Sustainability And Environmental Impact

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Sustainability and accounting reporting began when companies had to become more transparent about their environmental impact. The majority of corporate non-financial reporting was included in their annual financial statements and concentrated on human resources and employee relations. For instance, in 1982 US Steel Corporation early financial statements documented worker housing, community development, worker safety and mortgage assistance to their employees. The real jump start to sustainability reporting was politics and environmental disasters that deeply impacted a company 's financial outlook. In the 1960’s into the 1970’s the main social issues were women’s rights, racial equality and world peace, this led companies to focus more on social …show more content…
During the 1960’s there were major disasters that triggered bills to be passed to protect our environment. One of these disasters occurred in 1969 when Cleveland’s oil company contaminated the Cuyahoga River which caught fire for the third time with flames reaching fifty feet. After this horrible incident bills were passed in congress to regulate and control companies from inflicting harm on the environment. The first bill was the U.S. Clean Air Act in 1970 and Clean Water Act in 1972. A number of other company disasters followed and stimulated more laws to be passed to make companies more accountable for their environmental impacts. In 1986 the United States passed Emergency and Community Right to Know Act. The act forced company to become more transparent with their footprint on the environment. Over time environmental issues became more of a concern to society, and companies focused on providing a clear report of their environmental impact. Countries outside the US also faced similar issues and in 1991 Germany passed the Ordinance on the Avoidance of Packaging Waste under the German Waste …show more content…
The main purpose for financial statements is to provide information about the results of operations, financial position, and cash flow of a company. The information is mainly used by people within a company to make decision concerning the allocation of resources. Each financial statement has its own purpose and helps provide information from different aspects of the business. For instance, the income statement informs the reader about how well a business is doing by looking at the profit of a business. An income statement also shows the volume of sales and type of expenses a business is incurring. After reviewing businesses income statement over a period of time a reviewer can find and analyze trends within an organization. Another document that serves a great outlook on a business’s assets and liabilities is the balance sheet. The information from the balance sheet is used to estimate the liquidity, funding, and debt position of an entity, and is the basis for a number of liquidity ratios. Lastly, the main function of statement of cash flows informs the reader the type of cash receipts and disbursements of cash. This statement indicates the cash coming in out of a business, which can be crucial information for a company’s shareholders. A company’s cash flows in a given period are categorized as operating, investing and financing cash flows. The

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