Management Accounting CSR Quotient Benefits

Question: Describe about the Management Accounting for CSR Quotient Benefits. Answer: Corporate Sustainability Reporting The corporate sustainability reporting can also denote as CSR reporting. CSR helps any and every kind of organization to evaluate the wide range of sustainability issues enabling them to have a better insight of the opportunities or risks they might have in near future. CSR is considered very flexible as it is used by the organization, the organization is free to evaluate its CSR progress in any deliberate way they choose to. But on the other hand if every company starts making out a different meaning and utilization of it then there would be chaos and it would very hard to find out what the reporting is actually meant for (Brockett Rezaee, 2013). The CSR do have its own quotient of benefits. It instills discipline in the orders of the organization and helps the organization to think of its long term goals and visions, thus raising the awareness of practicing sustainable practice in the company as a whole. A large section of the corporate world has agreed that it does increase the bar code of discipline and also helps the long term visions of the company for the future. The CSR does help to track the performance of the organization and thus gives another reason that the process should be well integrated with the business strategy to gain long term gains. The sustainability reporting does attract the attention of the organization towards the sustainability practices. These helps in reducing the cost in various aspects of the business and thus on a larger note increases the efficiency of the organization. Of the various advantages that the CSR has - increasing momentum along with sustainability in the organization, helps in better communication with the stakeholders, it is also a good utility tool to communicate with the employees, other organizations and also other local groups. And last but not the least it has the ability attract younger generation as talent does get attracted to issues related to the sustainability of the business (Paul, 2008). Costs and benefits of Corporate Sustainability Report There does have costs as there are benefits and especially if the report is not prepared properly. Setting a weak goal for the organization can invite danger in term of business as a whole. To produce a good report the data collected and presented should be up to the mark otherwise and do the reverse of what it is meant to do ("Corporate Progress: Opposites Attract, Corporate and nonprofit partnerships yield benefits for both", 2008). A good company always weighs the social, financial and environmental performances and then prioritize its sustainability in the reports. To receive advice or data verifications from the clients and stakeholders some discounts needed to be provided. And producing these reports for short-term goals does not pay its total dividends. But along with these risks, there are benefits too. The Corporate sustainability report enhances the company's image and reputation, it helps in in the removal of the organization's negative publicity or helps in the better dev elopment of its image. It does promote a better organization behavior as the employees tend to stay back with the employer which keeps them happy and also do take care of them. And more importantly, helps the organization to understand the risks and opportunities. So whenever there is an opportunity they are able to grab it or improve themselves during risks ("Global Corporate Sustainability Report 2013", 2013) . Types of concepts and standards associated with Sustainability reports To have a better sustainability report the economic analysis is done to evaluate the external factors which impact the operations of the organization, mainly industrial trends and external factors. These factors do affect the economic outlook which affects the brand creation and thus in turn the capital formation (Simnett, 2012). The industrial analysis is done to have a better understanding of the competitive forces in operation and the potential of the organization to create sustained value. It is also done to evaluate the external factors which might affect other industries leading on to portfolio risks. During the creation of these reports the company strategy evaluation is done to have a better understanding of the quality of the management and the strategy being used thus helps in evaluating the companys strength to retort to emergent trends. Then finally valuation is done to consider traditional assumptions and parameters of valuation which do include capital average cost and cash flow to have a better understanding of the material sustainability (McGarr, 2015). Figure 1: Corporate Sustainability Reporting Source - https://www.oliverrussell.com/stuff/contentmgr/files/0/488e65cdde7746b6bebc5dd7671297a4/files/chart.png Conclusion CSR should be part of every organization as it helps in having a better understanding of the organization. It helps to know the internal as well as the external factors that may affect the working of the organization. Although while dealing with this reporting the data collection and evaluation should be done properly as if there is any mistake then it might affect the organization not only on short-term note but may affect it over a long period of time. References Brockett, A. Rezaee, Z. (2013).Corporate sustainability. Hoboken, N.J.: Wiley. Corporate Progress: Opposites Attract, Corporate and nonprofit partnerships yield benefits for both. (2008).Sustainability: The Journal Of Record,1(5), 304-307. https://dx.doi.org/10.1089/sus.2008.9934 Global Corporate Sustainability Report 2013. (2013).UN Global Compact Reports,5(1), 1-28. https://dx.doi.org/10.5848/ungc.5720.2014.0009 McGarr, T. (2015). Asset Management International Standards and Associated Standards.Engineering Technology Reference. https://dx.doi.org/10.1049/etr.2014.0043 Paul, K. (2008). Corporate Sustainability, Citizenship and Social Responsibility Reporting.Journal Of Corporate Citizenship,2008(32), 63-78. https://dx.doi.org/10.9774/gleaf.4700.2008.wi.00007 Simnett, R. (2012). Assurance of sustainability reports.Sustainability Accounting, Management And Policy Journal,3(1), 89-98. https://dx.doi.org/10.1108/20408021211223570