Introduction
In the current era, global uncertainty and change are at the peak that is a big threat to sustainability. The paper aims to discuss the accounts for sustainability at the organizational level and what can be accounted for sustainability. Currently, the global organizations do not account much for sustainability. The sustainable development is considered to be a complex concept because it gives rise to social and environmental issues. An increase in critiques of sustainability reporting and speculation on accounting for sustainability is also observed in the modern world. The practices followed by the organizations for sustainability, their consideration related to the practices of sustainability, and the reason to account for such sustainability is the main aim of the paper.
Sustainability
Sustainability is based on the organizing principle of sustainable development that mainly consist of four domains that are interconnected. These four interconnected domains are ecology, culture, politics, and economics. World Commission on Environment and Development published a report in 1987, which brought the term sustainable development in the limelight. From the publication of the report, it is noted that sustainable development is referenced to meet the current needs without decreasing the ability to meet the needs in future.
It can be simplified that sustainable development is an organized way of utilizing resources to meet the present needs while focusing on the future resources as well so that the future generation is able to meet their needs. The main aims of sustainability are to protect the resources for the future generation that mean to utilize the current resources efficiently. The report defining the sustainability was a major breakthrough and had a large impact on the society. It developed a sense of realization so that the organizations should account for sustainability rather than wasting resources to earn maximum profit .
As sustainability development came in the mainstream, several organizations are focusing on it and as the time passed many were forced to be sustainable with their actions. Such changes occur to increase in social and environmental issues. Several organizations failed to account for sustainability that allowed social activist to come into action. For example, many hotels all over the world had a trend of the fountain at the entrance of the hotel.
It was a beautiful sight and attracted many customers towards it. Although the sight added to the ambiance of the hotels, it was considered as wastage of resources. Several social welfare organizations acted and protested against such things at hotels and have been successful in reducing it to a great extent. From this example, it is known that the organizations realized the importance of sustainability and acted accordingly to save the resources as much as possible .
Almost all the manufacturing companies are a threat to the environment as they utilize more resources to manufacture a product. Moreover, in the making of products, the companies also emit various chemicals in the environment that are dangerous for health. The waste from the factories is also not disposed of properly which adds to the degradation of the environment.
These companies are big threats to the environment as the emission and wastage of material leads to air and water pollution that is life to threaten for both human and animals. Therefore, the manufacturing companies have to focus on their corporate social responsibility (CSR) to ensure that they contribute towards the society from the profits they earn. There are different ways of contributing towards society, and most organizations prefer contributing in charities to play their role in corporate social responsibility.
As it is discussed earlier that sustainability development after being mainstream has aroused several challenges for the organizations and allowed the social activist to bring awareness to the general public regarding the destruction created by the companies. Therefore, to avoid this the companies started to do charity work in order to make a contribution towards sustainability development. The organizations also opt for promotional activities to bring awareness to the public about a disease as a part of their social responsibility. These activities of the organizations are accounted for sustainability but are not only limited to it .
Sustainability Practices and CSR
Many multinational companies not only give charity and do promotional activities but they also ensure that the products manufactured or the manufacturing process of the product does not cause harm to humans, animals, or the environment. For example, McDonald’s has involved itself in several activities for CSR.
The company plans to work persistently to develop the framework of CSR and Sustainability. The company’s CSR and Sustainability framework focuses on five key elements that are Sourcing, Food, People, Planet, and Community. By focusing on these pillars, the company is able to create the value for the business and society.
McDonald’s have partnership and membership with several welfare organizations in order to focus on their sustainability goals. It is a part of the company’s CSR and Sustainability that they have reduced the calories by 18% in their Happy Meals. The menu of the McDonald’s has also evolved over the past few years as it has increased the quantity of vegetable and fruits in their foods.
It helps the company in providing healthy food to the customers. Furthermore, the company has reduced the content of saturated fats, artificial trans fats, sugar, and sodium from the food so that the customers of the company can eat healthy food. The company mainly focuses on providing a healthy diet to children who prefer Happy Meal to other fast food products at McDonald’s. The company offers vegetables, fruits, and/or low-fat dairy in their Happy Meals that makes the food healthier and develops a habit in children of eating vegetables and fruits .
Moreover, the company is also involved in giving donation boxes that are placed on the counter. It helped the company in raising $26 million in 2013 for the charity. The company grew its charity by building 15 Ronald McDonald Houses, 21 Ronald McDonald family rooms, and 2 Ronald McDonald care mobiles. These three types of shelters offer help to over 23,000 people in a year. The charity program of McDonald’s differ from participate in the nutritional programs. It is an educational program that helps the viewers to identify good food and balanced diet.
Other countries like Australia, Canada, Russia, and European countries where the brand exists have different sustainability strategies. From the example of McDonald’s sustainability strategy, it is noted that a company can involve itself in various sustainable activities and make an account for them. Generally, large organizations are also involved in similar activities .
There are several sustainability strategies opted by the organization, and their perception of it is that these strategies account for sustainability. It is not the case because there is a big difference in charity and sustainability. Sustainability is referred to that sustainable development which helps in meeting the current needs without decreasing the ability to meet the needs in future.
The charity has nothing do with sustainability development, and therefore, the claims of the organizations are wrong. Although from the example of McDonald’s it is noted that the company is involved in several sustainability programs, most of them do not even account for sustainability.
Such practices of sustainability are accounted by the organizations because the charity or promotional events held contribute towards the society. It is perceived by most of the people that sustainability is practiced to ensure that some benefit is provided to the society. Charity is considered as a great help towards the society and helps the needy. It is a social act from which others can benefit to a great extent. Therefore, companies account charity as sustainability .
Charity allows a person or an organization to help an individual or a community so that their standard of living can be improved. It is a socially noble cause, and individuals and organizations must take initiatives for fundraising for a charity. It is for the betterment of the society. Although, the main aim of sustainability development is that the society must be made a better place to live and the resources.
On the other hand, sustainability has no direct relationship with the charity. Sustainability development helps in ensuring that least waste is made especially during manufacturing of a product. It claims that the organizations should avoid polluting the environment and degrade the natural habitat. The main reason to protect the environment is because of the future generation so that they are able to meet their needs. Charity done by the organization does not protect the environment or helps the organizations to reduce waste products, therefore, and it cannot be accounted for sustainability .
The organizations account charity as sustainability development because of several reasons. One of the prime reasons is that it is easy and cost-effective for the company to do charitable work rather than controlling itself from destructing the environment and reducing the waste material or properly discarding the waste material. For the organizations to make arrangement for reducing their waste material and properly discarding it is costly.
In order to implement such activities, the company will make less profit as it has to pay more for such activities. Moreover, these activities need improvements from time to time. Charity work is easy as the companies do not have to make an effort themselves but just part away with a small part of their revenue.
In addition to it, the charity work can be shown in public that is also a part of the company’s marketing strategy. The steps taken for charity are beneficial for the company from two aspects. One of them is that it draws the attention of public and social activist away from the damages caused by the manufacturing of a product whereas, the other benefit is that it allows the company to market itself and reach to a large number of audience .
The actual accounting for sustainability is that the manufacturing companies, in particular, should utilize the resources efficiently so that the resources are used to their fullest eliminating or reducing waste. The companies should also collect the waste material that is unavoidable at the time of production and at first should try to recycle it. If recycling is not possible then, the companies should decompose the waste material properly. The waste material is dunked into the sea or river by some organization that is an unethical act.
Such actions of the organizations are dangerous as they put the lives of marine animals in danger. Such organizations should take possible steps to stop the waste material to mix with seawater and contribute towards sustainable development. By doing so, the company will be able to protect the resources which can be helpful for the future generation to meet their needs.
During the manufacturing processes, the organizations emit various gasses that are harmful to the environment and people living in it. The impact of these gasses can also lead to depletion of resources in future. Therefore, the companies must adopt strategies to avoid or reduce such emissions. Such activities of the organizations can be accounted for sustainability .
Conclusion
It can be concluded that several organizations are involved in activities that cause harm to the environment and because of the social awareness in the society; these organizations try to make up for the harm caused by their action. The companies try to contribute something towards the society to which they account for sustainability. All the acts of the organizations cannot be termed as sustainability as these organizations have developed a misconception about it.
List of References
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Gray, R., 2010. Is accounting for sustainability actually accounting for sustainabilityand how would we know? An exploration of narratives of organisations and the planet. Accounting, Organizations and Society, Volume 35, p. 47–62.
McDonald's, 2014. McDonald’s Corporate Social Responsibility & Sustainability Report 2012-2013, Oak Brook: McDonald's.
Norton, M., 2012. Sustainability: Duty Or Opportunity for Business?. Abingdon: Routledge.
