Oroton Group Limited Harvard Case Solution & Analysis

Part 1 Sustainability, Environmental and Integrated Reporting

Explain the meaning of sustainability and outline why corporations might consider it in their business operations. 

Sustainability is a sort of a strategy that the business usually prioritizes in order to ensure long term survival of the business.

The corporations need sustainability to evaluate whether the business would be able to keep maintaining its existing practices or business operations without placing future resources at risk.

What reasons can an entity provide for adopting sustainable development? 

Thereasons behind adopting sustainable development are discussed below;

  1. To mitigatethe business risk from reputational damage and disruption of supplies and operations.
  2. In order to gain the market share and to create a beachhead with thecustomer base.
  3. Build strong goodwillwith the company’s stakeholders.

Explain the difference between sustainability reporting and traditional financial reporting.

Sustainability reporting is defined as “to communicate with the approach followed by the organization for the purpose of managing the social and environmental issues”.On the other hand, integrated or traditional financial reporting defines the way through which, the long term value is created by taking an integrated approach to wider sustainability and traditional risk.

What benefits should entities expect from preparing sustainability reports? 

The organization can reap the following advantages

  1. To enhance and formulize the communication with the organization’s stakeholders.
  2. To be able to perform at an edge with the competitors.
  3. To retain and attract proficient and competent staff.
  4. Oroton Group Limited Harvard Case Solution & Analysis

For the four corporate stakeholders you have identified above, document how an organization might engage with them about sustainability issues. 

The stakeholders of theorganization are; owners (shareholder), employees, supplier and customers.

When the company tends to present sustainability efforts to its stakeholders, many customers are highly engaged with social and environmental issues, the company can make a deep commitment and obligation to the core motive built on positiveenvironmental or social and sustainability impact. The organization could also strive to develop corporate social responsibility programs and additional market driven activities.

Identify how ethical investment can affect corporate decision making regarding sustainable business operations. 

Ethical investment isanother name of socially responsible investment or sustainableinvestment.The organization tends to make ethical investments for the purpose of expressing their social and environmental preferences. The ethical investment tends to seek for environmental good and financial return which can alter the decision making of an organization.

When the organization strives to improve the profit gains from customers, they could pursue with these activities and develop socially responsible projects.

Using the IDEALS framework, identify the advantages and disadvantages of Oroton group limited producing an Integrated Report. To conclude, you must argue in terms of ACCG927 readings/theories whether Oroton should or should not produce an Integrated Report. 

OrotonGroup Limited is one of the providers of luxury accessories to its customers, it is situated in Australiaand the company has been producing integrated reports which resulted in some pros and cons discussed below:

  • The integrated reporting has improved integrated management and thinking.
  • It provides greater clarity on performance and issuesfaced by the business.
  • The relationship with stakeholders has improved and reputation of the corporation hasimproved as well................

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