In the Australian Ethical Investment Company, environmental management accounting (EMA) and the sustainability report has been uprising issues among the managers. However, in order to provide a match to such features, there are key factors that the managers have to evaluate in the company. One of the major factors is the timeliness of the information by the accounting system. The accounting systems in the Australian Ethical Investment Company incur maintenance at an approximate range of one month. Timeliness involves system management with hours or single days. Secondly, the quality of the information also determines the application of the accounting system. The company only depends on the Ethical Charter for the source of information and financial services thus a dependent information source. A widened information source thus would be relevant for the company. Finally, the effective feedback in terms of the input output ratio influences the system (Bennett et al. 2011, 72). The Australian Ethical Investment Company depends on the superannuation that is long-term returns. The short-term returns would thus be necessary for the company.
The Australian Ethical Investment Company depends on the value-based decision as the major research action in financing. On the other hand, Environment, Social, and Governance (ESG) prohibit the value-based research. Theoretically, research action is a major factor towards the sustainability reporting. Therefore, engagement through the monitoring of the cooperate meetings and the review of the internet reporting may be essential for the Australian ethical investors. Besides, the operative feedback is much essential in the reporting since it determines the reporting guidelines and the monitoring styles available (Kolk, 2008, 9). For a long period, the Australian Ethical Investment Company has generated feedback from the superannuation. Therefore, for the effective feedback, engaging the experienced stakeholders in the sustainability reporting would be necessary for the company.
The Australian Ethical Investment Company will have to put into practice major considerations for the attainment of the environmental management accounting and the sustainability response. Therefore, for the case of the environmental management accounting, failure to consider the timelines of the information results to a general business failure. It is because when the system incurs irregularly maintenance, the outcome is replying to outdated information that is general drawback. However, a failure to consider the quality of information depreciates the generic template of the business thus yielding low business outcome. Both the low response to effective and the operative feedback on the other hand leads to a general low input output feature in the business. Finally, action research determines the quality of the sustainability report thus failure to consider it is a single prioritized report generation (Lichtenstein, 2010, 90).
Bennett, M, Schaltegger S, Zvezdov D. 2011. Environmental management accounting. In Review of Management Accounting Research (pp. 53-84). Palgrave Macmillan UK.
Kolk, A., 2008. “Sustainability, accountability and cooperate governance: exploring multinationals’ reporting practices.” Business Strategy and the Environment, 17(1), pp. 1-15.
Lichtenstein, D. R. 2010. The relationships among manager-, employee-, and customer- company applicant identification. Journal of Retailing, 86(1), pp. 85-93.