Ethics and CSR

RMIT 28th September 2010

Who am I?• Expertise in management – largely in the SME sector• FCPA• Focus on the business implication of numbers – and

how to run a business effectively• Role with CoE Environment Social and Governance• Active discussing climate change - developing action

and business model

Governance model• Engagement at all levels of organisation• Genuine commitment required from Chair,

board and executive• Process to measure and monitor

• Support strategic direction with systems throughout the organisation

• Report and monitor constantly• Celebrate success

Sustainability• Carbon emissions• Water usage and management• Waste management• Health issues• Biodiversity• Population

CSR in an Australian context

Compliance vs market imperativeBusiness imperativeSocietal benefitWhere is it now?Where should it be?

Reporting framework

GRIAASBASIC ASXAccounting professionCPA – and other accounting bodies

Accountants’ role

Report preparationEthical dilemma? – Performance – Market

driven needs vs RealitySocietal impact +ve Coy. benefit

-ve How should this be reported?

Carbon accounting

Examples of Sustainability Reporting• Toyota

http://www.toyota.com.au/toyota/events/environment/2009_sustainability_report?WT.ac=SRHome

• CPA Australia http://cpa.bsiq.com.au/?xml=pastedconfig&iid=36549

• BHP http://www.bhpbilliton.com/bbContentRepository/docs/sustainabilitySummaryReport2009.pdf

• Toyota http://www.toyota.com.au/toyota/events/environment/2009_sustainability_report?WT.ac=SRHome

• CPA Australia http://cpa.bsiq.com.au/?xml=pastedconfig&iid=36549

• BHP http://www.bhpbilliton.com/bbContentRepository/docs/sustainabilitySummaryReport2009.pdf

• Toyota http://www.toyota.com.au/toyota/events/environment/2009_sustainability_report?WT.ac=SRHome

• CPA Australia http://cpa.bsiq.com.au/?xml=pastedconfig&iid=36549

• BHP http://www.bhpbilliton.com/bbContentRepository/docs/sustainabilitySummaryReport2009.pdf

http://www.woodside.com.au/

Where is CSR in relation to sustainability?

Separate from annual reportsOne step on a continuumIntegrating sustainability into the hard numbers –

statement of performance and statement of position – incorporating societal impact – fundamental shift in stakeholder responsibility

Convergence of management and financial reporting

ResourcesSensis SME success stories athttp://about.sensis.com.au/small-business/free-sustainable-growth-bookCarbon Compass at:http://www.carboncompass.com.au/ClimateWorkshttp://www.climateworksaustralia.com/low_carbon_growth_plan.html