2012/2013  BA-HA_HU1F  Principles of Sustainable Accounting and Finance

English Title

Principles of Sustainable Accounting and Finance

Course information
Language	English
Exam ECTS	7.5 ECTS
Type	Elective
Level	Bachelor
Duration	Summer
Course period	NOTE: The course schedule is at the momemt ONLY available at www.cbs.dk/summer.
Time Table	Please see course schedule at e-Campus
Study board	Study Board for BSc in Economics and Business Administration
Course coordinator
Faculty - Cristiana Parisi, CBS Patricia Plackett - Department of Operations Management
Main Category of the Course
Financial and management accounting
Last updated on 23-04-2012

Learning objectives

This elective aims to provide students with the skills and knowledge to perform high quality sustainability management and measurement engagements. At the end of the course the student should be able to Discuss the current theoretical and practical sustainability developments, especially in relation to policy, management, accountability and reporting; Demonstrate knowledge of international aspects of sustainability; Understand strategic sustainability policy making in order to be able to access information on it and the way it is embedded in the organisation; Have a broad comprehension of the most relevant guidelines on sustainability management, reporting and sustainability assurance; Display practical sustainability management and reporting skills; Analyse the most relevant challenges and competitive advantages related to the possible Socially Responsible Investing (SRI) strategies in various organisational settings.

Prerequisite

Basic knowledge of managerial accounting and finance are advantageous.

Examination

Principles of Sustainable Accounting and Finance

Home project assignment, 10 A4 pages: Type of test Home Assignment Marking scale 7-step scale Second examiner No second examiner Exam period Summer Term Aids Please, see the detailed regulations below Duration Please, see the detailed regulations below Home Project Assignment. Individual project (10 A4 pages).

Course content

How do organizations effectively measure and communicate their performance against the triple bottom line of environmental, social and economic sustainability in a way that demonstrates accountability to stakeholders? This elective provides students with the opportunity to explore the nature of corporate responsibility and accountability, and develops understanding of new models of sustainability finance, measurement, reporting, and assurance practices. Moreover, it develops an understanding of how the measurement of a global company’s environmental and social performance can contribute to business goals and strategies.   More specifically, the focus of this elective is on the role of entities (governments, non government organizations, firms and individuals) and their accountability, accounting and reporting issues in the context of sustainable development.  Corporate social and environmental accountability, accounting and reporting is concerned with measuring and communicating the social and environmental effects of a corporation's economic actions to particular stakeholders and to society at large. This extends the corporation's accountability beyond the traditional financial disclosures to shareholders and is predicated on the assumption that corporations have, as a consequence of implied social contracting or ethical dimensions, social responsibilities that are much broader than generating shareholder wealth.   Main Themes:   • Sustainable Management Accounting • Capital Budgeting Analysis to Comply with Environmental Regulation and Emissions Permit Trading • Sustainable Balanced Scorecard • Eco-efficiency • Life cycle assessment (LCA) • Sustainability Reporting guidelines and Assurance Services • External Financial Reporting of Environmental Liabilities • External Corporate Financial Reporting of Sustainable Business Practices • Green House Gas Accounting and Reporting Standard and Guidance • Climate Exchanges-Carbon Dioxide Permit Trading • Sustainable finance • Socially responsible Investing (SRI) • Social Return on Investment (SROI) • Environmental Sustainability Indexes   The course’s development of personal competences:   This course provides students with an appreciation of the broader context of corporate performance and disclosure in the context of sustainability and social justice, and with a solid understanding of: developments and practices in corporate social responsibility accountability, accounting and reporting; cost accounting techniques developed in order to evaluate sustainability within organisations; the most relevant strategies relative to Socially Responsible Investing (SRI) and the bases of sustainable finance; the role and relevance of stakeholders in corporations and the concept of accountability; regulatory and voluntary actions in sustainability accountability and reporting.

Teaching methods

The teaching of this elective will be based on a variety of methods. There will be formal lectures, group discussions, case studies and debates. Moreover experts will be invited to contribute with their personal experience on the field.

Expected literature

Adams, C.A. and McNicholas, P. (2007), “Making a difference Sustainability reporting, accountability and organisationalchange”, Accounting, Auditing &  Accountability Journal, Vol. 20, No. 3, pp. 382-402. Anthony, R.N. and Govindarajan, V. (2006), Management Control Systems, New York, Irwin McGraw-Hill, pp. 459-475. Dey, C. (2007), “Developing silent and shadow accounting” in Unerman, J., Babbington, J. And O'Dwyer, B., Sustainability Accounting and Accountability, New York, Routledge, pp. 307-326. Figge, F. et. al. (2002) “The Sustainability Balanced Scorecard. Linking sustainability management to business strategy” Business Strategy and the Environment, Vol. 11, No. 5, pp.269-284.      Hart, S. L. and Milstein, M. B. (2003),  “Creating Sustainable Value,” Academy of Management Executive, Vol. 17, No. 2, pp.56-67. Kaplan R.S. and Norton D.P. (2004), Strategy Maps, Boston, Harvard Business School Press, pp. 163-195. Lingane, A. and Olsen, S. (2004), “Guidelines for Social Return on Investment”, California management review, Vol. 46, N. 3, pp. 135-66. McKeiver, C. and Gadenne, D. (2005),  “Environmental Management Systems in Small and Medium Businesses”, International Small Business Journal, Vol. 23, No. 5, pp. 513–537.   O'Dweyer, B. and Owen, D.L. (2005), “Assurance statement practice in environmental, social and sustainability reporting: A critical evaluation” British Accounting Review, Vol. 37, No. 2, pp. 205-29. Pinkese, J. and Kolk, A. (2007), “Multinational corporations and Emissions Trading: Strategic Responses to New Institutional Constraints”,  European Management Journal, Vol. 25, No. 6, pp. 441–452.   Cases   Dharba K. (2005), The threat of global warming: a business opportunity, ICFAI Centre for Management Research ICMR, pp.1-12. Ewart T. (2005), Mearl oil Company: Environmental Impact Targets(A-C), Richard Ivey School of Business, pp. 1-30. Indu P. and Gupta, V. (2008), Tesco’s Steering Wheel. A tool for strategic value creation and business transformation, ICFAI Centre for Management Research ICMR, pp. 1-21. Leonard, H.B., Epstein, M. and Wing, L. (2005), Playgrounds and Performance: Results management at KaBOOM! (A-C), Harvard Business School Cases pp. 1-23. Moss Kanter, R. and Reisende Pinho, R. (2007), Banco Real, Banking on Sustainability, Harvard Business School cases, pp. 1-24. Rajiv, F. (2007), BP Putting profits before safety?, ICFAI Centre for Management Research ICMR, pp.1-19. Regani, S. (2007), ‘Ecomangination’ at work. GE’s sustainability initiative, ICFAI Centre for Management Research ICMR, pp. 1-18. Reinhard F. (2001), Sustainable development and socially responsible investing: ABB in 2000, Harvard Business School cases, pp. 1-37. Saigeetha C. (2008), Corporate Responsibility: Are the Corporate alone responsible?, ICFAI Centre for Management Research ICMR, pp. 1-16. Sridevi, C. (2003), Balanced Scorecard: A performance Support System, ICFAI Centre for Management Research ICMR, pp. 1-3.   (pages: 294. Papers from A and B Journals & Cases)   Suggested readings   Federation des Experts Comptables Europeens (FEE): 2006, Key Issues in Sustainability Assurance. An Overview. Global Reporting Initiative (GRI): 2006, Sustainability Reporting Guidelines. Version 3.0. Institut der Wirtschaftsprüfer in Deutschland (IDW): 2005, Germany Generally Accepted Assurance Principles for Audit or Review of Sustainability Reports (ED As). Institute of Social and Ethical Accountability (ISEA): 1999, ‘AA1000 Framework’, Institute of Social and Ethical Engagement, UK. Institute of Social and Ethical Accountability (ISEA): 2003, ‘AA1000 Assurance Standard’, London. International Auditing and Assurance Standard Board (IAASB): 2004, ‘International Standard on Assurance Engagement 3000. Assurance Engagement Other than Audits or Reviews of Historical Information’, International Auditing and Assurance Standards Board, New York, NY. International Auditing and Assurance Standards Board (IAASB): 2006, Assurance Aspects of G3 – The Global Reporting Initiative’s 2006 Draft Sustainability Reporting Guidelines. International Federation of Accountants (IFAC): 2002, ‘The Determination and Communication of Levels of Assurance Other than High’, New York. Koninklijk Nederlands Instituut van Registeraccountants (NIVRA): 2005, The Netherlands: Practitioners Working with Subject Matter Experts from other Disciplines on Non-Financial Assurance Engagements (ED 3010) and Assurance Engagements Relating to Sustainability Reports (ED 3410). KPMG-Amsterdam Graduate Business School: 2005, KPMG International Survey of Corporate Responsibility Reporting (University of Amsterdam Publisher). Standards Australia, Standard AS/NZS 5911 (Int): 2005, General Guidelines on the Verification, Validation and Assurance of Environmental and Sustainability Reports.