ACCT1077 Financial Accounting Theory For Social Responsibility Assignment

1. Evaluate how these components such as social reporting and environmental reporting at Deloitte affects the local community

2. Describing and discussing how the components of corporate social responsibility are practiced at Deloitte

Answers:

Introduction

This study mainly deals with one of the big audit Firm named as Deloitte (Deloitte United Kingdom 2017). In this assignment, proper emphasis has been given on understanding the corporate social responsibility that is being adopted by Deloitte. From the annual review of Australian Centre for Corporate Social Responsibility, it is revealed that there are three of the big four-audit firm that are listed in top 10 for corporate social responsibility for the year 2016. The listed audit firms named as PWC, KPMG and Deloitte. The current segment selects Deloitte as the audit firm and discuss on the components of corporate social responsibility such as social reporting as well as environmental reporting. In addition, the segment even evaluates how the components are select that directly affect the local community as a whole (Saeidi et al. 2015). Therefore, the study explains major components of corporate social responsibility and links it with the strategies and policies used by the audit firm within the course of time. 

Corporate Social Responsibility at Deloitte

At Deloitte, they have clear defined approach to the impact of climate change, involving local communities as well as responsible business practices and creating quality workplace environment for the employees who are the main resources for the company (Kilkenny 2015). In addition, the company shares a common desire for giving something back to the society that can add value as a whole. The company is active members of Business in the community that aims to harness the power of business and maximize its positive impact on all the shareholders as well as society. Deloitte believes in promoting a stronger economy as well as society that can serve the public interest, building a culture of purpose as well as inspiring leadership in and outside an organization (Suliman, Al-Khatib and Thomas 2016).

Social Reporting practiced at Deloitte

At Deloitte, they mainly believe that business plays major role in shaping the society as well as committed towards driving positive societal change (Korschun, Bhattacharya and Swain 2014). They believe in working together with government, civil society as well as business in the most innovative and desired way. In addition, the company aims at contributing to solve some of the biggest societal challenges (Suliman, Al-Khatib and Thomas 2016). Deloitte is committed towards driving societal change as well as promoting environmental sustainability. In addition, the audit firm works together in innovative ways with the government, civil society as well as non-profit organization where they design and deliver solutions. The company delivers professional services in a way that eventually contribute towards attainment of sustainable as well as prosperous future (Servaes and Tamayo 2013).

Corporate Citizenship at Deloitte help in driving measurable changes in the communities that inspires the action and instill great price after applying necessary skills as well as experience that accelerates positive and societal impact (Suliman, Al-Khatib and Thomas 2016). Deloitte drives impact that solves national issues such as education and veterans. The responsibility for ethical behavior at Deloitte has been taken seriously and demonstrates the strength of character by the actions in well-defined way (Korschun, Bhattacharya and Swain 2014).

Environmental Reporting at Deloitte

Deloitte is a global audit firm where the business activities have positive impact on the environment and the company plays an important role for playing in the environmental stewardship. In the recent business environment, it is noted that business enterprise are starting to realize the utmost importance for finding the right balance between financial, social as well as environmental priorities that is carefully managed by Deloitte by implementing sustainability strategy for attainment of long-term success (Korschun, Bhattacharya and Swain 2014). At Deloitte, the sustainability strategy is more effective when it is aligned as well as integrated with the existing strategic initiatives. The company actually coordinates with an intelligent approach after evaluating the related risks as well as rewards at the same time. The members firms at Deloitte help clients for managing the corporate responsibility as well as sustainability issues in the most effective way (Suliman, Al-Khatib and Thomas 2016). The service teams of Deloitte have the experience as well as subject matter knowledge in different industries for assisting companies in embedding the corporate responsibility into business activities as far it is operated in given form. Furthermore, the audit firm supports efforts for delivering long-term sustainable value to the company as well as stakeholders. The Professional team of mainly aims at helping the people and assess with the business related risks as well as opportunities. The audit firm helps in developing sound as well as responsible corporate business strategies (Suliman, Al-Khatib and Thomas 2016).

As far as environment health and safety is concerned, Deloitte help clients for navigating the risk and compliance landscape through implementing pragmatic approach and integrating critical process into broader operational risk management and the necessary sustainability programs (Tai and Chuang 2014). In case of sustainable supply chain, Deloitte help clients for refining the supply chains, product lifecycles as well as internal operations where they can address diverse issues like supplier engagement, extended producer strategy, procurement, closed loop recycling as well as supply chain transparency (Suliman, Al-Khatib and Thomas 2016). In case of sustainable finance, Deloitte help their clients for incorporating environmental, social as well as governance criteria for taking investment decisions and enable more effective management and valuation of natural capital and ecosystem services that mainly drives towards gaining tangible economic value and positive environmental as well as societal impact especially in the financial sector (Dhaliwal et al. 2014). 

Social Reporting at Deloitte affecting local community

Direct stakeholders include employees and shareholders that considered being most important asset by the audit firm (Korschun, Bhattacharya and Swain 2014). On the contrary, indirect stakeholders include all the indirect stakeholders include all the individuals as well as organization that influences local communities and government agencies as a whole. Deloitte should be cautious at the time of influencing the social reporting activities. The Corporate Sustainability Report of Deloitte mainly offers different online site reports that describe the results as well as impact on society at local level. The main purpose of the audit firm is to render professional advice to the client so that there is smooth functioning of business enterprise (Rao and Tilt 2016).

The audit firm work every day to serve the local community as well as build a prosperous society. Deloitte aims at enhancing the lives as well as driving the social progress that is more of an aspiration and intention in an organizational mindset (Suliman, Al-Khatib and Thomas 2016). Deloitte believes in shaping as well as creating the society by making use of advisory capabilities ad solving the big issues that are faced on different levels, be it globally, regionally and locally. Deloitte mainly focus on the efforts where the skills that had greatest impact after aligning with organization and sharing of goals for changing the way where social impact is measured and delivered at the same time (Casey and Grenier 2014).

Environmental Reporting at Deloitte affecting local community

At Deloitte, they are committed towards driving societal change as well as promoting environmental sustainability as a whole (Korschun, Bhattacharya and Swain 2014). The member firms of Deloitte contributed towards public policy, business as well as society in and across the world. The audit firm commits towards serving the local communities as well as wider society. In that case, Deloitte respect human dignity as well as expanding the capabilities through inclusion and the cultural diversity in the most appropriate way (Suliman, Al-Khatib and Thomas 2016). Furthermore, Deloitte promotes the highest levels of ethical behavior as well as advocating sustainable use of resources and advance education and culture that actually respect for the environment. Deloitte mainly demonstrates activities that involve investments for the people, advising and providing services to others, environmentally sustainable operations as well as commitments to the local communities and the wider society as a whole (De Beelde and Tuybens 2015).

Humanitarian Innovation Program

At the time of humanitarian crisis, Deloitte mainly believes that business plays major role that support humanitarian business in their response as well as protecting, maintaining and rebuilding the communities and society as a whole (Sierra?García, Zorio?Grima and García?Benau 2015).

Conclusion

At the end of the study, it is concluded that Deloitte occupies the topmost position in the audit firm that renders professional advice to the client. The audit firm gives proper emphasis on serving the society and local community so that there can be smooth functioning of business enterprise. Deloitte believes in promoting a stronger economy as well as society. At Deloitte, the people have a unique work life needs as well as aspirations. The audit firm takes a comprehensive approach that had better meet the needs of the people as a whole. Deloitte believes in unleashing the power of diversity where they foster an inclusive culture so that they become an inclusive leader. They are proud to share the discoveries with the local marketplace as well as clients in the most appropriate way. 

Reference List

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Deloitte United Kingdom. 2017. Deloitte UK | Audit, Consulting, Financial Advisory and Tax services. [online] Available at: https://www.deloitte.com [Accessed 2 Jul. 2017].

Dhaliwal, D., Li, O.Z., Tsang, A. and Yang, Y.G., 2014. Corporate social responsibility disclosure and the cost of equity capital: The roles of stakeholder orientation and financial transparency. Journal of Accounting and Public Policy, 33(4), pp.328-355.

Kilkenny, S., 2015. Corporate Social Responsibility. Network Journal, 22(3), p.24.

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Servaes, H. and Tamayo, A., 2013. The impact of corporate social responsibility on firm value: The role of customer awareness. Management Science, 59(5), pp.1045-1061.

Sierra?García, L., Zorio?Grima, A. and García?Benau, M.A., 2015. Stakeholder engagement, corporate social responsibility and integrated reporting: an exploratory study. Corporate Social Responsibility and Environmental Management, 22(5), pp.286-304.

Suliman, A.M., Al-Khatib, H.T. and Thomas, S.E., 2016. Corporate Social Responsibility. Corporate Social Performance: Reflecting on the Past and Investing in the Future, p.15.

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