Short Report of Review on Sustainability Disclosure Essay

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To: Finance Director
Subject: Short report of review on sustainability disclosure

There is a growing trend among companies to disclose and report their social and environmental impacts not only concerned with the financial performance of a company but its impact on society and environment. Thus, sustainability becomes an important issue. Sustainability is the capacity to endure and is the long-term maintenance of responsibility, which included environmental, economic, and social dimensions. It is mandatory for a company to disclose its sustainability information. In addition , the sustainability disclosure is based on a theory called "system-oriented theory", which includes three aspects:stakeholder theory, legitimacy theory and …show more content…

Managerial branch seeks to explain and predict how an organization will react to the demands of various stakeholder groups. Management will respond to the information demands of stakeholders perceived as being powerful. The greater the importance of the stakeholders, the greater will be the expectation that the management will take action to manage the relationship with stakeholders. AGL shareholders were paid dividends totaling 60.0 cents per share for the full financial year 2011, and increase of 1.0 cent per share, or 1.7%, on the financial year 2010. [pic]
Legitimacy Theory
Legitimacy theory posits that organizations seek to ensure that they operate within the bounds and norms of their respective societies; that is they attempt to ensure that their activities are perceived by outside parties to be 'legitimate'. This theory relies on the notion that there is a 'social contract' between an organization and the society in which it operates. AGL is Australia's leading renewable energy company and is Australia's largest private owner, operator and developer of renewable generation assets. It is taking action towards creating a sustainable energy future for our investors, communities and customers. AGL's goal is to invest in cleaner energy forms to reduce the greenhouse gas intensity of energy across the supply chain and achieve excellently environmental management

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