Accounting and Auditing of Sustainability: Sustainable Indicator Accounting (SIA)

Fagerström, Arne; Hartwig, Fredrik; Cunningham, Gary

doi:10.1089/sus.2017.29080.af

Cited by 11 publications

(18 citation statements)

References 6 publications

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“…However, it has at least partly betrayed its original promises [71] (p. 495). Originally the GRI engaged with a broad stakeholder base including large companies, the financial sector, the accounting profession, civil society, environmental and human rights non-governmental organisations (NGO's), organised labour, and others, to strengthen civil-private regulation and collaborative governance in order to shift the balance of power in corporate governance toward civil society and make corporations accountable to all stakeholders, not only those in the 'investment supply chains' [71] (p. 496), like the International <IR> Framework for instance is [33] (p. 131), [71] (p. 504).…”

Section: Global Reporting Initiativementioning

confidence: 99%

“…The GRI has been accused of abandoning its original idea of stakeholder accountability to a shift toward 'business case', emphasising the instrumental value of reporting to corporate boards and management, the investor community, as well as auditing and consulting firms, dominated by business logics and interests [35] (p. 1122). The GRI has been seen to change its primary purpose from empowering communities, consumers, non-governmental organisations and social investors to hold corporations accountable, to the corporations themselves, in order to increase the use of their reporting standards [33] (p. 132). The end result is that while the GRI has successfully become institutionalized, its instrumental value for private regulation is seen as modest, as it is adjusting to markets of weak sustainability without demands of substantial accountability [71] (p. 495).…”

Section: Global Reporting Initiativementioning

confidence: 99%

“…However, sustainability and 'non-financial' kind of reports remain easily superfluous compared to the organisations' financial reports. Social, environmental and sustainability reporting is not reflected in accounting, although 'sustainability accounting', an accounting system that accumulates information systematically for sustainability reporting, should be a natural evolution of sustainability reporting [33]. On the other hand, due the lack of a sustainability accounting basis, an underlying accounting system that continuously records and updates information, sustainability reporting remains superfluous and with limited assurance.…”

Section: Introductionmentioning

confidence: 99%

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Comprehensive Approach to Relevant and Reliable Reporting in Europe: A Dream Impossible?

Mähönen

2020

Sustainability

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Corporate reporting and governance are interlinked: Accounting and reporting inventions created the modern company, and without the modern company there is no entity from which to report. Due to its raison d’etre, reporting remained finance-centered, to protect financial capital providers. From the 1970’s, the question of the interests of ‘stakeholders’ emerged, with attempts of ‘social reporting’, ‘corporate social responsibility’, ‘environmental’, and ‘social and environmental’ and finally ‘integrated’ accounting and reporting. These trends are reflected also in the European Union legal framework, both in regulation of especially financial intermediaries and the ‘non-financial’ reporting. This article is based on an extensive literature review, research conducted in the Sustainable Market Actors for Responsible Trade (SMART) project, and socio-legal and economic empirical research based conceptual analysis of the impact of these reporting systems and their relationship to financial accounting and reporting. The result of the research is that sustainability is reduced to focus on institutional investors and other members in the investment supply chain, and climate change issues only, and new regulatory solutions are required. Based on the most recent developments in EU law and in European jurisdictions, possible paths forward are envisaged to encourage sustainability in reporting and assurance, and through that, in governance. As an outcome a set of regulatory reform proposals are given based on the SMART recommendations.

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Section: Global Reporting Initiativementioning

confidence: 99%

Section: Global Reporting Initiativementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Comprehensive Approach to Relevant and Reliable Reporting in Europe: A Dream Impossible?

Mähönen

2020

Sustainability

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“…Almost a decade ago, in 2011, only 20 percent of S&P 500 companies produced such reports [9]. Sustainability reporting is conducted without "an underlying accounting system" [10] (p. 45). However, there are several standards that companies can adopt to prepare their sustainability reports.…”

Section: Sustainability Reportingmentioning

confidence: 99%

Forward Thinking for Sustainable Business Value: A New Method for Impact Valuation

et al. 2020

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How can a company commit to maximizing stakeholder value while maintaining financial performance? Companies increasingly have the ambition to provide stakeholder value to their owners and shareholders, employees, consumers, suppliers, partners, the environment, and future generations. However, such companies often face difficulties in demonstrating the value they bring to stakeholders, due to the lack of universal methods for assessing their impact. Besides the practical need to develop a method for impact valuation, we researched the existing literature and discovered the lack of a holistic method to evaluate all impacts of a company using a common currency with flexible adaptations at different levels. We developed a new method called Sustainable Business Value (SBV) to address these gaps and enable companies to evaluate their impacts. We tested the SBV in two pilots. The SBV method differs from currently used methods, including sustainability reporting, sustainability rating and indices, and sustainability accounting. SBV can be used for decision-making, portfolio management, benchmarking, stakeholder communication, investor communication, and business development and also provides a comprehensive perspective of a company’s impact across six standardized dimensions. However, further development and standardization of proxies and cross-industry standards are needed.

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“…Existing standards fail to account for externalities and long-term strategies. These shortcomings can be attributed to (Fagerström, Hartwig, & Cunningham, 2017):…”

Section: Introductionmentioning

confidence: 99%

Accounting and Reporting for Externalities: Balance of Externalities

Lascols

2021

Sustainability and Climate Change

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Accounting rules have improved the transparency of corporate operations. Financial statements provide shareholders with reliable information on performance and risk. However, these standards do not provide a larger vision of the role of a company in society; nor do they include any information on sustainable and responsible corporate strategies. This article proposes a new type of financial statement, one that addresses the issue of the evaluation of externalities for a company. This new financial statement is intended to enlighten stakeholders with respect to the environmental, social, and economic impacts of a company.

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Accounting and Auditing of Sustainability: Sustainable Indicator Accounting (SIA)

Cited by 11 publications

References 6 publications

Comprehensive Approach to Relevant and Reliable Reporting in Europe: A Dream Impossible?

Comprehensive Approach to Relevant and Reliable Reporting in Europe: A Dream Impossible?

Forward Thinking for Sustainable Business Value: A New Method for Impact Valuation

Accounting and Reporting for Externalities: Balance of Externalities

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