2.1 Environmental Reporting
George Emmanuel Iatridis (2013) had studied the quality of reported information about environmental performance and their relation to the company’s environmental practices. He investigated the association between the quality of environmental disclosure and corporate governance, and also examined the extent to which effective environment disclosures are relevant and how these factors influence the point of view of investor. This researcher found the positive relationship between environmental disclosures and environmental performance.
In addition, Ienciu et al. (2012) had studied the relationship between corporate governance characteristic and the extent of environmental reporting. The characteristics of corporate governance that they highlighted in their study are comprising of size and formation of the board, existence of the board committees and the practice of job separation between Chief Executive Officer and Chairman of the board. They focused their study in the case of Romanian companies listed at Bucharest Stock Exchange and found that board independence and board size are factors that influence the level of environmental reporting within Romanian companies.
Another study that has been conducted related to the environmental disclosure was the study on relationship between size of company and the extent of environmental disclosure among Greek companies. Galani, Gravas and Stavropoulos (2011) found that the degree of development of environmental reporting practices is still low and the company size is positively related with the disclosure of environmental information in annual reports.
Correspondingly, in relation to the extent of environmental reporting practices among Malaysian companies, it w...
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...al level according to various important considerations. They identified that among of the relevant considerations are profit margins will generally fluctuated over the product life cycle from primarily negative to higher margins when sales are increasing, while eventually constant and decreasing towards negative value when the market saturates. They highlighted that the profit of a product should converge to the company average margin over their product life cycle.
Perpetually, Chuan Zhang and Fei Pan (2009) had studied the consequences of customer satisfaction on profitability among the Chinese state-owned enterprises. They found that the rising unit profit margin can play an important role in improving profitability as compared to the rising of sales. Thus, the customer satisfaction gave significant influence on profitability in state-owned enterprises in China.
With annual revenue of US $19.02 billion, Chevron Corporation is the 16th largest integrated oil and gas energy company in the world. Globally they account for a workforce of approximately 62,000 (Forbes 2011). In 2010, the company produced 2.763 million barrels of oil per day (Chevron 2012). Corporations as large as Chevron owe a great amount of responsibility towards the society and environment above and beyond the economic and legal obligations. The industry is strongly linked to environmental scandals and companies make various efforts to address these issues (Farache and Perks 2010, 235). The following thesis will review the Environmental performance of Chevron in terms of fulfilling social needs within society and stakeholders.
The Securities and Exchange Commission requires that publicly owned businesses provide annual reports, which are available to the public. Many different people use annual reports, to make informed business decisions. Management from the company uses the information to determine a number of items. Some of these items are the profitability of the company, the inventory turnover rate, and the accounts receivables rate. Creditors use the annual report to determine how well a company can satisfy its current liabilities, as well as, how the company is doing in the aspect of long tem survival. Another group of people who use the annual reports furnished by companies are the investors, who can purchase shares of stock from the publicly company. Annual reports are very important to these people, because they are an over all picture to help them determine the over all stability and reliability of the company’s financial outlook. These annual reports are important because they do not only contain the financial statements of the company, but there is a management ‘s note to discuss reasons for any unexpected numbers, and an auditor’s report, from an independent accounting firm, who either agrees or disagrees with the financial numbers. Market reporter Matt Krant said, “Ignoring these reports is akin to driving down the freeway blindfolded.”
El-Gazzar, S. M., Fornaro, J. M., & Jacob, R. A. (2008). An examination of the determinants and contents of corporate voluntary disclosure of management’s responsibility for financial reporting. A Journal of Accounting, Auditing & Finance, 23(1), 95-114. Retrieved from http://library.gcu.edu/
Management Accounting emphasizes on supporting managers of a company in their aim to improve both shareholder and customer value (Mongiello, 2015). In any case, companies are progressively recognizing the wider information needs of a broader array of stakeholders. For example, a triple bottom line reporting technique is being used by many Australian companies to communicate the social, economic and environmental aspects of their activities to the shareholders. A lot of information is required by companies to implement environmental management. Triple bottom line reporting takes 3 aspects into consideration when evaluating performance; Financial, Social and Environmental. The Triple bottom line reporting caters to many stakeholder
According to the case study, the work of environmental managers often exposes them to many pollution prevention solutions, but they often have trouble getting access to production areas. Production often sees Environmental Managers as "the compliance police". Stakeholders The stakeholders in this case study include the corporation, the community and the countryside.
Companies have presented investigations about their motivation towards voluntarily social and environmental as insolvent. This paper argues in agreement with Adam’s view that the goal of CSR reporting is to promote credibility and corporate image of stakeholders operating in a particular industry. Whereas companies must focus their efforts on enhancing their profitability, they should also ensure that the welfare of other stakeholders is protected.
Many vehicle manufacturers have paid more attention on CSR to sustain their business development. Environmental management schemes, green supply chain management and labor codes of conduct are widely recognized and implemented within the industry (Martinuzzi et al., 2011). Automakers also rate it more important comparing to other factors of the company. For instance, the disclosure of the general movement of social and environmental accountability, according to the established opinion leaders in the automotive industry, is increasingly positioned at the forefront of any economy and business context (Russo-Spena et al.,
The next part of Audit process is to understand the business environmental aspects of the company. As part of the marketing audit project the author is going to analyze and provide detailed information on the following key environmental aspects
According to the conceptual framework, the potential users of financial statements are investors, creditors, suppliers, employees, customers, governments and agencies, and the general public (Financial Accounting Standards Board, 2006). The primary users are investors, creditors, and those who advise them. It goes on to define the criteria that make up each potential user, as well as, the limitations of financial reporting. The FASB explicitly states that financial reporting is “but one source of information needed by those who make investment, credit, and similar resource allocation decisions. Users also need to consider pertinent information from other sources, and be aware of the characteristics and limitations of the information in them” (Financial Accounting Standards Board, 2006). With this in mind, it is still particularly difficult to determine whom the financials should be catered towards and what level of prudence is necessary for quality judgment.
Williams, P. & Naumann, E. 2011, "Customer satisfaction and business performance: a firm-level analysis", The Journal of Services Marketing, vol. 25, no. 1, pp. 20-32.
Securities Commision Malaysia. (2014). General Article: Corporate Governance. Retrieved March 26, 2014, from Securities Commision Malaysia: http://www.sc.com.my/corporate-governance/
Customer satisfaction is the overriding factor for the successful operation. Sales of the supermarket can grow when it makes its customers satisfied with the goods or services by best policy to fit customers’ requirement. So, it can be told that customer satisfaction is followed by customer revisiting or repurchasing. They can also tell their acquaintances about products or services as good. Customer satisfaction and sales might be linked directly, companies have to check the factors periodically such as quality, schedule, layout, inventory and so on to lift customer satisfaction because even small factors that employees didn’t recognize can affect consumer satisfaction enormously.
Financial reporting is an example of an ethical problem for an organization or business. Many busin...
Despite the fact that it has been proposed that assimilated financial records contained ecological and social data, it was evident in the article that the genuine mix merits consideration among the stakeholders. Sustainability segments in yearly reports among numerous cases were isolated, albeit incorporated; similarly, applies to corporate administration segments in connection to sustainability. At the same time, when the corporate administration and sustainability turn out to be truly connected and reported together, these offered new doors for integrative methodologies in expansion to the bookkeeping
Now-a-days it is considered that CSR is one of the major concerns of organization’s business ethics. Companies increasingly increase their corporate social responsibility (CSR) and ethical management accepting the positive impact on the bottom line. The vast bulk of Standard & Poor’s 500 companies publish sustainability reports unfolding their program challenges and achievements. These pre-emptive efforts can pr...