The Developing Business Essay Example | Topics and Well Written Essays - 3000 words - 1

The Developing Business - Essay Example Many organizations refer to sustainability as corporate social responsibility (CSR). Thus, CSR will be used in the essay to refer to social and environmental sustainability. The terms, sustainability and corporate social responsibility refer to the practical contributions that businesses can make to sustainability. Many companies in recent times have incorporated social and environmental sustainability in their financial statements. (Gray, 2006, p.81) said that reporting social sustainability is crucial because the sustainability apprehensions of individuals, communities and governments facilitate shaping the world in which organizations operate.Sustainability reporting at the enterprise level also intends to represent an organization’ssocial, environmental and economic performance. Social sustainability reporting is aimed at reflecting the external costs and benefits of an organization that are not otherwise identified. Conventionally, ‘labour hires capital’ with the prominence on individual, environmental and social profit. On the contrary, capital hires labour with the superseding prominence on making a ‘profit’ over and beyond any advantage either to the industry itself or the employees (Epstein and Buhovac, 2014, pg. 29). These two differences provide a major contrast to how the accountant views of business operation. Another difference that arises is that of the conflicts created by professional values and managerial logic. Accountants view the firm in professional term, meaning any notion that does not involve accounting principles is rendered irrelevant. The CSR function, on the other hand, is based on managerial logic whereby the businesses engross in broad activities so long as profits are recognized from the business endeavours. Theoretical work on CSR accounting has created different theories as to the motivation of firms to report or release information on their CSR actions, many of