Every investor aims to get returns from the investment made in a particular organization. Therefore, the company must give an accurate report on its financial and sustainability status. This will provide the investors with the upper hand when it comes to decision-making regarding their investments. The challenges that might be standing on the company's long-term sustainability include climate change, resources constrain, urbanization, and technology innovation. Nike is one of the companies that use SASB accounting in its 10K financial reports.
Nike has set the foundation for standard reporting about its sustainability by integrating sustainability with the fundamental processes and activities practiced in the company. The practices that have been integrated with sustainability reporting touch on governance, strategic planning of the company, risk management, and the company's performance (Beller, 2018). By undertaking the practice, Nike has ensured a culture centered around achieving the strategic, compliance, reporting, and operational goals. This has ensured continuous reporting of the company’s finances and activities, consequently encouraging sustainability.
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Nike has identified the means to give the correct information to the investors. The way to achieve this is by knowing what the decision-makers need and what information they are looking for in the reports. The information included in the reports ranges from the company's financial state, level of credit the company has, and the growth trajectory of the company’s revenue (Dichev, 2017). The information is supplemented by the SASB method of reporting. This reporting style has helped the shareholders and creditors get the correct information about the company and the direction of the company.
The main communication channel of the sustainability efforts of Nike is mainly through the 10K report and the company's annual report. This has helped in the information and communication transparency between the company and the stakeholders. It has also facilitated the integration of accountable accounting in the company. In the reports, the company has indicated the step to identify the sustainability risks it faces and opportunities it has in achieving sustainability (Hales, 2018). All this information is ordinarily unique and specific to the industry Nike is currently operating in.
Nike has illustrated its readiness and ability to take in extensive external reporting of the company. The company has some excellent data collection ways and internal mechanisms aimed at controlling. This plays a significant role in the data presentation and integration to bring sustainability. Furthermore, the company has been able to disclose the information, which has helped make the decisions that concern it. The qualitative and quantitative data which the company always presents is of great help to shareholders helping communicate the long-term value creation path. Nike has continuously grown and improved in its way of reporting and analyzing data for its stakeholders.
In conclusion, Nike has been able to integrate sustainable accounting into its reporting. This has been made possible because Nike has been able to create a foundation that helps the company use SASB matrices. The integration of sustainability has enabled the company to report on challenges I faces and opportunities available. The data and information concerning the company are presented in the company’s 10K report and annual reports. The company has shown its ability to hold robust external reporting through its data collection and ability to present qualitative and quantitative information to help the stakeholders make crucial decisions. It is also essential to note that the company has experienced continuous growth in its sustainable reporting.
References
Beller, A. L. (2018). Keynote Address: The Future of Sustainability Reporting Standards. The CPA Journal , 88 (8), 36-41.
Dichev, I. D. (2017). On the conceptual foundations of financial reporting. Accounting and Business Research , 47 (6), 617-632.
Hales, J. (2018). The future of accounting is now. CPA Journal , 88 (7), 6-9.
