This article is about researching and analyzing the external reporting of Westpac Group and critically analyzing the usefulness of information as a decision-making tool for those stakeholders who are highly concerned about the social and environmental impacts of business operations of the organization. Furthermore, key global reporting initiative is also discussed in following article based on the interpretation of accounting guidelines & corresponding frameworks. In second part of the article, the case study related with Jerry Pty Ltd. Is analyzed and evaluated in following article along with strategic initiative taken by him to design and develop a new product range. It has been analyzed from given case study that the sales and production team have developed a high-level cost analysis.
Overview of Environmental and Social Impacts of firm’s Operations
Business operations of an organization affects both the society as well as environment in both positive and negative aspects but its impact highly depends on the business theme and respective business processes. Environmental impact includes each and every concept that is related with environmental pacts that has been specified by the government of specified country and need to be followed by all organizations specified under particular category. The business entrepreneur should assure that none of his business process is negatively influencing the brand value of the organization along with corresponding customer base. The product or service of the organization should be eligible to maintain sustainability and related goals respectively. In context to social impact, the entrepreneur or business owner is responsible to assure that none of his work or business operation is affecting the moral values set-up by the society people. Social impact would include the privacy and security of customer’s data that has been stored by the organization for the better processing of their business operations. The increased revenue of the organization depends on the increased customer base of the organization and effectiveness of regular business operations as well.
GRI reporting standards
GRI is related with different sustainability reporting principles those need to be understood by every businessman no matter under which industry it is operating. This is the most trusted sustainability framework that is used by different business owners around the world to maintain business sustainability and corresponding sustainability goals. With the continuous use of these GRI standards, the government, and various business organizations could better understand and communicatee the impact of business and corresponding sustainability issues those are critical to be enforced over existing business operations. These GRI standards are completely based on multi stakeholder engagement those would further represent the best collaboration of diversity of experienced key personnel to better address corresponding needs of the users. It has been learned that for companies and organizations, GRI standards negates the expenses of sector based and developing in-house products or systems-based reporting frameworks.
Balanced scorecard is referred as a strategic planning as well as management system those the organizations used to communicate what they are trying to accomplish. Furthermore, this concept is also used to align day to day work that everyone is pursuing by enforcing corresponding business strategy. With the use of balanced scorecard approach, the entrepreneur and other important business executives could better prioritize the product, projects and services. Moreover, it would also be assured that with the use of balanced scorecard approach, the business executives could better measure and monitor the progress rate towards the strategic business targets.
Break even analysis is an approach that is used by the business enterprises to demonstrate that they need to sell on monthly as well as yearly basis to better cover the cost of doing business. To better calculate the breakeven analysis different factors, need to be considered by the business executives such as- fixed costs, revenue per unit of sales and variable costs per unit of sales. The break-even analysis is the technique that depends on averaging the per unit variable cost as well as per unit revenue over overall business effectively. It has been seen that most of the time, break even analysis is used by the financial analysts to better demonstrate the financial constraints of the organization.
Impact of the initiative on organization’s resources
It is necessary for the executives of every organization to take some initiative for the betterment of the organization. The initiative could be related with hiring a talented and experienced workforce or might be related to take low cost resource related services from nearby suppliers. Another initiative that could be taken by the executives is to motivate the workforce to give their 100% within the successful achievement of collaborative business objective.
The article is related with analyzing two different business scenarios on the basis of different factors. The article provides brief knowledge related with different key concepts and factors such as- breakeven analysis, balanced scorecard, GRI reporting standards and social and environment impact associated with specified business enterprise.