ESSAY TOPIC – Critically evaluate a sustainability report currently published by corporations. You are required to review a sustainability report (to be provided separately) prepared by a multinational corporation as the case for your study. For this coursework, you are required to write an essay of no more than 2000 words to critically evaluate the sustainability/citizenship/corporate social responsibility report you have chosen, which should in addition include a bibliography of the material/references you have used and consulted. The aims of this assessment are to: • enable the student to undertake scholarly activity; • encourage creativity and original thought; • enable the student to demonstrate critical and analytical skills; • develop and test written communication skills; • assess an example of deep learning; • inter-relate aspects of the module syllabus. Suggested Report Template Executive Summary Write your own – consisting of the key issues of sustainability reporting and some specific recommendations arising from your analysis. Introduction The value of reporting. What makes a good report? (See http://www.deloitte.com/assets/Dcom-Global/Local%20Assets/Documents/DTT_EnterpriseRiskManagement_SustainabilityReportingScorecardBrief.pdf) Body of Analysis Use the section on what makes a good report as the basis for analysis for your chosen corporation. Check and reaffirm that the report is aligned to standards and benchmarks – Sustainability Reporting Guidelines published by the Global Reporting Initiatives (GRI). The reports can be evaluated according to the following framework : Audience Stated values and vision Policy on corporate reporting Decision-making principles Link between policy and operations Performance indicators Impact on profitability and competitiveness Process of information collection Approach to presentation Evaluation Criteria (according to GRI) Themes Points Sub-themes Description of the contents Easiness of reading 20 – introduction of the company – frames according to time, organization and impacts (what time period, which part of the corporation etc. are included in the report) – principles of reporting and accounting (measuring units) – top management involvement + external auditing – contact information and possibility to give feed-back – clear construction and focus on essential issues – report covers all critical and essential issues – basic figures (e.g. consumption, waste in numbers) – understandable vocabulary – visual looks – creativity Vision, strategy, policy Corporate Environmental Management and its development Stakeholders 20 – company values – involvement in responsibility issues: environmental policy of the company, participation in voluntary programs etc. – environmental strategy – possibilities and risks concerning environmental issues – organization and its responsibilities – environmental targets, programs and schedules – involvement and training of employees – R & D – other actions for development – supply chain management + product life cycle management = requirements for suppliers, cooperation with others – communication with stakeholders concerning responsibility issues Environmental aspects and impacts Environmental performance 20 – environmental aspects during the whole product life cycle (clearly described, evaluation of significance for each and every product) – environmental impacts (see above) – global, regional and local impacts – resource consumption: in comparison with previous years, change (posit. and negative), in relation to goals – emissions: see above – purchases and transports – product information and disposal – accidents, dangerous situations, legal problems etc. Economic information 20 – environmental costs: investments, costs of consumption, taxes, fees, penalties etc. – environmental profits: influence of investments etc. – general economic sustainability = economic result, economic stability, R&D for future etc. Societal information 20 – wellbeing of employees – health and safety issues according to products and production – company attitudes towards ethical and societal issues e.g. gene manipulation – global principles – contribution to society and local community Specifically research on whether the report provides the information that stakeholders are requesting and captures the organization’s relevant issues and impacts on economy, society and the environment. (This is of key importance) Factors that influence credibility include: Stakeholder participation – showing how input from different stakeholders has improved performance demonstrates a sincere commitment to community participation. Honesty in reporting – reports that include results of environmental (and economic) audits and other forms of outside verification can build confidence in a company with a less than stellar public image. However, the controversial figures must be verified. Getting external verification for a non-controversial figure like quantity of energy consumed and then failing to verify contentious information like the level of dioxin emissions can heighten suspicion of the data and the whole report. Admitting limitations – for some activities, there may be a tendency to tell only part of the story. This can backfire since raising the issue will provoke questions about what has not been done. Verification is one example of this. Another is life cycle analysis. Some reports explain how the company operates on the principle of life cycle analysis. On close inspection, it emerges that while the production process is viewed from a life-cycle perspective, the impacts of the actual end use of the product (cradle to grave material flows) are not figured in. Credibility is built by demonstrating a clear understanding of an approach, including where the company falls short and why. Companies should be careful to strike a balance between positive and negative results. Consistency – stressing the importance of sustainability to the company but neglecting to show how it relates to core values and business activities detracts from credibility. Google for adverse criticism or commendations directed at the corporation. Check the trends in reporting of the corporation over time and see if the issues are the same – draw some conclusions on this – reporting for the sake of reporting. Conclusion No company is currently producing a true sustainability report, although several use a sustainability reporting framework. (If the analysis points to this direction) Bibliography
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