Exploratory Analysis Based Global Reporting -Myassignmenthelp.Com

Question: Discuss About The Exploratory Analysis Based Global Reporting? Answer: Introduction The main aim of this report is to analyze and evaluate various aspects of Corporate Social Responsibility (CSR) In Kingfisher Airlines. In todays business world, business organizations all over the world use to provide great regards on different aspects of CSR activities. CSR refers to the form of the integration of corporate self-governance into the business model (Tai and Chuang 2014). In the current business situation, the success of the business organizations largely depends on the undertaken CSR activities of the business organizations. Thus, it has become the responsibility of the business organizations to provide the details about their different CSR activities (Suliman, Al-Khatib and Thomas 2016). The same aspect is also applicable for the business operations of Kingfisher Airlines, as the company has also taken many initiatives as a part of their CSR activities. The first part of the report shows the definition of CSR. After that, this report shades light on the CSR related issues and initiatives of Kingfisher Airlines along with the financial position of the company at that time. The next part of this report provides a suggestions to Kingfisher Airlines about the implantation of one of the CSR reporting framework. The next part of the report establishes a connection between one of major stakeholders related theories with the selected article on Kingfisher Airlines. The next part focuses on the analysis of the selected theory. Lastly, conclusion and recommendations are provided based on the whole discussion of CSR reporting of Kingfisher Airlines. Definition of CSR Corporate Social Responsibility (CSR) refers to a particular business approach that hugely contributes towards the sustainable development of the business organizations by delivering their stakeholders with various economic, social and environmental benefits (Carroll 2015). With the help of CSR reporting, business organizations gain more awareness about the impact of their business operations on the society, environment and their stakeholders. CSR is considered as a broad concept that deals with various aspects like human right, corporate governance, health and safety of the employees, contamination of environment, working condition within the organizations, contribution towards the economic development of the countries and many others (Cheng, Ioannou and Serafeim 2014). Article Analysis It needs to be mentioned that Kingfisher Airlines is well-known for the undertaking of various CSR activities for the welfare of their stakeholders, community and environment. At the same time, it needs to be mentioned that the company has to face major issues related with the violation of the code of conducts of activities (Crane, Matten and Spence 2013). From different sources, it can be seen that the company has undertaken some of the major initiatives as a part of their CSR activities. First, the company has taken various activities for the welfare of the people of the local community. Second, the company has established various healthcare units in all over the country for taking care of the health of the people of community. Third, Kingfisher Airlines founded Vittal Mallya Scientific Research Foundation that has been completely involved in the mission called Science for Humanity. Apart from this, Kingfisher Airlines has introduced numerous other initiatives as a part of their CS R activities. However, the article named United Spirits Limited a Case of Corporate Governance Failure? by India CSR Network indicates towards the violation of the major principle of CSR by Kingfisher Airlines and their parent company United Spirit Limited (USL) (indiacsr.in 2018). As per the selected article, it can be observed that in spite of the weak financial position of Kingfisher Airlines, USL provided the company with a huge amount of loan. There is nothing unusual as the parent companies have the right to provide financial support to their group companies (indiacsr.in 2018). However, the main CSR related issue in this case is that both Kingfisher Airlines and USL have carried on this transaction in an illicit manner in order to camouflage the financial position both the companies. Under the principles of CSR, this action has violated the CSR principle, as it is an indication of bad governance. For this reason, this particular aspect has violated the principles of transpare ncy and integrity. Most importantly, it needs to be mentioned that this action of Kingfisher Airlines affected the financial position of the company in a bad manner as the financial position of the company deteriorated. Decrease in gross margin can be seen at that that as the gross margin became -121.8% from 21.1%. Massive fall can be seen in the net margin that is the net margin became -859.9% from -63.8% (indiacsr.in 2018). Thus, it can be observed that violation of CSR principle had a fatal effect on the financial position of Kingfisher Airlines. Reporting Framework From the above discussion, it can be observed that Kingfisher Airlines has been facing major issues related with their CSR activities and reporting. For this reason, it is required for the company to carry on their CSR activities in an appropriate way and it is the responsibility of the company to report their various CSR activities in an effective manner (Fernandez-Feijoo, Romero and Ruiz 2014). It can be seen that there are many frameworks available for the effective reporting of CSR activities of the companies. Based on the problems faced by Kingfisher Airlines, it can be suggested that the company need to adopt the strategy of Global Reporting Initiative (GRI) Framework as GRI Framework is an effective tool for the business organization for the understanding and communication of several CSR related issues like climate change, corporate governance, human rights, corruption and many others (globalreporting.org 2018). The main intention of GRI is to service as a form of generally accepted principles for the reporting of various aspects like social, environmental and economic performance of the companies; and organizations of different size, sector or location can use it (Toppin et al. 2012). Thus, there will not be any problem for Kingfisher Airlines in using it. One of the major components of GRI is the Sustainability Reporting Guideline that includes the principles for the definition of the content of the report so that the quality of the report can be ensured. This aspect includes the disclosure of standards for the performance indicators and other items for disclosure. It also provides in the reporting of certain technical items like the concept of fair value measurement of the assets of the company and others. The next major item in GRI is the Indicator Protocols. The existence of indicator protocols can be seen for measuring the performance of each performance indicators (Fonseca, McAllister and Fitzpatrick 2014). All these protocols have major importance providing definition, guidance for compilation and other important information for ensuring the consistency of performance indicators interpretation. The next major component of GRI is the Sector Supplements. This particular aspect provides guidelines for the implementation of the principle of GRI in the CSR reports. In this aspect, it is required for Kingfisher Airlines to use applicable sector supplements for the interpretation of various aspects of CSR report (Arena and Azzone 2012). The last component of GRI is Technical Protocols that provide guidance for the issue of CSR reports and to sets the boundary of the report. Most importantly, it needs to be mentioned that these protocols play an integral part in solving the issues related to CSR reporting in the companies. Thus, the above discussion shows that the adoption of GRI will provide great help to the CSR reporting of Kingfisher Airlines. Stakeholder Theory In the recent business environment, business organizations use to provide the stakeholders with huge importance as the success of the business organizations largely depends on the relation of the companies with their stakeholders. There is not any exception of this fact in case of Kingfisher Airlines. Many authors provide various theories for the stakeholders of the companies. One of such important theories is the Stakeholder Theory as large adoption of this theory can be seen among the companies (Mainardes, Raposo and Alves 2012). According to the stakeholders theory, the main purpose of the business organizations is to create value for their stakeholders as much as possible. In addition, according to this theory, in order to be successful and sustainable for a long time, it is required for the company executives to consider and keep the interest of their customers, suppliers, employees, shareholders, communities and others (Gibson 2012). The developer of this theory, R. Edward Free man has provided the argument that it is not the responsibility of the organizational managers to consider answer to the shareholders. Moreover, it is the responsibility of the shareholders and the stakeholders to take into consideration any group or individual that can affect their interests in the organization or their interests can be affected by the achievement of the goals and objectives of the firm. Thus, it can be observed that stakeholder theory is an important part for the stakeholders of the companies. Many authors all over the world have provided many positive arguments in favor of the stakeholder theory. One of the major functions of stakeholder theory is the identification of proper objectives for the business operations. At the same time, the stakeholder theory take into consideration the major ethical as well as economic issues related with the CSR of the companies and to present them in the most effective manner (Marshall and Ramsay 2012). All these aspects make the executives in operating the business organization in such a manner so that they can be beneficial for the stakeholders of the companies. In this aspect, it needs to be mentioned that the business organizations cannot ensure their survival by only from the contribution of the shareholders as they need equal contribution from other stakeholders like customers, employees, suppliers and others (Anikina and Chekalkina 2014). For this reason, it is required for the company executives to provide importance in the interes t of their other stakeholders as major investment as this particular aspect has major impact on the financial and sustainable performance of the business organizations. For this reason, providing importance and keeping the interest of the stakeholders is an important aspect in increasing the overall wealth of the organizations. Hence, it is required for all the business organizations to take into consideration the interest of their stakeholders. Analysis based on Stakeholders Theory It can be seen that the stakeholders theory is concerned with the financial well beings of the stakeholders in the companies. From the selected article on the CSR practice of Kingfisher Airlines, it can be seen that the company has taken loan from USL and both of them have done this transaction in an illicit manner for manipulating the financial position of the companies (indiacsr.in 2018). Thus, by applying the stakeholder theory in this situation, it can be observed that the management of Kingfisher Airlines has deprived their stakeholders from knowing the actual financial position of the company. According to the stakeholder theory, it is the right of the stakeholders to know about the actual financial position of the company as the investors use to make the investment decisions based on the financial position of the company (Fassin 2012). Thus, it is required for Kingfisher Airlines to show all the necessary transactions in their financial statements in order to make their stakeh olders aware about the situation. The above discussion about stakeholder theory states that the executives of the companies are required to keep the interest of the company shareholders as well as the other stakeholders like suppliers, customers, employees and others. The selected article about Kingfisher Airlines states that the company has violated the transparency and integrity principles of CSR reporting with their specific action. The concept of stakeholder theory states that it is the ethical responsibility of the companies to keep the interest of their shareholders (Miles 2012). By this aspect, it can also be stated that the specific action of Kingfisher Airlines has violated the ethical principles of CSR. Thus, based on the above discussion, it can be said that the CSR related issues of Kingfisher Airlines could well be defined with the assistance of stakeholder theory. Conclusion and Recommendations From the above discussion, it can be observed that CSR has become an integral part of the business operations of the companies that is a major determinant of the financial performance of the companies. After that, the content of the selected article indicates towards the violation of transparency and integrity principles of CSR. In addition, it can also be seen that the violation in CSR principles has affected the financial position of the company. According to the above discussion, the GRI for CSR reporting has been suggested to Kingfisher Airlines for their CSR practices as the main components of GRI helps in the effective completion and reporting of various CSR initiatives. As per the above discussion, the major layers of GRI are sustainability reporting guidelines, indicator protocols, sector supplements and technical protocols. The above discussion also states that the current CSR related problem of Kingfisher Airlines could be analysed and evaluated with the help of Stakeholder s theory. According to this theory, it is required for the company executives to keep the interests of the stakeholders of their business. However, the analysis of the selected article states that Kingfisher Airlines has failed to keep the interest of their stakeholders by manipulating some major financial transactions. Some recommendations are provided based on the above discussion: It is recommended to the executives of Kingfisher Airlines that they need to adopt the principles and standards of GRI as a part of their CSR reporting initiatives as GRI will make them in reporting their CSR initiatives in more effective manner. It is recommended to the management of Kingfisher Airlines to follow the components of Stakeholders Theory, as this will make them effectively keep the interest of their business stakeholders. References Anikina, I.D. and Chekalkina, A.A., 2014. Using the stakeholders theory in the development of regional financial innovation strategy: harmonization or conflict of interests?. InThe first international conference on economics sciences(pp. 176-180). Arena, M. and Azzone, G., 2012. A process-based operational framework for sustainability reporting in SMEs.Journal of Small Business and Enterprise Development,19(4), pp.669-686. Carroll, A.B., 2015. Corporate social responsibility.Organizational dynamics,44(2), pp.87-96. Cheng, B., Ioannou, I. and Serafeim, G., 2014. Corporate social responsibility and access to finance.Strategic Management Journal,35(1), pp.1-23. Crane, A., Matten, D. and Spence, L.J., 2013. Corporate social responsibility in a global context. Fassin, Y., 2012. Stakeholder management, reciprocity and stakeholder responsibility.Journal of Business Ethics,109(1), pp.83-96. Fernandez-Feijoo, B., Romero, S. and Ruiz, S., 2014. Effect of stakeholders pressure on transparency of sustainability reports within the GRI framework.Journal of Business Ethics,122(1), pp.53-63. Fonseca, A., McAllister, M.L. and Fitzpatrick, P., 2014. Sustainability reporting among mining corporations: a constructive critique of the GRI approach.Journal of Cleaner Production,84, pp.70-83. Gibson, K., 2012. Stakeholders and sustainability: An evolving theory.Journal of Business Ethics,109(1), pp.15-25. Globalreporting.org. (2018).Orientation to the GRI Reporting Framework. [online] Available at: https://www.globalreporting.org/information/g4/G3andG3-1/guidelines-online/G3Online/Pages/OrientationToTheGRIReportingFramework.aspx [Accessed 19 Jan. 2018]. Globalreporting.org. (2018).Sustainability Reporting Guidelines. [online] Available at: https://www.globalreporting.org/resourcelibrary/G3.1-Guidelines-Incl-Technical-Protocol.pdf [Accessed 19 Jan. 2018]. India's Largest CSR Network. (2018).United Spirits Limited - a Case of Corporate Governance Failure? - India's Largest CSR Network. [online] Available at: https://indiacsr.in/united-spirits-limited-a-case-of-corporate-governance-failure/ [Accessed 19 Jan. 2018]. (This is the main article) Mainardes, E.W., Raposo, M. and Alves, H., 2012. Public university students' expectations: An empirical study based on the stakeholders theory.Transylvanian Review of Administrative Sciences,8(35), pp.173-196. Marshall, S.D. and Ramsay, I., 2012. Stakeholders and directors' duties: Law, theory and evidence. Miles, S., 2012. Stakeholder: Essentially contested or just confused?.Journal of Business Ethics,108(3), pp.285-298. Suliman, A.M., Al-Khatib, H.T. and Thomas, S.E., 2016. Corporate Social Responsibility.Corporate Social Performance: Reflecting on the Past and Investing in the Future, p.15. Tai, F.M. and Chuang, S.H., 2014. Corporate social responsibility.Ibusiness,6(03), p.117. Toppinen, A., Li, N., Tuppura, A. and Xiong, Y., 2012. Corporate Responsibility and Strategic Groups in the Forest?based Industry: Exploratory Analysis based on the Global Reporting Initiative (GRI) Framework.Corporate Social Responsibility and Environmental Management,19(4), pp.191-205