Question

question3:

The following is adapted from an article in the Time magazine.

A to Z Fruitworks became a B in 2014. That’s B as in B Corp, short for “benefit corporation.” In B corporations, profits still matter, but employees, suppliers, the community and the environment can be on equal footing with owners or shareholders. “We believe that at every level, everybody has to win, “explains A to Z president Amy Prosenjak. For A to Z, being B means that the grape growers it contracts are guaranteed fair prices in good years and bad and that its distributor aren’t squeezed for every last penny. Employees are paid 43% over the local living wage, and the business is run on a sustainable basis. And Yes, A to Z is profitable; this year it will produce 365,000 cases of juice. B Corp companies represent a particular style of capitalism whose mission includes attacking social and environmental problems. (23 March 2015)

Required:

a.     Briefly discuss, the concept behind the following sentence quoted from the passage above: “In B corporations, profits still matter, but employees, suppliers, the community and the environment can be on equal footing with owners or shareholders.”

b.     What are, in general, the role of accountants in the accounting profession, in contributing to promote business CSR and sustainability?

Answer 1

a) (In B corporations , profits still matter, but employees, suppliers, the community and the environment can be on equal footing with owners or shareholders"

B corporation has set standards for social and environment. It aims towards more inclusive and sustainable economy. B corporations aims towards reducing inequality. It also aims towards equal footing with owners or shareholders. It work towards a healthier environment. B corporation aims to earn profit but its main aim is to have equality between suppliers, community and environment with that of shareholders or owners.

b) CSR is a business model which aims to make a company accountable socially to itself, its shareholders and to the public. It makes companies conscious about the impact they are making to the society. The accountants have the ability to provide a mechanism that can hold corporations accountable for what they are doing.