CIMA F3 Syllabus A. Financial policy decisions - Sustainability - Notes ^{9 / 13}

The Global Reporting Initiative (GRI)

arose from the need to address the failure of the entities to respond changes in the global economy.

• GRI's mission is to make sustainability reporting standard practice by providing guidance and support to organisations.

• e.g. In case of incomplete disclosure

  - if the information is omitted due to confidentiality, these should be explained.

is a long-term programme involving developing strategies that balance environmental, economic and social needs.

The aim is that the organisation only uses resources at a rate that allows them to be replenished, and that emissions of waste are at a level the environment is able to absorb.

Sustainable efficiency practices for organisations are:

1. Reducing waste

2. Using less energy

3. Recycling

There are 5 sustainability considerations

1. Sustainable for whom

   The issue concerns which species (other than humans) are to be sustained.

2. Sustainable for how long

   This is about ensuring future generations can enjoy the same environmental conditions as the current generation

3. Sustainable at what cost

   There is a balance between preserving the environment and natural resources with the need to produce goods and services.

4. Sustainable by whom

   Ideally the whole world will take responsibility for sustainability.

   The organisations should take on responsibility for sustainability themselves rather than waiting for legal regulation.

5. Sustainable in what way

   This concerns what sustainability is about: 

   - Ecological sustainability
   - Social sustainability
   - Economic sustainability

Ecological sustainability

concerns the preservation of the environment.

• The operations management issue is whether organisations should continue production processes which are harmful to the environment.

Social sustainability

is about personal growth and development.

• For organisations, the issues are whether or not employees should be treated like robots by requiring them to perform repetitive tasks.

Economic sustainability

is about producing goods and services that people want while maximising the organisation's profitability.

• The operations issue is to ensure the organisation produces products and services that its customers want while minimising waste.