CSR and Sustainability

1. Tasks and requirements

Context

Sustainability and associated voluntary reporting on it may be viewed by some organisations as being little more than another burdensome, unwanted and costly task, but by others as an opportunity to present to interested parties concern for the best interests of a broad group of stakeholders, reflecting, amongst other matters, ethical concerns, environmental actions, risk management, and sustainability. Whilst guidelines and recommendations exist, together with voluntary trade association standards and other agreements, as yet a specific International Financial Reporting Standard focussing wholly on sustainability does not exist. It is a moot point as to whether or not the boundaries created by such a Standard might be at odds with the need for that Standard. Indeed the need for compromise within the arena of the harmonization of Standards might negate any benefits.

Required

Identify and justify drivers in support of the case for an International Financial Reporting Standard concerning sustainability.

Thereafter reflect upon the degree to which such a standard might constrain the scope and application of sustainability by organisations.

Contrast those drivers and constraints and articulate a conclusion regarding the desirability for such a standard, and the degree to which it could be implemented and applied successfully.

In so doing draw upon references from relevant theories and, where appropriate, illuminate your analysis, argument(s) and justification by using examples and illustrations.

In responding to this requirement you should certainly refer to relevant Themes 1 and 2 study materials, but you should also draw upon other materials such as, for example, other journal articles, trade association publications, and annual reports, thus enacting independent research

Requirement

Clear understanding of the subject area producing work with a well-defined focus.

Show some originality of idea; appropriate use of analytical techniques; appreciation of methodology; critical analysis of data; evidence of idepedent reading; adequate referincing and professional bibliography; adequate structure and style; reasonably professional standard of presentation with some errors of spelling, punctuation or grammer. Shows understanding and critical awareness of current problems and/or new insights, much of which is at, or informed by, the forefront of the academic discipline, field of study or area of professional practice. Able to communicate very effectively arguments, evidence and conclusions to specialist and non-specialist audiences.

Introduction

You will be aware that this coursework draws upon selected issues from Theme 1: Selected issues in Sustainability, and Theme 2: Harmonization of Accounting standards. Not surprisingly therefore, your essay should reflect aspects of your study of those materials, together with any additional research you undertake. Indeed, as this is at Masters level what is important is to not just regurgitate materials located in the core study materials but to supplement them with further additional research you undertake. Together these will set out arguments for and against the underpinning thrust of the essay. Thereafter you should demonstrate that you are able to select appropriate matters from the core and additional research materials, ‘throw them into the mix’, and emerge with a cohesive set of contentions in support of/against arguments you are examining – analysing, sifting, and evaluating – leading to a justifiable conclusion. (Interestingly, a not uncommon approach to marking academic essays is for the marker to read the introduction, then read the conclusion, and thereafter see if the individual and combined set of paragraphs of words a) build upon the introduction, and b) lead to the conclusion drawn by the essay writer.)

Some thoughts on process for this essay

In this particular essay, given i) the context set, and ii) the tasks and requirements, it would make sense to (in whichever order you as the essay author feels appropriate):

1. Set out an introduction clearly outlining what it is your looking at, why you are looking at it, and how you intend to set about looking at it.
2. Explain the nature and purpose of international standards, and their strengths and weaknesses.

iii. Explain the nature and purpose of harmonization, and its advantages and disadvantages.

1. Explain what is meant by sustainability, including its scope in terms of breadth and depth.
2. Identify and explore what is currently happening (or not) regarding the reporting of sustainability, and the strengths and shortcomings of that reporting process.
3. In light of points i to iv above, identify arguments in favour of and against the introduction of a standard relating to sustainability. Those arguments should be rooted in your considerations of core study materials and further research materials.

vii. Establish the strengths and weaknesses of the arguments, again drawing upon relevant literature as appropriate, and analyse and evaluate them.

viii. In light of points vii and viii above, draw justifiable conclusions as to whether or not a standard should be set.

1. Ensure that all of the points above that you include together with any others, are set within a piece of writing which is integrated and coherent and ‘flows’. Do not put forward a set of standalone paragraphs which, if the essay were a book, might be wonderful individual paragraphs but as a book do not flow into and out of each other, generating a reading experience which is likely for the reader to be unsatisfactory, probably unconvincing, and certainly a deflating experience.
2. And remember: i) word count ii) instructions regarding use of charts, diagrams, tables, etc., and iii) ‘proper’ referencing (whether we like it or not ‘proper’ referencing is considered an important ingredient of Masters-level work).

Locating and using research materials

In constructing your essay you may find the pointers below useful.

• You are likely, in all probability, to draw upon materials in the core study materials as a starting point for your considerations. Some of those materials will contain literature references and you may wish to draw upon those as part of your further investigations.
• You may also wish to locate and draw upon additional materials relating to:

– International accounting/reporting standards, illustratively:

http://www.ifrs.com/updates/aicpa/ifrs_faq.html

http://www.ifrs.com/updates/aicpa/ifrs_faq.html and http://www.hbs.edu/faculty/Publication%20Files/09-102.pdf

– Harmonization, illustratively:

http://www.observatorioifrs.cl/archivos/05%20-%20Bibliograf%EDa/03%20-%20EF/BEF-005.pdf  and http://www.kellogg.northwestern.edu/accounting/papers/wang.pdf

– The nature and scope of sustainability, illustratively: https://sustainabledevelopment.un.org/content/documents/5839GSDR%202015_SD_concept_definiton_rev.pdf

Of course, in addition to the core study materials there are potential many additional sources you might locate and investigate. Some will prove of little value to your essay and will be discarded, whereas others may prove to be goldmines. Do note that the illustrative references detailed above may be drawn upon but as the Team has already located them for you and the strong advice is certainly to seek out others.