performance measurement and sustainability...sustainability-related quantitative research - lily...
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Performance Measurement and Sustainability
Facilitator: Paul RouseSpeakers: Lily Chen, Caroline Bridges, Ramona
Zharfpeykan
Performance Measurement
• Why sustainability?• What would we measure?• How would we measure?
Sustainability-related Quantitative Research - Lily Chen (A&F)• CSR – why firms invest in CSR
activities?• Create better media image (JBF)• Demanded by certain types of
institutional investors: Pension funds, Charities etc. (JBE)
• Demanded by institutional investors from areas with strong norms (under review of MS)
• CSR – current research• CSR and CEO personal agenda• CSR disclosure in IPOs
• Integrated Reporting (IR)• Economic consequences:
integrated reporting is positively associated with capital markets benefits, i.e., firm value, expected future cash flows, cost of capital, stock liquidity
• IR – current research• Investment efficiency• IR assurance• Management myopia
Research Symposium on Sustainability Cluster: Performance Measurement and Sustainability
Integrated ReportingNew form of corporate reporting to integrate both financial and non-financial information.
Caroline Bridges PhD Student
Monday, 11 July 2016
Integrated reporting (IR)
5
Current research (PhD)What is IR? and who benefits?Relevant to NZ businesses that are cautiously considering adopting IR (and there are some).Findings?There are internal benefits to the firm Accountants are considered important to the process and integral to its implementation.
Future research?1. How do businesses adopt IR internally?2. How can credibility be improved with assurance? 3. Who can provide assurance of
Integrating sustainability into performance measurement system
Ramona Zharfpeykan
Research Symposium on Sustainability 2015
SUSTAINABILITY
Sustainable development tries to meet present needs
without endangering future ones
Corporate sustainability
(Relevant business strategy)
REPORTING RATE COMPARISONS OF ALL COUNTRIES ACCORDING
TO KPMG SURVEY 2013
Survey firms
Find a composite sustainability indicators
according to practitioners’opinion
Find whether sustainability areas can be
fitted into the PM according to practitioners’
opinion
Using GRI guideline
Use the sustainability reports of firms
Find a composite sustainability indicators that are more commonly
used in that industry
Evaluate their sustainability performance
Using DEA
Using GRI guidelineAreas of
differences
PARALLEL STUDY
Composite indicators
World
benchmark
Individual
reports
Sustainable
Performance
measurement
Survey
WHY GRI?
World benchmark
10.90%
32.75%
21.39%
12.08% 12.42%10.47%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
average
average of general indicators for 5 years
economic
environment
Labor total
Human rights total
Society total
product total
Trends of general indicators in world benchmark
0%
200%
400%
600%
800%
1000%
1200%
2010 2011 2012 2013 2014
general indicators
economic
environmental
labor practices and decent work
human rights
society
product responsibility