The Ethical Compass
latest installment, entitled ESG EXTERNALITIES AND TRUE VALUE, presents a case
study of the environmental, social and governance (ESG) challenges faced by an
international beverage company introducing a new product into the global
market. Organized as two group activities, students discuss and assess the
external impacts (externalities) caused by the company’s business practices.
Using KPMG’s True Value Methodology the case study is designed to help students
recognize how a company creates value beyond their reported net income.
The ESG EXTERNALITIES AND TRUE VALUE activities are accompanied by a PowerPoint presentation that
discusses the new lexicon of sustainability reporting including terminology
referring to shareholders and stakeholders. The slides include an examination
of corporate consequences to the environmental and social elements of
sustainability as well as governance challenges and ethical dimensions of
business decisions. Additionally, the
new toolkit includes two student activity Handouts along with recommended solutions
for both activities as
well as a robust Faculty Guide which includes GRI, SASB and SDG references and
standards. This toolkit employs group interaction that leads to students
engaging in self-reflection about ethical decision-making in terms of the
effects of corporate decisions on our environment, our communities and our
economic systems.
Target
Audience
Primarily business
students; ideally students who have completed at least the first half of
principles to financial accounting since the second activity includes the preparation
of an income statement and partial balance sheet. Upper level accounting course
can include this toolkit to introduce students to emerging sustainability
reporting issues.
Objective
The ESG Externalities and True Value Toolkit of the KPMG Ethical Compass is intended to provide
students with an opportunity to:
·
Recognize
the environmental and societal consequences of corporate practices.
·
Appreciate
the importance of ethical decisions resulting from responsible sustainable
business practices.
·
Assess
the personal and professional risks that accompany decisions made in business
and corporate settings
·
Understand
the new lexicon of the most commonly used terms referring to sustainability
reporting.
·
Develop
an awareness of the responsibilities a corporation should accept when making
decisions that impact all their stakeholders.
·
Advance
group communication and persuasion skills among students.
Dedication:
The
KPMG Ethical Compass installment entitled, ESG Externalities and True Value, is
dedicated to Bea Sanders for her many years of service and her contributions to
the accounting profession and her unique ability to bridge public practice
professionals and members of the academic community to foster successful and
meaningful collaborations.
***
The
Ethical Compass – A Toolkit for Integrity in Business
This multi-part
toolkit of classroom learning materials was developed in collaboration between
KPMG’s Ethics and Compliance group and Dr. Barbara Porco of Fordham University.
The Ethical Compass Toolkit provides a comprehensive review of the issues
related to ethical behaviors in business as well as interactive learning
materials and exercises for your students. Each of these modules can be easily
integrated into an accounting, auditing, or business ethics curriculum
individually, or the multi-part toolkit can serve as the foundation for a
complete ethics program within an accounting, auditing or other business
curriculum.