A Report On The Business Progress Of The Tassal Company (Essay Sample)

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Introduction
Purpose
This is a report to the Tassal CEO. In the report, the concept of sustainability is discussed in relation to the practice of financial accounting. The paper explores the role that sustainability accounting plays in ensuring the healthy future of an organization. This is seen in the context of Tassal, which is the case study.
Scope
The paper is limited to research findings from primary sources including books and journals. These are the condensed into a report.
Limitations
This report is limited by time to primary sources only. A more comprehensive research could be done through carrying out actual interviews to get further and more contemporaneous information.
What Sustainability Accounting is and Its Relevance to Business and Accounting
Sustainability accounting refers to the disclosure of non-financial information about the performance of a firm (Idowu & Filho, 2007, 16). Such information has to do with the impact the activities of the firm have on the environment and the society (Deegan, 2014, 428). The long-term wellbeing of a firm depends to a great extent on how it operates within its environs. These environs include the physical and social environment.
Sustainability is the capacity of systems and processes to endure for years. Systems that are adaptable, relevant, stable and acceptable over a longer period of time, tend to be more sustainable (Deegan, 2014, 415). In economic development terms, sustainability has four interlinked concepts: ecology, economics, politics and culture (James et al, 2015, 44). All the concepts are interrelated and each makes its contribution towards attainment of sustainability.
The Tassal (Tasmanian Salmon) Corporation of Australia is a major marine products company that specializes in producing Salmon. It strives to have a sustainable production system that takes into account environmental concerns and economic best practice (Tassal, 2017).
In recent times, the concept of corporate social responsibility has emerged. This is an aspect of sustainability accounting that takes into consideration the impact of a firms activities on the social environment (Manning et al, 2011, 41). It is important to account to the public on how the economic activities of the firm impacts their daily lives. Issues such as provision of employment, support of public social amenities such as schools and hospitals, and utilizing the physical environment without destroying it, are of critical importance to the society.
It cannot be gainsaid that it is crucial for a firm to maintain a positive relationship with the society, since the society constitutes the customers and clients of the firm (Gray et al, 1996, 42). If the firm is viewed as a destroyer rather than a conservator of the environment in which society thrives, then this will negatively affect the attitude of the people towards firm. Consequently, the economic wellbeing of the firm will be affected. Sustainability accounting is therefore of grave importance to the firm’s economic progress (Gray et al, 1996, 42).
Relevance of Sustainability Accounting to the Aquaculture Environment
Any economic activity carried out in water has major implications on human existence (Ernst and Young, 2011). Water masses are important to humans as they provide food and sustain the water circle through rain. Aquaculture mainly deals with marine animals, including fish, which are used by humans for food. The lives and livelihood of these marine products is thus a critical consideration not only for people but other aquatic and terrestrial animals as well. In fact, all biological life on earth is interdependent in one large ecosystem.
All organizations dealing with marine life therefore have a responsibility to conserve the environment in which the aquatic life is sustained (Ernst and Young, 2011). Unnecessary pollution and overfishing, are some of the issues that have emerged in recent times in aquaculture. Another important aspect of the problem is overproduction of the target aquatic animals such as fish, by firms such as Tassal. The main issue raised is that the excess smolt [young salmon] produced pollute the environment excessively with their waste (ABC News, 2017). This has brought about major conflicts between aquaculture firms and environmental conservation groups. Consequently, a balance must be found to enable the firms to continue with their business while at the same time addressing the concerns raised. The best way of addressing these concerns is through deliberate practices that support the environment by the firms (Feenstra, 2002, 99). That then is an aspect of sustainability accounting, since the firm has to account for the activities is carrying out for the benefit of the environment.
Relevance of Sustainability Accounting to Tassal
Since its inception in 1986, Tassal has emerged as one of the largest producers of Salmon in Australia (Tassal, 2017). For a firm that big, issues always emerge in ecological, economic, political and cultural best practices that ensure sustainability. Ecological systems that are sustainable involve conserving the environment while exploiting it. Likewise, economic systems that extract all the resources on a particular ground and leave it bare, are likely to perish sooner rather than later (James et al, 2015, 44). Political systems that lead to frequent conflicts or anti-economic ideologies also tend to be more perishable (McWilliams et al, 2001, 117). Some cultural practices can be carried into the future while some cannot. Those that can be carried forward are sustainable (James et al, 2015, 44).
With regards to ecological conservation, Tassal has undoubtedly done a good job in ensuring this. A good example is the deliberate move to produce smolt rather than just exploit the fish already existing in the sea (Tassal 2017). This ensures that the stocks of fish are not depleted, but are instead regularly replenished. That ensures that the company will continue to get a continuous supply of fish going into the future, while at the same time enabling other fisher-folk to continue exploiting the naturally existing salmon. One perennial complaint by local fisher-folk has been about the large harvests made by Tassal.
However, there is the larger problem of fish waste which is said to be chocking the oxygen levels in the ocean (ABC News, 2017). Tasmanian authorities have already approved a $500,000 project by Tassal to collect the fish waste and dispose of it outside the ocean (ABC News, 2017). Whereas, there has been a strong argument to reduce the number of smolt produced from 14,000 tons to 10,000 tons, everyone has settled on the figure of 12,000 tons for the company (ABC News, 2017).
Another issue that sustainability accounting at Tassal must address is the social aspect of the company (Lamberton, 2005, 8). It provides many jobs for the community which help to sustain the livelihoods of persons living in Tasmania and its environs. Moreover, there is the recent expansion to Macquarie Harbor which will provide more such opportunities for the locals. It is very easy for members of the public to take such opportunities for granted (Hopwood et al, 2010, 19), especially when involved in an argument with the company. Consequently, it is important for them to be made aware of the opportunities offered, so that they can take these into consideration when in a debate of the pros and cons of having the company in their midst.
Recommended Actions Tassal Should Take
Tassal should make it clear to the community that restocking fish is the best way to go. An aggressive public campaign on this issue should therefore be undertaken (Chin et al 2013, 37). There is a need for the community to know that it cannot just go on fishing in the oceans without making a deliberate effort to restock fish. The ultimate outcome of this will be a total depletion of fish stocks that will leave everyone with nothing to exploit.
The tonnage of fish is important to the Tasmanian economy (ABC News, 2017). The company needs to make this clear. However, the publicity campaign should also focus on this particular issue, so as to make it clear to all concerned, how the effort will work. The local economy supports all the activities in the area and so any contribution to it is noble. The manner in which Tassal contributes to the economy, exact figures paid in revenues, is therefore important to publicize as part of the public accountability campaign.
On the issue of water pollution through fish waste, Tassal must make it clear the colossal amount of money it is putting into the operation to clear the waste. The public should not remain under the impression that the only interest of the company is to make profit at the expense of the environment (Rosche, 2017, 41). It should also go to great pains to explain to the public on how exactly this operation will work, so as to assure the public of its effectiveness in containing the pollution problem. Only that way will the blame game end, so that the company is allowed to go on with its important operations in the Tasmanian region.
The issue of job creation is important to any progressive economy (Gray et al, 1996, 42). It is therefore a key issue that must be addressed by any publicity campaign carried out by the company. The number of jobs created directly and indirectly by the company must all be quantified and the public duly inform...