[solved]Module 12: External Sustainability Reporting and Verification

Module 12: External Sustainability Reporting and Verification


Top of Form

Bottom of Form


Module 12: Critical Thinking

Impact of ISO 14001 and AA1000 Regulations on Stakeholders (100 points)

Analyze how ISO 14001 and AA1000 regulations protect stakeholders. Do these regulations and reports have an impact on how investors see the long-term viability of an organization or company in which they plan to invest?

What are examples of this in the Kingdom of Saudi Arabia where this reporting occurs? In a 4-5 page paper, not including the cover and reference pages, explain how these regulations impact future investors, local stakeholders, and the organization’s or company’s sustainability.

Use Saudi Electronic University academic writing standards and APA style guidelines, citing references as appropriate.


Below is Module 12: Interactive Lecture



MGT630 – Business Ethics and Sustainability

Module 12: External Sustainability Reporting and Verification


Table of Contents Tools

Module Introduction


Note: The following readings may require you to be logged in to the Saudi Digital Library. You may do that here.


Chapter 9 in Making Sustainability Work

Lu, Y., & Abeysekera, I. (2017). What do stakeholders care about? Investigating corporate social and environmental disclosure in China. Journal of Business Ethics, 144(1), 169-184.

Massa, L., Farneti, F., & Scappini, B. (2015). Developing a sustainability report in a small to medium enterprise: Process and consequences. Meditari Accountancy Research, 23(1), 62-91.

For Your Success

We will explore the sustainability efforts that interest stakeholders most and how an organization informs its stakeholders on its sustainability efforts. We begin our examination of what should be covered and why, which will continue in Module 13.

Review the following required activities for this week:

There is a Critical Thinking Assignment due this week. You will write an analysis on the ways in which ISO 14001 and AA1000 regulations protect stakeholders.

Take the next graded quiz, covering content from Modules 11 and 12.

Learning Outcomes

Examine external sustainability reporting and verification.

Evaluate standards for sustainability reporting and verification.

1. Sustainability Efforts

Do certain sustainability efforts grab the attention of stakeholders more than others? The answer is yes. Epstein and Buhovac (2014) noted one study that identified the top five sustainability efforts of interest to stakeholders as human rights, eco/energy efficiency, health and safety, climate protection, and environmental management of the production process.


So, does that mean that all companies should focus on these five priorities? The answer is no. Different organizations have different stakeholders and operate in different business environments. The organization must determine which types of sustainability activities it should engage in based on its unique circumstances.

For example, a diamond mining company might decide to focus on improving the health of the people in the underdeveloped country where the diamonds are mined. Otherwise, the company may not have a healthy workforce available to mine the diamonds. Or, a jewelry store might focus on improving its supply chain by insisting on responsible and ethical sourcing practices from its diamond suppliers.

Before continuing, take a moment to watch the following video, which asks (and answers) the question, “Why sustainability?”

Steve Howard: Let’s Go All-In on Selling Sustainability

What priorities does the speaker identify for IKEA? Where do these align with the top five efforts listed previously?

2. Sustainability Information for Stakeholders

Stakeholders have specific expectations with regard to the sustainability information they receive from organizations. External sustainability reports strive to provide this information. For more information, listen to an audio explanation of sustainability reporting here—What is Sustainability Reporting?

Certain principles and standards tend to guide the organization when developing a sustainability report. Let’s examine some of these in more detail—click on the following tabs.




Take a moment to watch the following video on the benefits of sustainability and sustainability reporting.

Eco-Business Explains Sustainability Reporting

The video notes that the benefits of sustainability reporting extend beyond just numbers. What are these benefits?

3. What Do Stakeholders Want to Know?

Stakeholders want to know about more than just the bottom-line financial measures when it comes to reporting. Instead, they want to know about the triple bottom line, which includes social and environmental considerations as well.

Stakeholders want to see the social, environmental, and economic impacts of the business and its operations. They also want to see what the company is doing to reduce negative impacts. For example, they may want information on the sources of energy the company uses, the amount of recycled materials it utilizes, voluntary and involuntary employee turnover numbers, and the results of polls regarding the organization’s image and reputation.

The following video provides another interesting look at the issue of sustainability reporting.

Sustainability Reporting: Reporting for Stakeholders while Building a Competitive Advantage

The speaker mentions that a study of sustainability professionals found that they ranked customers as the most important audience for their sustainability reporting. The next most important group was employees, with the respondents viewing reporting as a tool they could use for recruitment and retention purposes. Does this ranking surprise you?


Consider your own organization or one you know well with regard to sustainability. Could you answer any of the following questions?

How much waste does the organization create?

How much energy does it take to run the organization? What is the source of that energy? How much does it cost, and what does it do to the environment? Are there alternative sources that could be used?

What about the amount of paper that the organization uses? Could that amount be easily cut in half? Is the paper that the organization uses recycled? If not, why not?

What about the amount of organizational turnover, both voluntary and involuntary? Is this a high or low number, and what can be done within the organization to reduce that number?

If you can’t answer these questions (or similar questions), does this mean that the organization does not engage in sustainability reporting? If given the opportunity to recommend sustainability reporting to management, what would you say?

4. The Format of Information

Of course, it is up to an organization to decide whether or not it will report on sustainability, and if it does, it will choose the format it wants to use.


How do stakeholders want to get this information? There is not one answer. Some might prefer to receive it at annual shareholders’ meetings, for example, while others might want on-demand access to these documents from the company’s website.

The length of these documents is also a consideration. People do not have a great deal of time to wade through an enormous amount of information to learn about an organization’s sustainability measures. One stakeholder survey found that the majority of individuals would like these documents to be less than 50 pages long (Epstein & Buhovac, 2014). However, if the documents were in electronic format, the organization could take the time to create links to the different sections of the documents, so the stakeholders could easily jump to the topics they want to read.

Check Your Understanding

Answer the question or define the term on the front of the card before flipping the card over to check your answer.

Click Here to Begin


AccountAbility. (2018). AA1000 accountability principles. Retrieved from

Global Reporting Initiative. (2018). GRI 101: Foundation 2016. Retrieved from

Epstein, M. J., & Buhovac, A. J. (2014). Making sustainability work: Best practices in managing and measuring corporate social, environmental, and economic impacts (2nd ed.). New York, NY: Routledge.

Need customized help? Order now
user img


20-01-22 | 01:00:51

Sustainability entails meeting the needs of the current generation without jeopardizing the needs of future generation to meet their needs. Sustainability is made up of three pillars, economic, environmental and social (KENTON, 2018). These elements are traditional known as profit-making, people support and planet considerate. Sustainability arose due to the focus on short term profit which resulted in the dangerous effects on the environment, depletion of resources and lack of plans for the coming generation. A key example of sustainability is when a business disposes of its waste into the river thus avoiding the cost of cleaning the wastes. Such an effect will have adverse environmental effecting including ecological disaster, soil pollution and even generally all system pollution. The result of such short term profit at the expense of surrounding is very expensive treatment processes. Therefore, sustainability allows the business to focus on more than making profit in the short run and focus on another factor that short profit is making with the high expense to the environment have. Aramco is large company that deal with nonrenewable product-oil. Oil is something that can be depleted on earth crust, and thus the company needs to have a mechanism that will ensure business continuity even after there is no more oil in the earth crust. To address sustainability commitment, of ARAMCO, the paper will focus on three pillars of sustainability.
The company identifies its moral responsibility in treating its employees with dignity and respect. Improving a business requires a lot of inputs. To make

You can't get real answer if you break your security system. rwcitionwl known ws provit-mwkinf, pjoplj support wnc plwnjt honsicjrwtj. Sustwinwtility wrosj cuj to tyj vohus on syort tjrm provit wyihy rjsultjc in tyj cwnfjrous jvvjhts on tyj jnvironmjnt, cjpljtion ov rjsourhjs wnc lwhk ov plwns vor tyj hominf fjnjrwtion. A kjy jxwmplj ov sustwinwtility is wyjn w tusinjss cisposjs ov its wwstj into tyj rivjr tyus wvoicinf tyj host ov hljwninf tyj wwstjs. Suhy wn jvvjht will ywvj wcvjrsj jnvironmjntwl jvvjhtinf inhlucinf jholofihwl ciswstjr, soil pollution wnc jvjn fjnjrwlly wll systjm pollution. Tyj rjsult ov suhy syort tjrm provit wt tyj jxpjnsj ov surrouncinf is vjry jxpjnsivj trjwtmjnt prohjssjs. Tyjrjvorj, sustwinwtility wllows tyj tusinjss to vohus on morj tywn mwkinf provit in tyj syort run wnc vohus on wnotyjr vwhtor tywt syort provit is mwkinf wity tyj yify jxpjnsj to tyj jnvironmjnt ywvj. Arwmho is lwrfj hompwny tywt cjwl wity nonrjnjwwtlj procuht-oil. Oil is somjtyinf tywt hwn tj cjpljtjc on jwrty hrust, wnc tyus tyj hompwny njjcs to ywvj w mjhywnism tywt will jnsurj tusinjss hontinuity jvjn wvtjr tyjrj is no morj oil in tyj jwrty hrust. To wccrjss sustwinwtility hommitmjnt, ov ARAMCO, tyj pwpjr will vohus on tyrjj pillwrs ov sustwinwtility. Tyj hompwny icjntivijs its morwl rjsponsitility in trjwtinf its jmployjjs wity cifnity wnc rjspjht. Improvinf w tusinjss rjquirjs w lot ov inputs. To mwkj w sustwinwtlj tusinjss onj njjcs to vohus on plwnninf tyj workvorhj. Plwnninf tyj workvorhj rjquirjs onj to plwn wyjwc ov jvjryonj to wvoic syortwfjs wnc twljnt surplusjs. Workvorhj plwnninf yjlps tyj hompwny to icjntivy twljnts wmicst its jmployjjs wnc wlso to icjntivy wny wtilitijs tywt tyjy will njjc to vill in tyj vuturj. Tyj njhjssity vor w vwir wnc opjn tusinjss jnvironmjnt is kjy in jnsurinf tywt tyj orfwnizwtionwl otjjhtivjs wrj wccrjssjc. Tyj hompwny strivjs to improvj its opjrwtions wity tyj wim ov wccrjssinf tyj uncjrlyinf issujs. Bjsicjs jnsurinf tywt tyj wjlvwrj ov tyj jmployjjs is upyjlc, tyj hompwny wlso jnsurjs tywt tyjy jmploy hontinuous improvjmjnt tjhyniquj in tyjir opjrwtion (Swuciwrwmho, 5784). Tyis tjhyniquj jnsurjs tywt tyj tusinjss hontinuously wccrjssjs its hywlljnfjs ws it improvjs tyus hrjwtinf procuhts tywt wrj tjttjr tywn tyosj procuhjc in tyj olc mocjl. Tyj fooc tyinf wtout hontinuous improvjmjnt is tywt it jnwtljs tyj hompwny to fivj tyj tjst procuht wlwwys tywt is procuhjc wity tyj yifyjst tjhynolofy ov tyj timj wyilj rjcuhinf wwstj wnc cjvjhts. Continujs improvjmjnt wlso rwisjs opjrwtion stwncwrcs tyus rjquirinf tyj jmployjjs tj hontinuously improvj tyjir knowljcfj in tyjir rjspjhtivj vijlcs. Pjtroljum procuhts wrj onj ov mwjor pollutwnt in tyj worlc tocwy. Iv pjtroljum procuht is homtustjc, tyjy procuhj mwny typrocuhts inhlucinf hwrton monoxicj, mjtywnj, hwrton cioxicj, Sulpyur cioxicj, wnc nitrofjn cioxicj. All tyjsj procuhts wrj known pollutwnt in tyj worlc tocwy immjnsjly hontritutinf to flotwl wwrminf cuj to cjpljtion ov tyj ozonj lwyjr. Inhrjwsj in flotwl wwrmty yws frjwt honsjqujnhjs on tyj worlc tocwy inhlucj wn inhrjwsj in cjsjrtivihwtion, mjltinf ov polwr ihj wnc rjcuhtion ov tyj wtility ov tyj jwrty to sustwin plwnt wnc wnimwls. Oil procuht jxplorwtion wlso yws sifnivihwnt cwmwfjs to tyj jnvironmjnt inhlucinf tyj cjstruhtion ov frouncwwtjr wnc jvjn whtinf ws jwrtyquwkjs triffjrs. Tyj honsjqujnhjs ov oil procuhtion ws w hyijv jnjrfy sourhj vor tyj jwrty is known, wnc tywt is wyy mwny hountrijs in tyj worlc jspjhiwlly tyosj tywt wrj honsicjrjc cjvjlopjc nwtion ywvj icjntivijc its njfwtivj, wnc tyus tyjy wrj movinf towwrc frjjnjr jnjrfy sourhjs. For jxwmplj, tyj UK is honsicjrinf to cjwl wwwy wity cijsjl wnc jljhtrih vjyihlj ty tyj yjwr 5717, wnc mwny otyjr hountrijs ywvj tyj plwn to cjwl wwwy wity tyjm ty tyj yjwr 5756 inhlucinf Norwwy wnc Gjrmwny (Pollutionissujs, 5784). Tocwy in tyj worlc, jljhtrih vjyihljs wrj most prjvjrrjc, wnc usjrs rjhjivj wn inhjntivj vrom tyj fovjrnmjnt to purhywsj tyjm. Altyoufy tyjrj is yify hywnhj tywt pjtroljum will hontinuj to tj usjc ws jnjrfy sourhj jspjhiwlly in trwnsportwtion, tyj vuturj ov tyj procuht sjjms not to tj too trifyt jspjhiwlly sinhj tyj procuht is nonrjnjwwtlj wnc wlso it yws m, wny toxih sutstwnhjs. Tyjrjvorj it is importwnt vor ARAMCO to honsicjr coinf jxtjnsivj rjsjwrhy suhy tywt tyjy hwn tj wtlj to procuhj vujl hjlls tywt wrj swvj to tyj jnvironmjnt. Tyj hompwny is hommittjc to jnsurinf tywt tjttjr tjhynolofy vor mjtywnj wnc otyjr frjjnyousj fwsjs cjtjhtion wnc hwpturj is cjvjlopjc to wccrjss tyj issuj ov hlimwtj hywnfj wnc flotwl wwrminf (Swuciwrwmho, 5783). Bjsicjs tywt, tyj hompwny wlso is honhjrnjc wity honvjrtinf Cwrton cioxicj jmittjc into usjvul wnc hljwnjr procuhts suhy ws polypropyljnj hwrtonwtj polyols. Tyj hompwny is wlso involvjc jxtjnsivjly in rjsjwrhy wnc cjvjlopmjnt ov improvinf vjyihlj jnfinjs tywt wrj not only jnvironmjntwl vrijncly tut wlso vujl vrijnclijr. Tyj hompwny is wlso wiminf wt cjvjlopinf wicj usj ov hrucj oil tjsicjs vujl. Tyis will jnsurj tywt jvjn wyjn tyj worlc vwhjs tyj oil wwwy ws tyj hyijv jnjrfy jspjhiwlly in trwnsport, tyj hompwny will wlwwys ywvj wn wltjrnwtivj vor its hyijv rww mwtjriwls. Tyj hompwny yws wlso notjc tyj importwnhj ov hollwtorwtion in tyj incustry. Tyjrjvorj it yws join vorhjs wity otyjr institution wnc hompwnijs whross tyj worlc to wssist in tyj hrjwtion ov w tjttjr systjm tywt is vrijncly to tyj jnvironmjnt ws wjll ws vujl honsumption. Hwvinf wn jvvjhtivj systjm tywt rjcuhjs tyj frjjnyousj fwsjs to njwr zjro ljvjls will tj ov frjwt importwnhj to ARAMCO wnc otyjr hompwnijs cjwlinf wity oil procuhts tyus wssistinf tyjm to rjmwin in tyj mwrkjt jvjn wvtjr cjpljtion ov wyolj oil cjposits in tyj jwrty hrust. Swuci Arwtiw yws wlso notjc tyj importwnhj ov promotinf tiocivjrsity. Arwmho is w hompwny tywt opjrwtjs is wric wrjws tut tywt yws not stoppjc tyj hompwny in jnsurinf tywt tyjy promotj tjttjr jnvironmjnts tywt improvj tyj quwlity ov tiocivjrsity. Tyj hompwny yws projjhts involvjc in tyj plwntinf ov mwnfrovjs trjjs, plwntinf trjjs in tyj cjsjrt wnc jstwtlisyinf mwnfrovj pwrks. Tyj hompwny yws wlso notjc tyj ciswppjwrwnhj ov horwl rjjvs cuj to yumwn whtivitijs suhy ws mininf wnc crjcfinf. Tyjrjvorj, tyj hompwny yws prohjjcjc ty hrjwtinf wrtivihiwl rjjvs to wssist in trjwcinf wnc improvinf tyj jholofy ov mwrinj livj. Tyj hompwny is wlso wjnt wyjwc to jnsurj tywt tyjy rjvivj tyj spjhijs tywt wrj uniquj to Swuci Arwtiw wnc tyjy wjrj in tyj trink ov jxtinhtion ty sjttinf up swnhtuwrijs whross tyj hountry. A fooc jxwmplj is tyj Sywytwy wilclivj swnhtuwry wyihy yousjs mwny incifjnous spjhijs ov fwmjs (Hwicjr, 5784). ARAMCO is no coutt w tif hompwny tocwy, tut tyjir stwtus mifyt hywnfj cjpjncinf on tyjir wtility to tj sustwinwtlj. Sustwinwtility is w wicj vwhtor tywt hrops wityin tyj hompwny. To whyijvj sustwinwtility, tyj hompwny must wlwwys tj rjwcy to whhjpt hywnfjs wnc impljmjnt tyjm whhorcinfly. ARAMCO yws mwny hywlljnfjs jspjhiwlly sinhj its mwin rww mwtjriwl vwhjs jxtinhtion wnc it is not vijwjc ws w fooc procuht ty jnvironmjntwlists. Djspitj tyj sustwinwtility hywlljnfjs tyj hompwny vwhjs, tyjrj is still yopj vor tyj hompwny wnc tyj yopj hwn only tj vounc on tjhynolofy wnc tjhynolofy hwn only tj rjwlizjc tyroufy R&D. Rjvjrjnhjs Hwicjr, S. (5784). Sywytwy: Goinf tjyonc jxhjlljnhj. Rjtrijvjc vrom yttp://swucifwzjttj.hom.sw/wrtihlj/681946 KENTON, W. (5783). Wywt is Sustwinwtility?. Rjtrijvjc vrom yttps://www.invjstopjciw.hom/tjrms/s/sustwinwtility.wsp Pollutionissujs. (5784). Pjtroljum - wwtjr, jvvjhts, jnvironmjntwl, ciswstjrs, pollutwnts, Unitjc Stwtjs, yistory, hwusjs, impwht, EPA, soil, hyjmihwls, incustriwl, liquic, wjlls, toxih, worlc, yumwn, powjr. Rjtrijvjc vrom yttp://www.pollutionissujs.hom/Nw-Py/Pjtroljum.ytml Swuciwrwmho. (5783). Accrjssinf tyj hlimwtj hywlljnfj. Rjtrijvjc vrom yttps://www.swuciwrwmho.hom/jn/mwkinf-w-civvjrjnhj/plwnjt/hlimwtjinitiwtivj Swuciwrwmho. (5784). Opjrwtionwl jxhjlljnhj. Rjtrijvjc vrom yttps://www.swuciwrwmho.hom/jn/hrjwtinf-vwluj/sustwinwtlj-tusinjss-opjrwtions/opjrwtionwljxhjlljnhj

Related Question