RECENT ASSIGNMENT

ACC80008:
Managerial Accounting
Group Assignment: GROUP OF 4
Weighting: 25%
Due Date: 22 September, 2014 @ 12:00 nn
With the introduction of various climate change related legislations in Australia, many companies are now incorporating social/environmental/sustainability measures in their multi-perspective Strategic Performance Measurement Systems (SPMS). An increasing number of Australian companies have shown willingness to publicly disclose their SPMS adoption (see Elijido-Ten, 2011) thereby enabling various stakeholders to evaluate both financial and non-financial performance of the firm. There is, however, mounting criticism that such public disclosures are no more than ‘green-washing’ mechanisms particularly if the SPMS targets/measures are not linked to rewards system or compensation plans. This is in line with various motivational theories making the favourite quote, -
what gets measured gets done,- self-fulfilling.
Specific Requirements:
A: LITERATURE REVIEW (Word Count – 1,500 to 1,800) (Weighting- 35%)
1. Multi-perspective SPMS Research
Conduct a review of literature on the
use of multi-perspective SPMS such as Balanced Scorecard or Triple (or Quadruple) Bottom Line. Briefly discuss its salient features. Cite academic research discussing real companies’ experiences (i.e. benefits/pitfalls or challenges; advantages/disadvantages) from their SPMS adoption.
2. Motivation Theories and Reward System Research
Discuss briefly
one theory of motivation and explain how this theory relates to rewards system. Cite academic research discussing the effective forms of rewards/compensation given to top executives and non-executive employees used by real companies. Your discussion should be well supported by relevant academic research. (Hint: Do not rely on your textbook.)
B: COMPANY RESEARCH (Word Count – 1,500 to 1,800) (Weighting- 35%)
1. Company Profile & Disclosure of SPMS
You are required to
select two companies from the Top 100 publicly listed companies in Australia that provide disclosure of their SPMS adoption. One firm must come from an environmentally sensitive industry (e.g. mining, energy/utility, chemical) while the other must be from a non-environmentally sensitive industry (e.g. insurance, financial firms). Briefly outline the profile of the companies chosen. Based on the relevant literature, discuss the criteria chosen in deciding whether the chosen companies adopt a multi-perspective SPMS (see for example Elijido-Ten & Tjan, 2011). Then, examine their SPMS disclosure from publicly available reports such as annual reports, shareholder reviews, sustainability reports, corporate responsibility policies and company websites for 2 years, 2012 and 2013. Over the 2-year period (2012–2013),discuss whether there has been any change in their SPMS disclosure in terms of the perspectives, objectives, measures and targets set.
2. Company Performance & Link to Rewards/Compensation Plan
Analyse
the companies’ 2012 and 2013 financial performance using appropriate financial measures. Investigate whether the two chosen companies link their SPMS measures/targets with executive rewards/compensation plans. Your analysis and discussion should explain how the companies have either succeeded or failed to strengthen their competitive advantage over the 2-year period you have examined.