Question

“Stakeholder interactions and corporate social responsibility (CSR) practices: Evidence from the Fijian business”.

Required:

i) Research the above statement and

ii) Provide a theoretical analysis of the quality of corporate environmental reporting incorporating both preparer- and user-based views.

Answer 1

Your organisation doesn’t exist in isolation. It relies on multiple interdependent relationships with customers, employees, suppliers, communities and investors; in other words your organisation’s stakeholders.

Corporate environmental reporting becomes a crucial issue in today’s corporate reporting. The present status and future focus gives every indication that it is going to capture a permanent position in the bundle of general-purpose financial statement. Because, the corporate reporting is for the stakeholders and every stakeholders show a keen interest on such disclosure. Protecting the environment is the social responsibility and commitment of corporations towards the society. It is believed that corporation is responsible for the environmental crisis and so they should pay for this (cost-benefit trade off). However, reporting is mostly guided by standards, guidelines etc. And, we do not have any standards designed for such disclosure. So, such reporting is still voluntary that has no specific format and style. Voluntary disclosure often leads to non-disclosure and mandatory disclosure leads to minimal disclosure. Thus, environmental disclosure should have both type of orientation, as it is a question of life and sustainability. The paper gives a conceptual discussion on corporate environmental reporting and guidelines. It also gives a literature review of current reporting practices to highlights the developments till date. And, this concludes that the level, extent and style of disclosure are not satisfactory at all in any respect. The professionals and respective regulatory authorities should come forward with stricter standards and guidelines to this issue that is the demand of time. Keywords: Corporate environmental reporting, Corporate environmental report, Environmental accounting, Financial