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Corporate Sustainibility Reporting

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Table of content

Executive Summary 2

Part 1 - Corporate sustainability Reporting 2

Part 2 - Study of ANZ and BT, two environmentally sensitive industry operating companies 3

Similarities between ANZ and BT reporting 4

Differences between ANZ and BT reporting 4

ANZ Limited 4

Banca Transilvalia - BT 5

Part 3 - Review of publication at international level on responding to the issues in CSR 6

Connected reporting 7

PWC Value Framework 8

Part 4 - Accounting Theories : Why companies voluntary disclose non financial information 10

Legitimacy, Stakeholder and Institutional Theory 10

4.1. Legitimacy Theory 10

4.2 Stakeholder Theory 11

4.3. Institutional Theory 11



Executive Summary

The purpose of this research is to define Corporate Sustainability Reporting and how this is applied in current modern organisational environment.

For this purpose we've chosen two companies listed on Australian and Romanian stock exchange and we examined the differences and similarities between the non financial reports they provided for financial year 2009.

In addition our research was extended to international publications and reports regarding organizations strategy effect on sustainability in social, ethical and environment aspects.

Furthermore, we applied related theories trying to explain companies approach towards sustainability.

Part 1 - Corporate sustainability Reporting

"When you say you agree to a thing in principle you mean you have not the slightest intention of carrying it out in practice" Otto Von Bismarck

We choose to use O.V.Bismarck well known tough as a motto for our assignment as we think its representative for individual's dilemma regarding principle and practice.

As corporate sustainability reporting has become a part of today's business environment, stakeholders have new expectations regarding sustainable development and sustainability reporting.

Through the decades, company reporting was mainly focused on financial information. Even if financial performance is still the major aspect for companies, this could measure only short time performance because a long time value performance must include also non financial aspects like obligations towards social, environment and ethical responsibility.

The history of the past two decades shows a constant development of the disputed relationship of environmental protection and political freedom. As in our opinion this relationship will have always a dominant element. Supporters of the environment protection think that environment can only be protected by a sharp curtailment of individual and economic liberties. In the same time as Heilbronner stated: "the latitude for voluntary choice may vanish rapidly under an avalanche of regulation and regimentation in response to the slowly closing vice of environmental constraint" (Heilbronner,R)

Corporate social responsibility reporting or sustainability reporting as latter referred to, covering the financial performance (sustainability) in addition to social aspects is defined as reporting to a range of stakeholders about the performance of the entity giving information that comprise interaction with its physical and social environment, support of employees use of natural resources and safety records.

Being socially responsible means not only fulfilling legal expectations, but investing more into human capital and the relation with stakeholders.

Corporate sustainability reporting as a concept in continuous development and highly unregulated is a uneven land for accountants to be on. As to the absence of regulatory requirements regarding public information disclosure many accountants focus on the financial performance and few on the social and environmental issues.

Our view on organizations accountabilities may be different from our colleagues especially because of the absence of normative framework. Interpretation is a characteristic of every human been and in absence of mandatory and regulatory requirements the corporate sustainability reporting will be approached in very different ways by accountants.

Part 2 - Study of ANZ and BT, two environmentally sensitive industry operating companies

To exemplify how corporate sustainability reporting works in real business we've chosen an Australian company that is listed at ASX, Australia and New Zealand Banking Group Limited or ANZ. We would compare this company's CSR with an international company listed at international stock exchange, Banca Transilvania or BT, a Romanian bank.

ANZ Limited is one of the largest bank in Australia and has branches in more than 20 countries all over the world.

In a world with continuous development, ANZ is trying to adapt working on a new corporate responsibility framework. This framework main focus is social values, brands and contributions in day to day life. All this elements would contribute to their business strategy strengthening.

We have to mention that self interest has a major impact on organizations strategies and the way they are preparing their reports. The focus is on values as Accountability, Integrity, Mutual Collaboration and Respect. Usually they set a committee which has the role of overseeing and advising social reporting activities.

Banca Transilvania is one of the largest bank in Romania listed on Bucharest Stock Exchange and is a component of a large financial group under the name of BT. The main sectors BT is operating are banking, leasing, business investment and real estate.

Romania, as a developing country starts to feel the western companies influence in sustainability reporting strategies. Because the corporate sustainability reporting is just at the beginning making the first steps, there are only few companies that include non financial aspects on their annual reports. As there



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