Answer To: I just realised I won't have time to do this assignment. Can somebody help me? thanks Document...
Robert answered on Dec 29 2021
Answer to Question 1
Meaning of Sustainability Reporting-
Sustainability Reporting is the corporate report, given by the Company, conveying the sustainability
information which can be compared with their Financial Reporting. It includes the information
regarding the economic environment and social implications caused by the company by its day to day
activities.
Sustainability reporting assists companies in measuring and communicating their economic, social and
environmental performance to its stakeholders. The word sustainability implies the ability to last for a
long period on the basis of performance of the 4 key factors i.e. economic, social, and environmental
and governance performance.
Sustainability Reporting is the base for companies in communicating there sustainability performance
and its positive and negative impact.
Reason for adoption of Sustainability Reporting
In today’s era most of the companies are adopting the Sustainability Reporting concept. In case of
listed public companies, this concept is used widely. The concern given in the question is also using
the concept of Sustainability Reporting. The reasons behind adopting this approach by most of the
public listed insurance companies are as follows-
1. Increasing Business Efficiency-
Efficiency of every business depends upon the data collected by the managers. Data depends
upon both internal and external factors of an organization. Sustainability Reporting helps
managers in collecting proper data for an organization, which will increase the efficiency of
business and assist in improving its performance.
2. Identification of Opportunities and risk-
Most of the organization identifies their opportunity and risk on the basis of their financial
indicators, credit rating and home values. Sustainability Reporting compels the organizations to
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look wider areas of comparison beyond the financial earnings, so that healthy balance can be
maintained. Sustainability Reporting discovers the following opportunities for business houses
like Competitors cost, better pricing to win market share, etc.
3. Managing the company Reputation-
Using Brand Ambassador for promoting business is used rapidly. This is due to the
involvement of social media like Facebook and Twitter that crisis have increased among
customer, society and companies. Individuals are actively participating in the activities of
business in all new ways. Sustainability Reporting doesn’t remove or guarantees the crisis
management but it’s a platform to engage important audience being stakeholders, customers
etc. and build a healthy relationship with them. This helped companies at the time of crisis as
there may be few groups who will support and defense the company.
4. Maintaining Employee Turnover
In a Business Organization, there are two types of Competition- 1
st
maintenance of consumers
and 2
nd
retainment of experienced work force. Companies which are seriously committed
towards the Sustainability Reporting will have an opportunity to provide such things to the
workforce that has a true meaning for employees. This will help employees to be at one place
for a long duration and also he will work with more commitment and hard work.
5. Competitive Advantage.
Sustainability Reporting helps in getting a competitive advantage. Companies which provide
the Sustainability information to their consumers and stakeholders will get their business
differentiated from other competitors by providing meaningful data with proper explanations.
Answer to Question 2
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Fortune Wizard has used various performance indicators which would assist the concern in achieving
the mission. Hope these indicators will help the organization in achieving its goals are mentioned
below-
1. Financial Indicators-
Financial Indicators like Net Profit, Gross Insurance Premiums and return of Investment in
terms of Sustainability, provides the information about the organization current and past
financial history regarding Financial Sustainability. It provides the answer of following
question like-
(i) Is organization regular in paying off its liabilities?
(ii) Is organization having a reliable source of income?
(iii) Is balance being maintained among income and expenses?
The information provided by the financial indicators will assist in following issues-
(i) Identification of the present financial problems.
(ii) Controlling activities relating to financial Sustainability
(iii) Providing financial health information to stakeholders
(iv) Assisting internal and external decision making relating to products, services, loans and
advances.
2. Economic Indicators-
(i) Economic indicators as policies, practices and spending on local suppliers help in
measuring the percentage of Sustainability development goals achieved by concern,
Percentage of development of new products, measuring productivity of concern,
amount of Government subsidy received and utilized by the organization.
(ii) A Second economic indicator of procedures for hiring local staff helps in measuring the
performance in terms of employee turnover in organization, number of new jobs
created by concern, job growth opportunities available, the rate of employment and
total amount spend on salaries.
(iii) Third indicator is the development of...