This activity will introduce you to sustainability accounting. At the present time, sustainability accounting is not required by government regulators or accounting reporting authorities. However, many consumers, retailers, and manufacturers are becoming increasingly concerned about social and environmental issues, and business organizations are finding it potentially beneficial to report such information. In addition, a new industry of inspectors – auditors has been created to verify that companies are complying with fair trade practices and are operating with environmental discretion by supporting various “green” certifications.
Read the following articles:
Johnson and Johnson: A Model for Sustainability Reporting
Johnson & Johnson: A Case Study on Sustainability Reporting
Answer the following questions based on your reading:
- What is a definition of sustainability reporting?
- What types of initiatives does sustainability include?
- Who are the stakeholders of sustainability reporting?
- What are J&J’s two purposes for publishing sustainability reports?
- What are the two theories on why companies produce sustainability reports?
- How has paragraph content shifted or changed from the early reports to the newest reports at J&J.
- What are the benefits of sustainability reporting as described by J&J.?
- How does sustainability reporting mitigate risk?
- What has been the issue with the positive, negative, and neutral tone of the sustainability reports?
- What are the potential pros and cons of third-party assurance?
- What does J&J recommend for sustainability reporting to be beneficial?
Your answers to the sustainability reporting questions should be in short-answer or paragraph form. Use complete sentences as appropriate. Spelling and grammar are important.