BUACC2614 -MANAGEMENT ACCOUNTING 2
Evaluation of an Integrated Report produced by ANZ Bank in Creating value in terms of “Six Capitals”
The main purpose of an Integrated Report produced by ANZ Bank is to explain to their shareholders/financial providers how the company creates value over time. The bank does this through combining both qualitative and quantitative information thus bringing in “Six Capitals.” The ANZ Bank uses Six Capital model to decrease risks and threats facing the organization and to increase new opportunities consistently (Jane Gleeson-White 2016). The bank believes in winning a large market share in the market; it has to look for new business opportunities constantly.
The ANZ bank framework is grouped into six categories which include manufactured, intellectual, social and relationship, human, natural and financial. The bank uses all these to six categories as a form of capital to create value over time (Eccles, R.G., Krzus, M. 2016). The bank has managed to use Six Capital to create sustainability in ensuring its operations are managed to take account of economic, social and environmental risks and opportunities. By taking all these factors into consideration, the bank has managed to create and preserve value for their customers, shareholders, employees, the environmental and the communities in which the company operates.
The ANZ Bank usually set public sustainability targets and a corresponding Group-wide program of work every year so as to support the delivery of its business strategy. This helps to inform their shareholders and its financiers how it will be able to create value over time. The ANZ Bank has managed to implement various steps to enable it to strengthen its compliance systems, for instance, targeting external audits and undertaking staff training so as to improve monitoring, reporting as well as governance within the organization. By doing so, ANZ Bank has led to value creation thus improving its performance and profitability over time.
ANZ’s Corporate Sustainability Framework usually distinguishes between three key areas of sustainability that will help it to create and to improve its value over time. The key areas include sustainability development, diversity and inclusion and financial inclusion and capability. These help the organization to operate in a sustainable, responsible and ethical ways which help to increase its productivity and profitability in the long-run. Sustainable development helps ANZ bank to integrate environmental and social considerations into the organization decision-making process, products and services produced so as to help their customers to achieve their sustainability ambitions and to deliver long-term value to its shareholders and its financiers.
Diversity and inclusion is one way of spreading risks thus preventing the bank from suffering a total loss in case a disaster occur in one of its sectors. Building diverse and inclusive workforce has helped the company to be innovative, establishing new marker and opportunities, connecting with their customers thus helping the bank to make better and informed decisions. This has helped the bank to create more value, improved productivity, and performance of the organization.
Financial inclusion and capability helped ANZ Bank to build its financial capability. This helped it to promote financial inclusion and progression of individuals, shareholders, and communities. Finally, the company undertakes a comprehensive materiality assessment that includes formal engagement with external and internal stakeholders so as to inform them how the bank is progressing and how its value is being created over time. The materiality process provides the company with the basis of developing present and future sustainability.
"Apple, ANZ Bank strike deal to bring Apple Pay to Australia". Reuters. 2016-04-27. Retrieved 2016-04-28.
ANZ Management Board. ANZ Shareholder Centre". www.shareholder.anz.com. Retrieved 2016-01-21.
Eccles, R.G., Krzus, M. (2016) One Report: Integrated Reporting for a Sustainable Strategy, Wiley, New Jersey, USA.