Part A
Using examples from SER research literature, explain the potential motivational factors behind such reporting.
The reporting requirements of organisations in the past were limited to only disclosing its financial performance and position to its stakeholders. However these objectives have been altered with an increasing number of entity's realising that there is a need to be socially and environmentally conscientious. This new responsibility has led to the need for social responsibility reporting. (Deegan, 2005, p.1100)
Social responsibility reporting is the disclosure of information regarding the performance of organisations dealings with its physical and social environment. Social responsibility reporting is required by organisations in order to provide disclosure to its stakeholders, communities, clients, governments and employees. The main purpose of social responsibility reporting is in order to highlight the social and environmental impacts that are the result of an organisations operations and practices. (Deegan 2005, p.1100)
Only a minimal level of disclosure in regards to social and environmental impacts of an organisation's operations is required by Australian accounting standards and corporations law. Therefore, any SER provided to stakeholders would exceed the legal requirements for the organisation. Therefore, with this in mind, why would companies wish to disclose SER at an additional unnecessary cost? In determining the answer, an examination of SER motivational factors is required. (Deegan 2005, p.1110)
Social environmental reporting literature suggests motivational factors as to why organisations may voluntarily disclose information about their social and environmental performance.
One reason ...