia: Wiley.
Scott, W. R. 2013. Financial accounting theory (Vol. 2, No. 0, p. 0). Upper Saddle River, NJ: Prentice hall.
Wesfarmers.com.au. (2017). Wesfarmers.com.au. [online] Available at: https://www.wesfarmers.com.au/ [Accessed 16 Jan. 2017].
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