Report writing help analysis on: Craig Deegan Australia
Executive Summary
In this Report, the article by Craig Deegan has been described in order to point out the contemporary environmental and social issues. The article is written by Craig Deegan which shows contribution of legitimacy theory in the social & environmental reporting. According to Craig Deegan, legitimacy theory defines CSR is a response to the environmental pressures which involves social & economic forces. In this article two issues have been identified such as how Companies are understood by the people outside and society perceptions about companies are very critical and effect the survival of companies. In this report, two retail companies of Australia have been analyzed such as Harvey Norman and JB Hi Fi to match the issues identified in the article. It is analyzed that both the companies of Australia have met the ratings of CSR available in Australia. JB Hi – Fi has maintained its environmental issues with the help of Carbon Disclosure Project, National Packaging, E- Waste and Product efficiency. JB Hi- Fi has maintained it social issues by Workplace Giving Program, Donation Boxes, local charitable giving and Employer leadership Initiative. The social and environmental reporting of both companies has maintained but after that few suggestions have been given to both companies in order to improve social and environmental reporting.
Article by Craig Deegan
The article posted by Craig Deegan explains an issue which search themes related with environmental & social reporting and its function in building or making of organizational legitimacy. It can be seen that understanding of motivations for disclosure is revealed as one of the major issues in attraction of substantial research attention, and the want to legitimize the operations of the organization and in turn shows one of the potential motivations. The function of legitimacy theory, is to explain the decisions of the manager’s and shows that theory of legitimacy recently used should be considered as significantly underdeveloped concept of managerial behavior. The legitimacy theory helps in providing useful & relevant insights. It can be seen that the article written by Craig Deegan shows contribution of legitimacy theory in the social & environmental reporting. According to Craig Deegan Legitimacy theory explains that CSR is a reaction to the environmental burdens which involves political, economic & social forces. According to this theory, companies seek to maintain the coordination among their actions & how companies are understood by people outside. It can be seen that community perceptions about the organization are critical and can affect its survival if the organization has breached its social contract. It is very clear that if the organization does not operate in an agreeable manner then community will take out its contract for continuing its operations. It is observed that social accountability becomes the relationship among the society and the company to which it relates to the transitional stage which has an ultimate aim for the sustainable development through accounting for contemporary environmental & social concepts. It can be seen that environmental accounting shows the method for the information of dimension of environmental for social accountability. It is observed that quantity of relevant environmental information considerably outweigh the negative presented environmental information. The issue raised was such as the knowledge about a verified offence related to environmental is applicable to users of the account and if yes, then statements of the finance would be referred as being ambiguous in the deficiency of that information. It is analyzed that environmental accounting of finance remains to show the main point of attraction for the researcher in the subject of environmental accounting (Deegan & Rankin, 1993). The annual report is shown as a method by which the organization view to form an image in the sphere of the public by voluntarily reporting, emphasize the function of the annual report in presenting & constructing of the corporate life & seeking to encourage the interest of the organization by offering an overview of the attitude of the corporate management (Deegan, Rankin, & Tobin, 2002)
It can be seen that CSR has made the idea that corporate governance as an instrument and realizing management of the organization to consider wider ethical considerations. It is observed that CSR is on the spectacular progress created by companies in current decades in maintaining goals of shareholders with the desire to minimize externalities which affect other stakeholders. In recent time, CSR has connected the legal endeavors to create companies more familiar to the needs of social & environmental by following corporate governance as a structure for the manager & the Board of directors to treat with consumers, society and employees similarly if not the similar as shareholders. Due to this, companies have currently made methods of corporate governance which seek to manage engagement of the shareholder & accountability of the investor.
Harvey Norman.
Harvey Norman is the leading retail chain in Australia. The main activities of the Company are, investment of the property, retail and franchising. The company provides products for home and office use to business operators and the retailers. The company provides various products such as fixtures, furniture, TV, laptops, home appliances and electronic products for the Consumer. It is observed that to sustain the competition in the market, the company had given heavy discounts on television which made considerable impact on the Company’s bottom line. The economy has faced the severe downturn during the beginning of 2009, which made the company to huge loss. To solve this problem, the founder of the company, made the marketing plan to attract the more customers for their business.
JB Hi-Fi
JB Hi-Fi Limited is famous as discount retailer for recognized local entertainment products. The company offers various types of products such as user electronics, car stereo systems, DVDs and music systems. The company does not work in a warehouse and delivers all stock to consumers and store directly. The business of the company was established in 1974, as a discount retailer of equipment of Hi-Fi and stored music with the help of a single store in Australia. It is observed that under the recent tenure, the company has diversified its base of store in excess of 135 stores. The company was registered on ASX in 20.
It can be seen that there is an increasing awareness that the upcoming sustainability of the society, inclusive of maintenance of high type of custom of living, wants to take into consideration impacts of environmental issues in account with considerations of social & economic aspects. The wealth is created by utilization of resources and the performance is measured with the financial outcomes. It can be seen that a combination of regulatory & market burden concentrates on enhanced transparency and well informed markets are motivating companies to take the challenge of maintaining sustainability reporting.
The retail & trade sector is located at the termination of supply chain & in straight contact with the broader community and consumers. The reputation of the company and the brand goodwill are especially precious assets to retail companies. It is observed that the retail sector is implementing sustainability reporting for protection & enhancing the excellence of the assets. It can be seen that Australian companies are world leaders in knowing the significance of social & environmental factors in their operations of the business. The Government is dedicated to encourage & assist the retail sector to utilize the potential which may be realized due to continued growth of enhanced social & environmental business practices. It can be seen that retail companies are required to report on social & environmental performance with financial performance & revolves nearly the approval of the enhancing wants of three significant stakeholder group such as employees, consumers & investors.
Consumers & the Society: The sustainability report helps the management of the company in creation of its trust & brand that are robust factors for preferences of the consumer. It has been analyzed 90% of customers want to buy from companies that behave ethically.
Employees: It is observed that report on sustainability helps in enhancing the culture values where employees feel pleased of their organization.
Investors: It can be seen that retail companies make use of sustainability report to reveal to shareholders how they manage their social and environmental uncertainty & risks. It can be seen that companies working in the retail sector are located at the termination of supply chain which might not be openly exposed to social & environmental issues. It is observed that creation of sustainability report helps the retail companies in order to remain retailer of their choice.
The report on sustainability may help major retail companies in utilizing on the growing section of the market of the investment socially accountable investment. It is very clear that investors want to invest in companies where they think that companies can reveal superior social & environmental performance. It has been analyzed that Companies of Australia &New Zealand shows social & environmental statements in their reports as compared to show separately. The insertion of information on environmental issues in annual reports of Australia is expected to comply with requirements of the disclosure under Sec 299 of the Companies Act, as compared to meeting the wider information wants of stakeholders. Most of the Companies report shows what activities & programs must be taken into consideration in order to improve the economic & social performance in alignment with business strategy. It can be seen that most of the reports are made especially intended at the society with relevant information on how the organization has given to the broader community with the help of sponsorships, charitable donations & training & development programs (Abeysekera, 2006)
It has been analyzed that according to article of Craig Deegan legitimacy theory defines that CSR is a response to the environmental pressures which inclusive of social, economic & political forces. One of the major important issues according to the article is how companies are understood by the people outside. According to the article another important issue is society perceptions about companies are very critical and can effect the survival of companies if companies have not fulfilled the social and environmental obligations.
JB Hi – Fi
JB Hi – Fi Company has specifically mentioned the environmental & social statements in annual report of the company and addressed various issues of social and environment (Clarkson, 1995)
Environmental Issues
JB Hi – Fi has promoted environmental sustainability within the company. It is very clear that employees of the company should consider the effect of their actions on the society and the environment including the path which shows how the chemicals are stored & resources are utilized. For managing of environmental issues the company has introduced various programs such as Carbon Disclosure Project, National Packaging Covenant, Support Office, Mobile Muster, E- Waste and Product efficiency (Carroll, 1979)
Social Issues
JB Hi – Fi has recognized the relevance of social matters to suppliers, shareholders & customers. It can be seen that JB Hi – Fi is one of the retailer company so the Directors of the company are liable to understand how the company work with its staff, suppliers & customers in order maintain the relationship with the community. The Company maintains its social obligations by various ways such as Workplace Giving Program, Donation Boxes In stores these donation boxes have been created at the point of sale to take out the donation from the customer, Employer leadership Initiative; local charitable giving JB Hi Fi donates products & cash for a group of causes like hospitals & communities groups throughout the year. These all activities performed by the JB Hi- Fi in order to manage its social obligations towards the society.
Harvey Norman
Environmental Issues
The Company Harvey Norman has managed its environmental sustainability under the performance of Environmental Regulation. The Company obligations of the environment are stipulated under Federal and State Law. All obligations of the environmental performance are monitored and controlled by the board of the directors. It is very clear that no any environmental breach has been identified to the company by any agency of the Government throughout the years 2009 & 2010. This shows that retail companies of Australia not only manage the financial performance but with that they also manage social & environmental performance. At last maintenance of social & environmental performance this shows that the company has fulfilled its responsibility towards Corporate Social Responsibility (Khaliq, A, 2008)
Social Issues
Harvey Norman has established the significance of social matters to suppliers, shareholders & customers. The Directors of the company are obligated to understand how the company work with its staff, suppliers & customers in order maintain the relationship with the community. In order to maintain relationship with the staff the company has ensured that process of performance management will apply impartially, fairly & with sufficient confidentiality. The Company has ensured employees that they will receive sufficient training to execute their roles. For maintaining the health and safety of employees the company has mandated operations to fulfill the requirements of the legal under the Policy of Health & Environment. The company has prohibited many types of anti competitive practices such as fixing of price, maintenance of resale price and exploitation of the power of the market. The company has protected its customers by prohibition of misleading practices and establishes standards for products & services. These all practices have shown that the Company Harvey Norman has good relationship with staff, suppliers & customers in order to maintain the relationship with the society.
CSR Ratings
Sustainability & CSR ratings are made for the no. of reasons, including the storage of information to help the investor with the analysis of social, financial & environmental risk &uncertainty of corporations. There are number of rating agencies available which provides information on the corporate sustainability, specifically for moral investors & directors analyzing whether their companies seems to be vulnerable to their mistakes in comparison to corporate competitors. It can be seen that rating agencies offers the knowledge about the sustainability issues. Two other trends reinforce the rising visibility of CSR ratings are as follows:
Social Investment funds = It can be seen that the growing importance of funds is made up of companies which pass different social screens had enhanced demand for strong methodology that helps in assessing of social performance (Gill, 2008)
Social regulations = A combination of international & national rules & regulations has formed that recently forced business to take into consideration the implications of environmental & social activities that increases the rating of the CSR. It is observed that ratings in today marketplace are bewildering because of propagations of evaluations and the range of criteria that applicable in judging of social accountability. In spite of this, a various number of international agencies rule the market, through a no. of players that have achieved visibility through the distribution of the media.
It has been analyzed that both companies have maintained the sound environmental & social reporting which shows that both companies have met the ratings of the CSR. The company JB Hi-Fi has separately mentioned the environmental & social statements in which the company has mentioned various environmental issues like Carbon Disclosure project, National Packaging Covenant, support office, Mobile muster & E-waste. On the other hand, the company JB Hi- Fi has addressed various social issues also like helping hands, Donation Boxes, Employer leadership Initiative and Loan Charitable Giving. It can be seen that Company Harvey Norman environmental requirements are stipulated under Federal and State law. It can be seen that in Harvey Norman no any breaches of environmental performance had been notified during the year 2009. In last it has been analyzed that both companies have met the rating
Conclusion
Environmental Reporting at JB Hi – Fi & Harvey Norman
JB Hi –Fi is committed to various voluntary initiatives which ensure that the company is operating its business with minimal effect on the environment of the Australia. JB Hi – Fi has followed Carbon Disclosure Project that solves environmental actions for external customers like other corporation & investors. The Harvey Norman environmental requirements are stipulated under Federal and State law. The obligations of environmental performance are controlled and managed by the Directors of the Harvey Norman Company. The company has the procedure of minimum complying, but in the majority the company exceeds its obligations of environmental performance. It can be seen that no any environmental breaches had faced by the Company Harvey Norman during the financial year 2009 (Fareed , 2003)
Recommendations for Environmental Reporting
It is advisable for both companies to mention their reporting period, purpose and rationale of the report. Companies should describe their supplier development agendas started to clean their supply chain. Companies should provide organizational review like plant location, land sizes & monetary performance that connect their activities of the business to issues of the environment. Companies should offer attractive visual of environmental efficiency through the implementation of smileys. It can be seen that, if both companies follow environmental reporting in the same manner then both companies would be able to manage environmental issues. At last, both companies have maintained the sound social and environmental reporting (White, Sondhi, & Fried, 2003)
Social Reporting at JB Hi – Fi & Harvey Norman
The company Harvey Norman has taken into account legal wants & expectations of its shareholders. The Company Harvey Norman has taken responsibility to identify the reports of non ethical practices. Harvey Norman provides pleasant workplace and offers resolution to solve the issues of the workplace & disagreements in a very prompt & impartial manner. JB Hi –Fi has recognized the relevance of social issues to suppliers & customers. JB Hi – Fi is one of the leading retailers so the company is required to understand customers & suppliers to respond back to the community (Abeysekera & Guthrie, 2004)
Recommendations for Social Reporting
It is advisable for both companies to offer details on management systems in order to attain health objectives. It is advisable for companies to connect the information in the report and make it clear to understand & reader friendly. Companies should explain their approaches, how they are going to maintain sustainable development (Islam, & Deegan, 2008)
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