The directors of Health Food Alliance Ltd have recently reviewed their legal financial reporting

Question

obligations to shareholders and are completely satisfied that the company’s financial reports meet
all the required accounting standards. However, they are aware that many companies are
voluntarily reporting extra information about the effects of their businesses on the environment
and society generally, and that the Commonwealth Government has been considering whether or
not to set up compulsory reporting standards for these areas of activity.
The directors have some knowledge, but not much, about CSR, TBL accounting, the GRI,
sustainability and the idea of the ‘good corporate citizen’. They now want to know more and
have asked their chief accountant to research these areas and report back to them.

Required:
As chief accountant:
a Write a report to the directors (no more than 600 words) explaining and linking the concepts
shown above in bold type.
[13 marks]

b Give arguments for and against the company voluntarily disclosing its own social and
environmental reports, and make a recommendation to the directors.
[5 marks]

c Suggest some matters relevant to the company’s business that it might report on.
[4 marks]

d Look up an Australian listed company on the internet that reports on social and
environmental matters, download the report and attach a printed copy to your answers.
[3 marks]