B9

Justine Jordan S. Cruz

3 BAC

The Current State of Sustainability Reporting by Smaller S&P 500 Companies1

by Ganesh M. Pandit and Allen J. Rubenfield

A company should not revolve mainly on the idea of gaining profit. It should also give importance to its
environment, society, governance disclosures of companies, commonly referred to as corporate social responsibility
or sustainability. With the continuous rise and innovation of technologies, people depend on it to make their life
more productive and efficient. But, with the services and ease of work it provides, it also has negative effects, that
some of these machines are harmful to our environment.

Nowadays, not only do companies submit their financial reports, they do also submit report using the GRI
framework as a component of their overall sustainability report. Companies submits these reports not only to help
the environment, but it also an advantage to them to attract consumers and improve their overall reputation. The
reports also contain other information with regards to the activities of the company, both internally and externally,
such as the relation between its customers, employees, and local community.

As an individual, oftentimes do we question ourselves how a single person could help make a difference in
changing our world for the better, by simply choosing the brands or companies who are eco-friendly, that can
already make an impact. Without us, companies will not have customers, without customers they would not raise
any revenue. That is also the reason why companies invest heavily on how to be environment-friendly, to convince
us that they themselves also want to stand against climate change.

I think that Certified Public Accountants (CPAs), whether in private practice, corporate industry, or
government agencies, should influence its clients or employers to formulate a strategy for sustainability,
development, and continuous growth. CPAs have a vital role in decision making process in businesses. Their
opinions and suggestions have an impact to the overall strategy of a company which could lead to a better society
for us and the future generations to come.

1 Pandit, G. M. and Rubenfield, A. J. (2016). The Current State of Sustainability Reporting by smaller S&P 500 companies. CPA

Journal, 86(6), 52-57.