Short Report of Review on Sustainability Disclosure
Subject: Short report of review on sustainability disclosure
There is a growing trend among companies to disclose and report their social and environmental impacts not only concerned with the financial performance of a company but its impact on society and environment. Thus, sustainability becomes an important issue. Sustainability is the capacity to endure and is the long-term maintenance of responsibility, which included environmental, economic, and social dimensions. It is mandatory for a company to disclose its sustainability information. In addition , the sustainability disclosure is based on a theory called "system-oriented theory", which includes three aspects:stakeholder theory, legitimacy theory and …show more content…
From the sustainability development perspective, AGL focus on environment and energy sustainability, it creates Energy Efficiency Opportunities(EEO) program to promote energy efficiency measures in business such as AGL Green Energy and AGL greenhouse Audits. The assessment results in 2011 show that the program has been successful in reducing energy use. Additionally, AGL is investing in renewable energy delivers to ensure that AGL contributes large share of meeting Australia's Renewable Energy Target. Moreover, the company discloses critical events for customer experience, water management regulations, climate change risks and environment risks in the progress of providing its sustainability report.
Institutional theory considers the forms organizations take and explains why organizations within 'particular organization field' tend to take similar characteristics and forms. This theory much overlaps with Legitimacy Theory and Stakeholder Theory and provides a complementary perspective on organizations interpretation. Institutional theory includes two dimensions: isomorphism and decoupling.
Firstly, isomorphism is a constraining process that forces one unit in a population to resemble other units that face the same set of environmental condition. There are three process of isomorphism: coercive, mimetic and normative. Specifically, the EEO program requires companies to assess at least 80% of their trigger-year energy use in the first