WELCOME
CORPORATE REPORTING &
SOCIAL RESPONSIBILITY: A
STUDY OF SUSTAINABILITY
REPORTING
Prof. Ranjan K. Bal
Utkal University
4/13/2015
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CUSTOMER IS THE KING.
DELIGHT OUR CUSTOMERS.
 Who are the customers of
Accountants ?
 Challenge before the Accountant:
To delight your customers
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VISION STATEMENT OF
M.A. Gr. JOHNSON & JOHNSON
 Delight
our customer
 Develop alternative measurement
system
 Keep it simple
 Utilise 20% time on accounting & 80%
time on analysis
 Be the best
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POST ENRON ERA
Trust-Transparency
gap
Information provided
Vs.
Information needs of Stakeholders.
Osama Bin Laden wanted to become an
accountant !!
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CORPORATE REPORTING
Trust-me
Tell-me
Culture
Show-me
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Culture
Culture
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MYTHS REGARDING
CSR
A
drain on profit
-Contradicts the main objective
A charitable work
Don't contribute to the best
interest of the corporation
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CSR
A
business process: Decision
making-Sensitive about the effects
on society
 Stakeholders: Society & Community
 Wealth creators Vs. Wealth
distributors
 Mutual beneficial partnership
 An investment by the Corporation
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CSR ACTIVITIES
BY SOME ORGANISTIONS
 Bank
of India: To adopt 101 villages
 NABARD: Develop rural non-firm sector
 HPCL: Rasoi Ghar, Hamara Pump,
Leadership lectures
 ICICI Bank: Partnering with NGOs,
Capacity building
 BPCL: Infrastructure Development,
Healthcare
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CSR Activities: Indian Cos.
52% supported health
 50% supported education
 30% supported environment
 27% supported rural development

36%
have Dept. for CSR
58% Top Mgt. involved in CSR
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SUSTAINABLE DEVELOPMENT
 Meets
the needs of present generation
 Without compromising the ability of
future generations
 Minimum environmental impact
 Maximum value addition for
customers
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Research Findings:
KPMG study:
On “Measuring Performance of the
Organizations of the Future”
FINDING:
“Over-reliance on summary financial
performance measures (Viz. ROI) was
hindering an organization’s abilities to
create future economic value.”
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RESEARCH FINDINGS
 McKinsey
& Co: 400 Firms
“The environmental challenge is one
of the central issues of the 21st
century.”
 World
Economic Forum: 650 Executives
“Environment is the most important
challenge affecting business.”
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Social
Economic
Triple
Bottom
Line
Environmental
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TBL or Sustainability Reporting
 Framework
for measuring business
performance
 Single bottom line to Triple bottom line
 Shareholder-oriented accounting to
Stakeholder-oriented accounting
 3 Ps: Profit, Planet & People
TBLR is complementary to Financial
Reporting.
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SOCIAL BOTTOM LINE
 Organisation’s
impact on society
 Public health & Community Dev.
 Skill & Education
 Social justice & Human Rights
 Trust, Integrity & Teamwork
 Labour practices
 Product Responsibility
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ENVIRONMENTAL
BOTTOM LINE
 Efficient
use of natural resources
 Efficient
environmental mgt.
 Renewable
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natural capital
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ECONOMIC BOTTOM LINE
Economic
profitability
Employment generation
Market creation
Financial capital &
Physical capital
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WHY TBLR?
 Growth
of Environmentalism
 Growth of Social Consideration
 Brand value & reputation
 Risk reduction
 Relationship with Communities
 Exploiting market opportunities
 Attracting & Retaining HR
 Cost Reduction
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KPMG SURVEY on SUSTAINABILITY
REPORTING or TBLR: Benefits
 Reduce
operating costs & improve
efficiencies
 Develop innovative products & services
for access to new markets
 Improve reputation & brand value
 Recruit & retain excellent people
 Gain better access to investor capital
 Enhance the public value of the company
 Reduce liabilities through integrated risk
management
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SUSTAINABLE
ENTERPRISE
Makes resource-efficient products
 Minimum environmental impact
 Maximum value to customers
 Long-term shareholder-added
value
 Adding value to society.

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FOUR TRENDS
Escalation
Integration
Standardization
Globalization
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INITIATIVES
 GRI
(Global Reporting Initiatives)
(www.globalreporting.org)
 A4S (Accounting for Sustainability Project)
(www.accountingforsustainability.org)
 IIRC (International Integrated Reporting
Committee)
(www.theiirc.org)
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IMPLICATION FOR FINANCIAL
MANAGERS
 In
the areas of investor relations/PR
 Telling a Co’s financial story = Telling the
Co’s sustainability story
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Corporate sustainability :Challenges
 Balance
between long-run & short-run
needs of the firm & its stakeholders
 Management & maintenance of
economic, natural, social capital
 Incorporating social & environmental
dimensions into decision making process
 Create “win-win” situation: create
shareholders wealth by becoming social &
environment friendly
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CHANGE
Change is the only constant in
to-day’s world.
“A company can not survive
without change.”
K.V.Kamath
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“Earth provides enough to
satisfy everyone’s needs,
but not everyman’s greed.”
-GANDHIJI
4/13/2015
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DISTINCT or EXTINCT
“ACT NOW or GET READY TO
BE A PART OF HISTORY.”
THANK YOU
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