Financial report of any company

Internet has been a common partner by companies in their marketing strategies. The most convenient use of internet for any business is that it can instantly see; communicates of view information anywhere in the world. In short, internet has become a common partner for business. Before, in order to know an organization’s services and products they offered as well as its company profile including financial reports and other pertinent information about the company.

In the standard organization process, it is known that before presenting the financial report of any company it must be audited first in order to be considered legitimate and reliable report.

Internet has proven a lot that it can help companies achieved productivity and efficiency in the organization, provided it applies the right process and tools. In this study, there are five banks that were involved: Loyds/ TSB, The Royal Bank of Scotland, HSBC, Barclays, and the Co-operative Bank. These five banks have shows similarities on how they conduct activities for their customers; they only differ on the approaches in reporting the CSR.

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Like in the case of Co-operative which was selected as a value-based organization, while the other four are more focused on profit and that will be the main information that will be use in this paper on how each of this banks unique approach are presented in their CSR in relation to the accounting practices. 2. Review and Analysis 2. 1 Title and Summary The Title of this Article: Corporate Social and Environmental responsibility in web-based reports: Currency in the banking section Author: Christine Coupland The Author, Dr.

Christine Coupland who finished her PhD at Nottingham University and has been appointed as MBA Management Projects Coordinator. With her great interest in understanding the organization’s way on how to provide reliable information to its customers and services that relates to it, has been reflected in her well respected works, which includes the ff: Discourse analysis; Identity as a socially constructed phenomenon; Graduate socialisation & careers; Analysis of web-based corporate texts. She was also an active meber and has assigned in numerous directorhip in Britich Psychological Society, which stared in 1988 until now.

Summary: It is true that internet has changed the way business works. It does not only used as an effective tool for communication but it is also used in marketing products and services worldwide. Whether doing a simple research about a company on its financial standing or just its corporate profile, internet can provide and presents information effectively. But, even internet has these advantages; there are still other companies that do not use it for the right purpose. Like presenting information that only has persuasive words, just to convinced readers, like in terms of services that were not truly provided to customers.

In this case study, it shows five different banks the same services but only differs on their approach and process in doing it. It has provided better argumantation on the application of internet based reports and also the inclusion of accounting practices for companies performing their Corporate Social Reporting (CSR). It means that no matter what kind of business, it is important that it provides only the most genuine information regarding products and service as well as real financial reports for the public. In this way, the company shows respect to its customers and for the public as a whole. 2. 2.

Social and Environmental Reporting Organization, whether big or small, local or multinational companies operating in different countries considers reports are very important. Like for instance in a multi-national companies, reports are expected to be accurate, because if the report or information that will be presented by one country is not accurate, that will affect the over-all report of the other countries. Updating information is one of the social responsibility by the company for the public, most specially if you are trying to evaluate the value for money of such an item, then it is important to provide latest information.

But still there are companies that represent wrong information. It means that most of the reports or presented information’s on the web are not anymore being well audited or evaluated. Like in the case of financial auditors, most of the time, reports are already presented on the site before it is being audited. With this outcome the legitimacy of the information being presented for the public is questionable and not completely reliable. That is also why companies are also encouraged to evaluate reports first, before presenting it on the web.

In order also to achieve this social responsibility in presenting updated and well audited/evaluated report on the web, there should be detailed process that needs to be followed. It also shows that companies must not be focus mainly on profit generating activities but also establishing ethical standards which is more important for customers and employees. By applying these ethical standards through presentation of genuine and well audited reports on the web, it will help the company to practice transparency and honesty in the organization which is very important and necessary in business operations.

(Coupland 2004, p. 3). But, it also has to be the lack of security in the information by the company being presented on the web. (Coupland 2004, p. 4). Security systems and processes must be put in place, like designating only the auditors or anyone who will be appointed to handle updates in the web reports will result to easier management of reports since there can be at most two to three person handling the updates. And with the security systems, no one can manage or update any reports; instead it will all pass on the three designated persons only.

This will effectively help not only users and management, but it will also apply technological innovation for the company, which can help in competing against other companies because of the security features that were implemented. 2. 3 The web as a Context of Organizational Communication The importance of internet for most organization must be taken seriously. Like these days most number of people has more access to the web than any other communication tool like even phone.

It does not only immediately informed users but it can easily convinced people to believed, like for instance service offered or even discounts to be given after purchased of goods or services. This only shows that companies must be extra careful in providing information, like saying “We are providing 24x7 customer care” and when you call for support, your call has been responded after 5 to 6 hours, with that customers will not be satisfied and the end result of it, most of them withdraw their membership of subscription to the company. (Coupland 2004, p. 4). 2. 4. Research site and Methods

In the world of business, information should always be presented quantitatively and not just consisting of persuasive words. The more factual the information, the better it is for the readers. But, companies must also know that it must be consistently be updating information all throughout its member sites where the company is being advertised. In this way consistency on the information presented is achieved. There are times that users can easily access the information to some business sites and not in the company’s corporate website, like in Wall Street website and other business sites.

Analysis The following section provides some in-dept analysis on how financial, social and environmental reports on the internet are examined. Like identifying those companies that are really doing good, being good or just funding good. 2. 5. 1 Accessibility to Information on the Web For most corporate website, presenting their homepage in a more informative and very detailed manner is very important for their visitors.

Restriction based on access rights are also a standard process implemented, where different type of users may have different types of account types and each types have specific access rights. Now, the problem with some corporate website, either it provides too much restriction or sometimes too much information allowed to users and sometime the hierarchy of implementing security processes is not applied. That is for typical users who would just want to view the information. But, the main point is on how information must be effectively be updated.

Like in the case of financial auditors, the site must provide restrictions and rights only for specific auditors that can update the financial, social or environmental reports. Unlike, in most companies it is the other way around, where information either being directly manipulative to the information that can easily be directed by the managers and send the information right away with their web master or sometime themselves are given direct access without formal process of auditing. It only shows here that accessibility is a big problem that needs to be considered.

This can only be done through effective implementation by a process and appointing responsible person to handle it and not just anybody. This would not only make it easier for the organization but also easier to locate problems or issues since single or minimal number of users are identified to accessed the site. Like in the case of this study, three of the banks: Barclays, HSBC and Royal Bank of Scotland has directly show their Investment related information in their homepage, while for Lloyds and Co-operative, it presented services and ethics respectively.

With this way of presenting of information, it can provide a big effect in their visitors on how they do business and provide service for their customers. Like in the case of the three banks, they have directly target investors and not small customers and even not providing how the company provides service or what the core values of the company is, unlike for Co-operative banks, it is important to be presented first. 2. 5. 2 The Construction of CSR Corporate Social Responsibility (CSR) has been a vital part of most organization in highly developed countries.

In Australia, it has been considered part of most organization in the country. This is popular not only in Australia but throughout the world because it focuses not only for customers, but including investors, stakeholders, employees, shareholders, suppliers, regulators and host communities. This only show that companies are very much focus in performing business that address issues in all these social factors. And this plays an important factor in improving the process and provides productivity for the company.

(Corporate Social Responsibility, 2005). After a through understanding on how businesses has exploited the use of internet. It shows three types of companies, and there are: (1) companies that are really doing good; (2) being good; and (3) funding food. Unlike for most small customers where the importance of these information may not be that high, but for future investors, finding the real value of being part of the business always needs to be well validated.

There maybe other companies would find financial status maybe the most important factor to be considered, but it has been proven the profit does not help company achieved stability. Service and ethical standards is still two of the most important factors that helps companies stayed for long years in the business and eventually also achieved great success in profit. For companies that are really doing good like the Co-operative bank, it is important that employees and customers must be the center of its operation.

Satisfying the needs of these two groups can make the company achieved more against other companies. On the other hand, for companies that considers being good, are only those companies that do not extensively or improved the process of providing better or even excellent service or establishing ethical standard in the company, in other words just providing the standard requirements but still focus more on profit. And, lastly, for a company that has funding money to be good, are those companies that maybe considered as misleading customers on their real attention to its customers or stakeholders.

Like funding the media in providing better ads or creating a website that only provides persuasive words that would somehow would entice customers in doing business with the company but in fact they are not really focus to that kind of service, or practicing right ethical standards or worst is providing wrong financial , environmental and social reports. In this paper it shows such presentation, like for HSBC. “We offer socially responsible investments.

” This only means that there is a clear claim by HSBC that they are performing socially responsible investment, but it does not really provides additional information on how they actually performed their claimed. For Lloyd’s “An environmental fund and an ethical fund are available for clients who prefer an approach that excludes investment in companies in certain business areas. ” This means that for Lloyds, their bank has the capacity to provide funds that are ethical and environmental.

But, what is more important to these two banks, since these contradicts to what the public knows about these two banks, which are more focus of profit and now they are presenting ethical and environmental standards. That is why sometimes other customers may be confused as to what really the main strength of the company. (Coupland 2004, pp. 7-9). 2. 5. 3 Accounting Terms as Legitimation In this paper there were a lot of claims from all the banks. Like they are claiming that they are providing legitimate and socially responsible team and also saying that they are implementing highly robust and auditable system.

With these claims, it would just make their valued customers feel assured about the way they do business which are in true sense; it was not actually being done. This can also be a very dangerous information, because it will not only make the company not applying the right practice and processes but would eventually lose confidence of their customers, most especially if some of the customers dill do some investigation or research about the real status of the company. In order to eliminate this bad trust in the organization, the company must hire consultants that would really provide legitimacy in the information that will be presented.

This will also give the company an assurance that the right processes are being put in place. With this, it provides genuine and well audited information which partners, customers and even simple public viewers would rely. The role of accounting process like audit has bee presented y HSBC by providing this persuasive words. “With the help of KPMG’ corporate social responsibility team, we are building robust and auditable systems, so that we can gain an accurate picture of our environmental performance worldwide.

” This is obviously a perfect example of a bank whose partnership with a well knows auditing firm can help in their popularity. (Coupland 2004, pp. 12-17). But this must be carefully be evaluated carefully by customers, because the problem is that it only being used and banks are just paying for suing its name in most cases. Agreements nowadays that runs in the business are not anymore that formal, making use of names are sometimes used just for the convenience of companies. 3. Conclusion

In this paper it is important that the public must be careful in immediately believing on what the companies, like banks are presenting in their websites or ads they post or advertised either through TV, radio or in print. There are companies that only use persuasive words just to catch attention of customers. This must be tested and be well investigated. For companies, there should be well established processes that are not only legally applied but also with the application of accounting principles and management practices must be done before presenting the information on the web.

This is because information that is being presented either in the web or in print must be well audited and validated. In this way, the public can be sure that the information is not only genuine and legitimate but also well audited and evaluated by the company. This will also increase the trust level of the customers, most specially if the company has applied what they have posted, which means that they are practicing honesty in their business and that will add satisfaction to their customers as well as potential ones.

In this paper, companies must also have the drive to apply this changes and truth in advertising and posting information for the public which can only comes from proper direction from the top management. Establishing of improvement processes, like in this case, security systems and processes must be implemented in order to make sure that information are prepared and presented effectively and not just being presented by anybody. (Words: 2764) Reference

Corporate Social Responsibility. International Power 2005, [Online], Available at < http://www. investis. com/ip/reports/ar2005/content/csr. html> Coupland, C. (2006) Corporate social and environmental responsibility in web-based reports: Currency in the banking sector? ELSEVIER Critical Perspective in Accounting, 1-17 Sauders, M. , Thornhill, A. , and Lewis, P. (2006) Research Method for Business Students. 4th ed. Spain, Financial Times/ Prentice Hall