Accounting Reporting
Recap
Accountability, AA1000
Theories for Sustainability Accounting:
Managerialist
Critical
Middle of the Road:
Stakeholder theory
Legitimacy theory
Recent developments
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Overview
Historical trends in CSR
Current trends in CSR
CSR initiatives
The Australian Minerals Industry and CSR
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Historical trends in CSR
Social and Environmental developments (Week 1)
Change in the emphasis on CSR over time
CSR1 – Corporate Social Performance
CSR2 – Business ethics
CSR3 – Corporate Social Responsiveness
CSR4 – Corporate Citizenship
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Historical Trends in Sustainability Accounting and Reporting
Howard Bowen (1953) – Social Responsibilities of the Businessman
Social Accounting – 1970s
Environmental Accounting – 1990s
Triple Bottom Line/ Sustainability Accounting –mid 1990s onwards
Integrated reporting/Integrated Thinking
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Current trends
Increasing reporting of triple bottom line issues with shift from annual reports to social and environmental reports, media releases and the web
Move towards integrated reporting
Focus on engagement rather than just management
Increasing emphasis on Climate Change and Carbon
Counter Accounting/External Social Audits
The media
Rise of social media
Rating agencies
NGO partnerships
Assurance is haphazard
Global versus Local issues
Guidelines developed for CSR
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CSR initiatives
Valdez principles and International chamber of commerce business charter for sustainable development
UN Global Compact – ten broad principles that encompass human rights, labour standards, the environmental and anti-corruption
http://www.unglobalcompact.org/
UN Millennium development goals
http://www.un.org/millenniumgoals/
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CSR Initiatives
ISO standards e.g. 14001. Also ISO 2600 (latest)
http://www.iso.org/iso/social_responsibility
GRI
http://www.globalreporting.org/
AA1000 and SA8000
Regional level – European Union initiatives such as EMAS
http://ec.europa.eu/environment/emas/index_en.htm
And Sigma
http://www.projectsigma.co.uk/
Industry level – responsible care program in chemicals industry
http://www.icca-chem.org/en/Home/Responsible-care/
Certification programs such as marine stewardship council and forest stewardship council
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Australian context
Voluntary initiatives
Public environmental reporting
http://nrmonline.nrm.gov.au/catalog/mql:343
Greenhouse challenge plus http://www.environment.gov.au/archive/settlements/challenge/index.html
Industry specific initiatives such as those for the national packaging covenant for the consumer packaging industry
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Australian context
Mandatory requirements
Section 299(1)(f) of Corporations Act
Clerp 9
National Pollutant Inventory
Internet based national public database of pollution emissions in Australia that is accessible to the general public
Similar to Toxic release inventory in the US
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Recent Initiatives
National Greenhouse and Energy Reporting Act
http://www.climatechange.gov.au/government/initiatives/national-greenhouse-energy-reporting.aspx
Carbon pollution reduction scheme/ Emissions trading scheme
Carbon Tax – repealed in 2014
http://www.climatechange.gov.au/
Direct Action Plan
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CSR in the Australian Minerals Industry
Highly visible social and environmental impacts and constant stakeholder pressure
Prior history – OK Tedi, Baia Marie
Current issues – opposition to Carbon Tax and Minerals Resources Rent Tax
Social licence to operate is therefore critical for corporate survival
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CSR in the Australian Minerals Industry
Minerals Council of Australia – industry association which is not only concerned with economic performance of members but also considers social and environmental issues. A “sustainable development” conference is held every year
Initially developed the Code of Environmental management in 1996 which was subsequently revised in 2000
Global Mining Initiative – a commitment in 1999 by nine mining companies to develop a sustainable development strategy for the entire minerals industry
WWF ‘Ore and Overburden’ reports in 1999 and 2000
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CSR in the Australian Minerals Industry
Sustainable development framework entitled “Enduring Value” developed in 2004, the first for the global minerals industry
Mining Certification Evaluation project – project involving 6 mining companies, WWF, CSIRO and MCA which evaluated whether independent third party certification can be applied to mine sites
Peck and Sinding (2003) – data rich social and environmental reports for the Australian minerals industry
But see also Pellegrino and Lodhia (2012) – lobbying against carbon tax
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Summary
CSR has evolved from the marginal fringes of business activity to an integral part of business activity
Various guidelines have facilitated the practice of CSR
Particular industries have developed their own approaches towards addressing CSR
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Next
Triple Bottom Line (Sustainability) Reporting
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