Question

a. Explain the 6 principles in determining report content and take some of the relevant information from Listed Companies

b. Why companies need to be positively response to stakeholders’ needs in providing information in a sustainability report?

c. Is CSR activities refer to ‘future cost’ or ‘future investment’? explain your answer clearly.

Answer 1

Answer(a): Principles in determining report content- ARE AS FOLLOWING:

Accuracy- This principle says that reports should be accurate. Data in the report should be free from grammar mistakes and amounts should be actual. Example- If an amount is shown as Salary expense, it should be salary expense only not the other expense.

Consistency- It says that the format and standard of report should be consistent and similar to the previous reports.

Appearance- It says that report should be as per the specified format and standards and it should be professional looking.

Efficiency- Report should be efficient that shows the efficiency of the company. It should be a quickly and easily prepared report.

Usability- Report should be useful for the stakeholders and it should solve the defined purpose. It should be useful for decision making.

Reliability- Report should be reliable, it should be based on actual and reliable figures and data. No fake entry should be entered in the report.

Answer(b): Sustainability report- It is a report, prepared and published by the company about the impact of company's everyday activities on economy, environment and society.

There should be proper engagement between company and the stakeholders. Stakeholders are the people who are directly and indirectly related to company, for example: GOVERNMENT, PUBLIC, SHAREHOLDERS, EMPLOYEES, CUSTOMERS, CREDITORS, INVESTORS ETC. These people are very important in sustainable growth of business that's why their queries should be solved and presented in the report.

Answer(c): CSR- Corporate social responsibilities are the responsibilities of companies towards society, stakeholders, economy and environment. Many companies are indulged in CSR so as to betterment of people and society.

CSR is a future investment, it helps to achieve sustainable growth. CSR activities increase the brand value and Goodwill of company. CSR is an investment that provides return to the company in terms of customer loyalty, revenues, profits etc. Company can easily raise funds if it is indulged into CSR activities.