Accounting Sustainable Management
The organization’s emphasis towards the sustainability is increasing as a response to the scarcity of natural resources and the negative effects on environment by means of ecological hazards. Therefore, the organizations are adapting their business procedure to utilize such resources that are cost effective and environment friendly so that they can earn profits and can remain environment friendly by having a positive image in the society by addressing their social accountability.
Sustainability and its Relevance to Business and Accounting
Sustainability and its Relevance to WML
Implication of Sustainability in WML
The current study has been conducted in order to analyze the strategic practices of Wave Master Ltd. (WML) with respect to sustainability. The sustainability of a company indicates the extent to which the company is playing its part in the safeguard of biological systems and the extent to which the company is considered as environment friendly. The sustainable practices drive the organizations to indulge in the substitution of current resources that are considered as cost effective and environment friendly; thus, the organizations can create a positive image in the market and among its customers by being accountable towards the ecosystem as well as can make production processes cost effective and generate profits in the future.
The trend related to the diversification of business processes towards sustainability is increasing and organizations are adapting sustainable measures to modify their traditional businesses in order to reduce the extent to which the natural resources are being deteriorated. Moreover, the technological advancements have made the business sustainability profitable by making the businesses rely on environmental friendly sources that are easily found as alternatives to traditional sources.
The current study is aimed to identify the feasibility for the adaption of sustainable procedures in the Wave Master Ltd. (WML) and analyze if the sustainable practices are profitable and relevant to the business model of the company. The findings of the study are aimed to provide the directions in which the company can take suggestive practices in order to utilize the sustainable practices in the business procedures with respect to production and can ensure its accountability towards environment safety. Moreover, with the utilization of sustainable practices, the dependency of the organization on the natural resources will be reduced and the company can use substitute material for its production purposes in order to reduce cost and generate profits.
The limitations with respect to the sustainable practices exists because the company cannot remodel all of its procedures in order to become environment friendly as the implications for being sustainable will take an adequate course of time in order to implement and carry out the sustainable practices. However, the company’s adaptability depends on its urgency of being adaptive and its capability to implement such practices but an adequate period of time is required for the company to carry out its remodeled sustainable production procedures. Moreover, the availability of substitute resources in order to meet the demand fluctuations for its products can also be critical for the company and thus requires perfect planning.
It has been assumed that the WML Company is producing surfboards and is planning to shift the type of its raw material towards the “moso bamboo” which are considered to be cost effective and are regarded as best material for the production of surfboards by being two times durable than the company’s current production material of bamboo. It has been considered that the organization’s Managing Director has required the feasibility report related to the organization’s diversification of sustainability and hence, it is required that the company analyzes the alternative yet, cost effective source of production by using moso bamboo material. However, it is required that the organization’s tendency of being sustainable is not over looked with cost effectiveness and hence, the sustainability report is required to be shared with its stakeholders to analyze the alternatives. Therefore, analysis has been taken place in order to prove the effectiveness of sustainability in the interest of business and accounting.
Sustainability refers to the tendency in which an organization is considered to impose the minimized negativity on the environment in which it prevails either globally or locally. Sustainability indicates the attempt to make the environment and biological-systems safe and productive without implicating any negative activity which results in its deterioration. It is also inferred as the endurance that is being provided to the biological-systems in the world. These biological-systems are considered to be important for the survival of life and to maintain the balance of nature. The sustainability by means of environmental safeguard can be provided by reducing the flow of toxic substances in the environment and by reducing the devastation of natural resources. The government policies exist in the world that promote the sustainability of the environment while carrying out the general activities that are being conducted by humans for their own benefits (Hall and Vredenburg, 2012).
The environmental hazards by means of climate change in which there is a continuous emission of carbon dioxide and resource depletion in which the natural resources of energy has been decreasing due to increased consumption. There is also a reduction in forestry and natural wetlands due to the increased demand of production and release of toxic wastes. This has altogether implicated a negative effect on the ecological environment and has made it difficult for the ecosystem to promote healthy life. However, sustainability provides the safeguard to all these concerns in which organized principles are used to carry out the life related activities that are strongly based on the consumption of natural resources in an efficient manner so that they don’t impose negative effects on the environment. The remodeling of procedures takes place in order to gain sustainability by introducing such processes that in which such resources and practices are used that help to reduce the environmental deterioration and the endangerment of natural ecological and biological systems. The idea of achieving sustainability is being held together by the concerned authorities in order to address to these environmental hazards as a part of their social responsibility which also shares the notion of making the natural resources available for longer period to recognize and develop alternative resources in order to meet their demand of consumption for energy, food and healthy environment. The ever increasing population on the planet has made the natural resources scarce and has caused a threat towards the environment. However, its habitants and the notion of sustainability can reduce this threat and can reduce the environmental hazards. Sustainability can be achieved with the technological advancements in which the identification and utilization of alternate resources tend to be attained (Carroll and Buchholtz, 2014).
Sustainability and its Relevance to Business and Accounting
According to Bebbington et al., (2014), sustainability is considered to be relevant to business due to the social responsibility for which the businesses are accountable. It is necessary for businesses to make their business processes sustainable in order to meet the future demand for natural resources by means of reducing their scarcity. The sustainability practices when adopted by business corporations and its prevalence shapes the future in a healthy and resourceful manner. It has also been incurred that the economic achievements can be accomplished by making the businesses sustainable or environment-friendly. The business corporations can make their business processes sustainable by remodeling the procedures that implicate negative environmental effects and can replace these procedures with such environment friendly practices that generates profits and makes the accounting period positive.
According to Esau and Malone, (2013), the companies have to strategically analyze their business procedures and then examine the negative effects that are being imposed on the environment and biological systems of the planet. The company can analyze its process by means of overall carbon dioxide emission and toxic wastes and can also analyze the natural sources of energy that is being utilized in the business procedures. Moreover, the raw materials procured in the companies can also generate negative environmental effects by means of deforestation. Hence, the analysis of procedures can provide the direction in which the company should divert its business procedures to be sustainable and identify the alternatives in order to substitute the pre-existed methods. These alternatives are usually found to be cost effective because the scarcity of existing natural resources has made them expensive and thus, cost effectiveness can be achieved by the businesses. Moreover, when the organizations tend to adapt its business processes in order to become sustainable then these organizations develop a sustainable image in market and among its customers to attract a large number of customers towards its products. The increasing trend of customers’ giving preference to such products and services that are environment friendly has been increased in the past few decades and the companies who strive to become sustainable can actually achieve sustainability in their business processes and products and can attract a large number of customers thus eventually indicating the profitability in their respective accounting periods (Epstein and Buhovac, 2014).
According to Gibson (2013), the organizations’ capability to become sustainable is…