Question

To what extent (If any) should sustainability concerns and issues be incorporated in accounting analyses?

When( if ever) should organizational decisions with sustainability-related decisions with sustainability-related impacts and significantly associated cost implications (savings or expenditures) be share with shareholders

Answer 1

Q:To what extent (If any) should sustainability concerns and issues be incorporated in accounting analyses?

Ans:

Sustainability accounting provides a useful tool to identity, evaluate and manage social and environmental risks by identifying resource efficiency and cost savings and link improvements in social and environmental issues with financial opportunities. Sustainability accounting connects the companies' strategies from a sustainable framework by disclosing information on the three dimensional levels (environment, economical and social). In practice, however, it is difficult to put together policies that simultaneously promote environmental, economic and social goals. Many times, environmental accountants can save on both environmental and financial costs by making calculations for the use of alternate chemicals, processes, or product designs. Identifying environmental costs can help companies design cleaner products and make more efficient use of resources.

Therefore extend of sustainability cocerns and issues in accounting analysis is an important part of an effective and efficient Going Concern Entity.

Q: When( if ever) should organizational decisions with sustainability-related decisions with sustainability-related impacts and significantly associated cost implications (savings or expenditures) be share with shareholders?

Ans:

Organisational decisions relating to sustainability matters should be shared with shareholders in an early stage itself. Shareholders who has interest in companies growth and developmental plans by a companies sustainability efforts and those efforts affects the society as a whole and global environment. When it comes to sustainability shareholders take that seriously because only a sustainable company can survive in the long run. Shareholders are looking for maximising their wealth and only a sustainable company can do it. Moreover directors use sustainability to drive the value hence it is important that the shareholders get a full disclosure about the matters relating to sustainability.