An Evaluation of Financial Accounting & Reporting Essay

An Evaluation of Financial Accounting & Reporting - Essay Example In 2005, 80% companies in Japan and 71% of UK companies have reported about CSR, which can be described as highest reporting in this area. Between 2002 and 2005, South Africa reported about 17% increase in reporting and this is considered to be a remarkable increase. KPMG research report published in 2005 also demonstrated a significant change in the nature of reporting, and it modified from chiefly environmental reporting until 1999 to sustainability (environmental, economic and social ) reporting of late. (Nehme& Wee 2008:135). CSR is not a new concept. It has been in existence in many parts of the world including Australia since from the nineteenth century. For instance, US Steel is continuously reporting on CSR issues regularly from the twentieth century onwards. Further, as early as 1850, Levi Strauss & Co has stated in its annual reports that it committed to offering a quality product, a best community service and good working atmosphere for its employees. (Nehme& Wee 2008:143). Socially responsible companies offers olive branch or positive signals to all of its stakeholders and distinguish themselves from their rivals , thereby augmenting both of their short and long-term gains; Philanthropic and ethical considerations- companies have general obligations to the societies they operate from. Under â€Å" noblesse oblige† which connotes the obligation of nobility , the notion that a company as an entity is far more vigorous than any single individual and hence assumes larger obligations toward society. (Nehme& Wee 2008:135). A company has to look into not only its financial bottom line but also to give due importance to their environmental and social performance. (Figge and Hahn 2001). The GRI states that ‘the triple bottom line of environmental, economic and social performance is to be dealt in a sustainability report. (Schaltegger, Bennett and Burritt 2006: 584). A research study namely â€Å"International Survey of Corporate Sustainability