The changing business environment of today, which is symbolized by cross-border flow of capital, technology and products has broadened the dimensions of accountability and performance. An increasing awareness of issues like ecological, economical and social sustainability has made it imperative for the accounting profession to adapt itself to a substantive role in creating and enabling such development which does not impair the future. Professional accountants are increasingly involved in the measurement, recording, reporting and stating assurance on sustainability issues. Sustainability permeates many aspects of an accountants work including the measurement of liabilities and impaired assets, the design and operation of management control systems, the identification and management of risk, the reporting and assurance of information, and compliance with laws and regulations.
The
two criteria which are frequently used by companies for reporting sustainability
issues are the Global Reporting Initiative (GRI) Guidelines and the AA1000 Framework.
The GRI is a joint initiative of the US non-governmental organization Coalition
for Environmentally Responsible Economies (CERES) and United Nations Environment
Program (UNEP). GRI was established in 1997 with the objective of enhancing the
quality, rigor and utility of sustainability reporting. GRI guidelines provide
in-depth details on the reporting aspects of sustainability; whereas, the AccountAbility's
AA1000 Assurance Standard is the dominant standard as far as assurance is concerned.
This
article traces the history of sustainable development around the world, analyzes
the reasons which have contributed to the growing importance of sustainability
reports and the role which professional accountants play while preparing such
reports. |
