The Role of Social and Environmental Information Disclosure in Business

Various factors encourage companies to disclose social and environmental information even though its disclosure is more voluntary than mandatory activity. Companies are compelled to reveal their social and environmental information for reasons such as; to protect the company’s reputation, pressure from the social and economic factors. Companies believe that disclosing this information will improve the company’s image and reputation. Premier investment is an example of many companies that aim at continued growth and feels that being part and parcel of environmental compliant is not only a responsibility that they must fulfill but also a way of enhancing the company’s image to the public. In addition to protecting the company’s reputation, companies disclose social and environmental information as a result of pressure from the members of the public. Members of the public sometime expect companies to adhere to a certain level of social and environmental standard (Zadek, Evans, & Pruzan, 2013). The priority is given to the product and services from the companies that are compliant. Due to such preferences, companies are compelled to disclose social and environmental information to attract public attention.

Question B

The improvement of annual returns from the company’s investment in the financial year 2018 is seen as the motivating factor for social and environmental disclosure. Premier investment has reported their environmental and social information in the following categories; Packaging Stewardship-Premier is committed to optimizing packaging to reduce environmental impact through the company’s commitment to using the EPI technology design to manage and control the lifetime of the product in an environmentally sustainable manner. Waste and recycling-The company has embarked on an extensive recycling and sustainable practices across all its network and store. This initiative has a significance in a waste generation hence sustainable use of resources. Energy Efficiency-Premier investment recognizes the importance of efficient energy therefore upgraded all the lighting system in its store to LED which is an energy efficient model. Smiggle community Partnerships-Premier through its smiggle brand has supported children’s charity organization and education programs all over its market base (“Animal Shelter Euthanasia,” 2018). This initiative has revived hope and empower children in both developing and developed countries.

Question C

Premier investment’s initiative to embrace extensive recycling and sustainable practices has been motivated by public pressure. Premier being a signatory to the Australian Packing Covenant which is an agreement by companies to reduce impact to the environment through packaging compels the company to disclose its social and environmental information. Similarly, economic factors such as positive relation between profits have forced Premier Investment to adopt an energy efficiency initiative to reduces energy cost as well as conserve energy.

Question D

As a shareholder in Premier Investments, I would be focused on assessing the profitability of the investment. Decisions made by the executives of a company, firm or organization determine its success. For example, its ability to make profits, gain dividends and have capital growth all of which are determined by the price of the shares. Therefore, I will be concerned with the earnings ratio, dividend yield, tangible and intangible assets. To evaluate the investment and make a judgment on the competence of Premier investment, I will compare with other firms and organizations. Financial statements are essential as they give information on the financial health status of an organization. Financial information provides an insight into an organization or corporation performance at a particular time.

References

Animal Shelter Euthanasia. (2018). Retrieved from https://www.americanhumane.org/fact-sheet/animal-shelter-euthanasia-2/

Zadek, S., Evans, R., & Pruzan, P. (2013). Building corporate accountability: Emerging practice in social and ethical accounting and auditing. Routledge.