The And Human Impact On Society

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Time to Change – Where to Start?
Financial reporting alone does not take into consideration the social, economic, and environmental responsibilities of a business. On the other hand, financial reporting along with sustainability reporting interconnects these responsibilities, and offers more comprehensive information about the financial and human impact on society. Sustainability reporting discloses other relevant information about a company that financial reporting lacks. Currently, laws and regulations are not designed with policies and procedures to accommodate sustainability reporting. In order for companies to mitigate their risks and environmental impact, as well as provide reliable reports, a mandatory sustainability report is
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This more modern view of corporations is needed to level the playing field and facilitate stakeholders’ confidence in businesses.
Success Stories
The sustainability reporting concept may still be new to a certain extent in the US. By contrast, stakeholders have always demanded more transparency on financial reporting. Many countries in Europe, Africa, and Asia have successfully adopted sustainability reporting as part of their corporate governance. Interestingly, the US has lagged in fully embracing it. Companies that have opted to integrate sustainability reporting have a distinct competitive advantage over those that only disclose its financial position. Overtime, sustainability reporting contributes to the reduction of liabilities, improves business performance, and adds value to society in general.
Some companies may think that sustainability reporting could have a negative impact in their business. However, many businesses around the world are looking at it in the opposite manner. An example is Johnson & Johnson, a public traded company headquartered in New Brunswick, NJ. The article A Model for Sustainability Reporting, issued by IMA in 2010, states that Johnson & Johnson “began issuing formal sustainability reports in 1993 for which it has received widespread praise over the years” (Borkowski, Welsh, & Wentzel, p. 30). Johnson & Johnson is one of the top companies in the United States to fully adopt sustainability, corporate social
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