ACC303 Contemporary Issues in Accounting For Corporate Social Responsibility

Groups are to research the current state of Sustainability Reporting. As a result of their research groups need to develop a video presentation detailing the current state of sustainability reporting including the issues, practices, etc using higher order analysis and explaining the implications for various stakeholders in relation to financial decision making. The video presentation should conclude with supported specific recommendations as to how organisations and their accounting advisors should proceed in light of the analysis.

Students need to support their analysis with reference from the text and minimum of ten (10) suitable, reliable, current and academically acceptable sources – check with your tutor if unsure of the validity of sources.?Groups seeking Credit or above grades should support their analysis with increased number of reference sources comparable to the grade they are seeking. 
5 minutes video presentation per group. Using the course material with reference to group report content, groups are to present their analysis and findings/ conclusions in a professional 5 (five) minute video presentation. All group members must participate in the preparation of the video.

Presentations should be a critical analysis covering the main theory elements of the course – not just presenting a factual story – reference to corporate reports and other material is encouraged. Information can be covered in any order in the presentation, but should contain elements of the course. 

Answer:

Introduction to Sustainability

Sustainability is related to sustainable development, which is concerned about conserving life-support mechanisms and fulfilling major human needs (Kates, 2001). It is regarded as a valuable part in today’s modern world with the advancement in both science and technology. World’s scientific programs, academics and international networks promote sustainability agenda to shape the underlying environment. The global and the local impact of the integration between nature and society are interconnected in a way so that the sustainability goals are fulfilled within a definite timeframe. There are two different views of nature and mankind that primarily focus on attaining long-term sustainability and promoting harmony along with adaptation. Social and political pillars influence the implementation of environmental goods and thus help the humans to understand the contrast between long-term renewability and short- term satisfaction for the greater good of earth (Kuhlman & Farrinton, 2010).

Corporate Social Responsibility (CSR)

CSR is a concept, which establishes a relationship between business and community. It takes into concern maximizing the profitability level of the shareholders and maintaining employee wellness with respect to the protection of the underlying ecosystem. CSR includes two dimensions of a firm’s activity that include social framework abiding by enormous responsibilities and the exercise of key economic functions such as production, output and growth (Carrol, 2001). Economic, ethical, philanthropic and legal responsibilities are fundamental in case of formatting the CSR framework of a company. Businesses operating in this present day context consider CSR in order to maintain long-term sustainability and retain competitiveness as compared to others. These aspects of CSR eventually support a company to enhance its public image and business reputation as well, thereby ensuring greater level of competitive advantage. Philanthropic responsibilities of CSR make unique contribution towards education, arts and other welfare activities that help to position a business as sound corporate citizens (Doh & Guay, 2006).

Importance of Trust

Corporate strategy in accordance with conventional theories of economics opened a view about how to deal with the stakeholders of a company. This view depicts the necessity of trust between companies and their stakeholders, creating a space for the development of ethical behaviors and commitment (McWilliams & Siegel, 2001). The equitable behaviors of the companies help to build trustworthy relationship with the potential stakeholders that seek to generate higher level of competitive advantage as compared to others. Trust is an important factor to retain the customers in the long run, which can be maintained by providing them with quality products and/or services. Companies can generate a comprehensive policy on CSR to focus on the stakeholders or set up a unique statement for operational details. Employees can rely on a company if it works constantly to improve their potentials and urges to retain them for a longer time. Creating trust among the customers is one of the esteemed social responsibilities for a company, which starts with finding out mixed solutions that ease their worries (Snider, Hill & Martin, 2003).

Fantastic Furniture Overview

Fantastic Furniture is one of the renowned and affordable furniture manufacturers and retail stores in Australia. It has 75 stores nationally and covers regional towns and 14 metropolitan cities. It has an online portal for instant orders and valued customer delivery throughout the operating regions. Customers can easily find stores and obtain their preferred products and/or services through own website of the company (Fantastic Furniture, 2017). The company started its business 25 years ago with a small stall in Parklea Markets, Sydney. Fantastic Furniture possesses over 1000 employees who assist the customers in managing homes and offices at low costs. It has furniture of all sizes irrespective of where a customer resides. The company promises to cut down the price of furniture by 20%, if a customer can show same genre of furniture with a low price at another furniture store. Fantastic Furniture’s specialty is lounge factory and royal comfort bedding, which certainly increased its customer base with augmented product sales (Fantastic Furniture, 2017).

Fantastic Furniture’s Sustainable Approach 

Sustainable furnishing is the primary objective of Fantastic furniture. It assures that all the furniture making processes are controlled and regulated by omitting carbon emissions, un-recyclable contents, minimizing stream pollutants and using essential elements from sustainable sources (Sustainable Furnishings Council, 2015). Armchairs and sofas are the quality attractions of Fantastic Furniture that make the customers to visit the company’s stores on a frequent basis. The company takes into concern fabric protection for a longer time, which ensures customer sustainability by a certain level (Fantastic Furniture, 2017). Transparency is pivotal in innovation and supply chain management at Fantastic Furniture, which helps in lessening the chances of using unnecessary chemical inputs in the production procedure. The company allocates enough employees to supply all the demanded products and possesses the team members who assemble the furniture with proper adjustments. Sustainable furnishing obstructs the idea of the use of flame retardant chemicals, antimicrobials, VOCs, fluorinated stain treatments and formaldehyde in all the kid’s furniture packages (Sustainable Furnishings Council, 2015).

Fantastic Furniture’s CSR

CSR has a huge impact in furniture industry and it has been apparent that Fantastic Furniture implements changes with the ever changing perception of its customers throughout its operations. It is observed that the company is amongst the top most sellers of package deals in furniture business. The company has exclusive deals for the clients in case of furniture upgrade or for the new buyers (Fantastic Furniture, 2017). Fantastic Furniture can easily access all the wood resources from the local market. It performs various CSR activities by helping the local people with career building opportunities­­. Fantastic Furniture’s team members add quantifiable business perspectives and customers are always enlightened to share their choices with the members. Employees at Fantastic Furniture work with fun and passion. Furniture and the team members therefore add sustainability to the company as well as the society. Employees remain engaged to support manufacturing process, warehousing activities and sales (Fantastic Furniture, 2017). Fantastic Furniture ensures career benefits and promotions of its employees. It supports the local people with varied employment options at factory and retail areas, which in turn, denote economic sustainability. Fantastic Furniture surprises its customers with gift vouchers as a part of virtual customer interaction process, which is operated through its website. The company allows the customers to upload pictures of their recent home transformations by displaying recently bought furniture to participate in the process (Fantastic Furniture, 2017). Fantastic Furniture contemplates on its after-sales service and allows the customers to return their products within 60 days under re-saleable condition. It follows the Australian Consumer Law and provide guarantee for the products it deliver to the end users. Customers can change any product or claim a total refund, if they face major difficulties to use (Rolfe, 2016).

Fantastic Furniture spotted the design error and developed a perfect solution to prevent such occurrences in the future. Another CSR activity of the company can be determined from its initiative to save hard earned money of the customers by performing various operations via its own manufacturing plant instead of using middleman. Fantastic Furniture often imports furniture from overseas and focus on bringing country furniture from New South Wales (Fantastic Furniture, 2017). It has an international office for importing furniture and accessories and the employees are connected to reputed factories as well. This certainly helps the company to bring international furniture with an amazing price benefit. Fantastic Furniture provides access to trendy interior designs for all the followers through varied social media sites, which in turn, saves the cost of interior design.

Other Industries

There are numerous furniture companies who compete based on design and structure. However, sustainability is deemed as a major factor to determine the competitiveness of these companies. King Living is identified as one of the competitors of Fantastic Furniture, which performs CSR activities to attain maximum profits and develop operational productivity. The company is involved into making attractive sofa designs and manufacturing the product with paying less focus on recycling. Both the companies i.e. Fantastic Furniture and King Living have a service team, which is authorized to change the old cushions and put new covers for all the furniture. Sustainability for both the companies is regulated through its packaging and manufacturing units. Steel frames can be used for a lifetime and covers, fillings and cases are effortlessly recyclable (King Living Singapore Pte Ltd., 2016).

Conclusion & Recommendation 

Fantastic Furniture is unmatched from the viewpoint of its furniture pricing, which is sustainable and affordable as well. Sustainability in furniture industry is essential to maintain in order to compete with the major market players, enhance public image and increase profits. The company is identified to be one of the cost effective local manufacturing and import oriented companies in Australia, which aims for value generation rather than profit making. Fantastic Furniture creates designs for all kinds of customers irrespective of their income differences and therefore establishes relationship amid the business and the society. Sustainability is emerging as one of the issues for the modern business corporations due to gaining momentum of globalization and increasing level of internationalization. Therefore, in terms of recommendations, Fantastic Furniture must perform effective CSR activities and follow ethical norms in a way so that a philanthropically sustainable outlook towards the society is created as per the expectation level. 

References 

Carrol, A, B 2001, ‘The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders’, Business Horizons, pp. 39-48. 

Doh, J, P & Guay, T, R 2006, ‘Corporate Social Responsibility, Public Policy, and NGO Activism in Europe and the United States: An Institutional-Stakeholder Perspective’, Journal of Management Studies, vol. 43, no. 1, pp. 0022-2380. 

Fantastic Furniture, 2017, Frequently asked questions, Help centre, viewed 9 September 2017, <https://www.fantasticfurniture.com.au/help-centre>.

Fantastic Furniture, 2017, Get to know us, About us, viewed 9 September 2017, <https://www.fantasticfurniture.com.au/aboutfantastic>. 

Fantastic Furniture, 2017, Lounge sets, Sofas & armchairs, viewed 9 September 2017, <https://www.fantasticfurniture.com.au/Categories/Sofas-%26-Armchairs/Lounge-Sets/Dallas-2-%26-2-Seater-Sofa-Set/p/DQDLOU22S_1>. 

Fantastic Furniture, 2017, Our latest ideas & inspiration, How-to & inspiration, viewed 9 September 2017, <https://www.fantasticfurniture.com.au/blog/>. 

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Kates, R, W, Clark, C, C, Correl, R, Hall J, M, Jaeger, C, C, Lowe, I, McCarthy, J, J, Schellnhuber, H , J, Bolin, B, Dickson, N, M, Faucheux, S, Gallopin, G, C, Grubler, A, Huntley, B, Jager, J, Jodha, N, S, Kasperson, R, E, Mabogunje, A, Matson, P, Mooney, H, Moore III, B, O’Riordan, T & Svedin, U 2001, ‘Sustainability Science’, Science’s Compass, vol. 292, no. 5517, pp. 641-641. 

King Living Singapore Pte Ltd, 2016, Environmentally aware, Environment & king, viewed 9 September 2017, <https://www.kingliving.com.sg/about/environment/>. 

Kuhlman, T & Farrington, J 2010, ‘What is Sustainability’, Sustainability, vol. 2, no. 11, pp. 3436-3448. 

Roffle, J 2016, Fantastic Furniture set to recall 100,000 dining chairs after multiple injuries, news.com.au, viewed 9 September 2017, <https://www.news.com.au/finance/business/retail/fantastic-furniture-set-to-recall-100000-dining-chairs-after-multiple-injuries/news-story/d6a64829b362f5ab0dc0dbbb95fc80fd>. 

Siegel, D & McWilliams, A 2001, ‘Corporate social responsibility: A theory of the firm perspective’, The Academy of management Review’, vol. 26, no. 1, pp. 117-127. 

Snider, J, Hill, R, P & Martin, D 2003, ‘Corporate social responsibility in the 21^st century: A view from the world’s most successful firms’, Journal of Business Ethics, vol. 48, pp. 175-187. 

Sustainable Furnishings Council, 2015, The “What’s it made of?” initiative, About us, viewed 9 September 2017, <https://sustainablefurnishings.org/content/whats-it-made-initiative>. Sustainable Furnishings Council, 2015, What are sustainable furnishings?, Sustaining healthy environments inside & out, viewed 9 September 2017, <https://sustainablefurnishings.org/>.