BU1002/BU1902 – Accounting for Decision Making Tutorial Questions - Topic 10, 2020

Topic 10
Chapter 1 – Sustainability
Chapter 2 – Ethics in
Business
Questions from Chapter 1
1.18 What are the three pillars of sustainability?

Economic performance
- Ability to earn profit
- Better returns for investors
- It’s the bottom-line
Environment performance
- Surroundings/ nature
- Protecting the environment
Social performance
- Contributing to the society/ people
- E.g employer, consumers, public, charity

1.19 Growth areas for accountants in the future include sustainability reporting and, more specifically,
carbon accounting. What are the costs and the benefits for entities in reporting their carbon
greenhouse gas emissions?

1.20 Outline the nine principles of business sustainability performance as put forward by Epstein and Roy
(2003).

9 Principles of biz sustainability performance

- Ethics- moral values, doing the right thing
- Governance – directions and controls
- Transparency – be honest, important info to be made known.
- Biz relationships – good relationship with various stakeholders (internal/ external)
- Financial returns – financial reports and returns to investors
- Community involvement / economic development
- Value of products and services
- Employment practices
- Protection of the environment

1.24 Compare the principles underlying the GRI sustainability reporting Standards with the principles
underlying the preparation of GPFS.

Chapter 2:

2.26 Give some examples of each of Carroll’s four key responsibilities of business. Have any of these
changed from one responsibility grouping to another over the last decade?

2.27 Explain the following:

a. triple bottom line reporting
 b. corporate governance
c. the relationship of stakeholders to corporate governance.

2.30 Compare and contrast the professional code of ethics for individuals and the guidelines for
corporations.
- Both requires care and consideration of public interest
- Transparency and accountability
- Independence

2.31 What is the difference between business ethics and social and environmental responsibility?

Ethics – relate to values and principles used in making decisions

Social/ environment responsibility
- Relates to the consequences of the actions by the companies on society and the environment