ACCOUNTING

Management Accounting 2 - Format: Essay



Management Accounting 2 - Format: Essay

Introduction

Profession accounting has played a greater role in promoting the Corporate Social Responsibility and sustainability that has based in three major dimension involved economic, social and environmental aspect (ICAA, 1972). The awareness about sustainability and CSR has increase tremendously in a larger context among the business. The business has sooner realize that to achieve the sustainability is just based on free of cost, actually it depend on environmental as well as social cost. Business man has faced the difficulties to determine the cost and benefits that associated with sustainability.

Sustainability management accounting has emerged to addressing the benefits and cost that are associated with environmental risk factors. This paper will discuss the CSR and sustainability of the accounting profession in Australia. In later part of this paper it will discuss the environmental and social accountability of Australia Gas Light Company (AGL) to shows their practical view of Sustainability and CSR in Australia.

Discussion

Sustainability

Accounting has played a vital role for developing tools and technique to support an organization in order to achieve the objectives of sustainability that has developed specific guidelines. The tools are used in Environmental Management Accounting both financially and physically, that was address the environmental cost as well as environmental product costing (Bennett, et.al, 2003). The environmental cost, appraisal cost, cost of internal failure that is not identified through appraisal. The environmental product costing has determined it direct or indirect that could traced through product. The cost are also include recycling, permit fee and waste management cost.

The organization in Australia prepares and publishes the sustainability reporting voluntarily. There is no such legal binding to publish the sustainability reporting. Accounting professional bodies has encouraged the organization for having a sustainability reports.

Sustainability in the organisations chiefly concentrates on how ecological and social variables might be consolidated in the any time that was spent accomplishing vital targets of the business (Dingwerth & Eichinger, 2010). It additionally keeps tabs on how these vital goals, arrangement and the acts of the organisations enhance the social and natural exhibition of the organisation. The organisations need to recognize the risk, expenses and profits identified with the natural and social variables. Case in point, there may be a danger of losing licence of the business to work, if any of its strategy or rehearse genuinely the social order (Rambausek , 2011).

Accounting helps the organisation in realizing sustainability. Sustainability accounting supports the organisation to work their operation through socially and naturally careful methodologies. Accounting has joined social and ecological components in the choice making procedure of the organisations. Sustainability Accounting presupposes gathering, transforming and reporting material informative data's identified with natural, investment and social viewpoints (Hughes & Willis, 1995). Thus, clients can grasp and assess natural and social exhibition of the business. Apparatuses and techniques that measure profit, expenses and chances connected with enhancing social and natural exhibition is called liveability administration Accounting. Sustainability administration Accounting has expanded the social and ecological responsibility in the ...