Question

You have an interview for a junior management accounting role with a medium sized IT firm which has plans to list on the ASX. The interviewer informs you of a debate within the firm about whether or not to produce ‘corporate responsibility’ reports. She asks you what your opinion on the issue is. How would you respond?

Answer 1

Answer :

The company must produce a corporate responsibility report.

Corporate Responsibility report is the report which tells the stakeholder of the company about its and its philanthropic activities, it works as a bridge between the company and other stakeholders' to give them insight about the values of the company. The main aim of the company to earn profit but if the company does not give back to society, from where it earns the main purpose of the company gets defeated. And lesser people want to associates such types of companies which have no value.

Every company have to report the following points to their corporate responsibility report -

- Relationship with stakeholders

-The current plan of investment

- About the Sustainability of the company and future plan to invest in society

-The risk associated with the stakeholders complain about the company, this shows how responsible company towards their stakeholders

-Sustainability performance improvements through the use of better quality data increased transparency on key issues and improvements in business strategy.

and other important matters when the company wants to scale up its business, the core value it belongs must be followed for the long term survival of the company.

It is to be worthwhile to mention shareholders and stakeholders are different as a shareholder who invests in the company whereas the stakeholder includes Every person associated with the company either supplier, supply chain, employee, or society as whole.

As per the survey,conduct80% of the corporate are agreed with corporate responsibility report.

Although, The company is mid-size currently but having future plan to list itself to ASX.So the company must follow the practice to attract stakeholders' to help him to list out.

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