How Sustainability Reporting Can Be Beneficiary to Businesses

Document Type:Essay

Subject Area:Business

Document 1

Clients need to have an idea on what they are getting themselves into and stakeholders need to know how their money is spent. Sustainability reporting started gradually in the 70s but today it is really settling in and many big companies are emulating it. Through the sustainability reporting, the society is able to understand the company and their services to clients. Investors can also use the sustainability reporting to decide whether to invest in these companies or move on. Sustainability reporting covers the social and environmental nature of the company with a few economic reports (Amran and Say 2014). Bad reports can send away customers and ruin potential future clients, so the business should be careful with the reports they release (Amran and Say 2014).

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Good reports will, in turn, be a blessing and the business might explode with sales especially with the current age of social media where reports reach people very quickly. The business should ensure reports are genuine because fabricated reports which do not give a clear picture of how the business operates can be leaked and the reputation will be gone. All clients will go. Secondly, Sustainability reporting may raise the reputation of the business (Laurenco, 2014). For them to survive all these, the business will be forced to make changes on these areas before they release any report to the public. Improvements will, therefore, be witnessed however small for the sake of the report and auditors who may pop in to confirm.

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Clients will get better services, employees will be treated fairly and the environment will be safe again. Sustainability reporting can be used by money lenders for example banks and corporations to gauge honesty of the business (Amran and Say, 2014). Once the lenders discover the business is honest in all its endeavors and they acknowledge mistakes in a more open manner, they will be more willing to lend the business. Therefore many of them opt to avoid it until it is made mandatory. Some big companies are also not willing because it is expensive to hire these experts and yet the benefits of this process cannot be calculated financially. The company therefore needs to look for cheaper ways, even carry out an internal audit to cut on the costs used in hiring experts as long as the process is discrete.

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Consequently, consumers do not clearly include sustainability as a main factor for them while making purchases. They will not make it their duty to inquire on how sustainable the business is before buying their favorite products. The same way changes will be gradual therefore companies should not expect huge profits because of sustainability reports. In summary, Sustainability reporting is a good thing for the environment, employees, and consumers, but the business need to put pressure on the government. The government only come in anytime they want to tax the company and this should not be the case. The companies should be wired to care about sustainability reports. The government needs to at least make it a tradition of inspecting these firms before taxing them.

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