Question

You are the chief financial officer of Superior Paint Company, a company that manufactures paint and paint products in a large township. Chemicals used in the production process are disposed off in compliance with environmental regulations but some of the components of the products such as solvents, monomers and softening agents still present serious ecological risks. The company provides regional employment. The chief executive officer has asked you to prepare a report on whether the company should engage in social and environmental reporting.

REQUIRED:

1. Recommend to the chief executive officer whether Superior Paint Company should engage in social and environmental reporting and provide two supporting reasons with reference to the GRI Framework.

Please reference GRI framework points in answer.

Answer 1

Superior paint company must print a social and environmental report in order to develop its relations with the shareholders. The advantage of social and environmental reporting is that the shareholders and customers view the organization as a socially answerable and accountable organization when the organization sufficiently presents its social and environmental issues and happenings.

The company would have to sustain some costs on the analysis and the environmental conserving activities but these costs are worth the welfares of making the social and environmental reports.

Decisively, it is counselled to Superior paint company that the company should concoct and present the reports on its social and environmental activities and results because the company is involved in the disposal of harmful chemicals and it should be accountable for the threats posed by these chemicals to the environment and it would also enhance the image and relationship of the company with the outside members.