Pretend you are a junior managerial accountant. Your supervisor has no knowledge of sustainability accounting. All of the following statements would be convincing arguments to advocate for the importance of sustainability accounting, except one. Which one?
A) Sustainability accounting reflects the changing nature of accountability.
B) Companies are only accountable to shareholders… And shareholders care about sustainability.
C) Companies are accountable to the world at large, not simply to shareholders.
D) Sustainability accounting does not replace the emphasis on financial results; rather it complements financial strength in building a strong company for the future.

Question

Quizplus · Accepted Answer

While shareholders are an important stakeholder group, companies are accountable to a wider range of stakeholders including employees, customers, communities, and the environment. Sustainability accounting is important because it allows companies to understand and manage their impacts on these various stakeholder groups, not just shareholders. Therefore, statement B is not a convincing argument for the importance of sustainability accounting.

Pretend You Are a Junior Managerial Accountant