Importance Of Sustainability And Ethics In Accounting

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Sustainability and ethics in accounting

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Introduction
Sometimes the term sustainability is interchangeably used with the term corporate social responsibility. Different people understand the term sustainability in dissimilar ways. The universally acceptance definition of the term sustainability and has emerged over a period of time is the consideration of the triple bottom-line. The contemplation of the triple bottom-line defines sustainability as the economic capability, social accountability, and the environmental accountability. The broad concept of the term sustainability is focused in the environmental considerations involving preservation of the environment and natural resource management.
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Several companies and organizations are providing their sustainability reports or corporate responsibility in order to determine their business profile on the highly competitive market. The reports are given in order to demonstrate their obligation to financial, social, or the environmental issues. In addition, sustainability in the accounting report is given in order to promote transparency feedback on the performance of the business. Furthermore, sustainability in accounting reports are given in order to demonstrate the efforts of various organizations in building and maintaining relationships with the external stakeholders and communities. Sustainability report is essential since it helps in revealing the growth of the brand value and the growth of the shareholder. It also aids in the better management and understanding good communicative system. A sustainability report in the accounting helps in the protection of the business reputation (Fries et al …show more content…
Such organization is Enron. In the outcome of the Enron’s liquidation, various Enron staffs were charged with criminal activities such as money laundering, insider trading, and fraud proceedings. For example, Ben Glisan was an executive manager in the Enron organization. He was charged with funds laundering actions and fraud. When he was asked to defend, he pleaded for negotiation and claimed that Enron was a house of playing cards. When the senior executive, Glisan was asked if the organization was following the value of ethics such as due value, style of the communication, respect, integrity, and objectivity and independent, the upshots revealed that the Enron had engaged in the unethical activities that led to its collapse (Niskanen, 2007). At present, the organization is working day and night to return to its original status of being the leading company that adheres to the codes of accounting ethics in the

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